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Exhibit
99.1
AMENDED AND
RESTATED
364-DAY REVOLVING CREDIT
AGREEMENT
dated as of
October 4,
2007
among
FORTUNE BRANDS,
INC.,
FORTUNE BRANDS FINANCE UK
P.L.C.,
The Lenders Party
Hereto
BARCLAYS BANK PLC
and
CITIBANK, N.A.,
as Syndication
Agents
and
JPMORGAN CHASE BANK,
N.A.,
as Administrative
Agent
BARCLAYS CAPITAL,
and
CITIGROUP GLOBAL MARKETS
INC.,
as Lead Arrangers and
Bookrunners
ABN AMRO BANK,
N.V.
and
CREDIT SUISSE, CAYMAN ISLANDS
BRANCH,
as Documentation
Agents
TABLE OF CONTENTS
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Page |
| ARTICLE I |
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| Definitions |
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SECTION 1.01.
Defined Terms
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1 |
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SECTION 1.02.
Classification of Loans and
Borrowings
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18 |
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SECTION 1.03.
Terms Generally
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19 |
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SECTION 1.04.
Accounting Terms; GAAP
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19 |
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| ARTICLE II |
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| The Credits |
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SECTION 2.01.
Revolving Commitments
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19 |
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SECTION 2.02.
Loans and Borrowings
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20 |
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SECTION 2.03.
Requests for Revolving
Borrowings
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21 |
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SECTION 2.04.
Competitive Bid and Negotiated Rate Loan
Procedures
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22 |
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SECTION 2.05.
Funding of Borrowings
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25 |
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SECTION 2.06.
Interest Elections
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26 |
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SECTION 2.07.
Termination and Reduction of Revolving
Commitments
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28 |
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SECTION 2.08.
Repayment of Loans; Evidence of
Debt
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28 |
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SECTION 2.09.
Prepayment of Loans
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29 |
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SECTION 2.10.
Fees
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30 |
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SECTION 2.11.
Interest
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31 |
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SECTION 2.12.
Alternate Rate of Interest
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32 |
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SECTION 2.13.
Increased Costs
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33 |
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SECTION 2.14.
Break Funding Payments
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35 |
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SECTION 2.15.
Taxes
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35 |
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SECTION 2.16.
Payments Generally; Pro Rata Treatment;
Sharing of Set-offs
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37 |
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SECTION 2.17.
Mitigation Obligations; Replacement of
Lenders
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39 |
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SECTION 2.18.
Additional Reserve Costs
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40 |
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SECTION 2.19.
Redenomination of Certain Designated
Foreign Currencies
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40 |
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SECTION 2.20.
Term-Out Option
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41 |
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SECTION 2.21.
Assigned Dollar Value
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41 |
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| ARTICLE III |
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| Representations and Warranties |
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SECTION 3.01.
Organization; Powers
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42 |
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SECTION 3.02.
Authorization; Enforceability
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42 |
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SECTION 3.03.
Governmental Approvals; No
Conflicts
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42 |
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SECTION 3.04.
Financial Condition; No Material Adverse
Change
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42 |
i
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SECTION 3.05.
Properties
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43 |
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SECTION 3.06.
Litigation and Environmental
Matters
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43 |
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SECTION 3.07.
Compliance with Laws and
Agreements
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43 |
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SECTION 3.08.
Investment Company Status
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44 |
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SECTION 3.09.
Taxes
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44 |
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SECTION 3.10.
ERISA
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44 |
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SECTION 3.11.
Disclosure
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44 |
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| ARTICLE IV |
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| Conditions |
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SECTION 4.01.
Effective Date
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44 |
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SECTION 4.02.
Each Credit Event
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45 |
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| ARTICLE V |
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| Affirmative Covenants |
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SECTION 5.01.
Financial Statements and Other
Information
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46 |
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SECTION 5.02.
Notices of Material Events
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47 |
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SECTION 5.03.
Existence; Conduct of Business
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47 |
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SECTION 5.04.
Payment of Obligations
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47 |
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SECTION 5.05.
Maintenance of Properties;
Insurance
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47 |
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SECTION 5.06.
Books and Records; Inspection
Rights
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47 |
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SECTION 5.07.
Compliance with Laws
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48 |
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SECTION 5.08.
Use of Proceeds
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48 |
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SECTION 5.09.
Litigation Report
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48 |
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| ARTICLE VI |
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| Negative Covenants |
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SECTION 6.01.
Restrictions on Borrowing by Restricted
Subsidiaries
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48 |
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SECTION 6.02.
Restrictions on Secured Debt
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49 |
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SECTION 6.03.
Restrictions on Sale and Lease Back
Transactions
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51 |
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SECTION 6.04.
Fundamental Changes
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51 |
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SECTION 6.05.
Transactions with Affiliates
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53 |
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SECTION 6.06.
Interest Coverage Ratio
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53 |
ii
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| ARTICLE VII |
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| Events of Default |
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| ARTICLE VIII |
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| The Administrative Agent |
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| ARTICLE IX |
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| Guarantee |
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| ARTICLE X |
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| Miscellaneous |
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SECTION 10.01.
Notices
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59 |
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SECTION 10.02.
Waivers; Amendments
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60 |
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SECTION 10.03.
Expenses; Indemnity; Damage
Waiver
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61 |
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SECTION 10.04.
Successors and Assigns
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63 |
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SECTION 10.05.
Survival
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66 |
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SECTION 10.06.
Counterparts; Integration;
Effectiveness
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66 |
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SECTION 10.07.
Severability
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66 |
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SECTION 10.08.
Right of Setoff
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66 |
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SECTION 10.09.
Governing Law; Jurisdiction; Consent to
Service of Process
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67 |
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SECTION 10.10.
WAIVER OF JURY TRIAL
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68 |
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SECTION 10.11.
Headings
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68 |
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SECTION 10.12.
Confidentiality
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68 |
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SECTION 10.13.
Interest Rate Limitation
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69 |
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SECTION 10.14.
Judgment
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69 |
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SECTION 10.15.
USA PATRIOT Act
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70 |
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SECTION 10.16.
Non-Public Information
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70 |
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SECTION 10.17.
No Fiduciary Duty
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70 |
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SECTION 10.18.
Waiver of Notice Period in connection with
Termination of the Existing Credit Agreement
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70 |
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| SCHEDULES: |
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Schedule 2.01 — Revolving
Commitments
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Schedule 3.06 — Disclosed
Matters
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| EXHIBITS: |
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Exhibit A — Form of Assignment and
Acceptance
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iii
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Exhibit B-1 — Form of Opinion of
Company’s Counsel
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Exhibit B-2 — Form of Opinion of
Fortune Brands UK’s Counsel
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Exhibit C — MLA
Cost
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Exhibit D — Form of Revolving
Note
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Exhibit E — Form of Borrowing
Request
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Exhibit F — Form of Financial
Officer’s Certificate
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iv
AMENDED AND RESTATED 364-DAY
REVOLVING CREDIT AGREEMENT dated as of October 4, 2007, among
FORTUNE BRANDS, INC., a Delaware corporation, FORTUNE BRANDS
FINANCE UK P.L.C., a public limited company organized under the
laws of England and Wales, the LENDERS party hereto, JPMORGAN CHASE
BANK, N.A., as Administrative Agent, and BARCLAYS BANK PLC and
CITIBANK, N.A., as Syndication Agents.
The Borrowers, certain of the
Lenders and the Administrative Agent are parties to Existing Credit
Agreement and have agreed, subject to the conditions set forth in
Section 4.01, to amend and restate the Existing Credit
Agreement in the form of this Amended and Restated Credit
Agreement.
The parties hereto agree as
follows:
ARTICLE I
Definitions
SECTION 1.01. Defined
Terms. As used in this Agreement, the following terms have the
meanings specified below:
“ ABR ”,
when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base
Rate.
“ Adjusted LIBO
Rate ” means, with respect to any Eurocurrency Borrowing
for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by
(b) the Statutory Reserve Rate.
“ Administrative
Agent ” means JPMorgan Chase Bank, N.A., in its capacity
as administrative agent for the Lenders hereunder.
“ Administrative
Questionnaire ” means an Administrative Questionnaire in
a form supplied by the Administrative Agent.
“ Affiliate
” means, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the
Person specified. With respect to any Lender, the term
“Affiliate” shall be deemed to include (a) any
entity (whether a corporation, partnership, trust or otherwise)
that is engaged in making, purchasing, holding or otherwise
investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by
such Lender or an Affiliate of such Lender and (b) in the case
of any Lender that is a fund that invests in bank loans and similar
extensions of credit, any other fund that invests in bank loans and
similar extensions of credit and is managed by the same investment
advisor as such Lender or by an Affiliate of such investment
advisor.
“ Agreement
Currency ” has the meaning assigned to such term in
Section 10.14(b).
“ Alternate Base
Rate ” means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and
(b) the Federal Funds Effective Rate in effect on such day
plus 1 / 2 of 1%. Any change in the Alternate Base
Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and including the effective
date of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.
“ Alternative
Committed Currency ” means British Pounds Sterling or
Euro.
“ Alternative
Currency ” means (a) any Alternative Committed
Currency or (b) any other currency specified by the applicable
Borrower in a Competitive Bid Request relating to a proposed
Competitive Borrowing if such currency is freely transferable and
convertible into Dollars in the London market at the time and for
which LIBO Rates may be determined at such time by reference to the
Telerate screen as provided in the definition of “LIBO
Rate”.
“ Alternative
Currency Borrowing ” means a Borrowing comprised of
Alternative Currency Loans.
“ Alternative
Currency Equivalent ” means, with respect to an amount in
Dollars on any date in relation to a specified Alternative
Currency, the amount of such specified Alternative Currency that
may be purchased with such amount of Dollars at the Spot Exchange
Rate with respect to such Alternative Currency on such
date.
“ Alternative
Currency Loan ” means any Loan denominated in an
Alternative Currency.
“ Applicable
Creditor ” has the meaning assigned to such term in
Section 10.14(b).
“ Applicable
Currency ” has the meaning assigned to such term in
Section 2.12(a).
“ Applicable
Rate ” means, for any day, (i) with respect to any
Eurocurrency Revolving Loan, the applicable rate per annum set
forth below under the caption “Eurocurrency Spread”,
(ii) with respect to the facility fees payable hereunder, the
applicable rate per annum set forth below under the caption
“Facility Fee Rate” and (iii) with respect to any
utilization fees payable hereunder, the applicable rate per annum
set forth below under the caption “Utilization Fee”, in
each case based upon the ratings by Moody’s and S&P,
respectively, applicable on such date to the Index Debt:
2
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Index Debt
Ratings:
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Ratings |
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Eurocurrency
Spread
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Facility Fee
Rate
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Utilization Fee |
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Category 1
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A2/A or above |
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0.160 |
% |
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0.040 |
% |
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0.050 |
% |
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Category 2
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> A3/A- |
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0.200 |
% |
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0.050 |
% |
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0.050 |
% |
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Category 3
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> Baa1/BBB+ |
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0.290 |
% |
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0.060 |
% |
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0.050 |
% |
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Category 4
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> Baa2/BBB |
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0.370 |
% |
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0.080 |
% |
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0.050 |
% |
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Category 5
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> Baa3/BBB- |
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0.450 |
% |
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0.100 |
% |
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0.100 |
% |
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Category 6
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Ba1/BB+ or below |
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0.600 |
% |
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0.150 |
% |
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0.100 |
% |
For purposes of the
foregoing, (a) if either Moody’s or S&P shall not
have in effect a rating for the Index Debt (other than by reason of
the circumstances referred to in the last sentence of this
definition), then such rating agency shall be deemed to have
established a rating in Category 6; (b) if the ratings
established or deemed to have been established by Moody’s and
S&P for the Index Debt shall fall within different Categories,
the Applicable Rate shall be based on the higher of the two ratings
unless one of the two ratings is two or more Categories lower than
the other, in which case the Applicable Rate shall be determined by
reference to the Category next below that of the higher of the two
ratings; (c) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt shall
be changed (other than as a result of a change in the rating system
of Moody’s or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating
agency; and (d) so long as no Default shall have occurred and
be continuing, the Company may replace either S&P or
Moody’s (but not both) with Fitch; provided that, in
the event of any such replacement, clause (b) above
shall cease to apply and, in lieu of such clause (b) , if
the ratings established or deemed to have been established by
Moody’s or S&P (whichever remains as a rating agency for
purposes hereof) or Fitch are not in the same Category, then the
Applicable Rate will be determined based on the lower rating unless
the lower rating is two or more Categories lower than the rating
established or deemed to have been established by the other rating
agency, in which case the Applicable Rate shall be determined by
reference to the Category next above that of the lower of the two
ratings. Each change in the Applicable Rate shall apply during the
period commencing on the effective date of such change and ending
on the date immediately preceding the effective date of the next
such change. If the rating system of Moody’s, S&P or
Fitch (whichever are applicable) shall change, or if either such
applicable rating agency shall cease to be in the business of
rating corporate debt obligations, the Borrowers and the Lenders
shall negotiate in good faith to amend this definition to reflect
such changed rating system or the unavailability of ratings from
such rating agency and, pending the effectiveness of any such
amendment, the Applicable Rate shall be determined by reference to
the rating most recently in effect prior to such change or
cessation.
“ Applicable
Revolving Commitment Percentage ” means, with respect to
any Lender, the percentage of the total Revolving Commitments
represented by such Lender’s Revolving Commitment. If the
Revolving Commitments have terminated or expired, the Applicable
Revolving Commitment Percentages shall be determined based upon the
Revolving Commitments most recently in effect, giving effect to any
assignments.
3
“ Assigned Dollar
Value ” has the meaning assigned to such term in
Section 2.21.
“ Assignment and
Acceptance ” means an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party
whose consent is required by Section 10.04), and accepted by
the Administrative Agent, in the form of Exhibit A or
any other form approved by the Administrative Agent.
“ Availability
Period ” means the period from and including the
Effective Date to but excluding the earlier of the Termination Date
and the date of termination of the Revolving
Commitments.
“ Board ”
means the Board of Governors of the Federal Reserve System of the
United States of America.
“ Board
Resolution ” means a copy of a resolution delivered to
the Administrative Agent and certified by the Secretary or an
Assistant Secretary of the Company as having been duly adopted by
the Board of Directors of the Company, or by the Secretary or an
Assistant Secretary of the Company or the Secretary of the
Executive Committee of such Board of Directors as having been duly
adopted by such Executive Committee, or by the Secretary or an
Assistant Secretary of the Company or the Secretary of any other
committee of such Board of Directors duly authorized to act for it
hereunder as having been duly adopted by such other
committee.
“ Borrowers
” means the Company and Fortune Brands UK.
“ Borrowing
” means (a) Revolving Loans to the same Borrower of the
same Type and Currency, made, converted or continued on the same
date and, in the case of Eurocurrency Loans, as to which a single
Interest Period is in effect, (b) a Competitive Loan or group
of Competitive Loans to the same Borrower of the same Type and
Currency made on the same date and as to which a single Interest
Period is in effect or (c) a Negotiated Rate Loan.
“ Borrowing Date
” means any Business Day specified in a notice pursuant to
Section 2.02 or 2.04 as a date on which the
relevant Borrower requests Loans to be made hereunder.
“ Borrowing
Request ” means a request by either Borrower for a
Revolving Borrowing in accordance with
Section 2.03.
“ British Pounds
Sterling ” or “ £ ” means lawful
money of the United Kingdom.
“ Business Day
” means any day that is not a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or
required by law to
4
remain closed, except that when used in
connection with a Eurocurrency Loan or an Alternative Currency
Loan, “Business Day” also shall exclude any day on
which dealings in foreign currencies and exchange between banks may
not be carried on in London, England or New York, New York or, in
the case of an Alternative Currency Loan denominated in a currency
other than British Pounds Sterling, the place designated by the
Administrative Agent from time to time as the place for payments in
such currency.
“ Capital Lease
Obligations” of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property,
or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet
of such Person under GAAP, and the amount of such obligations shall
be the capitalized amount thereof determined in accordance with
GAAP.
“ Change in
Control ” means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934
and the rules of the Securities and Exchange Commission thereunder
as in effect on the date hereof), of shares representing more than
50% of the aggregate ordinary voting power represented by the
issued and outstanding capital stock of the Company; or
(b) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Company by Persons who were
neither (i) nominated by the board of directors of the Company
nor (ii) appointed by directors so nominated.
“ Change in Law
” means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law,
rule or regulation or in the interpretation or application thereof
by any Governmental Authority after the date of this Agreement or
(c) compliance by any Lender (or, for purposes of
Section 2.13(b) or 2.18, by any lending office of such Lender
or by such Lender’s holding company, if any) with any
request, guideline or directive (whether or not having the force of
law) of any Governmental Authority made or issued after the date of
this Agreement.
“ Charges
” has the meaning assigned to such term in
Section 10.13.
“ Class ”,
when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving
Loans, Competitive Loans or Negotiated Rate Loans.
“ Code ”
means the Internal Revenue Code of 1986, as amended from time to
time.
“ Company
” means Fortune Brands, Inc.
“ Competitive
Bid ” means an offer by a Lender to make a Competitive
Loan in accordance with Section 2.04 .
5
“ Competitive Bid
Rate ” means, with respect to any Competitive Bid, the
Margin or the Fixed Rate, as applicable, offered by the Lender
making such Competitive Bid.
“ Competitive Bid
Request ” means a request by either Borrower for
Competitive Bids in accordance with Section 2.04
.
“ Competitive
Loan ” means a Loan made pursuant to a Competitive Bid as
contemplated by Section 2.04 .
“ Consolidated
EBITDA ” means, for any period of four consecutive fiscal
quarters, Consolidated Net Income for such period, excluding, to
the extent included in determining such Consolidated Net Income,
extraordinary items, noncash restructuring charges, noncash
nonrecurring charges, losses from asset impairments and gains or
losses resulting from the sale of assets not in the ordinary course
of business, plus, without duplication and to the extent deducted
in determining such Consolidated Net Income, the sum of
(i) Consolidated Interest Expense for such period,
(ii) income taxes for such period, and (iii) depreciation
and amortization of intangibles for such period, all determined on
a consolidated basis for each such item in accordance with
GAAP.
“ Consolidated
Interest Expense ” means, for any period, the gross
interest expense of the Company and the Subsidiaries for such
period determined on a consolidated basis in accordance with
GAAP.
“ Consolidated Net
Income ” means, for any period, net income for the
Company and the Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP.
“ Consolidated Net
Tangible Assets ” means the excess over current
liabilities of all assets as determined by the Company and set
forth in a consolidated balance sheet of the Company and its
consolidated Subsidiaries prepared in accordance with GAAP as of a
date within 90 days of the date of such determination, after
deducting goodwill, trademarks, patents, other like intangibles and
the minority interest of others.
“ Control
” means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by
contract or otherwise. “ Controlling ” and
“ Controlled ” have meanings correlative
thereto.
“ Currency
”, when used in reference to any amount, refers to whether
such amount is denominated in (a) Dollars, (b) British
Pounds Sterling, (c) Euro or (d) in respect of any
Competitive Borrowing denominated in another Alternative Currency,
such Alternative Currency.
“ Currency
Equivalent ” means the Dollar Equivalent or the
Alternative Currency Equivalent, as the case may be, of the
Applicable Currency.
6
“ Default
” means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless
cured or waived, become an Event of Default.
“ Denomination
Date ” means, in relation to any Alternative Currency
Borrowing, the date that is three Business Days before the date
such Borrowing is made.
“ Disclosed
Matters ” means the actions, suits and proceedings and
the environmental matters disclosed in Schedule 3.06
and the matters described in any filings made by the Company from
time to time with the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended.
“ Dollar
Equivalent ” means, with respect to an amount of any
Alternative Currency on any date, the amount of Dollars that may be
purchased with such amount of the Alternative Currency at the Spot
Exchange Rate with respect to the Alternative Currency on such
date.
“ Dollars
” or “ $ ” refers to lawful money of the
United States of America.
“ Effective Date
” means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with
Section 10.02) and the Existing Credit Agreement is amended
and restated in the form of this Agreement.
“ EMU
Legislation ” means the legislative measures of the
European Union for the introduction of, changeover to or operation
of the Euro in one or more member states.
“ Environmental
Laws ” means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or
binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the environment,
preservation or reclamation of natural resources, the management,
release or threatened release of any Hazardous Material or to
health and safety matters.
“ Environmental
Liability ” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of either Borrower
or any Subsidiary directly or indirectly resulting from or based
upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of
any Hazardous Materials into the environment or (e) any
contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the
foregoing.
“ Equity
Interests ” means shares of capital stock, partnership
interests, membership interests in a limited liability company,
beneficial interests in a trust or other equity interests in any
Person.
7
“ ERISA ”
means the Employee Retirement Income Security Act of 1974, as
amended from time to time.
“ ERISA
Affiliate ” means any trade or business (whether or not
incorporated) that, together with either Borrower, is treated as a
single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and
Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
“ ERISA Event
” means (a) any “reportable event”, as
defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which
the 30-day notice period is waived); (b) prior to the
effectiveness of the applicable provisions of the Pension Act, the
existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA) or, on or after the effectiveness of the
applicable provisions of the Pension Act, any failure by any Plan
to satisfy the minimum funding standard (within the meaning of
Section 412 of the Code or Section 302 of ERISA)
applicable to such Plan, in each case whether or not waived;
(c) the filing pursuant to, prior to the effectiveness of the
applicable provisions of the Pension Act, Section 412(d) of
the Code or Section 303(d) of ERISA or, on or after the
effectiveness of the applicable provisions of the Pension Act,
Section 412(c) of the Code or Section 302(c) of ERISA, of
an application for a waiver of the minimum funding standard with
respect to any Plan; (d) on and after the effectiveness of the
applicable provisions of the Pension Act, a determination that any
Plan is, or is expected to be, in “at-risk” status (as
defined in Section 303(i)(4) of ERISA or
Section 430(i)(4) of the Code); (e) the incurrence by any
Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan;
(f) the receipt by any Borrower or any ERISA Affiliate from
the PBGC or a plan administrator of any notice relating to an
intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (g) the incurrence by any Borrower or any
of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer
Plan; or (h) the receipt by any Borrower or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan
from any Borrower or any ERISA Affiliate of any notice, concerning
the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA or, on
and after the effectiveness of the applicable provisions of the
Pension Act, in endangered or critical status, within the meaning
of Section 305 of ERISA.
“ Euro ”
or “ € ” means the single currency of the
European Union as constituted by the Treaty on European Union and
as referred to in the EMU Legislation
“ Eurocurrency
”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are
bearing interest at a rate determined by reference to the Adjusted
LIBO Rate (or, in the case of a Competitive Loan, the LIBO
Rate).
“ Event of
Default ” has the meaning assigned to such term in
Article VII.
8
“ Excluded Taxes
” means, with respect to the Administrative Agent, J.P.
Morgan Europe Limited, any Lender or any other recipient of any
payment to be made by or on account of any obligation of either
Borrower hereunder, (a) income, franchise or similar taxes
imposed on (or measured by) its net income by the United States of
America or the United Kingdom or by the jurisdiction under the laws
of which the Administrative Agent, J.P. Morgan Europe Limited, such
Lender or other such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which
its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any
similar tax imposed by any other jurisdiction described in clause
(a) above, and (c) in the case of a Foreign Lender (other
than an assignee pursuant to a request by either Borrower under
Section 2.17(b)) , any withholding tax that (i) is
in effect and would apply to amounts payable to such Foreign
Lender, at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office), by a Borrower
previously designated hereunder, except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time
of designation of a new lending office (or assignment), to receive
additional amounts from the Borrowers with respect to any
withholding tax pursuant to Section 2.15(a) , or
(ii) is attributable to such Foreign Lender’s failure to
comply with Section 2.15(e) .
“ Existing Credit
Agreement ” means the 364-Day Revolving Credit Agreement
dated as of October 5, 2006, among the Borrowers, the lenders
parties thereto, JPMorgan Chase Bank, N.A., as the Administrative
Agent, and Barclays Bank PLC and Citicorp North America, Inc., as
the Syndication Agents,
“ Extended Maturity
Date ” means October 2, 2009.
“ Federal Funds
Effective Rate ” means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published
for any day that is a Business Day, the average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the quotations for such
day for such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by
it.
“ Financial
Officer ” means the chief financial officer, principal
accounting officer, treasurer or controller of either
Borrower.
“ Fitch ”
means Fitch, Inc., or any successor thereto.
“ Fixed Rate
” means, with respect to any Competitive Loan (other than a
Eurocurrency Competitive Loan), the fixed rate of interest per
annum specified by the Lender making such Competitive Loan in its
related Competitive Bid.
“ Fixed Rate
Loan ” means a Competitive Loan bearing interest at a
Fixed Rate.
9
“ Foreign Lender
” means, with respect to either Borrower, any Lender that is
organized under the laws of a jurisdiction other than that in which
such Borrower is located. For purposes of this definition, the
United States of America, each State thereof and the District of
Columbia shall be deemed to constitute a single
jurisdiction.
“ Fortune Brands
UK ” means Fortune Brands Finance UK p.l.c.
“ Funded Debt
” of any Person means (i) all indebtedness for money
borrowed which by its terms matures more than 12 months from the
creation, extension or renewal thereof or which is extendible or
renewable at the option of the obligor on such indebtedness to a
time more than 12 months after its creation, extension or renewal
and (ii) all guarantees, direct or indirect, of such
indebtedness of others or of dividends; provided that Funded
Debt shall not include endorsements of negotiable instruments for
collection, deposit or negotiation and guarantees by the Company or
a Restricted Subsidiary arising in connection with the sale,
discount, guarantee or pledge of notes, chattel mortgages, leases,
accounts receivable, trade acceptances and other paper arising, in
the ordinary course of business, out of installment or conditional
sales to or by, or transactions involving title retention with,
distributors, dealers or other customers, of merchandise, equipment
or services. The Company or a Restricted Subsidiary shall be deemed
to have assumed any Funded Debt secured by any mortgage upon any of
its property or assets whether or not it has actually done
so.
“ GAAP ”
means generally accepted accounting principles in the United States
of America.
“ Governmental
Authority ” means the government of the United States of
America, the United Kingdom, any other nation or any political
subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining
to government.
“ Granting
Lender ” has the meaning specified in paragraph
(h) of Section 10.04 .
“ Guarantee
” of or by any Person (the “ guarantor ”)
means any obligation, contingent or otherwise, of the guarantor
guaranteeing or having the economic effect of guaranteeing any
Indebtedness of any other Person (the “ primary
obligor ”) in any manner, whether directly or indirectly,
and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or to purchase (or to
advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease property, securities
or services for the purpose of assuring the owner of such
Indebtedness of the payment thereof, (c) to maintain working
capital, equity capital or any other financial statement condition
or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as
an account party in respect of any letter of credit or letter of
guaranty issued to support such Indebtedness or obligation;
provided , that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of
business.
10
“ Hazardous
Materials ” means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos
or asbestos containing materials, polychlorinated biphenyls, radon
gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental
Law.
“ Indebtedness
” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all Capital
Lease Obligations of such Person and (c) all Guarantees by
such Person of Indebtedness of others described in clause
(a) or (b) above. The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such
Person’s ownership interest in or other relationship with
such entity, except to the extent the terms of such Indebtedness
provide that such Person is not liable therefor.
“ Indemnified
Taxes ” means Taxes other than Excluded Taxes.
“ Index Debt
” means senior, unsecured, long-term indebtedness for
borrowed money of the Company that is not guaranteed by any other
Person or subject to any other credit enhancement.
“ Information
Memorandum ” means the Confidential Information
Memorandum dated September 2007, relating to the Borrowers and
the Transactions.
“ Interest Election
Request ” means a request by either Borrower to convert
or continue a Revolving Borrowing in accordance with
Section 2.06 .
“ Interest Payment
Date ” means (a) with respect to any ABR Loan, the
last day of each March, June, September and December, (b) with
respect to any Eurocurrency Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurocurrency Borrowing with an Interest
Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of
three months’ duration after the first day of such Interest
Period, (c) with respect to any Fixed Rate Loan, the last day
of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Fixed Rate Borrowing with an
Interest Period of more than 90 days’ duration (unless
otherwise specified in the applicable Competitive Bid Request),
each day prior to the last day of such Interest Period that occurs
at intervals of 90 days’ duration after the first day of such
Interest Period, and any other dates that are specified in the
applicable Competitive Bid Request as Interest Payment Dates with
respect to such Borrowing and (d) with respect to any
Negotiated Rate Loan, the last day of the Interest Period
applicable to such Negotiated Rate Loan and any other day during
such Interest Period on which interest therein is payable, as
separately agreed between the applicable Borrower and the
applicable Lender.
11
“ Interest
Period ” means (a) with respect to any Eurocurrency
Borrowing, the period commencing on the date of such Borrowing and
ending on the numerically corresponding day in the calendar month
that is one, two, three or six months thereafter, as the
applicable Borrower may elect (or, with the consent of each Lender
participating in such Borrowing, such other time period as the
applicable Borrower may request), (b) with respect to any
Fixed Rate Borrowing, the period (which shall not be less than
seven days or more than 180 days) commencing on the date of such
Borrowing and ending on the date specified in the applicable
Competitive Bid Request and (c) with respect to any Negotiated
Rate Borrowing, the period commencing on the date of such Borrowing
and ending on such date as shall be mutually agreed upon between
the applicable Borrower and the applicable Lender; provided
, that (i) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless, in the case of a Eurocurrency
Borrowing only, such next succeeding Business Day would fall in the
next calendar month, in which case such Interest Period shall end
on the next preceding Business Day and (ii) any Interest
Period pertaining to a Eurocurrency Borrowing that commences on the
last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the last calendar month of
such Interest Period) shall end on the last Business Day of the
last calendar month of such Interest Period. For purposes hereof,
the date of a Borrowing initially shall be the date on which such
Borrowing is made and, in the case of a Revolving Borrowing,
thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.
“ Judgment
Currency ” has the meaning assigned to such term in
Section 10.14(b).
“ Lenders
” means the Persons listed on Schedule 2.01 and
any other Person that shall have become a party hereto pursuant to
an Assignment and Acceptance, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and
Acceptance.
“ LIBO Rate
” means, with respect to any Eurocurrency Borrowing for any
Interest Period, the rate per annum determined by reference to the
British Bankers’ Association Interest Settlement Rates for
deposits with a maturity comparable to such Interest Period
denominated in the Currency in which such Eurocurrency Borrowing is
denominated as reflected on the Reuters “LIBOR01”
screen (or on any successor or substitute page of the Reuters
Service, providing rate quotations comparable to those currently
provided on such Service, as determined by the Administrative Agent
or J.P. Morgan Europe Limited, as applicable, from time to time for
purposes of providing quotations of interest rates applicable to
deposits of Currency in which such Borrowing is denominated) at
approximately 11:00 a.m., London time, on the Quotation Day for the
currency in which such Borrowing is denominated. In the event that
such rate is not available at such time for any reason, then the
“ LIBO Rate ” with respect to such Eurocurrency
Borrowing for such Interest Period shall be the rate at which
Dollar deposits of $5,000,000 (or in the case of Eurocurrency
Borrowings denominated in an Alternative Currency, deposits with a
Dollar Equivalent of $5,000,000) and for a maturity comparable to
such Interest Period are offered by the principal London office of
the
12
Administrative Agent or J.P. Morgan
Europe Limited, as applicable, in immediately available funds in
the London interbank market at approximately 11:00 a.m.,
London time, on the Quotation Day for the currency in which such
Borrowing is denominated prior to the commencement of such Interest
Period.
“ Lien ”
means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset and (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having
substantially the same economic effect as any of the foregoing)
relating to such asset.
“ Loan ”
means any loan made by a Lender to a Borrower pursuant to this
Agreement.
“ Local Time
” means (a) with respect to any Loan or Borrowing
denominated in Dollars, New York City time and (b) with
respect to any Loan or Borrowing denominated in any Alternative
Currency, London time (or such other time as J.P. Morgan Europe
Limited may designate in respect of the applicable
currency).
“ Margin ”
means, with respect to any Competitive Loan bearing interest at a
rate based on the LIBO Rate, the marginal rate of interest, if any,
to be added to or subtracted from the LIBO Rate to determine the
rate of interest applicable to such Loan, as specified by the
Lender making such Loan in its related Competitive Bid.
“ Material Adverse
Effect ” means a material adverse effect on (a) the
business, assets, operations or financial condition of the Company
and the Subsidiaries taken as a whole or (b) the rights of or
benefits available to the Lenders under this Agreement.
“ Material
Indebtedness ” means Indebtedness (other than the Loans)
of any one or more of the Company and the Subsidiaries in an
aggregate principal amount exceeding $50,000,000.
“ Material
Subsidiary ” means any Subsidiary that is (a) a
Restricted Subsidiary, (b) Fortune Brands UK or (c) a
“significant subsidiary” of the Company within the
meaning of Regulation S-X of the Securities and Exchange
Commission (or any successor provision).
“ Maximum Rate
” has the meaning assigned to such term in
Section 10.13.
“ MLA Cost
” means the cost imputed to the Lenders in connection with a
Borrowing denominated in British Pounds Sterling in compliance with
the Mandatory Liquid Asset requirements of the Bank of England
during an Interest Period (or part of an Interest Period),
expressed as a rate per annum and determined in accordance with
Exhibit C .
“ Moody’s
” means Moody’s Investors Service, Inc., or any
successor thereto.
13
“ mortgage
” means any mortgage, pledge or security interest.
“ Multiemployer
Plan ” means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
“ Negotiated Rate
Loan ” means a Loan made to a Borrower by a Lender
pursuant to a Negotiated Rate Loan Request in such principal
amount, for such Interest Period and having such interest rate(s)
and repayment terms as shall, in each case, be mutually agreed upon
between such Borrower and such Lender.
“ Negotiated Rate
Loan Request ” means a request by a Borrower for a Lender
to make a Negotiated Rate Loan, which shall be delivered to such
Lender (with a copy to the Administrative Agent) in writing, by
facsimile transmission or by telephone, immediately confirmed in
writing, and which shall specify the amount to be borrowed and the
proposed Borrowing Date, Currency and Interest Period.
“ Obligations
” means (a) the obligation of each Borrower to pay the
principal of and premium, if any, and interest (including interest
accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding) on the Loans made to such
Borrower, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, and
(b) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct,
contingent, fixed or otherwise (including monetary obligations
incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding), of the Company or the
other Borrower under this Agreement.
“ Other Taxes
” means any and all present or future recording, stamp,
documentary, excise, transfer, sales, property or similar taxes,
charges or levies arising from any payment made hereunder or from
the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement.
“ PATRIOT Act
” has the meaning assigned to such term in
Section 10.15.
“ PBGC ”
means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar
functions.
“ Pension Act
” shall mean the Pension Protection Act of 2006, as amended
from time to time.
“ Person ”
means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership,
Governmental Authority or other entity.
“ Plan ”
means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or
Section 412 of the Code or Section 302 of ERISA, and in
respect of which either Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA
be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.
14
“ Prime Rate
” means the rate of interest per annum publicly announced
from time to time by JPMorgan Chase Bank, N.A. as its prime rate in
effect at its principal office in New York City; each change in the
Prime Rate shall be effective from and including the date such
change is publicly announced as being effective.
“ Process Agent
” has the meaning assigned to such term in
Section 10.09(d).
“ Quotation Day
” in respect of the determination of the LIBO Rate for any
Interest Period (a) for any Eurocurrency Borrowing in Dollars
or any Alternative Currency (other than British Pounds Sterling),
means the day on which quotations would ordinarily be given by
prime banks in the London interbank market for deposits in the
currency in which such Borrowing is denominated for delivery on the
first day of such Interest Period; provided , that if
quotations would ordinarily be given on more than one date, the
Quotation Day for such Interest Period shall be the last of such
dates and (b) for any Eurocurrency Borrowing denominated in
British Pounds Sterling, means the first day of such Interest
Period.
“ Register
” has the meaning set forth in Section 10.04
.
“ Related
Parties ” means, with respect to any specified Person,
such Person’s Affiliates and the respective directors,
officers and employees of such Person and such Person’s
Affiliates.
“ Required
Lenders ” means, at any time, Lenders having Revolving
Credit Exposures and unused Revolving Commitments representing more
than 50% of the sum of the total Revolving Credit Exposures and
unused Revolving Commitments at such time; provided that,
for purposes of declaring the Loans to be due and payable pursuant
to Article VII, and for all purposes after the Loans become due and
payable pursuant to Article VII or the Revolving Commitments
expire or terminate, the outstanding Competitive Loans and
Negotiated Rate Loans of the Lenders shall be included in their
respective Revolving Credit Exposures in determining the Required
Lenders.
“ Restricted
Subsidiary ” means any Subsidiary other than
(a) each Subsidiary organized and existing under laws other
than the laws of the United States or a State thereof,
(b) each Subsidiary substantially all of the physical
properties of which are located, or substantially all of the
business of which is carried on, outside of the United States,
(c) each Subsidiary the primary business of which consists of
finance, banking, credit, leasing, insurance, financial services,
or similar operations or any combination thereof, (d) each
Subsidiary the primary business of which consists of the ownership,
construction, management, operation, sale or leasing of real
property or improvements thereon, similar operations or any
combination thereof, (e) each Subsidiary the primary business
of which consists of the exploration for, or the extraction,
production, transporting or marketing of petroleum or gas or other
extracted substances, or similar
15
operations or any combination thereof,
(f) each Subsidiary the primary business of which consists of
the ownership or operation of one or more transportation businesses
or facilities or equipment related thereto or similar operations or
any combination thereof, (g) each Subsidiary the primary
business of which consists of obtaining funds with which to make
investments outside of the United States, (h) each Subsidiary
substantially all of the assets of which consist of the ownership
directly or indirectly of the Equity Interests of one or more
Subsidiaries covered by the preceding clauses (a) through (g),
(i) each Subsidiary which the Company or any Subsidiary is, by
the terms of the final order of any court of competent jurisdiction
from which no further appeal may be taken, required to dispose of
and which shall by Board Resolution be determined not to be a
Restricted Subsidiary, effective as of the date specified in such
resolution and (j) any entity a majority of the voting Equity
Interests of which shall at the time be owned directly or
indirectly by one or more entities specified in the preceding
clauses (a) through (i); provided that the Board of
Directors may by Board Resolutions declare any such Subsidiary to
be a Restricted Subsidiary, effective as of the date such
resolution is adopted. For purposes of this definition and any
provisions of this Agreement in which the term Restricted
Subsidiary appears, the term “Subsidiary” means, at any
date, any entity of which the Company, or the Company and one or
more Subsidiaries, directly or indirectly own outstanding Equity
Interests having voting power sufficient to elect, under ordinary
circumstances (not dependent upon the happening of a contingency),
a majority of the directors or persons performing similar
functions.
“ Revaluation
Date ” means, with respect to an Alternative Currency
Borrowing, the last day of each Interest Period with respect to
such Borrowing (and if such Interest Period has a duration of more
than three months, each day prior to the last day of such Interest
Period that occurs at intervals of three months duration after the
first day of such Interest Period).
“ Revolving
Commitment ” means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans to the Company
and Fortune Brands UK hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender’s
Revolving Credit Exposure hereunder, as such commitment may be
(a) reduced from time to time pursuant to Section 2.07
and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to
Section 10.04 . The initial amount of each
Lender’s Revolving Commitment is set forth on Schedule
2.01 , or in the Assignment and Acceptance pursuant to which
such Lender shall have assumed its Revolving Commitment, as
applicable.
“ Revolving Credit
Exposure ” means, with respect to any Lender at any time,
the sum of (a) the outstanding principal amount of such
Lender’s Revolving Loans denominated in Dollars, plus
(b) the Assigned Dollar Value at such time of the outstanding
principal amount of such Lender’s Revolving Loans denominated
in Alternative Committed Currencies.
“ Revolving Loan
” means a Loan made to the Company or Fortune Brands UK
pursuant to Section 2.01 .
16
“ S&P
” means Standard & Poor’s Ratings Service, or
any successor thereto.
“ Secured Debt
” means indebtedness for money borrowed if such indebtedness
is secured by a mortgage upon any assets of the Company or a
Restricted Subsidiary, including in such assets, without
limitation, shares of stock or indebtedness of any Restricted
Subsidiary owned by the Company or another Restricted Subsidiary.
Indebtedness secured by mortgages on property existing at the time
it is acquired and mortgages securing any part of the purchase
price of property purchased, constructed or improved shall be
deemed to be indebtedness for money borrowed. The Company or a
Restricted Subsidiary shall be deemed to have assumed any
indebtedness secured by any mortgage upon any of its property or
assets whether or not it has actually done so.
“ Spot Exchange
Rate ” means, on any day, (a) with respect to any
Alternative Currency in relation to Dollars, the spot rate at which
Dollars are offered on such day for such Alternative Currency which
appears on page FX of the Reuters Screen at approximately
11:00 a.m., London time (and if such spot rate is not
available on the applicable page of the Reuters Screen, such spot
rate as quoted by J.P. Morgan Europe Limited at approximately
11:00 a.m., London time), and (b) with respect to Dollars
in relation to any specified Alternative Currency, the spot rate at
which such specified Alternative Currency is offered on such day
for Dollars which appears on page FXFX of the Reuters Screen
at approximately 11:00 a.m., London time (and if such spot
rate is not available on the applicable page of the Reuters Screen,
such spot rate as quoted by J.P. Morgan Europe Limited at
approximately 11:00 a.m., London time). For purposes of
determining the Spot Exchange Rate in connection with an
Alternative Currency Borrowing, such Spot Exchange Rate shall be
determined as of the Denomination Date for such Borrowing with
respect to transactions in the applicable Alternative Currency that
will settle on the date of such Borrowing.
“ SPV ”
has the meaning specified in paragraph (h) of
Section 10.04 .
“ Statutory Reserve
Rate ” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve
percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the
Board to which the Administrative Agent is subject for eurocurrency
funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such
Regulation D. Eurocurrency Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements
without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. The Statutory
Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.
“ Subsidiary
” means, with respect to any Person (the “
parent ”) at any date, any corporation, limited
liability company, partnership, association or other entity the
accounts of which would be consolidated with those of the parent in
the parent’s consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of
such date.
17
“ Taxes ”
means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental
Authority.
“ Termination
Date ” means October 2, 2008.
“ Term-Out
Option ” has the meaning set forth in
Section 2.20.
“ Term-Out
Period ” means the period commencing on and including the
Termination Date and ending on and including the Extended Maturity
Date.
“ Total Credit
Exposure ” means, at any time, the sum of (a) the
total Revolving Credit Exposure of the Lenders at such time, plus
(b) the outstanding principal amount of Competitive Loans and
Negotiated Rate Loans of the Lenders at such time that are
denominated in Dollars, plus (c) the Assigned Dollar Value at
such time of the outstanding principal amount of all Competitive
Loans and Negotiated Rate Loans of the Lenders at such time that
are denominated in Alternative Currencies.
“ Transactions
” means (a) the execution, delivery and performance by
the Borrowers of this Agreement, (b) the consummation of the
transactions contemplated hereby and (c) the borrowing of the
Loans and the use of the proceeds thereof.
“ Type ”,
when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to (a) the Adjusted LIBO
Rate, (b) the Alternate Base Rate, (c) in the case of a
Competitive Loan or Borrowing, the LIBO Rate or a Fixed Rate or
(d) in the case of a Negotiated Rate Loan or Borrowing, the
rate negotiated between the applicable Borrower and the applicable
Lender.
“ Value ”
means, as to any sale and lease back transaction to which
Section 6.03 applies, the product of (a) the net proceeds
from any such sale (less the amount applied in connection with such
sale to the retirement of outstanding Funded Debt in accordance
with Section 6.03(c)) and (b) a fraction, the numerator
of which is the number of full years of the term of the lease
relating to such property (without regard to any options to renew
or extend such term) remaining at the time of the determination of
such value and the denominator of which is the number of full years
of such term at the time of such sale.
“ Withdrawal
Liability ” means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E
of Title IV of ERISA.
SECTION 1.02.
Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (
e.g. , a “Revolving Loan”) or by Type (
e.g. , a “Eurocurrency Loan”) or by Currency (
e.g. , a “Dollar Loan”) or by Class, Type and
Currency ( e.g. , a “Eurocurrency Dollar Revolving
Loan”).
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Borrowings also may be classified and
referred to by Class ( e.g. , a “Revolving
Borrowing”) or by Type ( e.g. , a “Eurocurrency
Borrowing”) or by Currency ( e.g. , a “Dollar
Borrowing”) or by Class, Type and Currency ( e.g. , a
“Eurocurrency Dollar Revolving Borrowing”).
SECTION 1.03. Terms
Generally. The definitions of terms herein shall apply equally
to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words
“include”, “includes” and
“including” shall be deemed to be followed by the
phrase “without limitation”. The word
“will” shall be construed to have the same meaning and
effect as the word “shall”. Unless the context requires
otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set
forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns
(subject to any restrictions on such assignments set forth herein),
(c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any
particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to
refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words “asset” and
“property” shall be construed to have the same meaning
and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and
contract rights.
SECTION 1.04. Accounting
Terms; GAAP. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time;
provided that, if the Company notifies the Administrative
Agent that the Company requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the
date hereof in GAAP or in the application thereof on the operation
of such provision (or if the Administrative Agent notifies the
Company that the Required Lenders request an amendment to any
provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the
application thereof, then such provision shall be interpreted on
the basis of GAAP as in effect and applied immediately before such
change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance
herewith.
ARTICLE II
The Credits
SECTION 2.01. Revolving
Commitments. Subject to the terms and conditions set forth
herein, each Lender agrees to make Revolving Loans in Dollars or in
any Alternative Committed Currency to the Company or Fortune Brands
UK from time to time during the Availability Period in an aggregate
principal amount that will not result in (a) such
Lender’s Revolving Credit Exposure exceeding such
Lender’s Revolving
19
Commitment or (b) the Total Credit
Exposure exceeding the total Revolving Commitments. Within the
foregoing limits and subject to the terms and conditions set forth
herein, each Borrower may borrow, prepay and reborrow Revolving
Loans. Revolving Loans repaid on or after the Termination Date may
not be reborrowed.
SECTION 2.02. Loans and
Borrowings. (a) Each Revolving Loan shall be made as part
of a Borrowing consisting of Revolving Loans made by the Lenders
ratably in accordance with their respective Revolving Commitments.
Each Competitive Loan and Negotiated Rate Loan shall be made in
accordance with the procedures set forth in Section 2.04. The
failure of any Lender to make any Loan required to be made by it
shall not relieve any other Lender of its obligations hereunder;
provided that the Revolving Commitments and Competitive Bids
of the Lenders are several and no Lender shall be responsible for
any other Lender’s failure to make Loans as
required.
(b) Subject to
Section 2.12, (i) each Revolving Borrowing shall be
comprised entirely of ABR Loans or Eurocurrency Loans as the
applicable Borrower may request in accordance herewith (except that
a Revolving Borrowing denominated in an Alternative Committed
Currency must be comprised entirely of Eurocurrency Loans),
(ii) each Competitive Borrowing shall be comprised entirely of
Eurocurrency Loans or Fixed Rate Loans as the applicable Borrower
may request in accordance herewith and (iii) each Negotiated
Rate Loan shall be denominated in Dollars or an Alternative
Currency as agreed between the applicable Borrower and the
applicable Lender. Each Lender at its option may make any
Eurocurrency Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Loan; provided that
any exercise of such option shall not (a) affect the
obligation of the applicable Borrower to repay such Loan in
accordance with the terms of this Agreement or (b) result in
the Borrower incurring any additional cost or expense (including
pursuant to Section 2.13, 2.15 or 2.18).
(c) At the commencement of
each Interest Period for any Eurocurrency Borrowing, such Borrowing
shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $10,000,000. At the time that each ABR
Borrowing is made, such Borrowing shall be in an aggregate amount
that is an integral multiple of $1,000,000 and not less than
$1,000,000; provided that an ABR Borrowing may be in an
aggregate amount that is equal to the entire unused balance of the
total Revolving Commitments. Each Competitive Borrowing shall be in
an aggregate amount that is an integral multiple of $1,000,000 and
not less than $1,000,000. Each Negotiated Rate Borrowing shall be
in an aggregate amount that is separately agreed between the
applicable Borrower and the applicable Lender. Subject to
Section 2.12, Loans made pursuant to any Alternative Currency
Borrowing shall be made in the Alternative Currency specified in
the applicable Borrowing Request or Competitive Bid Request in an
aggregate amount equal to the Alternative Currency Equivalent of
the Dollar amount specified in such Borrowing Request or, in the
case of a Competitive Borrowing, the Dollar amount accepted
pursuant to Section 2.04 (in each case as determined by J.P.
Morgan Europe Limited based upon the applicable Spot Exchange Rate
as of the Denomination Date for such Borrowing (which determination
shall be conclusive absent manifest error)); provided that
for purposes of the borrowing amounts specified above,
20
each Alternative Currency Borrowing
shall be deemed to be in a principal amount equal to its Assigned
Dollar Value. Borrowings of more than one Type, Class and Currency
may be outstanding at the same time; provided that there
shall not at any time be more than a total of eight Eurocurrency
Revolving Borrowings outstanding in any Currency.
(d) Notwithstanding any other
provision of this Agreement, the Borrowers shall not be entitled to
request, or to elect to convert or continue, any Borrowing (other
than to continue a Borrowing denominated in an Alternative
Committed Currency for a one-month Interest Period, which shall not
affect the applicable Borrower’s obligations to repay such
Borrowing on the Termination Date (or, if the Term-Out Option is
exercised, on the Extended Maturity Date), together with accrued
interest thereon and any other amounts payable pursuant to
Section 2.14, if any) if the Interest Period requested with
respect thereto would end after the Termination Date (or, if the
Term-Out Option is exercised, the Extended Maturity
Date).
SECTION 2.03. Requests for
Revolving Borrowings. To request a Revolving Borrowing, the
applicable Borrower shall notify the Administrative Agent and, in
the case of Revolving Borrowings denominated in any Alternative
Committed Currency, J.P. Morgan Europe Limited, of such request by
telephone (a) in the case of a Eurocurrency Borrowing
denominated in Dollars, not later than 11:00 a.m., New
York City time, three Business Days before the date of the
proposed Borrowing, (b) in the case of a Eurocurrency
Borrowing denominated in an Alternative Committed Currency, not
later than 9:00 a.m., New York City time, three Business Days
before the date of the proposed Borrowing or (c) in the case
of an ABR Borrowing, not later than 10:30 a.m., New York City
time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent
(and, in the case of an Alternative Currency Borrowing, J.P. Morgan
Europe Limited) of a written Borrowing Request in the form of
Exhibit E or any other form approved by the Administrative
Agent and signed by the applicable Borrower. Each such telephonic
and written Borrowing Request shall specify the following
information in compliance with Section 2.02
:
(i) the Borrower in respect
of the requested Borrowing;
(ii) the aggregate amount
(expressed in Dollars) and Currency (which must be Dollars or an
Alternative Committed Currency) of the requested
Borrowing;
(iii) the requested Borrowing
Date, which shall be a Business Day;
(iv) whether such Borrowing
is to be an ABR Borrowing or a Eurocurrency Borrowing;
(v) in the case of a
Eurocurrency Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the
definition of the term “Interest Period”;
and
21
(vi) the location and number
of the applicable Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of
Section 2.05.
If no election as to the Type of
Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing (if denominated in Dollars) or
a Eurocurrency Borrowing (if denominated in an Alternative
Committed Currency). If no election as to the Currency of the
requested Revolving Borrowing is specified, then the requested
Revolving Borrowing shall be denominated in Dollars. If no Interest
Period is specified with respect to any requested Eurocurrency
Revolving Borrowing, then the applicable Borrower shall be deemed
to have selected an Interest Period of one month’s duration.
If no election as to the identity of the Borrower is specified, the
requested Revolving Borrowing shall be made by the Company.
Promptly following receipt of a Borrowing Request in accordance
with this Section, the Administrative Agent (in the case of
Revolving Borrowings denominated in Dollars) or J.P. Morgan Europe
Limited (in the case of Revolving Borrowings denominated in any
Alternative Committed Currency) shall advise each applicable Lender
of the details thereof and of the amount of such Lender’s
Loan to be made as part of the requested Borrowing.
SECTION 2.04. Competitive
Bid and Negotiated Rate Loan Procedures. (a) Subject to
the terms and conditions set forth herein, from time to time during
the Availability Period either Borrower may request Competitive
Bids and may (but shall not have any obligation to) accept
Competitive Bids and borrow Competitive Loans denominated in
Dollars or any Alternative Currency; provided that the Total
Credit Exposure at any time shall not exceed the total Revolving
Commitments. To request Competitive Bids, the applicable Borrower
shall notify the Administrative Agent and, in the case of a
Borrowing denominated in any Alternative Currency, J.P. Morgan
Europe Limited, of such request by telephone, (i) in the case
of a Eurocurrency Borrowing denominated in Dollars, not later than
11:00 a.m., New York City time, four Business Days before the date
of the proposed Borrowing, (ii) in the case of a Eurocurrency
Borrowing denominated in any Alternative Currency, not later than
9:00 a.m., New York City time, four Business Days before the date
of the proposed Borrowing, and (iii) in the case of a Fixed
Rate Borrowing, not later than 10:00 a.m., New York City time, one
Business Day before the date of the proposed Borrowing;
provided that the Borrowers may submit up to (but not more
than) two Competitive Bid Requests on the same day, but a
Competitive Bid Request shall not be made within five Business Days
after the date of any previous Competitive Bid Request from either
Borrower, unless any and all such previous Competitive Bid Requests
shall have been withdrawn or all Competitive Bids received in
response thereto rejected. Each such telephonic Competitive Bid
Request shall be confirmed promptly by hand delivery or telecopy to
the Administrative Agent and, if applicable, J.P. Morgan Europe
Limited, of a written Competitive Bid Request in a form approved by
the Administrative Agent or J.P. Morgan Europe Limited, as
applicable, and signed by the applicable Borrower. Each such
telephonic and written Competitive Bid Request shall specify the
following information in compliance with Section 2.02
:
(i) the aggregate amount
(expressed in Dollars) and Currency of the requested
Borrowing;
22
(ii) the requested Borrowing
Date, which shall be a Business Day;
(iii) whether such Borrowing
is to be a Eurocurrency Borrowing or a Fixed Rate
Borrowing;
(iv) the Interest Period to
be applicable to such Borrowing, which shall be a period
contemplated by the definition of the term “Interest
Period”;
(v) the location and number
of the applicable Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of
Section 2.05 ; and
(vi) the identity of the
Borrower in respect of such Borrowing.
Promptly following receipt of a
Competitive Bid Request in accordance with this Section, the
Administrative Agent or J.P. Morgan Europe Limited, as applicable,
shall notify the Lenders of the details thereof by telecopy,
inviting such Lenders to submit Competitive Bids.
(b) Each Lender may (but
shall not have any obligation to) make one or more Competitive Bids
to the applicable Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Lender must be in a form
approved by the Administrative Agent or J.P. Morgan Europe Limited,
as applicable, and must be received by the Administrative Agent
(and, in the case of an Alternative Currency Borrowing, J.P. Morgan
Europe Limited) by telecopy, (i) in the case of a Eurocurrency
Competitive Borrowing denominated in Dollars, not later than
11:00 a.m., New York City time, three Business Days before the
proposed date of such Competitive Borrowing, (ii) in the case
of a Eurocurrency Competitive Borrowing denominated in any
Alternative Currency, not later than 11:00 a.m., New York City
time, three Business Days before the proposed date of such
Competitive Borrowing and (iii) in the case of a Fixed Rate
Borrowing, not later than 12:00 noon, New York City time, on
the proposed date of such Competitive Borrowing. Competitive Bids
that do not conform substantially to the form approved by the
Administrative Agent may be rejected by the Administrative Agent
and the Administrative Agent shall notify the applicable Lender as
promptly as practicable. Each Competitive Bid shall specify
(i) the principal amount (expressed in Dollars and which shall
be a minimum of $5,000,000 and an integral multiple of $1,000,000
and which may equal the entire principal amount of the Competitive
Borrowing requested by the applicable Borrower) and Currency of the
Competitive Loan or Loans that the Lender is willing to make,
(ii) the Competitive Bid Rate or Rates at which the Lender is
prepared to make such Loan or Loans (expressed as a percentage rate
per annum in the form of a decimal to no more than four decimal
places) and (iii) the Interest Period applicable to each such
Loan and the last day thereof.
(c) The Administrative Agent
or J.P. Morgan Europe Limited, as applicable, shall promptly notify
the applicable Borrower by telecopy of the Competitive Bid Rate and
the principal amount specified in each Competitive Bid and the
identity of the Lender that shall have made such Competitive
Bid.
23
(d) Subject only to the
provisions of this paragraph, the applicable Borrower may accept or
reject any Competitive Bid. Such Borrower shall notify the
Administrative Agent (and, in the case of an Alternative Currency
Borrowing, J.P. Morgan Europe Limited) by telephone, confirmed by
telecopy in a form approved by the Administrative Agent or J.P.
Morgan Europe Limited, as applicable, whether and to what extent it
has decided to accept or reject each Competitive Bid (i) in
the case of a Eurocurrency Competitive Borrowing denominated in
Dollars, not later than 12:00 noon, New York City time, three
Business Days before the date of the proposed Competitive
Borrowing, (ii) in the case of a Eurocurrency Competitive
Borrowing denominated in an Alternative Currency, not later than
12:00 noon, New York City time, three Business Days before the date
of the proposed Competitive Borrowing and (iii) in the case of
a Fixed Rate Borrowing, not later than 1:00 p.m., New York City
time, on the proposed date of the Competitive Borrowing;
provided that (i) the failure of such Borrower to give
such notice shall be deemed to be a rejection of each Competitive
Bid, (ii) such Borrower shall not accept a Competitive Bid
made at a particular Competitive Bid Rate if such Borrower rejects
a Competitive Bid made at a lower Competitive Bid Rate,
(iii) the aggregate amount of the Competitive Bids accepted by
such Borrower shall not exceed the aggregate amount of the
requested Competitive Borrowing specified in the related
Competitive Bid Request, (iv) to the extent necessary to
comply with clause (iii) above, such Borrower may accept
Competitive Bids at the same Competitive Bid Rate in part, which
acceptance, in the case of multiple Competitive Bids at such
Competitive Bid Rate, shall be made pro rata in accordance with the
amount of each such Competitive Bid, and (v) except pursuant
to clause (iv) above, no Competitive Bid shall be accepted for
a Competitive Loan unless such Competitive Loan is in a minimum
principal amount of $5,000,000 and an integral multiple of
$1,000,000; provided further that if a Competitive
Loan must be in an amount less than $5,000,000 because of the
provisions of clause (iv) above, such Competitive Loan may be
for a minimum amount of $1,000,000 or any integral multiple
thereof, and in calculating the pro rata allocation of acceptances
of portions of multiple Competitive Bids at a particular
Competitive Bid Rate pursuant to clause (iv) the amounts shall
be rounded to integral multiples of $1,000,000 in a manner
determined by such Borrower. A notice given by such Borrower
pursuant to this paragraph shall be irrevocable.
(e) The Administrative Agent
or J.P. Morgan Europe Limited, as applicable, shall promptly notify
each bidding Lender by telecopy whether or not its Competitive Bid
has been accepted (and, if so, the amount and Competitive Bid Rate
so accepted), and each successful bidder will thereupon become
bound, subject to the terms and conditions hereof, to make the
Competitive Loan in respect of which its Competitive Bid has been
accepted.
(f) If the Administrative
Agent shall elect to submit a Competitive Bid in its capacity as a
Lender, it shall submit such Competitive Bid directly to the
applicable Borrower at least one quarter of an hour earlier than
the time by which the other Lenders are required to submit their
Competitive Bids to the Administrative Agent pursuant to paragraph
(b) of this Section.
24
(g) Subject to the terms and
conditions set forth herein, from time to time during the
Availability Period either Borrower may make Negotiated Rate Loan
Requests to any Lender or Lenders and may (but shall not have any
obligation to) borrow Negotiated Rate Loans denominated in Dollars
or any Alternative Currency; provided that the Total Credit
Exposure at any time shall not exceed the total Revolving
Commitments. If the applicable Borrower and any Lender agree to the
terms of a Negotiated Rate Loan to be made on a Borrowing Date
pursuant to a Negotiated Rate Loan Request, such Borrower and such
Lender shall promptly notify by telephone the Administrative Agent
and, if applicable, J.P. Morgan Europe Limited of the aggregate
amount (expressed in Dollars) and Currency of the Negotiated Rate
Loan to be made on such Borrowing Date, the Borrower with respect
thereto and the respective interest rate, Interest Period and
Interest Payment Dates therefor. Each Lender that agrees to make a
Negotiated Rate Loan shall, at such time, on such Borrowing Date
and at such location as shall be mutually agreed upon between such
Borrower and such Lender, make available to such Borrower the
amount of the Negotiated Rate Loan to be made by such Lender, in
immediately available funds.
SECTION 2.05. Funding of
Borrowings. (a) Each Lender shall make each Revolving Loan
denominated in Dollars (other than any Negotiated Rate Loan) to be
made by it hereunder on the proposed date thereof by wire transfer
of immediately available funds by 2:00 p.m., New York City time (or
time of such other city designated by the Administrative Agent), to
the account of the Administrative Agent most recently designated by
it for such purpose by notice to the Lenders. Each Lender shall
make each Loan (other than any Negotiated Rate Loan) denominated in
an Alternative Currency to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by
1:00 p.m., London time (or time of such other city designated by
J.P. Morgan Europe Limited), to the account of J.P. Morgan Europe
Limited most recently designated by it for such purpose by notice
to the Lenders. The Administrative Agent or J.P. Morgan Europe
Limited, as applicable, will make such Loans available to the
applicable Borrower by promptly crediting, before 2:00 p.m. Local
Time, the amounts so received, in like funds, to an account of such
Borrower maintained with (i) the Administrative Agent in New
York City, in the case of Loans denominated in Dollars, and
(ii) J.P. Morgan Europe Limited in London (or such other city
as J.P. Morgan Europe Limited may designate in respect of the
applicable currency), in the case of Loans denominated in any
Alternative Currency, in each case designated by such Borrower in
the applicable Borrowing Request or Competitive Bid Request. Each
Lender making a Negotiated Rate Loan shall make such Loan on the
date, at the time and to the account of the applicable Borrower
separately agreed between such Lender and such Borrower.
(b) Unless the Administrative
Agent (and, in the case of an Alternative Currency Borrowing, J.P.
Morgan Europe Limited) shall have received notice from a Lender
prior to the proposed date of any Borrowing (other than any
Negotiated Rate Borrowing) that such Lender will not make available
to the Administrative Agent or J.P. Morgan Europe Limited, as
applicable, such Lender’s share of such Borrowing,
the
25
Administrative Agent or J.P. Morgan
Europe Limited, as applicable, may assume that such Lender has made
such share available on such date in accordance with paragraph
(a) of this Section and may, in reliance upon such assumption,
make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent or J.P.
Morgan Europe Limited, as applicable, then the applicable Lender
and the applicable Borrower severally agree to pay to the
Administrative Agent or J.P. Morgan Europe Limited, as applicable,
forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is
made available to such Borrower to but excluding the date of
payment to the Administrative Agent or J.P. Morgan Europe Limited,
as applicable, at (i) in the case of such Lender, the greater
of (A)(1) the Federal Funds Effective Rate in the case of Loans
denominated in Dollars and (2) the rate reasonably determined
by J.P. Morgan Europe Limited to be the cost to it of funding such
amount, in the case of Loans denominated in any other Currency, and
(B) a rate determined by the Administrative Agent or J.P.
Morgan Europe Limited, as applicable, in accordance with banking
industry rules on interbank compensation or (ii) in the case
of such Borrower, the higher of (A) the interest rate
applicable to the Loan in respect of which such payment is owed or
(B) the Administrative Agent’s or J.P. Morgan Europe
Limited’s cost of funds, as applicable. If such Lender pays
such amount to the Administrative Agent or J.P. Morgan Europe
Limited, as applicable, then such amount shall constitute such
Lender’s Loan included in such Borrowing.
SECTION 2.06. Interest
Elections. (a) Each Revolving Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in
the case of a Eurocurrency Revolving Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request.
Thereafter, the applicable Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in
the case of a Eurocurrency Borrowing, may elect Interest Periods
therefor, all as provided in this Section, provided that the
Currency of a Revolving Borrowing may not be changed in connection
with any continuation or conversion of the Interest Period
therefor. Alternative Currency Revolving Borrowings may only be
Eurocurrency Revolving Borrowings and may not be converted to ABR
Revolving Borrowings. The applicable Borrower may elect different
options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be
considered a separate Borrowing. This Section shall not apply to
Competitive Borrowings or Negotiated Rate Borrowings, which may not
be converted or continued.
(b) To make an election
pursuant to this Section, the applicable Borrower shall notify the
Administrative Agent (and, in the case of an Alternative Currency
Borrowing, J.P. Morgan Europe Limited) of such election by
telephone by the time that a Borrowing Request would be required
under Section 2.03 if such Borrower were requesting a
Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic
Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the
Administrative Agent (and, in the case of an Alternative Currency
Borrowing, J.P. Morgan Europe Limited) of a written Interest
Election Request in a form approved by the Administrative Agent and
signed by the applicable Borrower.
26
(c) Each telephonic and
written Interest Election Request shall specify the following
information in compliance with Section 2.02
:
(i) the Borrowing to which
such Interest Election Request applies and, if different options
are being elected with respect to different portions thereof, the
portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses
(iii) and (iv) below shall be specified for each
resulting Borrowing);
(ii) the effective date of
the election made pursuant to such Interest Election Request, which
shall be a Business Day;
(iii) whether the resulting
Borrowing is to be an ABR Borrowing (in the case of Loans
denominated in Dollars only) or a Eurocurrency Borrowing;
and
(iv) if the resulting
Borrowing is a Eurocurrency Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term
“Interest Period”.
If any such Interest Election Request
requests a Eurocurrency Borrowing but does not specify an Interest
Period, then the applicable Borrower shall be deemed to have
selected an Interest Period of one month’s
duration.
(d) Promptly following
receipt of an Interest Election Request, the Administrative Agent
or J.P. Morgan Europe Limited, as applicable, shall advise each
applicable Lender of the details thereof and of such Lender’s
portion of each resulting Borrowing.
(e) If the applicable
Borrower fails to deliver a timely Interest Election Request with
respect to a Eurocurrency Revolving Borrowing prior to the end of
the Interest Period applicable thereto, then, unless such Borrowing
is repaid as provided herein, at the end of such Interest Period
such Borrowing shall be continued as a Eurocurrency Revolving
Borrowing with an Interest Period of one month’s duration.
Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent
or J.P. Morgan Europe Limited, as applicable, at the request of the
Required Lenders, so notifies the applicable Borrower, then, so
long as an Event of Default is continuing (i) no outstanding
Revolving Borrowing may be converted to or continued as a
Eurocurrency Borrowing (except as provided in clause
(iii) below), (ii) unless repaid, each Eurocurrency
Revolving Borrowing denominated in Dollars shall be converted to an
ABR Borrowing at the end of the Interest Period applicable thereto
and (iii) unless repaid, each Eurocurrency Revolving Borrowing
denominated in an Alternative Committed Currency shall be continued
as a Eurocurrency Revolving Borrowing with an Interest Period of
one month’s duration at the end of the Interest Period
applicable thereto.
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SECTION 2.07. Termination
and Reduction of Revolving Commitments. (a) Unless
previously terminated, the Revolving Commitments shall terminate on
the Termination Date.
(b) The Company may at any
time terminate, or from time to time reduce, the Revolving
Commitments; provided that (i) each reduction of the
Revolving Commitments shall be in an amount that is an integral
multiple of $1,000,000 and not less than $5,000,000 and
(ii) the Company shall not terminate or reduce the Revolving
Commitments if, after giving effect to any concurrent prepayment of
the Loans in accordance with Section 2.09 , the Total
Credit Exposure would exceed the total Revolving
Commitments.
(c) The Company shall notify
the Administrative Agent of any election to terminate or reduce the
Revolving Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the
effective date thereof. Promptly following receipt of any notice,
the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Company pursuant to this
Section shall be irrevocable; provided that a notice of
termination of the Revolving Commitments delivered by the Company
may state that such notice is conditioned upon the effectiveness of
other credit facilities, in which case such notice may be revoked
by the Company (by notice to the Administrative Agent on or prior
to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Revolving
Commitments shall be permanent. Each reduction of the Revolving
Commitments shall be made ratably among the Lenders in accordance
with their respective Revolving Commitments.
SECTION 2.08.
Repayment of Loans; Evidence of Debt. (a) Each
Borrower hereby unconditionally promises to pay (i) on the
Termination Date (or, if the Term-Out Option is exercised, on the
Extended Maturity Date) to the Administrative Agent for the account
of each Lender the then unpaid principal amount of each Revolving
Loan denominated in Dollars owed by such Borrower, (ii) on the
Termination Date (or, if the Term-Out Option is exercised, on the
Extended Maturity Date) to J.P. Morgan Europe Limited for the
account of each Lender the then unpaid principal amount of each
Revolving Loan denominated in an Alternative Currency owed by such
Borrower, (iii) to the Administrative Agent (or, in the case
of an Alternative Currency Borrowing, J.P. Morgan Europe Limited)
for the account of each Lender the then unpaid principal amount of
each Competitive Loan owed by such Borrower on the last day of the
Interest Period applicable to such Loan and (iv) to the
applicable Lender the then unpaid principal amount of each
Negotiated Rate Loan owed by such Borrower on the earlier of the
Termination Date and the last day of the Interest Period applicable
to such Loan.
(b) Each Lender shall
maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of each Borrower to such
Lender resulting from each Loan made by such Lender, including the
amounts of principal and interest payable and paid to such Lender
from time to time hereunder.
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(c) The Administrative Agent
(and, in the case of an Alternative Currency Borrowing, J.P. Morgan
Europe Limited) shall maintain accounts in which it shall record
(i) the amount of each Loan made hereunder, the Borrower
thereof, the Class, Type and Currency thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from each
Borrower to each Lender hereunder and (iii) the amount of any
sum received by the Administrative Agent (or, in the case of an
Alternative Currency Borrowing, J.P. Morgan Europe Limited)
hereunder for the account of the Lenders and each Lender’s
share thereof.
(d) The entries made in the
accounts maintained pursuant to paragraph (b) or (c) of
this Section shall be prima facie evidence of the existence
and amounts of the obligations recorded therein; provided
that the failure of any Lender, the Administrative Agent (or, in
the case of an Alternative Currency Borrowing, J.P. Morgan Europe
Limited) to maintain such accounts or any error therein shall not
in any manner affect the obligation of either Borrower to repay its
Loans in accordance with the terms of this Agreement.
(e) Any Lender may request
that Loans made by it be evidenced by a promissory note. In such
event, the applicable Borrower shall prepare, execute and deliver
to such Lender a promissory note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and (i) with respect to any Revolving
Loan, substantially in the form of Exhibit D , and
(ii) with respect to any Loan that is not a Revolving Loan, in
a form approved by such Borrower and the Administrative Agent, in
each case appropriately completed in conformity with this
Agreement. Thereafter, the Loans evidenced by such promissory note
and interest thereon shall at all times (including after assignment
pursuant to Section 10.04) be represented by one or more
promissory notes in such form payable to the order of the payee
named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).
(f) Each Lender that makes
any Negotiated Rate Loan shall notify the Administrative Agent
(and, in the case of an Alternative Currency Borrowing, J.P. Morgan
Europe Limited) of each such Loan and of each payment of principal
in respect thereof.
SECTION 2.09. Prepayment
of Loans. (a) Each Borrower shall have the right at any
time and from time to time to prepay any Borrowing in whole or in
part, subject to prior notice in accordance with paragraph
(b) of this Section; provided that the Borrowers shall
not have the right to prepay any Competitive Loan or Negotiated
Rate Loan without the prior consent of the Lender
thereof.
(b) If, on any Revaluation
Date on or prior to the Termination Date, the Total Credit Exposure
exceeds 105% of the total Revolving Commitments, then the Company
shall, not later than the third Business Day after the Company
receives notice thereof from the Administrative Agent, prepay, or
cause either or both Borrowers to prepay, without penalty or
premium (subject to Section 2.14 ), one or more
Borrowings in an aggregate amount sufficient to reduce the Total
Credit Exposure to an amount not
29
exceeding the total Revolving
Commitments; provided that the Borrowers shall not be
required to prepay any Competitive Loans or Negotiated Rate Loans
pursuant to this paragraph.
(c) The Company shall notify
the Administrative Agent by telephone (confirmed by telecopy) of
any prepayment hereunder (i) in the case of prepayment of a
Eurocurrency Revolving Borrowing denominated in Dollars, not later
than 11:00 a.m., New York City time, three Business Days
before the date of prepayment or (ii) in the case of
prepayment of an ABR Revolving Borrowing, not later than 11:00
a.m., New York City time, one Business Day before the date of
prepayment. The Company shall notify the Administrative Agent and
J.P. Morgan Europe Limited by telephone (confirmed by telecopy) of
any prepayment hereunder of a Eurocurrency Revolving Borrowing
denominated in any Alternative Currency, not later than
11:0
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