|
Exhibit
10.2
EXECUTION
COPY
REVOLVING CREDIT
AGREEMENT
Dated as of February 13,
2008
among
CHILL INTERMEDIATE
HOLDINGS, INC.,
as Holdings
CHILL ACQUISITION,
INC.,
which on the Closing Date
shall be merged with and into
GOODMAN GLOBAL,
INC.,
(with GOODMAN GLOBAL, INC.
surviving such merger as the Borrower)
The Several
Lenders
from Time to Time Parties
Hereto,
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Administrative Agent and
Collateral Agent,
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Letter of Credit
Issuer,
BARCLAYS
CAPITAL,
and
GENERAL ELECTRIC CAPITAL
CORPORATION
as Joint Lead
Arrangers,
and
BARCLAYS
CAPITAL,
CALYON NEW YORK
BRANCH,
and
GENERAL ELECTRIC CAPITAL
CORPORATION,
as Joint
Bookrunners,
EXECUTION
COPY
TABLE OF
CONTENTS
|
|
|
|
|
| |
|
|
|
Page |
| Section 1. |
|
Definitions |
|
2 |
|
|
|
| 1.1 |
|
Defined
Terms |
|
2 |
| 1.2 |
|
Other
Interpretive Provisions |
|
51 |
| 1.3 |
|
Accounting Terms |
|
51 |
| 1.4 |
|
Rounding |
|
52 |
| 1.5 |
|
References to Agreements, Laws, Etc |
|
52 |
| 1.6 |
|
Times of
Day |
|
52 |
| 1.7 |
|
Timing of
Payment of Performance |
|
52 |
| 1.8 |
|
Currency
Equivalents Generally |
|
52 |
| 1.9 |
|
UCC
Terms |
|
53 |
|
|
|
| Section 2. |
|
Amount
and Terms of Revolving Credit Facility |
|
53 |
|
|
|
| 2.1 |
|
Loans |
|
53 |
| 2.2 |
|
Minimum
Amount of Each Borrowing; Maximum Number of Borrowings |
|
55 |
| 2.3 |
|
Notice of
Borrowing |
|
55 |
| 2.4 |
|
Disbursement of Funds |
|
56 |
| 2.5 |
|
Repayment
of Loans; Evidence of Debt |
|
57 |
| 2.6 |
|
Conversions and Continuations |
|
58 |
| 2.7 |
|
Pro Rata
Borrowings |
|
59 |
| 2.8 |
|
Interest |
|
59 |
| 2.9 |
|
Interest
Periods |
|
60 |
| 2.10 |
|
Increased
Costs, Illegality, etc |
|
60 |
| 2.11 |
|
Compensation |
|
62 |
| 2.12 |
|
Change of
Lending Office |
|
63 |
| 2.13 |
|
Notice of
Certain Costs |
|
63 |
| 2.14 |
|
Reserves,
etc |
|
63 |
|
|
|
| Section 3. |
|
Letters
of Credit |
|
64 |
|
|
|
| 3.1 |
|
Issuance
of Letters of Credit |
|
64 |
| 3.2 |
|
Letter of
Credit Requests |
|
64 |
| 3.3 |
|
Letter of
Credit Participations |
|
65 |
| 3.4 |
|
Agreement
to Repay Letter of Credit Drawings |
|
67 |
| 3.5 |
|
Increased
Costs |
|
68 |
| 3.6 |
|
New or
Successor Letter of Credit Issuer |
|
68 |
| 3.7 |
|
Cash
Collateral |
|
69 |
| 3.8 |
|
Applicability of ISP and UCP |
|
70 |
| 3.9 |
|
Conflict
with Issuer Documents |
|
70 |
| 3.10 |
|
Letters
of Credit Issued for Restricted Subsidiaries |
|
70 |
|
|
|
| Section 4. |
|
Fees;
Commitment Reductions and Terminations |
|
70 |
|
|
|
| 4.1 |
|
Fees |
|
70 |
| 4.2 |
|
Voluntary
Reduction of Commitments |
|
71 |
| 4.3 |
|
Mandatory
Termination of Commitments |
|
72 |
EXECUTION
COPY
|
|
|
|
|
| Section
5. |
|
Payments |
|
72 |
|
|
|
| 5.1 |
|
Voluntary
Prepayments |
|
72 |
| 5.2 |
|
Mandatory
Prepayments |
|
72 |
| 5.3 |
|
Method
and Place of Payment |
|
74 |
| 5.4 |
|
Net
Payments |
|
74 |
| 5.5 |
|
Computations of Interest and Fees |
|
77 |
| 5.6 |
|
Limit on
Rate of Interest |
|
77 |
|
|
|
| Section 6. |
|
Conditions Precedent to Initial Credit Event |
|
77 |
|
|
|
| 6.1 |
|
Credit
Documents |
|
77 |
| 6.2 |
|
Collateral |
|
78 |
| 6.3 |
|
Legal
Opinions |
|
79 |
| 6.4 |
|
Structure
and Terms of the Transactions |
|
79 |
| 6.5 |
|
Closing
Certificates |
|
80 |
| 6.6 |
|
Corporate
Proceedings |
|
80 |
| 6.7 |
|
Corporate
Documents |
|
80 |
| 6.8 |
|
Fees and
Expenses |
|
80 |
| 6.9 |
|
Solvency
Certificate |
|
80 |
| 6.10 |
|
Financial
Statements |
|
80 |
| 6.11 |
|
Insurance
Certificates |
|
81 |
| 6.12 |
|
Company
Material Adverse Effect |
|
81 |
| 6.13 |
|
Closing
EBITDA |
|
81 |
| 6.14 |
|
Representations and Warranties |
|
81 |
|
|
|
| Section
7. |
|
Conditions Precedent to All Credit Events |
|
81 |
|
|
|
| 7.1 |
|
No
Default; Representations and Warranties |
|
81 |
| 7.2 |
|
Notice of
Borrowing; Letter of Credit Request |
|
82 |
|
|
|
| Section
8. |
|
Representations, Warranties and Agreements |
|
82 |
|
|
|
| 8.1 |
|
Corporate
Status |
|
82 |
| 8.2 |
|
Corporate
Power and Authority; Enforceability |
|
82 |
| 8.3 |
|
No
Violation |
|
83 |
| 8.4 |
|
Litigation |
|
83 |
| 8.5 |
|
Margin
Regulations |
|
83 |
| 8.6 |
|
Governmental Approvals |
|
83 |
| 8.7 |
|
Investment Company Act |
|
83 |
| 8.8 |
|
True and
Complete Disclosure |
|
83 |
| 8.9 |
|
Financial
Statements |
|
84 |
| 8.10 |
|
Tax
Returns and Payments, etc |
|
84 |
| 8.11 |
|
Compliance with ERISA |
|
84 |
| 8.12 |
|
Subsidiaries |
|
85 |
| 8.13 |
|
Intellectual Property |
|
85 |
| 8.14 |
|
Environmental Laws |
|
86 |
| 8.15 |
|
Properties, Assets and Rights |
|
86 |
| 8.16 |
|
Solvency |
|
86 |
| 8.17 |
|
Material
Adverse Change |
|
86 |
ii
EXECUTION
COPY
|
|
|
|
|
| Section 9. |
|
Affirmative Covenants |
|
87 |
|
|
|
| 9.1 |
|
Information Covenants |
|
87 |
| 9.2 |
|
Books,
Records and Inspections |
|
92 |
| 9.3 |
|
Maintenance of Insurance |
|
93 |
| 9.4 |
|
Payment
of Taxes |
|
93 |
| 9.5 |
|
Consolidated Corporate Franchises |
|
94 |
| 9.6 |
|
Compliance with Statutes |
|
94 |
| 9.7 |
|
ERISA |
|
94 |
| 9.8 |
|
Good
Repair |
|
94 |
| 9.9 |
|
End of
Fiscal Years; Fiscal Quarters |
|
95 |
| 9.10 |
|
Additional Guarantors and Grantors |
|
95 |
| 9.11 |
|
Pledges
of Additional Stock and Evidence of Indebtedness |
|
95 |
| 9.12 |
|
Use of
Proceeds |
|
96 |
| 9.13 |
|
Changes
in Business |
|
96 |
| 9.14 |
|
Further
Assurances |
|
96 |
| 9.15 |
|
Designation of Subsidiaries |
|
97 |
| 9.16 |
|
Interest
Rate Protection |
|
97 |
| 9.17 |
|
Senior
Indebtedness |
|
98 |
| 9.18 |
|
Cash
Management |
|
98 |
| 9.19 |
|
Post-Closing Covenants |
|
99 |
|
|
|
| Section 10. |
|
Negative
Covenants |
|
99 |
|
|
|
| 10.1 |
|
Limitation on Indebtedness |
|
100 |
| 10.2 |
|
Limitation on Liens |
|
104 |
| 10.3 |
|
Limitation on Fundamental Changes |
|
107 |
| 10.4 |
|
Limitation on Sale of Assets |
|
109 |
| 10.5 |
|
Limitation on Investments |
|
111 |
| 10.6 |
|
Limitation on Dividends |
|
114 |
| 10.7 |
|
Limitations on Debt Payments and Amendments |
|
117 |
| 10.8 |
|
Limitations on Sale Leasebacks |
|
117 |
| 10.9 |
|
Negative
Pledge Clauses |
|
117 |
| 10.10 |
|
Passive
Holding Company |
|
118 |
| 10.11 |
|
Financial
Covenant |
|
119 |
| 10.12 |
|
Transactions with Affiliates |
|
119 |
|
|
|
| Section
11. |
|
Events of
Default |
|
120 |
|
|
|
| 11.1 |
|
Payments |
|
120 |
| 11.2 |
|
Representations, etc |
|
120 |
| 11.3 |
|
Covenants |
|
120 |
| 11.4 |
|
Default
Under Other Agreements |
|
121 |
| 11.5 |
|
Bankruptcy, etc |
|
121 |
| 11.6 |
|
ERISA |
|
122 |
| 11.7 |
|
Guarantee |
|
122 |
| 11.8 |
|
Security
Documents |
|
122 |
| 11.9 |
|
Subordination |
|
122 |
| 11.10 |
|
Judgments |
|
122 |
iii
EXECUTION
COPY
|
|
|
|
|
| 11.11 |
|
Change of
Control |
|
122 |
| 11.12 |
|
Borrower’s Right to Cure |
|
123 |
|
|
|
| Section 12. |
|
The
Administrative Agent and Collateral Agent |
|
124 |
|
|
|
| 12.1 |
|
Appointment |
|
124 |
| 12.2 |
|
Limited
Duties |
|
124 |
| 12.3 |
|
Binding
Effect |
|
124 |
| 12.4 |
|
Delegation of Duties |
|
125 |
| 12.5 |
|
Exculpatory Provisions |
|
125 |
| 12.6 |
|
Reliance
by Administrative Agent |
|
125 |
| 12.7 |
|
Notice of
Default |
|
125 |
| 12.8 |
|
Non-Reliance on Administrative Agent and Other
Lenders |
|
126 |
| 12.9 |
|
Indemnification |
|
126 |
| 12.10 |
|
GECC in
its Individual Capacity |
|
127 |
| 12.11 |
|
Successor
Agent |
|
127 |
| 12.12 |
|
Withholding Tax |
|
128 |
| 12.13 |
|
Duties as
Collateral Agent and as paying agent |
|
128 |
| 12.14 |
|
Authorization to Release Liens and Guarantees |
|
128 |
|
|
|
| Section
13. |
|
Miscellaneous |
|
129 |
|
|
|
| 13.1 |
|
Amendments and Waivers |
|
129 |
| 13.2 |
|
Notices
and Other Communications; Facsimile Copies |
|
130 |
| 13.3 |
|
No
Waiver; Cumulative Remedies |
|
131 |
| 13.4 |
|
Survival
of Representations and Warranties |
|
131 |
| 13.5 |
|
Payment
of Expenses and Taxes; Indemnification |
|
131 |
| 13.6 |
|
Successors and Assigns; Participations and
Assignments |
|
133 |
| 13.7 |
|
Replacements of Lenders under Certain Circumstances |
|
137 |
| 13.8 |
|
Adjustments; Set-off |
|
138 |
| 13.9 |
|
Counterparts |
|
138 |
| 13.10 |
|
Severability |
|
138 |
| 13.11 |
|
Integration |
|
138 |
| 13.12 |
|
GOVERNING
LAW |
|
139 |
| 13.13 |
|
Submission to Jurisdiction; Waivers |
|
139 |
| 13.14 |
|
Acknowledgments |
|
139 |
| 13.15 |
|
WAIVERS
OF JURY TRIAL |
|
140 |
| 13.16 |
|
Confidentiality |
|
140 |
| 13.17 |
|
Release
of Collateral and Guarantee Obligations; Subordination of
Liens |
|
140 |
| 13.18 |
|
USA
PATRIOT ACT |
|
142 |
iv
EXECUTION
COPY
|
|
|
| SCHEDULES |
|
|
|
|
| Schedule 1.1(a) |
|
Commitments
and Addresses of Lenders |
| Schedule 1.1(b) |
|
Mortgaged
Property |
| Schedule 6.4(d) |
|
Indebtedness
to be refinanced on the Closing Date |
| Schedule
8.12 |
|
Subsidiaries |
| Schedule
8.15 |
|
Owned Real
Property |
| Schedule
9.19 |
|
Post-Closing
Covenants |
| Schedule
10.1 |
|
Indebtedness |
| Schedule
10.2 |
|
Liens |
| Schedule
10.4 |
|
Dispositions |
| Schedule
10.5 |
|
Investments |
| Schedule
10.9 |
|
Negative
Pledge Clauses |
| Schedule 10.12 |
|
Transactions
with Affiliates |
| Schedule
13.2 |
|
Addresses
for Notices |
|
|
| EXHIBITS |
|
|
|
|
| Exhibit
A |
|
Form of
Assignment and Acceptance |
| Exhibit
B |
|
Form of
Guarantee |
| Exhibit
C |
|
Form of
Mortgage |
| Exhibit
D |
|
Form of
Perfection Certificate |
| Exhibit
E-1 |
|
Form of
Security Agreement |
| Exhibit
E-2 |
|
Form of
Pledge Agreement |
| Exhibit
F-1 |
|
Form of
Notice of Borrowing |
| Exhibit
F-2 |
|
Form of
Letter of Credit Request |
| Exhibit
G-1 |
|
Form of
Legal Opinion of Simpson Thacher & Bartlett LLP |
| Exhibit
G-2 |
|
Form of
Legal Opinion of Akerman Senterfitt |
| Exhibit
G-3 |
|
Form of
Legal Opinion of Andrews Kurth LLP |
| Exhibit
H |
|
Form of
Closing Certificate |
| Exhibit
I |
|
Form of
Promissory Note (Revolving Credit and Swingline Loans) |
| Exhibit
J |
|
Form of
Intercompany Note |
| Exhibit
K |
|
Form of
Borrowing Base Certificate |
v
EXECUTION
COPY
CREDIT AGREEMENT ,
dated as of February 13, 2008, among CHILL INTERMEDIATE
HOLDINGS, INC. , a Delaware corporation (“
Holdings ”), CHILL ACQUISITION, INC. , a
Delaware corporation (“ Merger Sub ”, which on
the Closing Date shall be merged with and into GOODMAN GLOBAL,
INC, a Delaware corporation (the “ Company
”), with the Company surviving such merger as the borrower)
(the “ Borrower ”), the lending institutions
from time to time parties hereto (each a “ Lender
” and, collectively, the “ Lenders ”),
BARCLAYS CAPITAL , the investment banking division of
BARCLAYS BANK PLC and GENERAL ELECTRIC CAPITAL
CORPORATION , as Joint Lead Arrangers, BARCLAYS CAPITAL
, the investment banking division of BARCLAYS BANK PLC ,
CALYON NEW YORK BRANCH and GENERAL ELECTRIC CAPITAL
CORPORATION, as joint bookrunners (the “ Joint
Bookrunners ”), GENERAL ELECTRIC CAPITAL
CORPORATION (“ GECC” ), as the
Administrative, Collateral Agent, Swingline Lender and Letter of
Credit Issuer.
RECITALS:
WHEREAS , capitalized
terms used and not defined in the preamble and these recitals shall
have the respective meanings set forth for such terms in
Section 1.1 hereof;
WHEREAS , pursuant to
the Acquisition Agreement, Merger Sub will be merged with and into
the Company, in accordance with the terms thereof, with the Company
surviving such merger (the “ Merger
”);
WHEREAS , in order to
fund, in part, the Merger Funds (as defined below), the Investors
will directly or indirectly make cash equity contributions (the
“ Equity Contribution ”) to Merger Sub (through
Holdings) in an aggregate amount equal to, when combined with the
fair market value of the equity of management and existing
shareholders of the Company rolled over or invested in connection
with the Transactions, at least 40% of the total sources required
to consummate the Merger (the “ Merger Consideration
”), to refinance, repurchase, redeem and/or repay the
Existing Notes and certain other existing indebtedness of the
Company and its Subsidiaries (the “ Refinancing
”), and to pay fees and expenses incurred in connection with
the Transactions (such fees and expenses, together with the Merger
Consideration and the Refinancing payment, the “ Merger
Funds ”), excluding cash-on-hand at the Company used to
fund a portion of the Merger Funds;
WHEREAS , in order to
fund, in part, the Merger Funds, the Borrower will borrow up to
(x) $800,000,000 in aggregate principal amount of Term Loans
pursuant to the Term Loan Credit Agreement, (y) $105,000,000
in aggregate principal amount of Revolving Credit Loans pursuant to
this Agreement (plus any Existing Notes Additional Redemption
Amount as the case may be) and (z) $500,000,000 in the
aggregate principal amount of the Senior Subordinated Notes
pursuant to the Senior Subordinated Notes Indenture;
WHEREAS , in
connection with the foregoing, the Borrower and Holdings have
requested that the Lenders, Swingline Lender and Letter of Credit
Issuer make available Revolving Credit Loans, Letters of Credit
and/or Swingline Loans for the purposes specified in this Agreement
in the maximum aggregate principal amount of $300,000,000 (the
“ Revolving Credit Facility ”);
EXECUTION
COPY
WHEREAS , in
connection with the foregoing and as an inducement for the Lenders
to extend the credit contemplated hereunder, the Borrower has
agreed to secure all of its Obligations by granting to the
Collateral Agent, for the benefit of Secured Parties, a first
priority lien on its assets (except for Liens permitted pursuant to
Section 10.2 and as otherwise set forth in the Intercreditor
Agreement), including a pledge of all of the Capital Stock (other
than Excluded Capital Stock) of each of its
Subsidiaries; and
WHEREAS , in
connection with the foregoing and as an inducement for the Lenders
to extend the credit contemplated hereunder, the Guarantors have
agreed to guarantee the Obligations and to secure their respective
guarantees by granting to the Collateral Agent, for the benefit of
Secured Parties, a first priority lien on their respective assets
(except for Liens permitted pursuant to Section 10.2 and as
otherwise set forth in the Intercreditor Agreement), including a
pledge of all of the Capital Stock (other than Excluded Capital
Stock) of each of their respective Subsidiaries.
AGREEMENT:
NOW, THEREFORE , in
consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as
follows:
SECTION 1.
Definitions
1.1 Defined Terms (a)
As used herein, the following terms shall have the meanings
specified in this Section 1.1 unless the context otherwise
requires:
“ ABR ”
shall mean, for any day, a rate per annum equal to the greater of
(a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1 / 2 of 1%. If the
Administrative Agent is unable to ascertain the Federal Funds
Effective Rate due to its inability to obtain sufficient quotations
in accordance with the definition thereof, after notice is provided
to the Borrower, the ABR shall be determined without regard to
clause (b) of the preceding sentence until the circumstances
giving rise to such inability no longer exist. Any change in the
ABR due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on
the effective day of such change in the Prime Rate or the Federal
Funds Effective Rate, respectively.
“ ABR Loan
” shall mean each Loan bearing interest at the rate provided
in Section 2.8(a) and, in any event, shall include all
Swingline Loans.
“ Account Debtor
” shall mean an “account debtor” as defined in
Article 9 of the UCC or any Person who may become obligated to any
Credit Party under, with respect to, or on account of, an Account,
chattel paper or general intangibles of such Credit Party
(including a payment intangible) or any guarantor of performance of
an Account.
“ Accounts
” shall mean all “accounts,” as such term is
defined in the UCC, now owned or hereafter acquired by any Credit
Party, including (a) all accounts receivable, other
receivables, book debts and other forms of obligations (other than
forms of obligations evidenced by Chattel Paper or Instruments),
(including any such obligations that may be characterized as an
account or contract right under the UCC), (b) all of each
Credit Party’s rights in, to and under all
2
EXECUTION
COPY
purchase orders or receipts for
merchandise, goods or services, (c) all of each Credit
Party’s rights to any goods represented by any of the
foregoing (including unpaid sellers’ rights of rescission,
replevin, reclamation and stoppage in transit and rights to
returned, reclaimed or repossessed goods), (d) all rights to
payment due to any Credit Party for property sold, leased,
licensed, assigned or otherwise disposed of, for a policy of
insurance issued or to be issued, for a secondary obligation
incurred or to be incurred, for energy provided or to be provided,
for the use or hire of a vessel under a charter or other contract,
arising out of the use of a credit card or charge card, or for
services rendered or to be rendered by such Credit Party or in
connection with any other transaction (whether or not yet earned by
performance on the part of such Credit Party), (e) all
healthcare insurance receivables, and (f) all collateral
security of any kind, now or hereafter in existence, given by any
Account Debtor or other Person with respect to any of the
foregoing.
“ Acquired
EBITDA ” shall mean, with respect to any Pro Forma Entity
for any period, the amount for such period of Consolidated EBITDA
of such Pro Forma Entity (determined as if references to the
Borrower and the Restricted Subsidiaries in the definition of the
term “ Consolidated EBITDA ” were references to
such Pro Forma Entity and its subsidiaries which will become
Restricted Subsidiaries), all as determined on a consolidated basis
for such Pro Forma Entity.
“ Acquired Entity or
Business ” shall have the meaning provided in the
definition of the term “ Consolidated EBITDA
”.
“ Acquisition
Agreement ” shall mean the Agreement and Plan of Merger,
dated as of October 21, 2007, among, inter alia the Company,
Chill Holdings, Inc. and Merger Sub, together with all exhibits and
schedules thereto.
“ Activation
Notice ” shall have the meaning provided in
Section 9.18(b)(i).
“ Adjusted Total
Commitment ” shall mean, at any time, the Total
Commitment less the aggregate Commitments of all Defaulting
Lenders.
“ Administrative
Agent ” shall mean GECC, or any successor to GECC
appointed in accordance with the provisions of Section 12.11,
together with its affiliates, as the administrative agent for the
Lenders under this Agreement and the other Credit
Documents.
“ Administrative
Agent’s Office ” shall mean the office of the
Administrative Agent located at 299 Park Avenue, Fifth Floor, New
York NY, 10171 or such other office as the Administrative Agent may
hereafter designate in writing as such to the other parties
hereto.
“ Affiliate
” shall mean, with respect to any Person, another Person that
directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the
Person specified. The term “ Control ” means the
possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or
otherwise. The terms “ Controlling ” and “
Controlled ” have meanings correlative
thereto.
3
EXECUTION
COPY
“ Agents ”
shall mean the Joint Lead Arrangers, the Administrative Agent and
the Collateral Agent.
“ Agreement
” shall mean this Revolving Credit Agreement.
“ Applicable
Laws ” shall mean, as to any Person, any law (including
common law), statute, regulation, ordinance, rule, order, decree,
judgment, consent decree, writ, injunction, settlement agreement or
governmental requirement enacted, promulgated or imposed or entered
into or agreed by any Governmental Authority, in each case
applicable to or binding on such Person or any of its property or
assets or to which such Person or any of its property or assets is
subject.
“ Applicable
Margin ” shall mean a percentage per annum equal
to (A) for Eurodollar Loans, 2.00%, (B) for ABR Loans
(including Swingline Loans), 1.00%, (C) with respect to Letter
of Credit fees, 2.00%, and (D) for commitment fee payable
pursuant to Section 4.1(a), 0.50% (to be lowered to 0.375% at
such time, and for so long as, the Consolidated Total Debt to
Consolidated EBITDA Ratio set forth on the most recent
officers’ certificate received by the Administrative Agent
pursuant to Section 9.1(d) is lower than 3.50 to 1.00; it
being specified that any increase or decrease in the commitment fee
resulting from a change in the Consolidated Total Debt to
Consolidated EBITDA Ratio shall become effective as of the first
Business Day immediately following the date Section 9.1
Financials are delivered to the Administrative Agent pursuant to
Sections 9.1(a) and 9.1(b); provided that at the option of the
Required Lenders, the highest level of commitment fee shall apply
(i) as of the first Business Day after the date on which
Section 9.1 Financials were required to have been delivered
but have not been delivered pursuant to Section 9.1 and shall
continue to so apply to and including the date on which such
Financials Section 9.1 Financials are so delivered (and
thereafter the commitment fee otherwise determined in accordance
with this definition shall apply), and (ii) as of the first
Business Day after an Event of Default shall have occurred and be
continuing and the Administrative Agent has notified that the
highest commitment fees applies, and shall continue to so apply to
but excluding the date on which such Event of Default shall cease
to be continuing (and thereafter the commitment fee otherwise
determined in accordance with this definition shall
apply)).
“ Approved Fund
” shall have the meaning provided in
Section 13.6(b).
“ Assignment and
Acceptance ” shall mean an assignment and acceptance
entered into by a Lender and an assignee substantially in the form
of Exhibit A.
“ Attributable
Indebtedness ” shall mean, on any date, in respect of any
Capitalized Lease of any Person, the capitalized amount thereof
that would appear on a balance sheet of such Person prepared as of
such date in accordance with GAAP.
“ Authorized
Officer ” shall mean the Chairman of the Board, the
President, the Chief Executive Officer, the Chief Financial
Officer, the Chief Operating Officer, the Treasurer, the Assistant
Treasurer, with respect to certain limited liability companies or
partnerships that do not have officers, any manager, managing
member or general partner thereof, any other senior officer of
Holdings, the Borrower or any other Credit Party designated as such
in writing to the
4
EXECUTION
COPY
Administrative Agent by Holdings, the
Borrower or any other Credit Party, as applicable, and, with
respect to any document (other than the solvency certificate)
delivered on the Closing Date, the Secretary or the Assistant
Secretary of any Credit Party. Any document delivered hereunder
that is signed by an Authorized Officer shall be conclusively
presumed to have been authorized by all necessary corporate,
limited liability company, partnership and/or other action on the
part of Holdings, the Borrower or any other Credit Party and such
Authorized Officer shall be conclusively presumed to have acted on
behalf of such Person.
“ Auto-Extension
Letter of Credit ” shall have the meaning provided in
Section 3.2(b).
“ Available
Amount ” shall mean, at any time (the “
Available Amount Reference Time ”), an amount equal at
such time to the sum of, without duplication:
(a) the amount (which amount
shall not be less than zero) equal to 50% of the Cumulative
Consolidated Net Income of the Borrower and the Restricted
Subsidiaries;
(b) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of all cash dividends and other cash distributions
received by the Borrower or any Restricted Subsidiary from any
Minority Investments or Unrestricted Subsidiaries after the Closing
Date through and including the Available Amount Reference Time
(other than the portion of any such dividends and other
distributions that is used by the Borrower or any Restricted
Subsidiary to pay taxes);
(c) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of all cash repayments of principal received by
the Borrower or any Restricted Subsidiary from any Minority
Investments or Unrestricted Subsidiaries after the Closing Date
through and including the Available Amount Reference Time in
respect of loans made by the Borrower or any Restricted Subsidiary
to such Minority Investments or Unrestricted
Subsidiaries; and
(d) to the extent not already
included in the calculation of Consolidated Net Income or applied
to prepay the Term Loans in accordance with Section 4.2(a)(i)
of the Term Loan Credit Agreement, the aggregate amount of all net
cash proceeds received by the Borrower or any Restricted Subsidiary
in connection with the sale, transfer or other disposition of its
ownership interest in any Minority Investment or Unrestricted
Subsidiary after the Closing Date through and including the
Available Amount Reference Time; and
(e) to the extent not already
included in the calculation of Consolidated Net Income, the
aggregate amount of any Final Refused Proceeds (as defined in the
Term Loan Credit Agreement) retained by the Borrower during the
period from and including the Business Day immediately following
the Closing Date through and including the Available Amount
Reference Time,
minus the sum of,
without duplication and without taking into account the actual
usage of the Available Amount being made at the applicable
Available Amount Reference Time:
(i) the aggregate amount of
any Investments made by Holdings, the Borrower or any Restricted
Subsidiary pursuant to clause (iii) of the proviso to
Section 10.5(q) and clause (iii) of the proviso to
Section 10.5(r) after the Closing Date and prior to the
Available Amount Reference Time;
5
EXECUTION
COPY
(ii) the aggregate amount of
any Dividends made by Holdings pursuant to clause (ii)(B) of
Section 10.6(f) after the Closing Date and prior to the
Available Amount Reference Time; and
(iii) the aggregate amount of
prepayments, repurchases, redemptions and defeasances made by
Holdings, the Borrower or any Restricted Subsidiary pursuant to
clause (B)(y) of the proviso to Section 10.7(a)(ii) after
the Closing Date and prior to the Available Amount Reference
Time; and
(iv) the aggregate amount of
Capital Expenditures made by the Borrower or any Restricted
Subsidiary pursuant to Section 9.11(c)(i)(z) of the Term Loan
Credit Agreement after the Closing Date and prior to the Available
Amount Reference Time.
“ Available Amount
Reference Time ” shall have the meaning provided in the
definition of the term “ Available Amount
”.
“ Available Equity
Amount ” shall mean, at any time (the “
Available Equity Amount Reference Time ”), an amount
equal to, without duplication, (a) the amount of any capital
contributions or other equity issuances (other than the Equity
Contribution, issuances of Permitted Cure Securities or any other
capital contribution or equity issuance to the extent utilized in
connection with other transactions permitted pursuant to
Section 10.5 or Section 10.6) received as cash equity by
the Borrower (through Holdings) during the period from and
including the Business Day immediately following the Closing Date
through and including the Available Equity Amount Reference Time,
but excluding all proceeds from the issuance of Disqualified
Capital Stock, minus (b) the sum, without duplication,
of:
(i) the aggregate amount of
any Investments made by Holdings, the Borrower or any Restricted
Subsidiary pursuant to clause (ii) of the proviso to
Section 10.5(q) and clause (ii) of the proviso to
Section 10.5(r) after the Closing Date and prior to the
Available Equity Amount Reference Time;
(ii) the aggregate amount of
any Dividends made by Holdings pursuant to clause (i) of
Section 10.6(f) after the Closing Date and prior to the
Available Equity Amount Reference Time;
(iii) the aggregate amount of
prepayments, repurchases, redemptions and defeasances made by
Holdings, the Borrower or any Restricted Subsidiary pursuant to
clause (A) of the proviso to Section 10.7(a)(ii) after
the Closing Date and prior to the Available Equity Amount Reference
Time; and
(iv) the aggregate amount of
Capital Expenditures made by the Borrower or any Restricted
Subsidiary pursuant to Section 9.11(c)(i)(y) of the Term Loan
Credit Agreement after the Closing Date and prior to the Available
Equity Amount Reference Time.
6
EXECUTION
COPY
“ Available Equity
Amount Reference Time ” shall have the meaning provided
in the definition of the term “ Available Equity
Amount ”.
“ Bankruptcy
Code ” shall mean Title 11 of the United States Code, as
amended, or any similar federal or state law for the relief of
debtors.
“ Blocked
Accounts ” shall have the meaning provided in
Section 9.18(a).
“ Board ”
shall mean the Board of Governors of the Federal Reserve System of
the United States (or any successor).
“ Borrower
” shall have the meaning provided in the preamble to this
Agreement.
“ Borrowing
” shall mean and include (a) the incurrence of one Type
of Revolving Credit Loan on a given date (or resulting from
conversions of Revolving Credit Loans on a given date) having, in
the case of Eurodollar Loans, the same Interest Period (provided
that ABR Loans incurred pursuant to Section 2.10(b) shall be
considered part of any related Borrowing of Eurodollar Loans) and
(b) the incurrence of Swingline Loans from the Swingline
Lender on a given date.
“ Borrowing Base
” shall mean, as of any date, an amount equal to the sum at
such time of (without duplication):
(a) 85% multiplied by the
book value of Credit Parties’ Eligible Accounts at such
time; and
(b) 85% multiplied by the Net
Orderly Liquidation Value Percentage multiplied by the Credit
Parties’ Eligible Inventory,
in each case, less, any Reserve
established or modified from time to time by the Administrative
Agent or the Collateral Agent in their exercise of their Permitted
Discretion in accordance with the provisions of
Section 2.14.
The Borrowing Base at any time shall be
determined by reference to the most recent Borrowing Base
Certificate theretofore delivered to the Collateral Agent and the
Administrative Agent with such adjustments as Administrative Agent
and Collateral Agent deem appropriate in their Permitted Discretion
to assure that the Borrowing Base is calculated in accordance with
the terms of this Agreement.
“ Borrowing Base
Certificate ” shall mean a certificate, executed by an
Authorized Officer of Borrower, substantially in the form of (or in
such other form as may be mutually agreed upon by Borrower,
Administrative Agent and Collateral Agent), and containing the
information prescribed by, Exhibit K, delivered to the
Administrative Agent and the Collateral Agent setting forth
Borrower’s calculation of the Borrowing Base in accordance
with Section 9.1(k).
7
EXECUTION
COPY
“ Business Day
” shall mean (a) any day excluding Saturday, Sunday and
any day that shall be in The City of New York a legal holiday or a
day on which banking institutions are authorized by law or other
governmental actions to close and (b) if the applicable
Business Day relates to any Eurodollar Loans, any day on which
dealings in deposits in Dollars are carried on in the London
interbank eurodollar market.
“ Canadian
Dollars ” shall mean dollars in lawful currency of
Canada.
“ Capital
Expenditures ” shall mean, for any period, the aggregate
of, without duplication, (a) all expenditures (whether paid in
cash or accrued as liabilities) by the Borrower and the Restricted
Subsidiaries during such period that, in conformity with GAAP, are
or are required to be included as additions during such period to
property, plant or equipment reflected in the consolidated balance
sheet of the Borrower and the Restricted Subsidiaries, (b) all
Capitalized Software Expenditures during such period, and
(c) all fixed asset additions financed through Capital Lease
Obligations incurred by the Borrower and the Restricted
Subsidiaries and recorded on the balance sheet in accordance with
GAAP during such period; provided that the term “
Capital Expenditures ” shall not include
(i) expenditures made in connection with the replacement,
substitution, restoration or repair of assets to the extent
financed from insurance proceeds or compensation awards paid on
account of a Recovery Event, (ii) the purchase price of
equipment that is purchased simultaneously with the trade-in of
existing equipment to the extent that the gross amount of such
purchase price is reduced by the credit granted by the seller of
such equipment for the equipment being traded in at such time,
(iii) the purchase of plant, property or equipment to the
extent financed with the proceeds of sales, transfers or other
dispositions that are not required to be applied to prepay Term
Loans pursuant to Section 4.2(a)(i) of the Term Loan Credit
Agreement, (iv) expenditures that constitute any part of
Consolidated Lease Expense, (v) expenditures that are
accounted for as capital expenditures by the Borrower or any
Restricted Subsidiary and that actually are paid for by a Person
other than the Borrower or any Restricted Subsidiary and for which
neither the Borrower nor any Restricted Subsidiary has provided or
is required to provide or incur, directly or indirectly, any
consideration or obligation to such Person or any other Person
(whether before, during or after such period, it being understood,
however, that only the amount of expenditures actually provided or
incurred by the Borrower or any Restricted Subsidiary in such
period and not the amount required to be provided or incurred in
any future period shall constitute “Capital
Expenditures” in the applicable period), (vi) the book
value of any asset owned by the Borrower or any Restricted
Subsidiary prior to or during such period to the extent that such
book value is included as a capital expenditure during such period
as a result of such Person reusing or beginning to reuse such asset
during such period without a corresponding expenditure actually
having been made in such period; provided that (x) any
expenditure necessary in order to permit such asset to be reused
shall be included as a Capital Expenditure during the period in
which such expenditure actually is made and (y) such book
value shall have been included in Capital Expenditures when such
asset was originally acquired, (vii) any expenditures that
constitute Permitted Acquisitions and expenditures made in
connection with the Transactions or (viii) any capitalized
interest expense reflected as additions to property, plant or
equipment in the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries or capitalized as Capitalized Software
Expenditures for such period.
“ Capital Stock
” shall mean any and all shares, interests, participations or
other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person
(other than a corporation) and any and all warrants, rights or
options to purchase any of the foregoing.
8
EXECUTION
COPY
“ Capitalized Lease
Obligations ” shall mean, as applied to any Person, all
obligations under Capitalized Leases of such Person or any of its
Subsidiaries, in each case taken at the amount thereof accounted
for as liabilities in accordance with GAAP.
“ Capitalized
Leases ” shall mean, as applied to any Person, all leases
of property that have been or should be, in accordance with GAAP,
recorded as capitalized leases of such Person.
“ Capitalized
Software Expenditures ” shall mean, for any period, the
aggregate of all expenditures (whether paid in cash or accrued as
liabilities) by the Borrower and the Restricted Subsidiaries during
such period in respect of purchased software or internally
developed software and software enhancements that, in conformity
with GAAP, are or are required to be reflected as capitalized costs
on the consolidated balance sheet of the Borrower and the
Restricted Subsidiaries.
“ Cash Collateral
Account ” shall mean a deposit account or securities
account in the name of the Borrower and under the sole control (as
defined in the applicable UCC) of the Collateral Agent for the
benefit of the Secured Parties.
“ Cash
Collaterize ” shall have the meaning provided in
Section 3.7.
“ Cash Dominion
Event ” shall mean the occurrence of any one of the
following events: (i) the Excess Availability is less than 10%
of the Total Commitment for a period of five consecutive Business
Days, (ii) an Event of Default pursuant to Sections 11.1,
11.3 (but only to the extent such Event of Default was caused by a
breach of Section 10 or Section 9.1(a), (b) or
(k) and the Administrative Agent or the Required Lenders have
reasonably determined (by written notice to the Borrower) to effect
a Cash Dominion Event as a result of such breach) or 11.5 shall
occur and be continuing; provided that, to the extent that
the Cash Dominion Event has occurred due to clause (i) of this
definition, if Excess Availability shall be equal to or greater
than 10% of the Total Commitments for at least 30 consecutive days,
the Cash Dominion Event shall be deemed to be over. At any time
that a Cash Dominion Event shall be deemed to be over or otherwise
cease to exist, the Collateral Agent shall take such actions,
including delivering such notices and directions to depositary
institutions at which Blocked Accounts are established, to
terminate the cash sweeps and other transfers existing pursuant to
Section 9.18(c) as a result of any Activation Notice or other
notices or directions given by Collateral Agent during the
existence of such Cash Dominion Event.
“ Cash Management
Systems ” shall have the meaning provided in
Section 9.18(b).
“ Cash Management
Bank ” shall mean any Person that is a Lender or an
Affiliate of a Lender at the time it provides any Cash Management
Services or that is a Lender or an Affiliate of a Lender at any
time after it has provided any Cash Management Services, including
each Person deemed to be “Cash Management Bank”
pursuant to the definition of the term “ Cash Management
Bank ” in the Term Loan Credit Agreement or in the
documentation governing any Permitted Refinancing Indebtedness
incurred to Refinance such Indebtedness.
9
EXECUTION
COPY
“ Cash Management
Obligations ” shall mean obligations owed by Holdings,
the Company or any Restricted Subsidiary to any Cash Management
Bank in connection with, or in respect of, any Cash Management
Services.
“ Cash Management
Services ” shall mean treasury, depository, overdraft,
credit or debit card, including non-card e-payables services,
purchase card, electronic funds transfer, automated clearing house
fund transfer services and other cash management
services.
“ Change ”
shall have the meaning provided for in Section 2.14
“ Change of
Control ” shall mean and be deemed to have occurred if
(a) (i) at any time prior to a Qualifying IPO, the
Sponsor and the Management Investors shall at any time not own, in
the aggregate, directly or indirectly, beneficially and of record,
at least 35% of the outstanding Voting Stock of Holdings and/or
(ii) at any time after a Qualifying IPO, any person, entity or
“ group ” (within the meaning of
Section 13(d) or 14(d) of the Exchange Act, but excluding any
employee benefit plan of such person, entity or “
group ” and its Subsidiaries and any person or entity
acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), other than the Sponsor and the
Management Investors, shall at any time have acquired direct or
indirect beneficial ownership (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange Act) of the greater of (A) 35% of
the outstanding Voting Stock of Holdings and (B) the
percentage of the outstanding Voting Stock of Holdings owned in the
aggregate, directly or indirectly, beneficially and of record, by
the Sponsor and the Management Investors, unless in the case of
either clause (i) or (ii) above, the Sponsor and the
Management Investors have, at such time, the right or the ability
by voting power, contract or otherwise to elect or designate for
election at least a majority of the Board of Directors of
Holdings; provided that, for the purpose of this
clause (a), the direct or indirect beneficial ownership of the
Management Investors shall be deemed not to exceed 10% of the
outstanding Voting Stock of Holdings; and/or (b) at any time
Continuing Managers shall not constitute at least majority of the
Board of Directors of Holdings; and/or (c) any Person
other than Holdings shall acquire direct ownership, beneficially or
of record, of any Voting Stock of the Borrower; and/or (d) a
“Change of Control” (as defined in the Revolving Credit
Agreement or in the Senior Subordinated Notes Indenture or however
defined in the documentation governing any Permitted Refinancing
Indebtedness incurred to Refinance any of such Indebtedness) shall
have occurred.
“ Closing Date
” shall mean the date of the initial Credit Event
hereunder.
“ Closing Date
Indebtedness ” shall mean Indebtedness described on
Schedule 10.1.
“ Closing EBITDA
” shall mean “ EBITDA ” as defined in the
indenture governing the notes identified in clause (i) of the
definition of “ Existing Notes ” modified as
follows: (a) business optimization expenses and other
restructuring charges under clause (4) of such definition
shall only be permitted to be added back up to an aggregate amount
of $5,000,000 for the twelve-month period ended December 31,
2007 and (b) EBITDA for each of the three-month periods ended
March 31, 2007 and June 30, 2007, respectively, shall be
deemed to be $32,700,000 and $88,300,000, respectively.
10
EXECUTION
COPY
“ Code ”
shall mean the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and rulings issued
thereunder. Section references to the Code are to the Code, as
in effect at the date of this Agreement, and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto or
substituted therefor.
“ Collateral
” shall have the meaning provided to such term in each of the
Security Documents.
“ Collateral Access
Agreement ” shall mean a landlord waiver, bailee letter
or any other agreement reasonably requested by and reasonably
acceptable to the Administrative Agent or the Collateral Agent, as
the case may be.
“ Collateral
Agent ” shall mean GECC, or any successor thereto
appointed in accordance with the provisions of Section 12.11,
together with its affiliates, as the collateral agent for the
Secured Parties.
“ Collection
Account ” shall have the meaning provided in
Section 9.18(b)(i).
“ Commitment
” shall mean, with respect to each Lender, such
Lender’s Revolving Credit Commitment or Swingline
Commitment.
“ Commitment Fee
” shall have the meaning provided in
Section 4.1(a).
“ Company
” shall have the meaning provided in the preamble to this
Agreement.
“ Concentration
Account ” shall have the meaning provided in
Section 9.18(b)(i).
“ Concentration
Account Bank ” shall have the meaning provided in
Section 9.18(b)(i).
“ Confidential
Information ” shall have the meaning provided in
Section 13.16.
“ Confidential
Information Memorandum ” shall mean the Confidential
Information Memorandum of the Borrower dated January 2008,
delivered to prospective lenders in connection with this
Agreement.
“ Consolidated
EBITDA ” shall mean, for any period, the Consolidated Net
Income for such period, plus:
(a) without duplication and
to the extent already deducted (and not added back) in arriving at
such Consolidated Net Income, the sum of the following amounts for
such period:
(i) total interest expense
and, to the extent not reflected in such total interest expense,
any losses on Hedging Obligations or other derivative instruments
entered into for the purpose of hedging interest rate risk, net of
interest income and gains on such Hedging Obligations or such
derivative instruments, and bank and letter of credit fees and
costs of surety bonds in connection with financing
activities,
11
EXECUTION
COPY
(ii) provision for taxes
based on income, profits or capital, including federal, foreign,
state, franchise, excise, and similar taxes paid or accrued during
such period,
(iii) depreciation and
amortization (including amortization of intangible assets
established through purchase accounting and amortization of
deferred financing fees or costs),
(iv) Non-Cash
Charges,
(v) net after tax
extraordinary losses in accordance with GAAP,
(vi) net after tax
non-recurring charges (including any unusual or non-recurring
operating expenses directly attributable to the implementation of
cost savings initiatives), severance, relocation costs, integration
and facilities’ opening costs, signing costs, retention or
completion bonuses, transition costs and costs related to
closure/consolidation of facilities,
(vii) restructuring charges,
accruals or reserves (including restructuring costs related to
acquisitions after the Closing Date); provided that such
restructuring charges, accruals and reserves shall not exceed an
aggregate amount of $5,000,000 for any Test Period,
(viii) the amount of any
minority interest expense consisting of Subsidiary income
attributable to minority equity interests of third parties in any
non-wholly owned Subsidiary deducted (and not added back in such
period to Consolidated Net Income),
(ix) (A) the amount of
management, monitoring, consulting and advisory fees, indemnities
and related expenses paid or accrued in such period to (or on
behalf of) the Sponsor and (B) the amount of expenses relating
to payments made to option holders of the Borrower or any of its
direct or indirect parent companies in connection with, or as a
result of, any distribution being made to shareholders of such
Person or its direct or indirect parent companies, which payments
are being made to compensate such option holders as though they
were shareholders at the time of, and entitled to share in, such
distribution, in each case to the extent permitted in this
Agreement,
(x) losses on asset sales,
disposals or abandonments (other than asset sales, disposals or
abandonments in the ordinary course of business),
(xi) the amount of “
run rate ” cost savings projected by the Borrower in
good faith to be realized as a result of specified actions taken
within 18 months after the Closing Date (which cost savings shall
be added to Consolidated EBITDA until fully realized (but in any
event for no longer than 30 months following the Closing Date if
such cost savings have not be realized by that time) and calculated
on a Pro Forma Basis as though such cost savings had been realized
on the first day of the relevant period), net of the amount of
actual benefits realized from such actions; provided that
(A) such cost savings are reasonably identifiable and
factually supportable, (B) no cost savings shall be added
pursuant to this clause (xi) to the extent duplicative of any
expenses or charges relating to such cost savings that are included
in clauses (vi) and (vii) above or in the definition
of the term “ Pro Forma Adjustment ” and
(C) the aggregate amount of cost savings added pursuant to
this clause (xi) shall not exceed $10,000,000 for any Test
Period (it being understood and agreed that “ run rate
” shall mean the full recurring benefit that is associated
with any action taken),
12
EXECUTION
COPY
(xii) the amount of any net
losses from discontinued operations in accordance with
GAAP,
(xiii) any non-cash loss
attributable to the mark to market movement in the valuation of
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) (to the extent the cash impact
resulting from such loss has not been realized) or other derivative
instruments pursuant to Financial Accounting Standards Board
Statement No. 133-” Accounting for Derivative
Instruments and Hedging Activities ”,
(xiv) any loss relating to
amounts paid in cash prior to the stated settlement date of any
Hedging Obligation (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) that has been reflected in
Consolidated Net Income for such period, and
(xv) any gain relating to
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) associated with transactions
realized in the current period that has been reflected in
Consolidated Net Income in prior periods and excluded from
Consolidated EBITDA pursuant to clauses (b)(v) and
(b)(vi) below;
less
(b) without duplication and
to the extent included in arriving at such Consolidated Net Income,
the sum of the following amounts for such period:
(i) extraordinary gains and
unusual or non-recurring gains,
(ii) non-cash gains
(excluding any non-cash gain to the extent it represents the
reversal of an accrual or reserve for a potential cash item that
reduced Consolidated Net Income or Consolidated EBITDA in any prior
period),
(iii) gains on asset sales,
disposals or abandonments (other than asset sales, disposals or
abandonments in the ordinary course of business),
(iv) the amount of any net
income from discontinued operations in accordance with
GAAP,
(v) any non-cash gain
attributable to the mark to market movement in the valuation of
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) (to the extent the cash impact
resulting from such gain has not been realized) or other derivative
instruments pursuant to Financial Accounting Standards Board
Statement No. 133-” Accounting for Derivative
Instruments and Hedging Activities ”,
13
EXECUTION
COPY
(vi) any gain relating to
amounts received in cash prior to the stated settlement date of any
Hedging Obligation (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) that has been reflected in
Consolidated Net Income in the such period,
(vii) any loss relating to
Hedging Obligations (including Hedging Obligations entered into for
the purpose of hedging against fluctuations in the price or
availability of any commodity) associated with transactions
realized in the current period that has been reflected in
Consolidated Net Income in prior periods and excluded from
Consolidated EBITDA pursuant to clauses (a)(xiii) and (a)(xiv)
above; and
(viii) the amount of any
minority interest income consisting of Subsidiary loss attributable
to minority equity interests of third parties in any non-wholly
owned Subsidiary added (and not deducted in such period to
Consolidated Net Income),
in each case, as determined on a
consolidated basis for the Borrower and the Restricted Subsidiaries
in accordance with GAAP; provided that, to the extent included
in Consolidated Net Income,
(i) there shall be excluded
in determining Consolidated EBITDA currency translation gains and
losses related to currency remeasurements of Indebtedness
(including the net loss or gain resulting from Hedging Agreements
for currency exchange risk),
(ii) there shall be included
in determining Consolidated EBITDA for any period, without
duplication, (A) the Acquired EBITDA of any Person, property,
business or asset acquired by the Borrower or any Restricted
Subsidiary during such period (other than any Unrestricted
Subsidiary) to the extent not subsequently sold, transferred or
otherwise disposed of (but not including the Acquired EBITDA of any
related Person, property, business or assets to the extent not so
acquired) (each such Person, property, business or asset acquired,
including pursuant to the Transactions, and not subsequently so
disposed of, an “ Acquired Entity or Business
”), and the Acquired EBITDA of any Unrestricted Subsidiary
that is converted into a Restricted Subsidiary during such period
(each, a “ Converted Restricted Subsidiary ”),
in each case based on the Acquired EBITDA of such Pro Forma Entity
for such period (including the portion thereof occurring prior to
such acquisition or conversion) determined on a historical Pro
Forma Basis and (B) an adjustment in respect of each Pro Forma
Entity equal to the amount of the Pro Forma Adjustment with respect
to such Pro Forma Entity for such period (including the portion
thereof occurring prior to such acquisition or conversion) as
specified in the Pro Forma Adjustment Certificate delivered to the
Administrative Agent (for further delivery to the
Lenders); and
(iii) there shall be excluded
in determining Consolidated EBITDA for any period the Disposed
EBITDA of any Person, property, business or asset (other than any
Unrestricted Subsidiary) sold, transferred or otherwise disposed
of, closed or classified as discontinued operations by the Borrower
or any Restricted Subsidiary during such period (each such Person,
property, business or asset so sold, transferred or otherwise
disposed of, closed or classified, a “ Sold Entity or
Business ”), and the Disposed EBITDA of any Restricted
Subsidiary that is converted into an Unrestricted Subsidiary during
such period (each, a “ Converted
14
EXECUTION
COPY
Unrestricted Subsidiary ”),
in each case based on the Disposed EBITDA of such Sold Entity or
Business or Converted Unrestricted Subsidiary for such period
(including the portion thereof occurring prior to such sale,
transfer, disposition, closure, classification or conversion)
determined on a historical Pro Forma Basis.
Notwithstanding anything to the contrary
contained herein and subject to adjustment as provided in
clauses (ii) and (iii) of the immediately
preceding proviso with respect to acquisitions and dispositions
occurring following the Closing Date and adjustments as provided
under clause (a)(xi) above, Consolidated EBITDA shall be deemed to
be $32,200,000, $87,500,000 and $95,000,000, respectively, for the
fiscal quarters ended March 31, 2007, June 30, 2007
and September 30, 2007.
“ Consolidated
EBITDA to Consolidated Fixed Charges Ratio ” shall mean,
as of any date of determination, the ratio of
(a) (i) Consolidated EBITDA for the most recent Test
Period ended on or prior to such date of determination
minus, without duplication, (ii) Capital Expenditures
incurred during such Test Period (other than Capital Expenditures
financed with the proceeds of Indebtedness), minus ,
(iii) the portion of taxes attributable to the Borrower and
its Restricted Subsidiaries based on income for such Test Period
actually paid in cash or accrued during such Test Period to
(b) Consolidated Fixed Charges for such Test Period;
provided that, for purposes of calculating the Consolidated
EBITDA to Consolidated Fixed Charges Ratio for any period ending
prior to the first anniversary of the Closing Date, Consolidated
Interest Expense shall be (A) with respect to all amounts of
Consolidated Interest Expense, other than amounts relating to the
Credit Documents, an amount equal to actual Consolidated Interest
Expense from the Closing Date through the date of determination
multiplied by a fraction the numerator of which is 365 and the
denominator of which is the number of days from the Closing Date
through the date of determination and (B) with respect to all
amounts of Consolidated Interest Expense relating to the Credit
Documents, calculated as if the average amount utilized and
accruing Consolidated Interest Expense thereunder during any fiscal
quarter prior to the first anniversary of the Closing Date, is
$105,000,000 in respect of Revolving Credit Loans and $33,000,000
in respect of Letters of Credit Outstanding. In the event that the
Borrower or any Restricted Subsidiary incurs, assumes, guarantees,
repays, redeems, retires or extinguishes any Indebtedness (other
than Indebtedness incurred under any revolving credit facility that
has not been permanently repaid) subsequent to the commencement of
the period for which the Consolidated EBITDA to Consolidated Fixed
Charges Ratio is being calculated, but prior to or simultaneously
with the event for which the calculation of the Consolidated EBITDA
to Consolidated Fixed Charges Ratio is made (the “
Calculation Date ”), then the Consolidated EBITDA to
Consolidated Fixed Charges Ratio shall be calculated giving Pro
Forma Effect to such incurrence, assumption, guarantee, repayment,
redemption, retirement or extinguishing of Indebtedness as if the
same had occurred at the beginning of the applicable Test
Period.
“ Consolidated Fixed
Charges ” shall mean for any period, the sum, determined
on a consolidated basis and, without duplication, of
(i) Consolidated Interest Expense, (ii) any scheduled
payment of principal of Consolidated Total Debt during such period,
(iii) all cash Dividends paid by the Borrower and the
Restricted Subsidiaries on any series of preferred Capital Stock or
Disqualified Capital Stock during such period.
15
EXECUTION
COPY
“ Consolidated
Interest Expense ” shall mean, for any period, the cash
interest expense (including that attributable to Capitalized
Leases), net of cash interest income, of the Borrower and the
Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP, with respect to all outstanding Indebtedness
of the Borrower and the Restricted Subsidiaries, including all
commissions, discounts and other fees and charges owed with respect
to letters of credit and bankers’ acceptance financing and
net costs under Hedging Agreements, but excluding, for the
avoidance of doubt, (i) amortization of deferred financing
costs, debt issuance costs, commissions, fees and expenses,
pay-in-kind interest expense and any other amounts of non-cash
interest (including as a result of the effects of purchase
accounting), (ii) the accretion or accrual of discounted
liabilities during such period, (iii) any interest in respect
of items excluded from Indebtedness in the proviso to the
definition thereof, (iv) non-cash interest expense
attributable to the movement of the mark-to-market valuation of
obligations under Hedging Agreements or other derivative
instruments pursuant to Statement of Financial Accounting Standards
No. 133, (v) any one-time cash costs associated with
breakage in respect of Hedging Agreements for interest rates, and
(vi) all non-recurring cash interest expense consisting of
liquidated damages for failure to timely comply with registration
rights obligations and financing fees, all as calculated on a
consolidated basis in accordance with GAAP.
“ Consolidated Lease
Expense ” shall mean, for any period, all rental expenses
of the Borrower and the Restricted Subsidiaries during such period
under operating leases for real or personal property (including in
connection with Permitted Sale Leasebacks), but excluding real
estate taxes, insurance costs and common area maintenance charges
and net of sublease income; provided that Consolidated
Lease Expense shall not include (a) obligations under vehicle
leases entered into in the ordinary course of business,
(b) all such rental expenses associated with assets acquired
pursuant to the Transactions and pursuant to a Permitted
Acquisition to the extent that such rental expenses relate to
operating leases (i) in effect at the time of (and immediately
prior to) such acquisition and (ii) related to periods prior
to such acquisition, (c) Capitalized Lease Obligations, all as
determined on a consolidated basis in accordance with GAAP and
(d) the effects from applying purchase accounting.
“ Consolidated Net
Income ” shall mean, for any period, the net income
(loss) of the Borrower and the Restricted Subsidiaries for
such period determined on a consolidated basis in accordance with
GAAP, excluding, without duplication, (a) extraordinary items
for such period (including expenditures incurred to settle
environmental liabilities), (b) the cumulative effect of a
change in accounting principles during such period to the extent
included in Consolidated Net Income, (c) in the case of any
period that includes a period ending prior to or during the fiscal
quarter ending December 31, 2008, Transaction Expenses,
(d) any fees and expenses incurred during such period, or any
amortization thereof for such period, in connection with any
acquisition, investment, asset disposition, issuance or repayment
of debt, issuance of equity securities, refinancing transaction or
amendment or other modification of any debt instrument (in each
case, including any such transaction consummated prior to the
Closing Date and any such transaction undertaken but not completed)
and any charges or non-recurring merger costs incurred during such
period as a result of any such transaction, (e) any income
(loss) for such period attributable to the early
extinguishment of Indebtedness, Hedging Agreements or other
derivative instruments (other than commodity Hedging Agreements),
(f) accruals and reserves that are established or adjusted as
a result of the Transactions in accordance with GAAP or changes as
a result of the adoption or modification of accounting policies
during such period,
16
EXECUTION
COPY
(g) stock-based award compensation
expenses and (h) any income (loss) from investments recorded
using the equity method. There shall be included in Consolidated
Net Income, without duplication, the amount of any cash tax
benefits related to the tax amortization of intangible assets in
such period. There shall be excluded from Consolidated Net Income
for any period the effects from applying purchase accounting,
including applying purchase accounting to inventory, property and
equipment, software and other intangible assets and deferred
revenue required or permitted by GAAP and related authoritative
pronouncements (including the effects of such adjustments pushed
down to the Borrower and the Restricted Subsidiaries), as a result
of the Transactions, any acquisition consummated prior to the
Closing Date and any permitted acquisitions or the amortization or
write-off of any amounts thereof.
“ Consolidated Total
Assets ” shall mean, as of any date of determination, the
total amount of all assets of the Borrower and the Restricted
Subsidiaries, determined on a consolidated basis in accordance with
GAAP as of such date.
“ Consolidated Total
Debt ” shall mean, as of any date of determination,
(a) the aggregate principal amount of (i) indebtedness of
the Borrower and the Restricted Subsidiaries outstanding on such
date, determined on a consolidated basis in accordance with GAAP
(but excluding the effects of any discounting of indebtedness
resulting from the application of purchase accounting in connection
with the Transactions or any Permitted Acquisition), consisting of
indebtedness for borrowed money, Capitalized Lease Obligations and
debt obligations evidenced by promissory notes or similar
instruments, minus (b) (i) the aggregate amount of
cash and Permitted Investments (in each case, free and clear of all
Liens, other than Permitted Liens and other non-consensual Liens
permitted by Section 10.2, Liens permitted under
Sections 10.2(a), 10.2(h), 10.2(j), 10.2(m) and Liens
permitted under clauses (i) and (ii) of
Section 10.2(n)), excluding cash and Permitted Investments
which are listed as “restricted”, on the consolidated
balance sheet of the Borrower and the Restricted Subsidiaries as of
such date less (ii) the aggregate amount of
Reinvestment Deferred Amounts in excess of $50,000,000 at the date
of determination.
“ Consolidated Total
Debt to Consolidated EBITDA Ratio ” shall mean, as of any
date of determination, the ratio of (a) Consolidated Total
Debt as of the last day of the relevant Test Period to
(b) Consolidated EBITDA for such Test Period.
“ Continuing
Manager ” shall mean, at any date, an individual
(a) who is a member of the Board of Directors of Holdings on
the Closing Date, (b) who, as at such date, has been a member
of such Board of Directors for at least the 12 preceding months,
(c) who has been nominated or designated to be a member of
such Board of Directors, directly or indirectly, by the Sponsor or
Persons nominated or designated by the Sponsor or (d) who has
been nominated to be a member of such Board of Directors by a
majority of the other Continuing Managers then in
office.
“ Contractual
Obligation ” shall mean, as to any Person, any provision
of any security issued by such Person or of any agreement,
instrument or other undertaking to which such Person is a party or
by which it or any of its property is bound other than the
Obligations.
17
EXECUTION
COPY
“ Control
Agreement ” shall mean a Deposit Account Control
Agreement or a Securities Account Control Agreement.
“ Converted
Restricted Subsidiary ” shall have the meaning provided
in the definition of the term “ Consolidated EBITDA
”.
“ Converted
Unrestricted Subsidiary ” shall have the meaning provided
in the definition of the term “ Consolidated EBITDA
”.
“ Credit
Documents ” shall mean this Agreement, the Security
Documents, the Guarantee, the Intercreditor Agreement, each Letter
of Credit and any promissory notes issued by the Borrower
hereunder.
“ Credit Event
” shall mean and include the making (but not the conversion
or continuation) of a Loan or the issuance, amendment or extension
of a Letter of Credit (including an Auto-Extension Letter of
Credit).
“ Credit Party
” shall mean each of Holdings, the Borrower, the Guarantors
and each other Subsidiary of the Borrower that is a party to a
Credit Document.
“ Cumulative
Consolidated Net Income ” shall mean, as at any date of
determination, Consolidated Net Income for the period (taken as one
accounting period) commencing on January 1, 2008 and ending on
the last day of the most recent fiscal quarter for which
Section 9.1 Financials have been delivered.
“ Cure Amount
” shall have the meaning provided in
Section 11.12(a).
“ Cure Right
” shall have the meaning provided in
Section 11.12(a).
“ Default
” shall mean any event, act or condition that with notice or
lapse of time, or both, would constitute an Event of
Default.
“ Defaulting
Lender ” shall mean any Lender that (a) has failed
to fund any portion of the Revolving Credit Loans, Letter of Credit
Participations or participations in Swingline Loans required to be
funded by it hereunder within one Business Day of the date required
to be funded by it hereunder, unless the subject of a good faith
dispute or subsequently cured, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other
amount required to be paid by it hereunder within one Business Day
of the date when due, unless the subject of a good faith dispute or
subsequently cured, (c) has been deemed insolvent or become
the subject of a bankruptcy or insolvency proceeding or
(d) has notified the Borrower and/or the Administrative Agent
in writing of any of the foregoing (including any written
notification of its intent not to comply with its obligations under
Section 2).
“ Deposit Account
Control Agreement ” has the meaning specified in the
Security Agreement.
“ Designated
Non-Cash Consideration ” shall mean the Fair Market Value
of non-cash consideration received by Holdings, the Borrower or a
Restricted Subsidiary in connection
18
EXECUTION
COPY
with a Disposition pursuant to
Section 10.4(c) that is designated as Designated Non-Cash
Consideration pursuant to a certificate of an Authorized Officer of
the Borrower, setting forth the basis of such valuation (which
amount will be reduced by the Fair Market Value of the portion of
the non-cash consideration converted to cash within 180 days
following the consummation of the applicable
Disposition).
“ Disposed
EBITDA ” shall mean, with respect to any Sold Entity or
Business or Converted Unrestricted Subsidiary for any period, the
amount for such period of Consolidated EBITDA of such Sold Entity
or Business or Converted Unrestricted Subsidiary (determined as if
references to the Borrower and the Restricted Subsidiaries in the
definition of the term “ Consolidated EBITDA ”
(and in the component financial definitions used therein) were
references to such Sold Entity or Business and its Subsidiaries or
to Converted Unrestricted Subsidiary and its Subsidiaries), all as
determined on a consolidated basis for such Sold Entity or
Business.
“ Disposition
” shall have the meaning provided in
Section 10.4(c).
“ Disqualified
Capital Stock ” shall mean any Capital Stock that, by its
terms (or by the terms of any security or other Capital Stock into
which it is convertible or for which it is putable or exchangeable)
or upon the happening of any event or condition, (a) matures
or is mandatorily redeemable (other than solely for Qualified
Capital Stock), other than as a result of a change of control or
asset sale so long as any rights of the holders thereof upon the
occurrence of a change of control or asset sale event shall be
subject to the prior repayment in full of the Loans and all other
Obligations (other than Cash Management Obligations under Secured
Cash Management Agreements or contingent indemnification
obligations), pursuant to a sinking fund obligation or otherwise,
or (b) is redeemable or exchangeable at the option of the
holder thereof (other than solely for Qualified Capital Stock),
other than as a result of a change of control or asset sale so long
as any rights of the holders thereof upon the occurrence of a
change of control or asset sale event shall be subject to the prior
repayment in full of the Loans and all other Obligations (other
than Cash Management Obligations under Secured Cash Management
Agreements or contingent indemnification obligations), in whole or
in part, or (c) provides for the scheduled payment of
dividends in cash, in each case prior to the date that is
ninety-one (91) days after the latest Maturity Date of any
Credit Facility hereunder; provided that if such
Capital Stock is issued pursuant to any plan for the benefit of
employees of Holdings (or any direct or indirect parent thereof),
the Borrower or any of its Subsidiaries or by any such plan to such
employees, such Capital Stock shall not constitute Disqualified
Capital Stock solely because it may be required to be repurchased
by Holdings (or any direct or indirect parent company thereof), the
Borrower or any of its Subsidiaries in order to satisfy applicable
statutory or regulatory obligations.
“ Distributor
Accounts ” shall mean Accounts (i) arising from
delivery of products in the ordinary course of business,
(ii) which are billed pursuant to a customer agreement which
provides for monthly billing, (iii) which are billed not more
than 40 days after the date of sale of product and (iv) for
which the Borrower shall provide, from time to time at the
Administrative Agent’s reasonable request, a summary setting
forth the invoicing of the consigned distributors.
“ Dividends
” shall have the meaning provided in
Section 10.6.
19
EXECUTION
COPY
“ Dollars
” and “ $ ” shall mean dollars in lawful
currency of the United States of America.
“ Domestic
Subsidiary ” shall mean each Subsidiary of the Borrower
that is organized under the Applicable Laws of the United States,
any state or territory thereof, or the District of
Columbia.
“ E-Fax ”
shall mean any system used to receive or transmit faxes
electronically.
“ Eligible
Accounts ” shall mean at any date of determination, the
aggregate amount of all Accounts of the Credit Parties that are not
ineligible for inclusion in the calculation of the Borrowing Base
pursuant to any of clauses (a) through (w) below.
Eligible Accounts shall not include, without duplication, any
Account of any Credit Party:
(a) that does not arise from
the sale of goods or the performance of services by such Credit
Party in the ordinary course of its business;
(b) (i) upon which such
Credit Party’s right to receive payment is not absolute or is
contingent upon the fulfillment of any condition whatsoever or
(ii) as to which such Credit Party is not able to bring suit
or otherwise enforce its remedies against the Account Debtor
through judicial process, or (iii) if the Account represents a
progress billing consisting of an invoice for goods sold or used or
services rendered pursuant to a contract under which the Account
Debtor’s obligation to pay that invoice is subject to such
Credit Party’s completion of further performance under such
contract or is subject to the equitable lien of a surety bond
issuer;
(c) with respect to which the
Account Debtor is a creditor of any Credit Party or any Subsidiary
of any Credit Party, has or has asserted any defense, counterclaim,
right of setoff or has disputed its obligation to pay all or any
portion of the Account, to the extent of such defense, claim,
counterclaim, right of setoff or dispute, unless (i) the
Administrative Agent or the Collateral Agent, in its Permitted
Discretion, has established an appropriate Reserve and determines
to include such Account as Eligible Account or (ii) such
account Debtor has entered into an agreement reasonably acceptable
to the Administrative Agent or the Collateral Agent to waive such
rights;
(d) that comprises service
charges or finance charges;
(e) that is not a true and
correct statement of bona fide indebtedness incurred in the amount
of the Account for merchandise sold to or services rendered and
accepted by the applicable Account Debtor;
(f) (i) with respect to Other
Accounts, with respect to which an invoice, reasonably acceptable
to the Administrative Agent in form and substance (or otherwise in
the form required by any Account Party), has not been sent to the
applicable Account Debtor or (ii) with respect to Distributor
Accounts, with respect to which an invoice, reasonably acceptable
to the Administrative Agent in form and substance (or otherwise in
the form required by any Account Party), has not been sent to the
applicable Account Debtor within 40 days following the date of sale
of product;
20
EXECUTION
COPY
(g) that (i) is not
owned by such Credit Party or (ii) as to which the Collateral
Agent’s Lien thereon, on behalf of itself and the Secured
Parties, is not a first priority perfected Lien or is subject to
any Lien of any other Person, other than (A) Liens in favor of
the Collateral Agent, on behalf of itself and the Secured Parties
or Term Loan Liens or (B) Permitted Liens for which the
Administrative Agent or the Collateral Agent, in its Permitted
Discretion, has established an appropriate Reserve and determines
to include such Account as Eligible Account;
(h) that arises from a sale
to any director, officer, other employee or Affiliate of any Credit
Party;
(i) that is the obligation of
an Account Debtor that is the United States government or a
political subdivision thereof, or any state, county or municipality
or department, agency or instrumentality thereof unless such Credit
Party has complied with respect to such obligation with the Federal
Assignment of Claims Act of 1940, or any applicable state, county
or municipal law restricting the assignment thereof with respect to
such obligation, in each case to the Administrative Agent’s
reasonable satisfaction;
(j) that is the obligation of
an Account Debtor located in a foreign country other than Canada
unless payment thereof is assured by a letter of credit or other
credit support assigned and delivered to the Administrative Agent,
reasonably satisfactory to the Administrative Agent as to form,
amount and issuer;
(k) to the extent such Credit
Party is liable for goods sold or services rendered by the
applicable Account Debtor to such Credit Party or any Subsidiary
thereof but only to the extent of the potential offset;
(l) that arises with respect
to goods that are delivered on a bill and hold, cash on delivery
basis or placed on consignment (other than Distributor Accounts),
guaranteed sale or other terms by reason of which the payment by
the Account Debtor is or may be conditional;
(m) that is in
default; provided, that, without limiting the generality of
the foregoing, an Account shall be deemed in default upon the
occurrence of any of the following:
(i) the Account Debtor
obligated upon such Account suspends business, makes a general
assignment for the benefit of creditors or fails to pay its debts
generally as they come due; or
(ii) a petition is filed by
or against any Account Debtor obligated upon such Account under any
bankruptcy law or any other federal, state or foreign (including
any provincial) receivership, insolvency relief or other law or
laws for the relief of debtors;
(n) that is the obligation of
an Account Debtor if 50% or more of the Dollar amount of all
Accounts owing by that Account Debtor are ineligible under the
other criteria set forth in this definition;
(o) as to which any of the
representations or warranties in the Credit Documents with respect
to such Account are untrue;
21
EXECUTION
COPY
(p) to the extent such
Account is evidenced by a judgment, Instrument or Chattel Paper
(other than Instruments or Chattel Paper that have been delivered
to the Collateral Agent under the Security Agreement);
(q) Accounts, the collection
of which the Administrative Agent believes in its Permitted
Discretion to be doubtful by reason of the Account Debtor’s
perceived inability to pay;
(r) which is not paid within
the earlier of 60 days following its due date or 90 days following
its original invoice date, or which has been written off the books
of the Borrower or otherwise designated as uncollectible (in
determining the aggregate amount from the same Account Debtor that
is unpaid hereunder there shall be excluded the amount of any net
credit balances relating to Accounts due from an Account Debtor
which is not paid within the earlier of 60 days following its due
date or 90 days following its original invoice date);
(s) with respect to which the
Account Debtor is located in a state, province or jurisdiction
(e.g., New Jersey, Minnesota and West Virginia) that requires, as a
condition to access to the courts of such jurisdiction, that a
creditor qualify to transact business, file a business activities
report or other report or form, or take one or more other actions,
unless the applicable Credit Party has so qualified, filed such
reports or forms, or taken such actions (and, in each case, paid
any required fees or other charges). The foregoing shall not apply
to the extent that the applicable Credit Party may qualify
subsequently as a foreign entity authorized to transact business in
such state or jurisdiction and gain access to such courts, without
incurring any cost or penalty viewed by the Administrative Agent to
be material in amount, and such later qualification cures any
access to such courts to enforce payment of such Account
(including, for greater certainty, the requirement for a creditor
to extra-provincially register in a province or territory of Canada
for such purposes);
(t) to the extent such
Account was created as a new receivable for the unpaid portion of
an outstanding Account (including chargebacks, debit memos or other
adjustments for unauthorized deductions);
(u) that does not comply in
all material respects with the requirements of all Applicable Laws
and regulations, whether federal, state, local or foreign,
including the Federal Consumer Credit Protection Act, the Federal
Truth in Lending Act and Regulation Z of the Board;
(v) to the extent that such
Account, together with all other Accounts owing to such Account
Debtor and its Affiliates as of any date of determination exceed
10% of all Eligible Accounts (or 20% with respect to Accounts owed
by Johnstone Supply and its Affiliates or any higher percentage
agreed to by the Administrative Agent, but in any event not
exceeding 25% of all Eligible Accounts); or
(w) that is payable in any
currency other than Dollars or Canadian Dollars; provided that the
aggregate amount of all Eligible Accounts denominated in Canadian
Dollars shall not exceed more than 10% of all Eligible Accounts at
any time.
Subject to Sections 2.14 and
13.1(c) and the definition of Borrowing Base, the Administrative
Agent may modify the foregoing in its Permitted
Discretion.
22
EXECUTION
COPY
“ Eligible
Inventory ” shall mean Inventory of the Credit Parties
that is not ineligible for inclusion in the calculation of the
Borrowing Base pursuant to any of clauses (a) through
(p) below. Eligible Inventory shall not include, without
duplication, any Inventory of any Credit Party that:
(a) (i) is not owned by
the Credit Parties or (ii) is not subject to a first priority
lien in favor of the Collateral Agent on behalf of itself and the
Secured Parties and is free and clear of all Liens (including the
rights of a purchaser that has made progress payments and the
rights of a surety that has issued a bond to assure such Credit
Parties’ performance with respect to that Inventory) except
for (A) the Liens in favor of the Collateral Agent, on behalf
of itself and the Secured Parties, and Term Loan Liens and
(B) Permitted Liens for which the Administrative Agent or the
Collateral Agent, in its Permitted Discretion, has established an
appropriate Reserve and determines to include such Account as
Eligible Inventory;
(b) (i) is not located on
premises owned, leased or rented by the Credit Parties or
(ii) is stored at a leased location, unless the Administrative
Agent has given its prior consent thereto or unless (A) the
lessor has delivered to the Collateral Agent a Collateral Access
Agreement or (B) a Reserve (and, without duplication, Landlord
Lien Reserve) for rent, charges and other amounts due or to become
due with respect to such locations has been established by the
Administrative Agent or the Collateral Agent in its Permitted
Discretion, (iii) is stored with a bailee or third party
warehouseman unless (A) such warehouseman or bailee has
delivered to the Collateral Agent a Collateral Access Agreement and
such other documentation as the Administrative Agent may reasonably
require or is evidenced by a Document which has been delivered to
the Administrative Agent or (B) an appropriate Reserve has
been established by the Administrative Agent or the Collateral
Agent in its Permitted Discretion, or (iv) is located at an
owned location subject to a mortgage in favor of a lender other
than the Collateral Agent (and the collateral agent under the Term
Loan Credit Documents), unless a reasonably satisfactory mortgagee
waiver has been delivered to the Administrative Agent, or
(v) is located at any site if the aggregate book value of
Inventory at any such location is less than $100,000;
(c) is placed on consignment
or is in transit, except for Inventory in transit between domestic
locations of Credit Parties as to which the Collateral
Agent’s Liens have been perfected at origin and
destination;
(d) is covered by a
negotiable document of title, unless such document has been
delivered to the Administrative Agent with all necessary
endorsements, free and clear of all Liens except those in favor of
the Collateral Agent and the Secured Parties;
(e) consists of display items
or packing or shipping materials, manufacturing supplies, work in
process Inventory or replacement parts;
(f) consists of goods which
have been returned by the buyer other than goods that are undamaged
and are able to be resold in the ordinary course of
business;
(g) is not of a type held for
sale in the ordinary course of Credit Parties’
business;
23
EXECUTION
COPY
(h) breaches any of the
representations or warranties pertaining to Inventory set forth in
the Credit Documents;
(i) consists of any costs
associated with “freight in” charges;
(j) consists of Hazardous
Materials or goods that can be transported or sold only with
licenses that are not readily available;
(k) is not located in the
United States or Canada;
(l) is obsolete or
unmarketable, defective or unfit for sale or which does not conform
in all material respects to all standards imposed by any
Governmental Authority having regulatory authority over such Credit
Party;
(m) is not covered by
casualty insurance which complies with the requirements of
Section 9.3;
(n) which contains or bears
any intellectual property rights licensed to a Credit Party unless
the Administrative Agent is satisfied that it may sell or otherwise
dispose of such Inventory without (i) infringing the rights of
such licensor in any material respect, (ii) violating any
material contract with such licensor or (iii) incurring any
material liability with respect to payment of royalties other than
royalties incurred pursuant to sale of such Inventory under the
current licensing agreement; or
(o) such portion of Eligible
Inventory that is applicable to intercompany profits or capitalized
variances.
Subject to Sections 2.14 and
13.1(c) and the definition of Borrowing Base, the Administrative
Agent may modify the foregoing in its Permitted
Discretion.
“ Environmental
Claims ” shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters,
claims, liens, notices of noncompliance or violation,
investigations (other than internal reports prepared by the
Borrower or any of its Subsidiaries (a) in the ordinary course
of such Person’s business or (b) as required in
connection with a financing transaction or an acquisition or
disposition of real estate) or proceedings relating in any way to
any Environmental Law or any permit issued, or any approval given,
under any such Environmental Law (hereinafter, “
Claims ”), including (i) any and all Claims by
governmental or regulatory authorities for enforcement, cleanup,
removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law and (ii) any and all Claims
by any third party seeking damages, contribution, indemnification,
cost recovery, compensation or injunctive relief resulting from the
release or threatened release of Hazardous Materials or arising
from alleged injury or threat of injury to health, safety or the
environment.
“ Environmental
Law ” shall mean any applicable Federal, state, foreign
or local statute, law, rule, regulation, ordinance, code and rule
of common law now or hereafter in effect and in each case as
amended, and any binding judicial or administrative interpretation
thereof, including any binding judicial or administrative order,
consent decree or judgment, in each case relating to the protection
of the environment or, to the extent relating to exposure to
substances that are harmful or deleterious to the environment, of
human health or safety.
24
EXECUTION
COPY
“ Equity
Contribution ” shall have the meaning provided in the
recitals to this Agreement.
“ ERISA ”
shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time. Section references to ERISA are to
ERISA as in effect at the date of this Agreement and any subsequent
provisions of ERISA amendatory thereof, supplemental thereto or
substituted therefor.
“ ERISA
Affiliate ” shall mean each person (as defined in
Section 3(9) of ERISA) that together with Holdings, the
Borrower or a Subsidiary thereof would be deemed to be a “
single employer ” within the meaning of
Section 414(b) or (c) of the Code or, solely for purposes
of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the
Code.
“ Eurodollar
Loan ” shall mean any Revolving Credit Loan bearing
interest at a rate determined by reference to the Eurodollar
Rate.
“ Eurodollar Base
Rate ” shall mean, with respect to any Interest Period
for any Eurodollar Loan, the greater of ((i) the rate per
annum for deposits in Dollars for the applicable Interest
Period appearing on the Reuters Screen LIBOR01 page as of 11:00
a.m. (London time) two Business Days prior to the first day in such
Interest Period and (ii) 3.25% per annum . In the event
that the rate referred to in clause (i) above does not appear
on the Reuters Screen LIBOR01 page at such time, the “
Eurodollar Base Rate ” shall be determined by
reference to such other comparable publicly available service for
displaying the offered rate for deposit in Dollars in the London
interbank market as may be agreed upon by the Administrative Agent
and the Borrower or, in the absence of such agreement, the “
Eurodollar Base Rate ” for the purposes of this
paragraph shall instead be the rate per annum notified to the
Administrative Agent by the Reference Lender as the rate at which
the Reference Lender is offered Dollar deposits at or about 11:00
a.m. (London time) two Business Days prior to the beginning of such
Interest Period in the interbank Eurodollar market where the
Eurodollar and foreign currency and exchange operations in respect
of its Eurodollar Loans are then being conducted for delivery on
the first day of such Interest Period for the number of days
comprised therein and in an amount comparable to the amount of its
Eurodollar Loan to be outstanding during such Interest Period
availability, such other method to determine such offered rate as
may be selected by the Administrative Agent in its sole
discretion.
“ Eurodollar
Rate ” shall mean, with respect to any Interest Period
and for any Eurodollar Loan, an interest rate per annum determined
as the ratio of (a) the Eurodollar Base Rate with respect to
such Interest Period for such Eurodollar Loan to (b) the
Statutory Reserve Requirements with respect to such Interest Period
and for such Eurodollar Loan.
“ E-System
” shall mean any electronic system, including Intralinks
® and
any other Internet or extranet-based site, whether such electronic
system is owned, operated or hosted by the Administrative Agent,
any of its Related Parties, or any of such Person’s
respective officers, directors, employees, attorneys, agents and
representatives or any other Person, providing for access to data
protected by passcodes or other security system.
25
EXECUTION
COPY
“ Event of
Default ” shall have the meaning provided in
Section 11.
“ Excess
Availability ” shall mean, as of any date of
determination, an amount equal to the Maximum Amount less
the Revolving Credit Exposure of all Lenders and Swingline Loans
then outstanding.
“ Exchange Act
” shall mean the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.
“ Exchange Rate
” shall mean on any day with respect to any currency (other
than Dollars), the rate at which such currency may be exchanged
into any other currency (including Dollars), as set forth at
approximately 11:00 a.m. (London time) on such day on the Reuters
World Currency Page for such currency. In the event that such rate
does not appear on any Reuters World Currency Page, the Exchange
Rate shall be determined by reference to such other publicly
available service for displaying exchange rates as may be agreed by
the Administrative Agent and the Borrower, or, in the absence of
such agreement, such Exchange Rate shall instead be the arithmetic
average of the spot rates of exchange of the Administrative Agent
in the market where its foreign currency exchange operations in
respect of such currency are then being conducted, at or about
11:00 a.m., local time, on such date for the purchase of the
relevant currency for delivery two Business Days later.
“ Excluded Capital
Stock ” shall mean (a) any Capital Stock with
respect to which, in the reasonable judgment of the Administrative
Agent (confirmed in writing by notice to the Borrower and the
Collateral Agent), the cost or other consequences (including any
adverse tax consequences) of pledging such Capital Stock shall be
excessive in view of the benefits to be obtained by the Secured
Parties therefrom, (b) solely in the case of any pledge of
Capital Stock of any Foreign Subsidiary to secure the Obligations,
any Capital Stock that is Voting Stock of such Foreign Subsidiary
in excess of 65% of the outstanding Capital Stock of such class,
(c) any Capital Stock to the extent the pledge thereof would
be prohibited by any Applicable Law or Contractual Obligation,
(d) the Capital Stock of any Subsidiary that is not wholly
owned by the Borrower and its Subsidiaries at the time such
Subsidiary becomes a Subsidiary (for so long as such Subsidiary
remains a non-wholly owned Subsidiary), (e) the Capital Stock
of any Immaterial Subsidiary or any Unrestricted Subsidiary,
(f) the Capital Stock of any Subsidiary of a Foreign
Subsidiary, (g) any Capital Stock of any Subsidiary to the
extent that the pledge of such Capital Stock would result in
adverse tax consequences to Holdings, the Borrower or any
Subsidiary as reasonably determined by the Borrower and
(h) such Capital Stock as has been identified on or prior to
the Closing Date in writing to the Administrative Agent by an
Authorized Officer of the Borrower and agreed to by the
Administrative Agent.
“ Excluded
Subsidiary ” shall mean (a) any Subsidiary that is
not a wholly owned Subsidiary on any date such Subsidiary would
otherwise be required to become a Guarantor pursuant to the
requirements of Section 9.10 (for so long as such Subsidiary
remains a non-wholly owned Subsidiary), (b) any Subsidiary
that is prohibited by Applicable Law or Contractual Obligation
existing on the Closing Date from guaranteeing the Obligations at
the
26
EXECUTION
COPY
time such Subsidiary becomes a
Restricted Subsidiary (and for so long as such restrictions or any
replacement or renewal thereof is in effect), (c) any Domestic
Subsidiary that is a direct or indirect Subsidiary of a Foreign
Subsidiary, (d) any Immaterial Subsidiary ( provided
that the Borrower shall not be permitted to exclude Immaterial
Subsidiaries from guaranteeing the Obligations to the extent that
(i) the aggregate amount of gross revenue for all Immaterial
Subsidiaries (other than Unrestricted Subsidiaries) excluded by
clause this clause (d) exceeds 2% of the consolidated gross
revenues of the Borrower and its Restricted Subsidiaries for the
most recent Test Period ended prior to the date of determination or
(ii) the aggregate amount of total assets for all Immaterial
Subsidiaries (other than Unrestricted Subsidiaries) excluded by
this clause (d) exceeds 2% of the Consolidated Total Assets of
the Borrower and its Restricted Subsidiaries as at the end of the
most recent Test Period ended prior to the date of determination),
(e) any other Subsidiary with respect to which, in the
reasonable judgment of the Administrative Agent (confirmed in
writing by notice to the Borrower and the Collateral Agent), the
cost or other consequences (including any adverse tax consequences)
of providing a guarantee shall be excessive in view of the benefits
to be obtained by the Secured Parties therefrom, (f) each
Foreign Subsidiary and Unrestricted Subsidiary, (g) each other
Domestic Subsidiary acquired pursuant to a Permitted Acquisition
and financed with secured Indebtedness incurred pursuant to
Section 10.1(k) or 10.1(l) and permitted by the proviso to
subclause (z) or (y), respectively, of either of such Sections
and each Restricted Subsidiary that guarantees such Indebtedness to
the extent that, and for so long as, the financing documentation
relating to such Permitted Acquisition to which such Restricted
Subsidiary is a party prohibits such Restricted Subsidiary from
guaranteeing the Obligations, (h) any Subsidiary to the extent
that the guarantee of the Obligations would result in adverse tax
consequences to Holdings, the Borrower or any Subsidiary as
reasonably determined by the Borrower and (i) AsureCare Corp.,
a Florida corporation.
“ Existing Notes
” shall mean collectively, (i) the existing fixed rate
notes 7 7/8% Senior Subordinated Notes of Goodman Global Holdings,
Inc. and (ii) the outstanding Senior Floating Rate Notes of
Goodman Global Holdings, Inc.
“ Existing Notes
Additional Redemption Amount ” shall mean Revolving
Credit Loans up to $25,000,000 which may be borrowed on the Closing
Date exclusively to fund the Existing Notes Over-Funding
Amount.
“ Existing Notes
Over-Funding Amount ” shall mean the difference between
the calculation of the amount of the redemption deposit required
under the indenture governing the Existing Notes calculated on the
Closing Date using a discount rate of zero and the actual
redemption amount determined on the date of redemption of the
Existing Notes using the market discount rate at the time of such
redemption.
“ Fair Market
Value ” shall mean with respect to any asset or group of
assets on any date of determination, the value of the consideration
obtainable in a sale of such asset at such date of determination
assuming a sale by a willing seller to a willing purchaser dealing
at arm’s length and arranged in an orderly manner over a
reasonable period of time having regard to the nature and
characteristics of such asset, as reasonably determined by the
Borrower.
27
EXECUTION
COPY
“ Federal Funds
Effective Rate ” shall mean, for any day, the weighted
average of the per annum rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is
not so published for any day that is a Business Day, the average of
the quotations for the day of such transactions received by the
Administrative Agent from three Federal funds brokers of recognized
standing selected by it.
“ Fee Letter
” shall mean the letter dated the date hereof addressed to
Borrower from the Joint Bookrunners and accepted by Borrower on the
date hereof, with respect to certain fees to be paid from time to
time to the Administrative Agent.
“ Fees ”
shall mean all amounts payable pursuant to, or referred to in,
Section 4.1.
“ Financial
Covenant ” shall mean the covenant of the Borrower set
forth in Section 10.11.
“ Foreign
Subsidiary ” shall mean each Subsidiary of the Borrower
that is not a Domestic Subsidiary.
“ Fronting Fee
” shall have the meaning provided in
Section 4.1(b).
“ Funded Debt
” shall mean all indebtedness of the Borrower and the
Restricted Subsidiaries for borrowed money that matures more than
one year from the date of its creation or matures within one year
from such date that is renewable or extendable, at the option of
such Person, to a date more than one year from such date or arises
under a revolving credit or similar agreement that obligates the
lender or lenders to extend credit during a period of more than one
year from such date, including Indebtedness in respect of the
Loans.
“ GAAP ”
shall mean generally accepted accounting principles in the United
States of America, as in effect from time to time;
provided , however , that if the Borrower notifies
the Administrative Agent that the Borrower requests an amendment to
any provision hereof to eliminate the effect of any change
occurring after the Closing Date in GAAP or in the application
thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required
Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect
and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such
provision amended in accordance herewith.
“ Governmental
Authority ” shall mean the government of the United
States, any foreign country or any multinational authority, or any
state or political subdivision thereof, and any entity, body or
authority exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government,
including the PBGC and other quasi-governmental entities
established to perform such functions.
28
EXECUTION
COPY
“ Guarantee
” shall mean the Revolving Guarantee, made by each Guarantor
in favor of the Collateral Agent for the benefit of the Secured
Parties, substantially in the form of Exhibit B.
“ Guarantee
Obligations ” shall mean, as to any Person, any
obligation of such Person guaranteeing or intended to guarantee any
Indebtedness of any other Person (the “ primary
obligor ”) in any manner, whether directly or indirectly,
including any obligation of such Person, whether or not contingent,
(a) to purchase any such Indebtedness or any property
constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any
such Indebtedness or (ii) to maintain working capital or
equity capital of the primary obligor or otherwise to maintain the
net worth or solvency of the primary obligor, (c) to purchase
property, securities or services primarily for the purpose of
assuring the owner of any such Indebtedness of the ability of the
primary obligor to make payment of such Indebtedness or
(d) otherwise to assure or hold harmless the owner of such
Indebtedness against loss in respect thereof; provided
, however , that the term “ Guarantee
Obligations ” shall not include endorsements of
instruments for deposit or collection in the ordinary course of
business or customary and reasonable indemnity obligations in
effect on the Closing Date or entered into in connection with any
acquisition or disposition of assets permitted under this Agreement
(other than with respect to Indebtedness). The amount of any
Guarantee Obligation shall be deemed to be an amount equal to the
stated or determinable amount of the Indebtedness in respect of
which such Guarantee Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform
thereunder) as determined by such Person in good faith.
“ Guarantors
” shall mean (a) Holdings (b) each Domestic
Subsidiary (other than an Excluded Subsidiary) on the Closing Date
and (c) each Domestic Subsidiary (other than an Excluded
Subsidiary) that becomes a party to the Guarantee after the Closing
Date pursuant to Section 9.10.
“ Hazardous
Materials ” shall mean (a) any petroleum or
petroleum products, radioactive materials, friable asbestos, urea
formaldehyde foam insulation, transformers or other equipment that
contain dielectric fluid containing regulated levels of
polychlorinated biphenyls, and radon gas; (b) any chemicals,
materials or substances defined as or included in the definition of
“ hazardous substances ”, “ hazardous
waste ”, “ hazardous materials ”,
“ extremely hazardous waste ”, “
restricted hazardous waste ”, “ toxic
substances ”, “ toxic pollutants ”,
“ contaminants ”, or “ pollutants
”, or words of similar import, under any applicable
Environmental Law; and (c) any other chemical, material
or substance, which is prohibited, limited or regulated by any
Environmental Law.
“ Hedging
Agreement ” shall mean (a) any and all rate swap
transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond
or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap
transactions, floor transactions, collar transactions, currency
swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter
into any of the foregoing),
29
EXECUTION
COPY
whether or not any such transaction is
governed by or subject to any master agreement, and (b) any
and all transactions of any kind, and the related confirmations,
which are subject to the terms and conditions of, or governed by,
any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement or any other master agreement (any such
master agreement, together with any related schedules, a “
Master Agreement ”), including any such obligations or
liabilities under any Master Agreement.
“ Hedging
Obligations ” shall mean, with respect to any Person, the
obligations of such Person under Hedging Agreements.
“ Historical
Financial Statements ” shall mean (a) the audited
consolidated balance sheets and related statements of income,
stockholders’ equity and cash flows of the Company for the
three most recently completed fiscal years ended December 31,
2006, (b) unaudited consolidated balance sheets and related
statements of income, stockholders’ equity and cash flows of
the Company for the fiscal quarter ended September 30, 2007
and each subsequent fiscal quarter (other than the fourth fiscal
quarter of 2007) ended at least 45 days before the Closing Date and
(c) unaudited consolidated balance sheets and related
statements of income and cash flows of the Company for each fiscal
month after September 30, 2007 (other than any month with
respect to which quarterly financial statements are delivered
pursuant to the foregoing) ended at least 45 days before the
Closing Date, which financial statements described in
clauses (a) through (c) shall have been prepared in
accordance with GAAP.
“ Holdings
” shall mean CHILL INTERMEDIATE HOLDINGS, INC, a Delaware
Corporation or, after the Closing Date, any other Person (the
“ New Holdings ”) that is a Subsidiary of CHILL
INTERMEDIATE HOLDINGS, INC, (or the previous New Holdings as the
case may be) (the “ Previous Holdings ”);
provided that (a) such New Holdings owns 100% of Voting
Stock of the Borrower, (b) the New Holdings shall expressly
assume all the obligations of the Previous Holdings under this
Agreement and the other Credit Documents pursuant to a supplement
hereto or thereto in form reasonably satisfactory to the
Administrative Agent, (c) such substitution concurrently
occurs under Term Loan Credit Documents, (d) the New Holdings
shall have delivered to the Administrative Agent an officer’s
certificate stating that such substitution and any supplements to
the Credit Documents preserve the enforceability of the Guarantee
and the perfection and priority of the Liens under the Security
Documents, (e) if reasonably requested by the Administrative
Agent, an opinion of counsel to the effect that such substitution
does not violate this Agreement or any other Credit Document,
(f) all assets of the Previous Holdings are contributed or
otherwise transferred to such New Holdings and (g) no Default
or Event of Default has occurred and is continuing at the time of
such substitution and such substitution does not result in any
Default or Event of Default or material tax liability;
provided , further , that if the foregoing are
satisfied, the Previous Holdings shall be automatically released of
all its obligations under the Credit Documents and any reference to
“Holdings” in the Credit Documents shall be meant to
refer to the “New Holdings”.
“ Immaterial
Subsidiary ” shall mean, at any date of determination,
any Restricted Subsidiary of the Borrower (a) whose total
assets (when combined with the assets of such Restricted
Subsidiary’s Subsidiaries after eliminating intercompany
obligations) at the last day of the most recent Test Period ended
on or prior to such determination date were less than 1% of
the
30
EXECUTION
COPY
Consolidated Total Assets of the
Borrower and its Restricted Subsidiaries at such date, and
(b) whose gross revenues (when combined with the revenues of
such Restricted Subsidiary’s Subsidiaries after eliminating
intercompany obligations) for such Test Period were less than 1% of
the consolidated gross revenues of the Borrower and its Restricted
Subsidiaries for such period, in each case determined in accordance
with GAAP.
“ Indebtedness
” shall mean, as to any Person at a particular time, without
duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP:
(a) all indebtedness of such
Person for borrowed money and all indebtedness of such Person
evidenced by bonds, debentures, notes, loan agreements or other
similar instruments;
(b) the maximum amount (after
giving effect to any prior drawings or reductions which may have
been reimbursed) of all letters of credit (including standby and
commercial), bankers’ acceptances, bank guaranties, surety
bonds, performance bonds and similar instruments issued or created
by or for the account of such Person;
(c) net Hedging Obligations
of such Person;
(d) all obligations of such
Person to pay the deferred purchase price of property or services
(other than (i) current trade liabilities (but not any
refinancings, extensions, renewals, or replacements thereof)
incurred in the ordinary course of business and maturing within 365
days after the incurrence thereof except if such trade liabilities
bear interest and (ii) any earn-out obligation until such
obligation becomes a liability on the balance sheet of such Person
in accordance with GAAP);
(e) indebtedness (excluding
prepaid interest thereon) secured by a Lien on property owned or
being purchased by such Person (including indebtedness arising
under conditional sales or other title retention agreements and
mortgage, industrial revenue bond, industrial development bond and
similar financings), whether or not such indebtedness shall have
been assumed by such Person or is limited in recourse;
(f) all Attributable
Indebtedness; and
(g) all Guarantee Obligations
of such Person in respect of any of the foregoing;
provided that Indebtedness shall
not include (i) prepaid or deferred revenue arising in the
ordinary course of business and (ii) purchase price holdbacks
arising in the ordinary course of business in respect of a portion
of the purchase price of an asset to satisfy warrants or other
unperformed obligations of the seller of such asset.
For all purposes hereof, the
Indebtedness of any Person shall (A) include the Indebtedness
of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which
such Person is a general partner or a joint venturer, except to the
extent such Person’s liability for such Indebtedness is
otherwise limited and only to the extent such Indebtedness would be
included in the calculation of Consolidated
31
EXECUTION
COPY
Total Debt and (B) in the case of
Holdings, the Borrower and their Subsidiaries, exclude all
intercompany Indebtedness having a term not exceeding 364 days
(inclusive of any roll-over or extensions of terms) and made in the
ordinary course of business consistent with past practice. The
amount of any net Hedging Obligations on any date shall be deemed
to be the Swap Termination Value thereof as of such date. The
amount of Indebtedness of any Person for purposes of
clause (e) above shall be deemed to be equal to the lesser of
(i) the aggregate unpaid amount of such Indebtedness and
(ii) the Fair Market Value of the property encumbered thereby
as determined by such Person in good faith.
“ Indemnified
Parties ” shall have the meaning provided in
Section 13.5(a).
“ Initial Financial
Statement Delivery Date ” shall mean the date on which
Section 9.1 Financials are delivered to the Administrative
Agent under Section 9.1 for the first full fiscal quarter
commencing after the Closing Date.
“ Intercreditor
Agreement ” shall mean the Intercreditor Agreement dated
as of the Closing Date by and between the Collateral Agent and
GECC, as collateral agent under the Term Loan Credit Agreement, and
acknowledged by Holdings, the Borrower and the other
Guarantors.
“ Interest
Period ” shall mean, with respect to any Revolving Credit
Loan, the interest period applicable thereto, as determined
pursuant to Section 2.9.
“ Inventory
” shall mean any “inventory,” as such term is
defined in the UCC, now owned or hereafter acquired by any Credit
Party, wherever located, and in any event including inventory,
merchandise, goods and other personal property that are held by or
on behalf of any Credit Party for sale or lease or are furnished or
are to be furnished under a contract of service, or that constitute
raw materials, work in process, finished goods, returned goods,
supplies or materials of any kind, nature or description used or
consumed or to be used or consumed in such Credit Party’s
business or in the processing, production, packaging, promotion,
delivery or shipping of the same, including all supplies and
embedded software.
“ Inventory
Appraisal ” shall mean (a) on the Closing Date, the
appraisal prepared by Great American Group dated
January 22, 2008 and (b) thereafter, the most recent
inventory appraisal conducted by an independent appraiser firm
pursuant to Section 9.2(b).
“ Investment
” shall have the meaning provided in
Section 10.5.
“ Investors
” shall mean the Sponsor, certain other investors arranged by
and/or designated by the Sponsor and identified to the Joint
Bookrunners prior to the Closing Date and the Management
Investors.
“ ISP ”
shall mean, with respect to any Letter of Credit, the
“International Standby Practices 1998” published by the
Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of
issuance).
“ Issuer
Documents ” shall mean with respect to any Letter of
Credit, the Letter of Credit Request, and any other document,
agreement and instrument entered into by the Letter of Credit
Issuer and the Borrower (or any Restricted Subsidiary) or in favor
of the Letter of Credit Issuer and relating to such Letter of
Credit.
32
EXECUTION
COPY
“ Joint Lead
Arrangers ” shall mean Barclays Capital, the investment
banking division of Barclays Bank PLC and GECC.
“ Joint
Bookrunners ” shall have the meaning provided in the
preamble to this Agreement.
“ Landlord Lien
” shall mean any Lien of a landlord on any Credit
Party’s property, granted by statute.
“ Landlord Lien
Reserve ” shall mean an amount equal to up to 3
months’ rent for all of the Credit Parties’ leased
locations where Eligible Inventory is located in each Landlord Lien
State, other than leased locations with respect to which the
Administrative Agent shall have received a landlord’s waiver
of subordination of lien in form reasonably satisfactory to the
Administrative Agent.
“ Landlord Lien
State ” shall mean (i) each of Washington, Virginia
and Pennsylvania and (ii) such other state(s) that the
Administrative Agent reasonably determines after the Closing Date
and notifies the Borrower thereof, that, as a result of a change in
law (or in the interpretation or application thereof by any
Governmental Authority) occurring after the Closing Date a
landlord’s claim for rent has priority by operation of law
over the Lien of the Collateral Agent in any of the Collateral
consisting of Eligible Inventory.
“ Lender ”
shall have the meaning provided in the preamble to this
Agreement.
“ Letter of
Credit ” shall have the meaning provided in
Section 3.1(a).
“ Letter of Credit
Exposure ” shall mean, with respect to any Lender, at any
time, the sum of (a) the amount of any Unpaid Drawings in
respect of which such Lender has made (or is required to have made)
Revolving Credit Loans pursuant to Section 3.4(a) at such time
and (b) such Lender’s Revolving Credit Commitment
Percentage of the Letters of Credit Outstanding at such time
(excluding the portion thereof consisting of Unpaid Drawings in
respect of which the Lenders have made (or are required to have
made) Revolving Credit Loans pursuant to
Section 3.4(a)).
“ Letter of Credit
Fee ” shall have the meaning provided in
Section 4.1(c).
“ Letter of Credit
Issuer ” shall mean GECC and any one or more Persons who
shall become a Letter of Credit Issuer pursuant to
Section 3.6. Any Letter of Credit Issuer may, in its
discretion, arrange for one or more Letters of Credit to be issued
by Affiliates of the Letter of Credit Issuer, and in each such case
the term “Letter of Credit Issuer” shall include any
such Affiliate with respect to Letters of Credit issued by such
Affiliate. In the event that there is more than one Letter of
Credit Issuer at any time, references herein and in the other
Credit Documents to the Letter of Credit Issuer shall be deemed to
refer to the Letter of Credit Issuer in respect of the applicable
Letter of Credit or to all Letter of Credit Issuers, as the context
requires.
33
EXECUTION
COPY
“ Letter of Credit
Maturity Date ” shall mean, the date that is 3 Business
Days prior to the Revolving Credit Maturity Date.
“ Letter of Credit
Participant ” shall have the meaning provided in
Section 3.3(a).
“ Letter of Credit
Participation ” shall have the meaning provided in
Section 3.3(a).
“ Letter of Credit
Request ” shall have the meaning provided in
Section 3.2(a).
“ Letter of Credit
Sub-Limit ” shall mean $50,000,000, as the same may be
reduced from time to time pursuant to Section 4.2.
“ Letters of Credit
Outstanding ” shall mean, at any time, the sum of,
without duplication, (a) the aggregate Stated Amount of all
outstanding Letters of Credit and (b) the aggregate amount of
all Unpaid Drawings in respect of all Letters of Credit.
“ Lien ”
shall mean any mortgage, pledge, security interest, hypothecation,
assignment, lien (statutory or other) or similar encumbrance, and
any easement, right-of-way, license, restriction (including zoning
restrictions), defect, exception or irregularity in title or
similar change or encumbrance (including any agreement to give any
of the foregoing, any conditional sale or other title retention
agreement or any lease in the nature thereof);
provided that in no event shall an operating lease be deemed
to be a Lien.
“ Loan ”
shall mean any Revolving Credit Loan or Swingline Loan made by any
Lender hereunder.
“ Management
Investors ” shall mean the management officers, directors
and employees of Holdings, the Borrower and the Restricted
Subsidiaries who become investors in Holdings, any of its direct or
indirect parent entities or in the Borrower.
“ Mandatory
Borrowing ” shall have the meaning provided in
Section 2.1(c)(ii).
“ Master
Agreement ” shall have the meaning provided in the
definition of the term “ Hedging Agreement.
”
“ Material Adverse
Effect ” shall mean an effect that results in or causes,
or could reasonably be expected to result in or cause, a material
adverse effect on (a) the business, operations, results of
operations, assets, liabilities or condition (financial or
otherwise) of the Borrower and the Restricted Subsidiaries taken as
a whole, (b) the legality, validity or enforceability of any
Credit Document, (c) the ability of the Credit Parties (taken
as a whole) to perform their respective obligations under the
Credit Documents or (d) the rights and remedies of the
Administrative Agent, the Collateral Agent or the Lenders under the
Credit Documents.
“ Maturity Date
” shall mean the Revolving Credit Maturity Date, the Letter
of Credit Maturity Date or the Swingline Maturity Date, as
applicable.
“ Maximum Amount
” shall mean the lesser of (i) the Borrowing Base in
effect from time to time and (ii) the Total Commitments then
in effect.
34
EXECUTION
COPY
“ Merger ”
shall have the meaning provided in the recitals to this
Agreement.
“ Merger
Consideration ” shall have the meaning provided in the
recitals to this Agreement.
“ Merger Funds
” shall have the meaning provided in the recitals to this
Agreement.
“ Merger Sub
” shall have the meaning provided in the recitals to this
Agreement.
“ Minimum Borrowing
Amount ” shall mean (a) with respect to a Borrowing
of Revolving Credit Loans, $1,000,000, and (b) with respect to
a Borrowing of Swingline Loans, $100,000.
“ Minority
Investment ” shall mean any Person (other than a
Subsidiary) in which the Borrower or any Restricted Subsidiary owns
Capital Stock.
“ Moody’s
” shall mean Moody’s Investors Service, Inc. or any
successor by merger or consolidation to its business.
“ Mortgage
” shall mean a mortgage or a deed of trust, deed to secure
debt, trust deed or other security document entered into by the
owner of a Mortgaged Property and the Collateral Agent for the
benefit of the Secured Parties in respect of that Mortgaged
Property, substantially in the form of Exhibit C (with such changes
thereto as may be necessary to account for local law matters) or
otherwise in such form as agreed between the Borrower and the
Collateral Agent or, in the case of any Mortgaged Property located
outside the United States of America, in such form as agreed
between the Borrower and the Collateral Agent.
“ Mortgage
Supporting Documents ” shall mean the documents which are
to be delivered under Section 9.14(c) with respect to any
Mortgage for any Mortgaged Property.
“ Mortgaged
Property ” shall mean, initially, each parcel of real
estate and improvements thereto owned by a Credit Party and
identified on Schedule 1.1(b), and each other parcel of real
property and improvements thereto with respect to which a Mortgage
is required to be granted pursuant to
Section 9.14(b).
“ Net Cash
Proceeds ” shall mean “Net Cash Proceeds” as
defined in the Term Loan Credit Agreement.
“ Net Orderly
Liquidation Value Percentage ” shall mean, the value of
Eligible Inventory that is estimated to be recoverable in an
orderly liquidation thereof, net of all costs of liquidation
thereof, based upon the most recent Inventory Appraisal conducted
in accordance with this Agreement and expressed as a percentage of
cost of such Eligible Inventory.
“ Non-Cash
Charges ” shall mean (a) any impairment charge or
asset write-off or write-down related to intangible assets
(including goodwill), long-lived assets, and investments in debt
and equity securities pursuant to GAAP, (b) all losses from
investments recorded using the equity method, (c) all Non-Cash
Compensation Expenses, (d) the non-cash impact of
35
EXECUTION
COPY
purchase accounting, and (e) other
non-cash charges (provided, in each case, that if any non-cash
charges represent an accrual or reserve for potential cash items in
any future period, the cash payment in respect thereof in such
future period shall be subtracted from Consolidated EBITDA to such
extent, and excluding amortization of a prepaid cash item that was
paid in a prior period).
“ Non-Cash
Compensation Expense ” shall mean any non-cash expenses
and costs that result from the issuance of stock-based awards,
partnership interest-based awards and similar incentive based
compensation awards or arrangements.
“ Non-Cash
Compensation Liabilities ” shall mean any liabilities
recorded in connection with stock-based awards, partnership
interest-based awards and similar incentive based compensation
awards or arrangements.
“ Non-Consenting
Lender ” shall have the meaning provided in
Section 13.7(b).
“ Non-Defaulting
Lender ” shall mean and include each Lender other than a
Defaulting Lender.
“ Non-Excluded
Taxes ” shall have the meaning provided in
Section 5.4(a).
“ Non-Extension
Notice Date ” shall have the meaning provided in
Section 3.2(b).
“ Non-U.S.
Lender ” shall have the meaning provided in
Section 5.4(e).
“ Notice of
Borrowing ” shall mean a request of the Borrower in
accordance with the terms of Section 2.3 and substantially in
the form of Exhibit F-1 or such other form as shall be approved by
the Administrative Agent (acting reasonably).
“ Notice of
Conversion or Continuation ” shall have the meaning
provided in Section 2.6.
“ Obligations
” shall mean the collective reference to (a) the due and
punctual payment of (i) the principal of and premium, if any,
and interest at the applicable rate provided in this Agreement
(including interest accruing during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when
and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise, (ii) each payment
required to be made by the Borrower under this Agreement in respect
of any Letter of Credit, when and as due, including payments in
respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (iii) all other
monetary obligations, including fees, costs, expenses and
indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the
pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in
such proceeding), of the Borrower or any other Credit Party to any
of the Secured Parties under this Agreement and the other Credit
Documents, (b) the due and punctual performance of all
covenants, agreements, obligations and liabilities of the Borrower
under or pursuant to this Agreement and the other Credit Documents,
(c) the due and punctual payment and performance of all the
covenants, agreements, and liabilities of each other Credit Party
under or pursuant to this Agreement or the
36
EXECUTION
COPY
other Credit Documents, and (d) the
due and punctual payment and performance of all Cash Management
Obligations under each Secured Cash Management Agreement.
Notwithstanding the foregoing, (i) the obligations of
Holdings, the Borrower or any Subsidiary under any Secured Cash
Management Agreement shall be secured and guaranteed pursuant to
the Security Documents and the Guarantee only to the extent that,
and for so long as, the other Obligations are so secured and
guaranteed and (ii) any release of Collateral or Guarantors
effected in the manner permitted by this Agreement and the other
Credit Document shall not require the consent of the holders of the
Cash Management Obligations under Secured Cash Management
Agreements.
“ Organizational
Documents ” shall mean, (a) with respect to any
corporation, the certificate or articles of incorporation and the
bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any
limited liability company, the certificate or articles of formation
or organization and operating agreement; and (c) with
respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable
agreement of formation or organization and, if applicable, any
agreement, instrument, filing or notice with respect thereto filed
in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its
formation or organization and, if applicable, any certificate or
articles of formation or organization of such entity.
“ Other Accounts
” shall mean all Accounts other than Distributor
Accounts.
“ Other Taxes
” shall have the meaning provided in
Section 5.4(b).
“ Participant
” shall have the meaning provided in
Section 13.6(c)(i).
“ PATRIOT ACT
” shall have the meaning provided in
Section 13.18.
“ PBGC ”
shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor
thereto.
“ Perfection
Certificate ” shall mean a certificate of the Borrower in
the form of Exhibit D or any other form approved by the
Administrative Agent.
“ Permitted
Acquisition ” shall mean any acquisition, by merger or
otherwise, by the Borrower or any of the Restricted Subsidiaries of
assets (including any assets constituting a business unit, line of
business or division) or Capital Stock, so long as (a) such
acquisition and all transactions related thereto shall be
consummated in accordance with all Applicable Laws; (b) if
such acquisition involves the acquisition of a Subsidiary, such
acquisition shall result in the issuer of such Capital Stock
becoming a Restricted Subsidiary and a Guarantor to the extent
required by Section 9.10; (c) such acquisition shall
result in the Collateral Agent, for the benefit of the Secured
Parties, being granted a security interest in any Capital Stock or
any assets so acquired to the extent required by
Sections 9.10, 9.11 and/or 9.14(b); (d) after giving
effect to such acquisition, no Event of Default shall have occurred
and be continuing; (e) after giving effect to such
acquisition, the Borrower and its Restricted Subsidiaries shall be
in compliance with Section 9.13; (f) the Borrower shall
be in compliance, on a Pro Forma Basis after giving effect to such
acquisition (including any Indebtedness assumed or permitted to
exist or incurred
37
EXECUTION
COPY
pursuant to Sections 10.1(k) and
10.1(l), respectively, and any related Pro Forma Adjustment), with
the covenants set forth in Section 9.11 of the Term Loan
Credit Agreement, as such covenants are recomputed as at the last
day of the most recently ended Test Period as if such acquisition
had occurred on the first day of such Test Period; and
(g) the Permitted Acquisition Consideration paid in connection
with such Permitted Acquisition when combined with the Permitted
Acquisition Consideration of the prior Permitted Acquisitions
consummated after the Closing Date shall not exceed the sum of
(i) 10% of Consolidated Total Assets (determined as at the
last day of the most recently ended Test Period prior to such
Permitted Acquisition), plus (ii) the Reinvestment Deferred
Amount.
“ Permitted
Acquisition Consideration ” shall mean in connection with
any Permitted Acquisition, the aggregate amount (as valued at the
Fair Market Value of such Permitted Acquisition at the time such
Permitted Acquisition is made) of, without duplication:
(i) the purchase consideration paid or payable in cash for
such Permitted Acquisition, whether payable at or prior to the
consummation of such Permitted Acquisition or deferred for payment
at any future time, whether or not any such future payment is
subject to the occurrence of any contingency, and including any and
all payments representing the purchase price and any assumptions of
Indebtedness and/or Guarantee Obligations, “earn-outs”
and other agreements to make any payment the amount of which is, or
the terms of payment of which are, in any respect subject to or
contingent upon the revenues, income, cash flow or profits (or the
like) of any person or business; (ii) the aggregate
amount of Indebtedness incurred or assumed in connection with such
Permitted Acquisition; provided in each case, that any
such future payment that is subject to a contingency shall be
considered Permitted Acquisition Consideration only to the extent
of the reserve, if any, required under GAAP (as determined at the
time of the consummation of such Permitted Acquisition) to be
established in respect thereof by Holdings, the Borrower or its
Restricted Subsidiaries.
“ Permitted
Additional Notes ” shall mean unsecured senior, senior
subordinated or subordinated notes issued by the Borrower;
provided that (a) the terms of such notes do not
provide for any scheduled repayment, mandatory redemption or
sinking fund obligation prior to the date that is 91 days after the
latest Maturity Date of any Credit Facility hereunder, other than,
subject to the prior repayment of or the prior offer to repay the
Obligations hereunder, customary offers to purchase upon a change
of control, asset sale or casualty or condemnation event and
customary acceleration rights upon an event of default,
(b) the covenants, events of default, Subsidiary guarantees
and other terms for such notes ( provided that such notes
shall have interest rates and redemption premiums determined by
Holdings or the Borrower, as the case may be, to be market rates
and premiums at the time of issuance of such notes), taken as a
whole, are determined by Holdings or the Borrower, as the case may
be, to be market terms on the date of issuance and in any event are
not more restrictive on Holdings, the Borrower and its Restricted
Subsidiaries, or materially less favorable to the Lenders, than the
terms of this Agreement (as in effect on the Closing Date) and do
not require the maintenance or achievement of any financial
performance standards other than as a condition to taking specified
actions; provided that a certificate of an Authorized
Officer of Holdings or the Borrower, as the case may be, delivered
to the Administrative Agent at least five Business Days prior to
the incurrence of such Indebtedness, together with a reasonably
detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating thereto,
stating that Holdings or the Borrower, as the case may be, has
determined in good faith that such terms and
38
EXECUTION
COPY
conditions satisfy the foregoing
requirement shall be conclusive evidence that such terms and
conditions satisfy the foregoing requirement unless the
Administrative Agent notifies Holdings and the Borrower within such
five Business Day period that it disagrees with such determination
(including a reasonable description of the basis upon which it
disagrees), (c) if such notes are senior subordinated or
subordinated notes, the terms of such notes provide for customary
subordination of such notes to the Obligations and (d) no
Subsidiary of the Borrower (other than a Guarantor) is an obligor
under such notes.
“ Permitted Cure
Security ” shall mean an equity security of Holdings or
the Borrower (or any direct or indirect parent thereof) having no
mandatory redemption, repurchase or similar requirements prior to
91 days after the latest Maturity Date of any Credit Facility
hereunder, and upon which all dividends or distributions (if any)
shall be, prior to 91 days after the latest Maturity Date
hereunder, payable solely in additional shares of such equity
security; provided that all equity securities of Holdings
issued in connection with the Equity Contributions shall not be
deemed to be Permitted Cure Securities.
“ Permitted
Discretion ” shall mean, as applicable, the
Administrative Agent’s or the Collateral Agent’s
commercially reasonable judgment, exercised in good faith in
accordance with customary business practices for similar
asset-based lending transactions, as to any factor, event,
condition or other circumstance which the Administrative Agent or
the Collateral Agent, as applicable, reasonably determines:
(a) will or could reasonably be expected to adversely affect
the quantity, quality, mix or value of the Eligible Accounts and
Eligible Inventory (including any Applicable Law that may inhibit
collection of an Account), the enforceability or priority of the
Collateral Agent’s Liens thereon or the amount which the
Administrative Agent, the Lenders or the Letter of Credit Issuer
would be likely to receive (after giving consideration to delays in
payment and costs of enforcement) in the liquidation of such
Eligible Accounts and Eligible Inventory or (b) that any
collateral report or financial information delivered to the
Administrative Agent or the Collateral Agent by the Credit Parties
or any Person on behalf of thereof is incomplete, inaccurate or
misleading in any material respect or (c) creates a Default or
an Event of Default. In exercising such judgment, the
Administrative Agent or the Collateral Agent may consider, without
duplication, factors already included in or tested by the
definition of Eligible Accounts and Eligible Inventory, and any
other criteria including: (i) changes after the Closing Date
in any concentration of risk with respect to Eligible Accounts and
(ii) any other factors arising after the Closing Date that
affect or that could reasonably be expected to affect the credit
risk of lending to the Borrower on the security of the
Collateral.
“ Permitted
Investments ” shall mean (a) Dollars and, with
respect to any Foreign Subsidiaries, local currencies held by such
Foreign Subsidiary, in each case in the ordinary course of
business; (b) securities issued or unconditionally guaranteed
or insured by the United States government or any agency or
instrumentality thereof, in each case having maturities of not more
than 24 months from the date of acquisition thereof;
(c) securities issued by any state, commonwealth or territory
of the United States of America or any political subdivision or
taxing authority of any such state, commonwealth or territory or
any public instrumentality thereof or any political subdivision or
taxing authority of any such state, commonwealth or territory or
any public instrumentality thereof having maturities of not more
than 24 months from the date of acquisition thereof and, at the
time of acquisition, having an investment grade rating generally
obtainable from either S&P or Moody’s (or, if at any time
neither S&P nor Moody’s shall be
39
EXECUTION
COPY
rating such obligations, then from
another nationally recognized rating service); (d) commercial
paper or variable or fixed rate notes issued by or guaranteed by
any Lender or any bank holding company owning any Lender;
(e) commercial paper or variable or fixed rate notes maturing
no more than 12 months after the date of creation thereof and, at
the time of acquisition, having a rating of at least A-2 or P-2
from either S&P or Moody’s (or, if at any time neither
S&P nor Moody’s shall be rating such obligations, an
equivalent rating from another nationally recognized rating
service); (f) time deposits with, or domestic and Eurodollar
certificates of deposit or bankers’ acceptances maturing no
more than two years after the date of acquisition thereof issued
by, any Lender or any other bank having combined capital and
surplus of not less than $250,000,000 in the case of domestic banks
and $100,000,000 (or the dollar equivalent thereof) in the case of
foreign banks; (g) repurchase agreements with a term of not
more than 30 days for underlying securities of the type described
in clauses (b), (c) and (f) above entered into with
any bank meeting the qualifications specified in clause (f)
above or securities dealers of recognized national standing;
(h) marketable short-term money market and similar securities
having a rating of at least A-2 or P-2 from either S&P or
Moody’s (or, if at any time neither S&P nor Moody’s
shall be rating such obligations, an equivalent rating from another
nationally recognized rating service); (i) shares of
investment companies that are registered under the Investment
Company Act of 1940 and invest solely in one or more of the types
of securities described in clauses (a) through (h) above;
and (j) in the case of investments by any Restricted Foreign
Subsidiary or investments made in a country outside the United
States of America, other customarily utilized high-quality
investments in the country where such Restricted Foreign Subsidiary
is located or in which such investment is made.
“ Permitted
Liens ” shall mean (a) Liens for taxes, assessments
or other governmental charges or claims that are either
(i) not yet due and payable and not subject to penalties for
nonpayment or (ii) being diligently contested in good faith by
appropriate proceedings for which appropriate reserves have been
established in accordance with GAAP, (b) Liens in respect of
property or assets of Holdings, the Borrower or any of its
Subsidiaries imposed by law, such as landlord’s,
carriers’, warehousemen’s, repairmen’s,
construction contractors’ and mechanics’ Liens and
other similar Liens, in each case so long as such Liens arise in
the ordinary course of business and do not individually or in the
aggregate have a Material Adverse Effect, (c) Liens arising
from judgments or decrees for the payment of money in circumstances
not constituting an Event of Default under Section 11.10,
(d) Liens incurred or pledges or deposits made in connection
with workers’ compensation, unemployment insurance and other
types of social security or similar legislation and deposits
securing liabilities to insurance carriers under insurance or
self-insurance arrangements in respect of such obligations, or to
secure the performance of tenders, statutory obligations, surety,
stay, customs and appeal bonds, bids, leases (other than
Capitalized Leases), government contracts, trade contracts (other
than for Indebtedness), performance and return-of-money bonds and
other similar obligations (including letters of credit issued in
lieu of any such bonds or to support the issuance thereof and
including those to secure health, safety and environmental
obligations) incurred in the ordinary course of business,
(e) ground leases or subleases, licenses or sublicenses in
respect of real property on which facilities owned or leased by
Holdings, the Borrower or any of its Subsidiaries are located,
(f) easements, rights-of-way, licenses, restrictions
(including zoning restrictions), minor defects, exceptions or
irregularities in title, encroachments, protrusions and other
similar charges or encumbrances, in each case do not, in the
aggregate, materially detract from the value of the Real Estate of
the Borrower and its Subsidiaries, taken as a whole, or interfere
in any
40
EXECUTION
COPY
material respect with the business of
the Borrower and its Subsidiaries, taken as a whole, and that were
not incurred in connection with and do not secure any Indebtedness,
and to the extent reasonably agreed by the Administrative Agent,
any exception on the title policies issued in connection with any
Mortgaged Property, (g) any interest or title of a lessor,
sublessor, licensor or sublicensor or secured by a lessor’s,
sublessor’s, licensor’s or sublicensor’s interest
under any lease permitted by this Agreement, (h) Liens in
favor of customs and revenue authorities arising as a matter of law
to secure payment of customs duties in connection with the
importation of goods, (i) Liens on goods or inventory the
purchase, shipment or storage price of which is financed by a
documentary letter of credit or bankers’ acceptance issued or
created for the account of the Borrower or any of its Subsidiaries;
provided that such Lien secures only the obligations of the
Borrower or such Subsidiaries in respect of such letter of credit
to the extent permitted under Section 10.1, (j) licenses
of intellectual property granted in a manner consistent with past
practice, (k) Liens arising from precautionary Uniform
Commercial Code financing statement or similar filings made in
respect of operating leases entered into by the Borrower or any of
its Subsidiaries and (l) any zoning or similar law or right
reserved to, or vested in, any Governmental Authority to control or
regulate the use of any real property that does not materially
interfere with the ordinary course of conduct of the business of
the Borrower and its Restricted Subsidiaries, taken as a
whole.
“ Permitted
Overadvance ” shall have the meaning provided in
Section 2.1(d).
“ Permitted
Refinancing Indebtedness ” shall mean, with respect to
any Indebtedness (the “ Refinanced Indebtedness”
) any Indebtedness issued in exchange for, or the net proceeds of
which are used to modify, extend, refinance, renew, replace or
refund (collectively to “ Refinance” or a
“ Refinancing ” or “ Refinanced
”) such Refinanced Indebtedness (or previous refinancing
thereof constituting Permitted Refinancing Indebtedness); provided
that (A) the principal amount (or accreted value, if
applicable) of any such Permitted Refinancing Indebtedness does not
exceed the principal amount (or accreted value, if applicable) of
the Refinanced Indebtedness outstanding immediately prior to such
Refinance except by an amount equal to the unpaid accrued interest
and premium thereon plus other reasonable amounts paid and fees and
expenses incurred in connection with such Refinancing plus an
amount equal to any existing commitment unutilized and letters of
credit undrawn thereunder and (B) if the Indebtedness being
Refinanced is Indebtedness permitted by Section 10.1(a)(ii),
10.1(h), 10.1(j) or 10.1(w), the direct and contingent obligors
with respect to such Permitted Refinancing Indebtedness are not
changed, (C) other than with respect to a Refinancing in
respect of Indebtedness permitted pursuant to Section 10.1(c),
such Permitted Refinancing Indebtedness shall have a final maturity
date equal to or later than the final maturity date of, and has a
Weighted Average Life to Maturity equal to or greater than the
Weighted Average Life to Maturity of, the Refinanced Indebtedness
and (D) if the Indebtedness being Refinanced is Indebtedness
permitted by Section 10.1(a)(ii), 10.1(h), 10.1(j) or 10.1(w),
the terms and conditions of any such Permitted Refinancing
Indebtedness, taken as a whole, are not materially less favorable
to the Lenders than the terms and conditions of the Refinanced
Indebtedness being Refinanced (including, if applicable, as to
collateral and subordination, but excluding as to interest rates
and redemption premiums); provided that a certificate of an
Authorized Officer of Holdings or the Borrower delivered to the
Administrative Agent at least 10 Business Days prior to the
incurrence of such Indebtedness, together with a reasonably
detailed description of the material terms and conditions of such
Indebtedness or drafts of the documentation relating
41
EXECUTION
COPY
thereto, stating that Holdings or the
Borrower, as the case may be, has determined in good faith that
such terms and conditions satisfy the foregoing requirement shall
be conclusive evidence that such terms and conditions satisfy the
foregoing requirement unless the Administrative Agent notifies
Holdings and the Borrower within such 10 Business Day period that
it disagrees with such determination (including a reasonable
description of the basis upon which it disagrees).
“ Permitted Sale
Leaseback ” shall mean any Sale Leaseback consummated by
the Borrower or any of the Restricted Subsidiaries pursuant to
Section 10.4(g).
“ Person ”
shall mean any individual, partnership, joint venture, firm,
corporation, limited liability company, association, trust or other
enterprise or any Governmental Authority.
“ PIK Interest
Amount ” shall mean the aggregate principal amount of all
increases in the outstanding principal amount of the Senior
Subordinated Notes (or any Permitted Refinancing Indebtedness
incurred to Refinance such Indebtedness) including any issuances of
PIK Notes (as defined in the Senior Subordinated Notes Indenture or
any similar document) in connection with the payment by the
Borrower to pay interest on the Senior Subordinated Notes (or any
Permitted Refinancing Indebtedness incurred to Refinance such
Indebtedness) in kind.
“ Plan ”
shall mean (a) any multiemployer, as defined in
Section 4001 of ERISA and subject to Title IV of ERISA, that
(i) is maintained or contributed to by the Borrower, a
Subsidiary or an ERISA Affiliate, (ii) was so maintained or
contributed to and in respect of which the Borrower, any Restricted
Subsidiary or any ERISA Affiliate could have liability under
Section 4212 (c) of ERISA in the event such plan has been
or were to be terminated or (b) any single employer plan, as
defined in Section 4001(a)(15) of ERISA that (i) is
maintained for employees of the Borrower, any Restricted Subsidiary
or any ERISA Affiliate or (ii) was so maintained and in
respect of which the Borrower, any Restricted Subsidiary or ERISA
Affiliate could have liability under Section 4069 of ERISA in
the event such plan has been or were to be terminated.
“ Pledge
Agreement ” shall mean the Revolving Pledge Agreement,
entered into by Holdings, the Borrower, the other pledgors party
thereto and the Collateral Agent for the benefit of the Secured
Parties, substantially in the form of Exhibit E-2.
“ Post-Acquisition
Period ” shall mean, with respect to any Specified
Transaction, the period beginning on the date such Specified
Transaction is consummated and ending on the last day of the fourth
full consecutive fiscal quarter immediately following the date on
which such Specified Transaction is consummated.
“ Prime Rate
” shall mean the rate of interest per annum published by the
Wall Street Journal from time to time, as the prime lending
rate.
“ Pro Forma
Adjustment ” shall mean, for any Test Period that
includes all or any part of a fiscal quarter included in any
Post-Acquisition Period with respect to the Acquired EBITDA of the
applicable Pro Forma Entity or the Consolidated EBITDA of the
Borrower, the pro forma increase or decrease in such Acquired
EBITDA or such Consolidated EBITDA, as the case may be, projected
by the Borrower in good faith as a result of (a) actions
taken, prior to or
42
EXECUTION
COPY
during such Post-Acquisition Period, for
the purposes of realizing reasonably identifiable and factually
supportable cost savings, or (b) any additional costs incurred
prior to or during such Post-Acquisition Period in connection with
the combination of the operations of such Pro Forma Entity with the
operations of the Borrower and the Restricted Subsidiaries;
provided that (A) so long as such actions are taken
prior to or during such Post-Acquisition Period or such costs are
incurred prior to or during such Post-Acquisition Period it may be
assumed, for purposes of projecting such pro forma increase or
decrease to such Acquired EBITDA or such Consolidated EBITDA, as
the case may be, that such cost savings will be realizable during
the entirety of such Test Period, or such additional costs will be
incurred during the entirety of such Test Period, and (B) any
such pro forma increase or decrease to such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, shall be without
duplication for cost savings or additional costs already included
in such Acquired EBITDA or such Consolidated EBITDA, as the case
may be, for such Test Period.
“ Pro Forma
Adjustment Certificate ” shall mean any certificate of an
Authorized Officer of the Borrower delivered pursuant to
Section 9.1(i) or setting forth the information described in
clause (iv) to Section 9.1(d).
“ Pro Forma
Basis ”, “ Pro Forma Compliance ” and
“ Pro Forma Effect ” shall mean, with respect to
compliance with any test or covenant hereunder, that (A) to
the extent applicable, the Pro Forma Adjustment shall have been
made and (B) all Specified Transactions and the following
transactions in connection therewith shall be deemed to have
occurred as of the first day of the applicable period of
measurement in such test or covenant: (a) income statement
items (whether positive or negative) attributable to the property
or Person subject to such Specified Transaction, (i) in the
case of a sale, transfer or other disposition of all or
substantially all Capital Stock in any Subsidiary of the Borrower
or any division, product line, or facility used for operations of
the Borrower or any of its Subsidiaries, shall be excluded, and
(ii) in the case of a Permitted Acquisition or Investment
described in the definition of the term “ Specified
Transaction ”, shall be included, (b) any retirement
or repayment of Indebtedness and (c) any Indebtedness incurred
or assumed by the Borrower or any of the Restricted Subsidiaries in
connection therewith and if such Indebtedness has a floating or
formula rate, shall have an implied rate of interest for the
applicable period for purposes of this definition determined by
utilizing the rate that is or would be in effect with respect to
such Indebtedness as at the relevant date of determination;
provided that, without limiting the application of the Pro
Forma Adjustment pursuant to (A) above (but without
duplication thereof), the foregoing pro forma adjustments may be
applied to any such test or covenant solely to the extent that such
adjustments are consistent with the definition of Consolidated
EBITDA and give effect to events (including operating expense
reductions) that are (i) (x) directly attributable to such
transaction, (y) expected to have a continuing impact on the
Borrower and the Restricted Subsidiaries and (z) factually
supportable or (ii) otherwise consistent with the definition
of the term “ Pro Forma Adjustment ”.
“ Pro Forma
Entity ” shall mean any Acquired Entity or Business or
any Converted Restricted Subsidiary.
“ Pro Rata Share
” shall mean, with respect to any Lender at any time, the
percentage obtained by dividing (a) the sum of the Revolving
Credit Commitments (or, if such
43
EXECUTION
COPY
Revolving Credit Commitments are
terminated, the Revolving Credit Exposure therein) of such Lender
then in effect by (b) the sum of the Revolving Credit
Commitments (or, if such Commitments are terminated, the Revolving
Credit Exposure therein) of all Lenders then in
effect; provided, however, that, if there are no Revolving
Credit Commitments and no Revolving Credit Exposure, such
Lender’s Pro Rata Share shall be determined based on the Pro
Rata Share most recently in effect, after giving effect to any
subsequent assignment and any subsequent non-pro rata payments of
any Lender pursuant to Section 13.7.
“ Qualified Capital
Stock ” shall mean any Capital Stock that is not
Disqualified Capital Stock.
“ Qualifying IPO
” shall mean the issuance by Holdings (or any direct or
indirect parent of Holdings) of its common Capital Stock generating
(individually or in the aggregate together with any prior initial
public offering) gross proceeds exceeding $100,000,000, in an
underwritten primary public offering (other than a public offering
pursuant to a registration statement on Form S-8) pursuant to an
effective registration statement filed with the SEC in accordance
with the Securities Act (whether alone or in connection with a
secondary public offering).
“ Real Estate
” shall have the meaning provided in
Section 9.1(g).
“ Recovery Event
” shall mean (a) any damage to, destruction of or other
casualty or loss involving any property or asset or (b) any
seizure, condemnation, confiscation or taking under the power of
eminent domain of, or any requisition of title or use of or
relating to, or any similar event in respect of, any property or
asset.
“ Reference
Lender ” shall mean Barclays Bank PLC.
“ Refinance
” shall have the meaning provided in the definition of the
term “ Permitted Refinancing Indebtedness
.”
“ Refinancing
” shall have the meaning provided in the recitals to this
Agreement.
“ Register
” shall have the meaning provided in
Section 13.6(b)(v).
“ Regulation D
” shall mean Regulation D of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing reserve requirements.
“ Regulation T
” shall mean Regulation T of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
“ Regulation U
” shall mean Regulation U of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
“ Regulation X
” shall mean Regulation X of the Board as from time to time
in effect and any successor to all or a portion thereof
establishing margin requirements.
44
EXECUTION
COPY
“ Reinvestment
Deferred Amount ” shall “Reinvestment Deferred
Amount” as defined in the Term Loan Credit
Agreement.
“ Related
Parties ” shall mean, with respect to any specified
Person, such Person’s Affiliates and the directors, officers,
employees, agents, trustees, advisors of such Person or such
Person’s Affiliates and any Person that possesses, directly
or indirectly, the power to direct or cause the direction of the
management or policies of such Person, whether through the ability
to exercise voting power, by contract or otherwise.
“ Reportable
Event ” shall mean an event described in
Section 4043 of ERISA and the regulations
thereunder.
“ Required
Lenders ” shall mean, at any date, Non-Defaulting Lenders
having at such time in excess of 50% of (a) the Adjusted Total
Commitment or (b) if the Total Commitment has been terminated
or for the purposes of acceleration pursuant to Section 11,
the outstanding principal amount of the Revolving Credit Loans and
Letters of Credit Outstanding in the aggregate at such
date.
“ Reserves
” shall mean, reserves deemed necessary in its Permitted
Discretion by the Administrative Agent (a) on the Closing Date
as set forth in the Borrowing Base delivered to the Administrative
Agent on the Closing Date and (b) thereafter, from time to
time, established against the gross amount of Eligible Accounts and
Eligible Inventory in accordance with Section 2.14. Without
limiting the generality of the foregoing, Reserves established to
ensure the payment of accrued and unpaid interest pursuant to this
Agreement shall be deemed to be a reasonable exercise of the
Administrative Agent’s Permitted Discretion.
“ Restricted Foreign
Subsidiary ” shall mean each Restricted Subsidiary that
is also a Foreign Subsidiary.
“ Restricted
Subsidiary ” shall mean any Subsidiary of the Borrower
other than an Unrestricted Subsidiary.
“ Revolving Credit
Commitment ” shall mean, (a) with respect to each
Lender that is a Lender on the Closing Date, the amount set forth
opposite such Lender’s name on Schedule 1.1(a) as such
Lender’s “Revolving Credit Commitment” and
(b) in the case of any Lender that becomes a Lender after the
date hereof, the amount specified as such Lender’s
“Revolving Credit Commitment” in the Assignment and
Acceptance pursuant to which such Lender assumed a portion of the
Total Commitment, in each case as such Revolving Credit Commitment
maybe reduced or increased from time to time as permitted
hereunder. The aggregate amount of the Revolving Credit Commitments
as of the date hereof is $300,000,000.
“ Revolving Credit
Commitment Percentage ” shall mean at any time, for each
Lender, the percentage obtained by dividing (a) such
Lender’s Revolving Credit Commitment by (b) the
aggregate amount of the Revolving Credit Commitments;
provided that at any time when the Total Commitment shall
have been terminated, each Lender’s Revolving Credit
Commitment Percentage shall be its Revolving Credit Commitment
Percentage as in effect immediately prior to such
termination.
45
EXECUTION
COPY
“ Revolving Credit
Exposure ” shall mean, with respect to any Lender at any
time, the sum of (a) the aggregate principal amount of the
Revolving Credit Loans of such Lender then outstanding and
(b) such Lender’s Letter of Credit Exposure at such
time.
“ Revolving Credit
Facility ” shall have the meaning provided in the
recitals to this Agreement.
“ Revolving Credit
Loan ” shall have the meaning provided in
Section 2.1(a).
“ Revolving Credit
Maturity Date ” shall mean the date that is five years
after the Closing Date, or, if such date is not a Business Day, the
next preceding Business Day.
“ S&P
” shall mean Standard & Poor’s Ratings
Services or any successor by merger or consolidation to its
business.
“ Sale Leaseback
” shall mean any transaction or series of related
transactions pursuant to which the Borrower or any of the
Restricted Subsidiaries (a) sells, transfers or otherwise
disposes of any property, real or personal, whether now owned or
hereafter acquired, and (b) as part of such transaction,
thereafter rents or leases such property or other property that it
intends to use for substantially the same purpose or purposes as
the property being sold, transferred or disposed of.
“ SEC ”
shall mean the Securities and Exchange Commission or any successor
thereto.
“ Section 9.1
Financials ” shall mean the financial statements
delivered, or required to be delivered, pursuant to
Section 9.1(a) or 9.1(b) together with the accompanying
officer’s certificate delivered, or required to be delivered,
pursuant to Section 9.1(d).
“ Secured Cash
Management Agreement ” shall mean any agreement relating
to Cash Management Services that is entered into by and between
Holdings, the Borrower or any Restricted Subsidiary and a Cash
Management Bank.
“ Secured
Parties ” shall mean, collectively, (a) the Lenders,
(b) the Letter of Credit Issuers, (c) the Swingline
Lender (d) the Administrative Agent, (e) the Collateral
Agent, (f) each Cash Management Bank, (g) the
beneficiaries of each indemnification obligation undertaken by any
Credit Party under the Credit Documents and (h) any
successors, endorsees, transferees and assigns of each of the
foregoing.
“ Securities Account
Control Agreement ” has the meaning specified in the
Security Agreement.
“ Securities Act
” shall mean the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.
“ Security
Agreement ” shall mean the Revolving Security Agreement,
entered into by the Borrower, the other grantors party thereto and
the Collateral Agent for the benefit of the Secured Parties,
substantially in the form of Exhibit E-1.
46
EXECUTION
COPY
“ Security
Documents ” shall mean, collectively, the Security
Agreement, the Pledge Agreement, the Mortgages and each other
security agreement or other instrument or document executed and
delivered pursuant to Sections 9.10, 9.11 or 9.14 or pursuant
to any of the Security Documents to secure any of the
Obligations.
“ Senior
Subordinated Notes ” shall mean those 13.5/14% senior
subordinated notes due 2016 issued by the Borrower under the Senior
Subordinated Notes Indenture in an initial aggregate principal
amount of $500,000,000, including any “Exchange Note”
issued in an “Exchange Offer” therefore (as such term
is defined in the Senior Subordinated Notes Indenture).
“ Senior
Subordinated Notes Indenture ” shall mean the indenture
for the Senior Subordinated Notes, dated February 13, 2008
among the Borrower and Wells Fargo Bank, National Association, as
trustee.
“ Senior
Subordinated Notes Documents ” shall mean the Senior
Subordinated Notes Indenture and the other credit documents
referred to therein (including the related guarantee, the notes,
the notes purchase agreement and the registration rights
agreements).
“ Sold Entity or
Business ” shall have the meaning provided in the
definition of the term “ Consolidated EBITDA
”.
“ Solvent
” shall mean, with respect to any Person, at any date, that
(a) the sum of such Person’s debt (including contingent
liabilities) does not exceed the present fair saleable value of
such Person’s present assets, (b) such Person’s
capital is not unreasonably small in relation to its business as
contemplated on such date, (c) such Person has not incurred
and does not intend to incur, or believe that it will incur, debts
including current obligations beyond its ability to pay such debts
as they become due (whether at maturity or otherwise), and
(d) such Person is “ solvent ” within the
meaning given that term and similar terms under applicable laws
relating to fraudulent transfers and conveyances. For purposes of
this definition, the amount of any contingent liability at any time
shall be computed as the amount that, in light of all of the facts
and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability
(irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting
Standard No. 5).
“ Specified
Obligations ” shall mean Obligations consisting of
(a) the principal of and interest on Loans and
(b) reimbursement obligations in respect of Letters of
Credit.
“ Specified
Subsidiary ” shall mean, at any date of determination,
(a) any Restricted Subsidiary whose total assets (when
combined with the assets of such Restricted Subsidiary’s
Subsidiaries after eliminating intercompany obligations) at the
last day of the most recent Test Period ended on or prior to such
date of determination were equal to or greater than 5% of the
Consolidated Total Assets of the Borrower and the Restricted
Subsidiaries at such date, (b) any Restricted Subsidiary whose
gross revenues (when combined with the revenues of such Restricted
Subsidiary’s Subsidiaries after eliminating intercompany
obligations) for such Test Period were equal to or greater than 5%
of the consolidated gross revenues of the Borrower and the
Restricted Subsidiaries for such period, in each case determined in
accordance with
47
EXECUTION
COPY
GAAP or (c) each other Restricted
Subsidiary that, when such Restricted Subsidiary’s total
assets or gross revenues (when combined with the total assets or
revenues of such Restricted Subsidiary’s Subsidiaries after
eliminating intercompany obligations) are aggregated with each
other Restricted Subsidiary (when combined with the total assets or
revenues of such Restricted Subsidiary’s Subsidiaries after
eliminating intercompany obligations) that is the subject of an
Event of Default described in Section 11.5 would constitute a
“Specified Subsidiary” under clause (a) or
(b) above.
“ Specified
Transaction ” shall mean, with respect to any period, any
Investment, sale, transfer or other disposition of assets,
incurrence or repayment of Indebtedness, Dividend, Subsidiary
designation or other event that by the terms of the Credit
Documents requires “ Pro Forma Compliance ” with
a test or covenant hereunder or requires such test or covenant to
be calculated on a “ Pro Forma Basis
”.
“ Sponsor
” shall mean Hellman & Friedman LLC and/or its
Affiliates.
“ Stated Amount
” of any Letter of Credit shall mean the maximum amount from
time to time available to be drawn thereunder, determined without
regard to whether any conditions to drawing could then be
met.
“ Statutory Reserve
Rate ” shall mean for any day as applied to any
Eurodollar Loan, a fraction (expressed as a decimal), the numerator
of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages
that are in effect on that day (including any marginal, special,
emergency or supplemental reserves), expressed as a decimal, as
prescribed by the Board and to which the Administrative Agent is
subject, for Eurocurrency funding (currently referred to as “
Eurocurrency Liabilities ” in Regulation D of the
Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to
constitute Eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory
Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.
“ Subsidiary
” of any Person shall mean and include (a) any
corporation more than 50% of whose stock of any class or classes
having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of
whether or not at the time stock of any class or classes of such
corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person
directly or indirectly through Subsidiaries and (b) any
limited liability company, partnership, association, joint venture
or other entity in which such Person directly or indirectly through
Subsidiaries has more than a 50% equity interest at the time.
Unless otherwise expressly provided, all references herein to a
“ Subsidiary ” shall mean a Subsidiary of
Holdings or the Borrower, as applicable.
“ Subsidiary
Guarantor ” shall mean each Guarantor that is a
Subsidiary of the Borrower.
48
EXECUTION
COPY
“ Successor
Borrower ” shall have the meaning provided in
Section 10.3(a).
“ Supermajority
Lenders ” shall mean, at any date, Non-Defaulting Lenders
having at such time in excess of 75% of (a) the Adjusted Total
Commitment or (b) if the Total Commitment has been terminated
or for the purposes of acceleration pursuant to Section 11,
the outstanding principal amount of the Revolving Credit Loans and
Letters of Credit Outstanding in the aggregate at such
date.
“ Swap Termination
Value ” shall mean, in respect of any one or more Hedging
Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Hedging Agreements,
(a) for any date on or after the date such Hedging Agreements
have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (b) for
any date prior to the date referenced in clause (a), the
amount(s) determined as the mark-to-market value(s) for such
Hedging Agreements, as determined based upon one or more mid-market
or other readily available quotations provided by any recognized
dealer in such Hedging Agreements (which may include a Lender or
any Affiliate of a Lender).
“ Swingline
Commitment ” shall mean $30,000,000.
“ Swingline
Lender ” shall mean GECC in its capacity as lender of
Swingline Loans hereunder, or such other financial institution who,
after the date hereof, shall agree to act in the capacity of lender
of Swingline Loans hereunder.
“ Swingline Loan
” shall have the meaning provided in
Section 2.1(c)(i).
“ Swingline Maturity
Date ” shall mean, with respect to any Swingline Loan,
the date that is five Business Days prior to the Revolving Credit
Maturity Date.
“ Term Loan
” shall mean a Term Loan as applicable, as defined in the
Term Loan Credit Agreement.
“ Term Loan
Liens ” shall mean Liens securing the Obligations
outstanding under, and as defined in, the Term Loan Credit
Documents.
“ Term Loan Credit
Agreement ” shall mean the credit agreement dated on or
about the date hereof amongst Holdings, the Borrower, the
institutions party thereto as lenders, the Term Loan Credit Agent,
Barclays Capital the investment banking division of Barclays Bank
PLC and Calyon New York Branch as joint lead arrangers, Barclays
Bank PLC, Calyon New York Branch and GECC as joint
book-runners.
“ Term Loan Credit
Documents ” shall mean the Term Loan Credit Agreement and
the other credit documents referred to in the Term Loan Credit
Agreement (other than the Intercreditor Agreement).
“ Test Period
” shall mean, for any determination under this Agreement, the
four consecutive fiscal quarters of the Borrower then last ended
and for which Section 9.1 Financials have been delivered to
the Administrative Agent.
49
EXECUTION
COPY
“ Total
Commitment ” shall mean the sum of the Revolving Credit
Commitments of all the Lenders.
“ Total Revolving
Credit Outstandings ” shall mean, at any date, the sum of
all Lenders’ Revolving Credit Exposure at such date plus all
Swingline Loans then outstanding.
“ Transaction
Expenses ” shall mean any fees or expenses incurred or
paid by Holdings, the Borrower or any of their Subsidiaries in
connection with the Transactions and the transactions contemplated
hereby and thereby.
“ Transactions
” shall mean, collectively, (a) the Merger, (b) the
Equity Contribution, (c) the Refinancing, (d) the
entering into the Term Loan Credit Documents and the funding of the
Term Loans, (e) the entering into the Revolving Credit
Documents and the funding of the Revolving Credit Loans on the
Closing Date, (f) the entering into the Senior Subordinated
Notes Documents and the issuance of the Senior Subordinated Notes
pursuant to the Senior Subordinated Notes Indenture on the Closing
Date and, as applicable, the exchange offer required to be
consummated by the Senior Subordinated Notes Documents,
(g) the consummation of any other transactions connected with
the foregoing and (h) the payment of fees and expenses in
connection with any of the foregoing.
“ Transferee
” shall have the meaning provided in
Section 13.6(e).
“ Type ”
shall mean as to any Revolving Credit Loan, its nature as an ABR
Loan or a Eurodollar Loan.
“ UCC ”
shall mean the Uniform Commercial Code as the same may, from time
to time, be enacted and in effect in the State of New York;
provided , that to the extent that the UCC is used to define
any term herein or in any Credit Document and such term is defined
differently in different Articles or Divisions of the UCC, the
definition of such term contained in Article or Division 9 shall
govern; provided further , that in the event that, by
reason of mandatory provisions of law, any or all of the
attachment, perfection or priority of, or remedies with respect to,
Collateral Agent’s or any Lender’s Lien on any
Collateral is governed by the Uniform Commercial Code as enacted
and in effect in a jurisdiction other than the State of New York,
the term “ UCC ” shall mean the Uniform
Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such
attachment, perfection, priority or remedies and for purposes of
definitions related to such provisions.
“ Unfunded Current
Liability ” of any Plan shall mean the amount, if any, by
which the present value of the accrued benefits under the Plan as
of the close of its most recent plan year, determined in accordance
with Statement of Financial Accounting Standards No. 87 as in
effect on the Closing Date, based upon the actuarial assumptions
that would be used by the Plan’s actuary in a termination of
the Plan, exceeds the Fair Market Value of the assets allocable
thereto.
“ Unpaid Drawing
” shall have the meaning provided in
Section 3.4(a).
“ Unrestricted
Subsidiary ” shall mean (a) any Subsidiary of the
Borrower that is formed or acquired after the Closing Date and is
designated as an Unrestricted Subsidiary by the
50
EXECUTION
COPY
Borrower pursuant to Section 9.15
subsequent to the Closing Date, (b) any existing Restricted
Subsidiary of the Borrower that is designated as an Unrestricted
Subsidiary by the Borrower pursuant to Section 9.15 subsequent
to the Closing Date and (c) any Subsidiary of an Unrestricted
Subsidiary.
“ Voting Stock
” shall mean, with respect to any Person, shares of such
Person’s Capital Stock having the right to vote for the
election of directors of such Person under ordinary
circumstances.
“ Weighted Average
Life to Maturity ” shall mean, when applied to any
Indebtedness at any date, the number of years obtained by dividing:
(a) the sum of the products obtained by multiplying
(i) the amount of each then remaining installment, sinking
fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect thereof, by
(ii) the number of years (calculated to the nearest
one-twelfth) that will elapse between such date and the making of
such payment; by (b) the then outstanding principal
amount of such Indebtedness.
1.2 Other Interpretive
Provisions . With reference to this Agreement and each other
Credit Document, unless otherwise specified herein or in such other
Credit Document:
(a) The meanings of defined
terms are equally applicable to the singular and plural forms of
the defined terms.
(b) The words “
herein ”, “ hereto ”, “
hereof ” and “ hereunder ” and
words of similar import when used in any Credit Document shall
refer to such Credit Document as a whole and not to any particular
provision thereof.
(c) Section, Exhibit and
Schedule references are to the Credit Document in which such
reference appears.
(d) The term “
including ” is by way of example and not
limitation.
(e) The term “
documents ” includes any and all instruments,
documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, whether in
physical or electronic form.
(f) In the computation of
periods of time from a specified date to a later specified date,
the word “ from ” means “ from and
including ”; the words “ to ” and
“ until ” each mean “ to but
excluding ”; and the word “ through
” means “ to and including ”.
(g) Section headings
herein and in the other Credit Documents are included for
convenience of reference only and shall not affect the
interpretation of this Agreement or any other Credit
Document.
1.3 Accounting Terms .
(a) All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all
financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this
51
EXECUTION
COPY
Agreement shall be prepared in
conformity with GAAP, applied in a manner consistent with that used
in preparing the Historical Financial Statements, except as
otherwise specifically prescribed herein.
(b) Notwithstanding anything
to the contrary herein, for purposes of determining compliance with
any test or covenant contained in this Agreement with respect to
any period during which any Specified Transaction occurs, the
Consolidated Total Debt to Consolidated EBITDA Ratio and the
Consolidated EBITDA to Consolidated Fixed Charges Ratio (to the
extent necessary) shall be calculated with respect to such period
and such Specified Transaction on a Pro Forma Basis.
1.4 Rounding . Any
financial ratios required to be maintained or complied with by the
Borrower pursuant to this Agreement (or required to be satisfied in
order for a specific action to be permitted under this Agreement)
shall be calculated by dividing the appropriate component by the
other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and
rounding the result up or down to the nearest number (with a
rounding-up if there is no nearest number).
1.5 References to
Agreements, Laws, Etc . Unless otherwise expressly provided
herein, (a) references to Organizational Documents, agreements
(including the Credit Documents) and other Contractual Obligations
shall be deemed to include all subsequent amendments, restatements,
amendment and restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, amendment and restatements, extensions, supplements
and other modifications are permitted by any Credit
Document; and (b) references to any Applicable Law shall
include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Applicable
Law.
1.6 Times of Day .
Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as
applicable).
1.7 Timing of Payment of
Performance . When the payment of any obligation or the
performance of any covenant, duty or obligation is stated to be due
or performance required on a day which is not a Business Day, the
date of such payment (other than as described in Section 2.9)
or performance shall extend to the immediately succeeding Business
Day.
1.8 Currency Equivalents
Generally . For purposes of determining compliance under
Sections 10.4, 10.5, 10.6 and 10.11 with respect to any amount
denominated in any currency other than Dollars (other than with
respect to (a) any amount derived from the financial
statements of the Borrower and the Subsidiaries of the Borrower and
(b) any Indebtedness), such amount shall be deemed to equal
the Dollar equivalent thereof based on the average Exchange Rate
for such other currency for the most recent twelve-month period
immediately prior to the date of determination determined in a
manner consistent with that used in calculating Consolidated EBITDA
for the related period. For purposes of determining compliance with
Sections 10.1, 10.2 and 10.5, with respect to any amount of
Indebtedness in a currency other than Dollars, compliance will be
determined at the date of incurrence thereof using the Dollar
equivalent thereof at the Exchange Rate in effect at the date of
such incurrence.
52
EXECUTION
COPY
1.9 UCC Terms . The
following terms have the meanings given to them in the applicable
UCC: “chattel paper”, “commodity account”,
“commodity contract”, “commodity
intermediary”, “deposit account”,
“entitlement holder”, “entitlement order”,
“equipment”, “financial asset”,
“general intangible”, “goods”,
“instruments”, “inventory”,
“securities account”, “securities
intermediary” and “security
entitlement”.
SECTION 2. Amount and
Terms of Revolving Credit Facility
2.1 Loans .
(a) Subject to and upon the terms and conditions herein set
forth, each Lender severally agrees to make a loan or loans (each,
a “ Revolving Credit Loan ”) to the Borrower,
which Revolving Credit Loans (i) shall not exceed the
Revolving Credit Commitment of such Lender (after giving effect
thereto and to the application of the proceeds thereof),
(ii) shall not, after giving effect thereto and to the
application of the proceeds thereof, at any time result in the
Total Revolving Credit Outstandings at such time exceed the Maximum
Amount then in effect, (iii) shall be made at any time and
from time to time on and after the Closing Date and prior to the
Revolving Credit Maturity Date, (iv) may, at the option of the
Borrower, be incurred and maintained as, and/or converted into, ABR
Loans or Eurodollar Loans; provided that all Revolving
Credit Loans made by each of the Lenders pursuant to the same
Borrowing shall, unless otherwise specifically provided herein,
consist entirely of Revolving Credit Loans of the same Type and
(v) may be repaid and reborrowed in accordance with the
provisions hereof. On the Revolving Credit Maturity Date, all
outstanding Revolving Credit Loans shall be repaid in full. The
obligations of each Lender hereunder shall be several and not
joint.
(b) Each Lender may at its
option make any Eurodollar Loan by causing any domestic or foreign
branch or Affiliate of such Lender to make such Loan;
provided that (i) any exercise of such option shall not
affect the obligation of the Borrower to repay such Loan and
(ii) in exercising such option, such Lender shall use its
reasonable efforts to minimize any increased costs to the Borrower
resulting therefrom (which obligation of the Lender shall not
require it to take, or refrain from taking, actions that it
determines would result in increased costs for which it will not be
compensated hereunder or that it determines would be otherwise
disadvantageous to it and in the event of such request for costs
for which compensation is provided under this Agreement, the
provisions of Section 2.10 shall apply).
(c) (i) Subject to and upon
the terms and conditions herein set forth, the Swingline Lender in
its individual capacity agrees, at any time and from time to time
on and after the Closing Date and prior to the Swingline Maturity
Date, to make a loan or loans (each, a “ Swingline
Loan ”) to the Borrower, which Swingline Loans
(A) shall be ABR Loans, (B) shall have the benefit of the
provisions of Section 2.1(c)(ii), (C) shall not exceed at
any time outstanding the Swingline Commitment, (D) shall not
exceed, for any such Lender, the Revolving Credit Commitment of
such Lender, (E) shall not, after giving effect thereto and to
the application of the proceeds thereof, result at any time in
Total Revolving Credit Outstandings at such time exceeding the
Maximum Amount then in effect, and (G) may be repaid and
reborrowed in accordance with the provisions hereof. On the
Swingline Maturity Date, all
53
EXECUTION
COPY
outstanding Swingline Loans shall be
repaid in full. The Swingline Lender shall not make any Swingline
Loan after receiving a written notice from the Borrower or the
Required Lenders stating that a Default or an Event of Default
exists and is continuing until such time as the Swingline Lender
shall have received written notice of (x) rescission of all
such notices from the party or parties originally delivering such
notice or (y) the waiver of such Default or Event of Default
in accordance with the provisions of Section 13.1 or that such
Default or Event of Default is no longer continuing.
(ii) On any Business Day, the
Swingline Lender may, in its sole discretion, give notice to the
Lenders, with a copy to the Borrower, that all then-outstanding
Swingline Loans shall be funded with a Borrowing of Revolving
Credit Loans, in which case Revolving Credit Loans constituting ABR
Loans (each such Borrowing, a “ Mandatory Borrowing
”) shall be made on the same Business Day (provided that such
notice is given to the Lenders by the Swingline Lender before 1:00
p.m. (New York Time), or otherwise, on the next Business Day) by
all Lenders pro rata based on each such
Lender’s Revolving Credit Commitment Percentage, and the
proceeds thereof shall be applied directly to the Swingline Lender
to repay the Swingline Lender for such outstanding Swingline Loans.
Each Lender hereby irrevocably agrees to make such Revolving Credit
Loans upon one Business Day’s notice pursuant to each
Mandatory Borrowing in the amount and in the manner specified in
the preceding sentence and on the date specified to it in writing
by the Swingline Lender notwithstanding (i) that the amount of
the Mandatory Borrowing may not comply with the minimum amount for
each Borrowing specified in Section 2.2, (ii) whether any
conditions specified in Section 7 are then satisfied,
(iii) whether a Default or an Event of Default has occurred
and is continuing, (iv) the date of such Mandatory Borrowing
or (v) any reduction in the Total Commitment after any such
Swingline Loans were made. In the event that, in the sole judgment
of the Swingline Lender, any Mandatory Borrowing cannot for any
reason be made on the date otherwise required above (including as a
result of the commencement of a proceeding under the Bankruptcy
Code in respect of the Borrower), each Lender hereby agrees that it
shall forthwith purchase from the Swingline Lender (without
recourse or warranty) such participation of the outstanding
Swingline Loans as shall be necessary to cause each such Lender to
share in such Swingline Loans ratably based upon their respective
Revolving Credit Commitment Percentages; provided that
all principal and interest payable on such Swingline Loans shall be
for the account of the Swingline Lender until the date the
respective participation is purchased and, to the extent
attributable to the purchased participation, shall be payable to
the Lender purchasing same from and after such date of
purchase.
(d) Permitted
Overadvances . Any provision of this Agreement to the contrary
notwithstanding, (i) at the request of the Borrower, in its
discretion Administrative Agent may (but shall have absolutely no
obligation to), make Revolving Credit Loans to the Borrower on
behalf of Lenders in amounts that cause the Total Revolving Credit
Outstandings to exceed the Borrowing Base (any such excess
Revolving Credit Advances are herein referred to collectively as
“ Permitted Overadvances ”);
provided that (A) no such event or occurrence shall
cause or constitute a waiver of the Administrative Agent’s,
the Swingline Lender’s or the Lenders’ right to refuse
to make any further Permitted Overadvances, Swingline Loans or
Revolving Credit Loans, issue any Letter of Credit or incur any
Letter of Credit Exposure, as the case may be, at any time that an
Permitted Overadvance exists, and (B) no Permitted Overadvance
shall result in a Default or Event of Default due to the
Borrower’s failure to comply with Section 5.2(b) for
so
54
EXECUTION
COPY
long as the Administrative Agent permits
such Permitted Overadvance to remain outstanding, but solely with
respect to the amount of such Permitted Overadvance. In addition,
Permitted Overadvances may be made even if the conditions to
lending set forth in Section 7 have not been met. All
Permitted Overadvances shall constitute ABR Loans, shall bear
interest at a rate equal to 2% per annum in excess of the sum
of the ABR plus the Applicable Margin and shall be payable on the
earlier of demand or the Revolving Credit Maturity Date. No
Permitted Overadvance may remain outstanding for more than 45 days
without the consent of the Required Lenders. The authority of the
Administrative Agent to make Permitted Overadvances is limited to
5% of the Borrowing Base as determined on the date of such proposed
Permitted Overadvance at any time, shall not cause the Revolving
Credit Loan to exceed the Total Commitments, and may be revoked
prospectively by a written notice to the Administrative Agent
signed by the Required Lenders.
(e) Refinancing Permitted
Overadvances . The Administrative Agent may at any time forward
a demand to each Lender that each Lender pay to the Administrative
Agent, for its account, such Lender’s Pro Rata Share of all
or a portion of the outstanding Permitted Overadvances. Each Lender
shall pay such Pro Rata Share to the Administrative Agent. Upon
receipt by the Administrative Agent of such payment (other than
during the continuation of any Event of Default under
Section 11.5), such Lender shall be deemed to have made a
Revolving Credit Loan to the Borrower, which, upon receipt of such
payment by the Administrative Agent, the Borrower shall be deemed
to have used in whole to refinance such Permitted Overadvance. In
addition, regardless of whether any such demand is made, upon the
occurrence of any Event of Default under Section 11.5, each
Lender shall be deemed to have acquired, without recourse or
warranty, an undivided interest and participation in each Permitted
Overadvance in an amount equal to such Lender’s Pro Rata
Share of such Permitted Overadvance. If any payment made by any
Lender as a result of any such demand is not deemed a Revolving
Credit Loan, such payment shall be deemed a funding by such Lender
of such participation. Such participation shall not be otherwise
required to be funded. Upon receipt by the Administrative Agent of
any payment from any Lender pursuant to this Section 2.1(e)
with respect to any portion of any Permitted Overadvance, the
Administrative Agent shall promptly pay over to such Lender all
payments of principal (to the extent received after such payment by
such Lender) and interest (to the extent accrued with respect to
periods after such payment) received by the Administrative Agent
with respect to such portion.
2.2 Minimum Amount of Each
Borrowing; Maximum Number of Borrowings . The aggregate
principal amount of each Borrowing of Revolving Credit Loans shall
be in a multiple of $1,000,000 and Swingline Loans shall be in a
multiple of $100,000 and in each case shall not be less than the
Minimum Borrowing Amount with respect thereto (except that
(i) Mandatory Borrowings shall be made in the amounts required
by Section 2.1(c) and (ii) Minimum Borrowing Amount shall
not apply while a Cash Dominion Event is continuing). More than one
Borrowing may be incurred on any date; provided that
at no time shall there be outstanding more than 10 Borrowings of
Eurodollar Loans under this Agreement.
2.3 Notice of
Borrowing
(a) Whenever the Borrower
desires to incur Revolving Credit Loans hereunder (other than
Mandatory Borrowings or borrowings to repay Unpaid Drawings
under
55
EXECUTION
COPY
Letters of Credit), it shall give the
Administrative Agent at the Administrative Agent’s Office,
(i) prior to 1:00 p.m. (New York time) at least three Business
Days’ prior written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing of Eurodollar Loans, and
(ii) prior to 1:00 p.m. (New York time) at least one Business
Day’s prior written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing of Revolving Credit Loans
that are to be ABR Loans. Such notice (together with each notice of
a Borrowing of Swingline Loans pursuant to Section 2.3(b), a
“ Notice of Borrowing ”), except as otherwise
expressly provided in Section 2.10, shall be irrevocable and
shall specify (i) the aggregate principal amount of the
Revolving Credit Loans to be made pursuant to such Borrowing,
(ii) the date of Borrowing (which shall be a Business Day) and
(iii) whether the respective Borrowing shall consist of ABR
Loans or Eurodollar Loans and, if Eurodollar Loans, the Interest
Period to be initially applicable thereto. The Administrative Agent
shall promptly give each Lender written notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing of
Revolving Credit Loans, of such Lender’s proportionate share
thereof and of the other matters covered by the related Notice of
Borrowing.
(b) Whenever the Borrower
desires to incur Swingline Loans hereunder, it shall give the
Administrative Agent written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing of Swingline Loans prior to
2:00 p.m. (New York time) or such later time as may be agreed by
the Swingline Lender on the date of such Borrowing. Each such
notice shall be irrevocable and shall specify (i) the
aggregate principal amount of the Swingline Loans to be made
pursuant to such Borrowing and (ii) the date of Borrowing
(which shall be a Business Day). The Administrative Agent shall
promptly give the Swingline Lender written notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing of
Swingline Loans and of the other matters covered by the related
Notice of Borrowing.
(c) Mandatory Borrowings
shall be made upon the notice specified in Section 2.1(c)(ii),
with the Borrower irrevocably agreeing, by its incurrence of any
Swingline Loan, to the making of Mandatory Borrowings as set forth
in such Section.
(d) Borrowings of Revolving
Credit Loans to reimburse Unpaid Drawings under Letters of Credit
shall be made upon the notice specified in
Section 3.4(a).
(e) Without in any way
limiting the obligation of the Borrower to confirm in writing any
notice it may give hereunder by telephone, the Administrative Agent
may act prior to receipt of written confirmation without liability
upon the basis of such telephonic notice believed by the
Administrative Agent in good faith to be from an Authorized Officer
of the Borrower. In each such case, the Borrower hereby waives the
right to dispute the Administrative Agent’s record of the
terms of any such telephonic notice.
2.4 Disbursement of
Funds . (a) No later than 2:00 p.m. (New York time) on the
date specified in each Notice of Borrowing (including Mandatory
Borrowings), each Lender will make available its pro rata portion,
if any, of each Borrowing requested to be made on such date in the
manner provided below; provided that all Swingline
Loans shall be made available in the full amount thereof by the
Swingline Lender no later than 5:00 p.m. (New York time) on the
date requested.
56
EXECUTION
COPY
(b) Each Lender shall make
available all amounts it is to fund to the Borrower under any
Borrowing in immediately available funds to the Administrative
Agent at the Administrative Agent’s Office and the
Administrative Agent will (except in the case of Mandatory
Borrowings and Borrowings to repay Unpaid Drawings under Letters of
Credit) make available to the Borrower, by depositing to an account
designated by the Borrower to the Administrative Agent in writing,
the aggregate of the amounts so made available in Dollars. Unless
the Administrative Agent shall have been notified by any Lender
prior to the date of any such Borrowing that such Lender does not
intend to make available to the Administrative Agent its portion of
the Borrowing or Borrowings to be made on such date, the
Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent on such date of
Borrowing, and the Administrative Agent, in reliance upon such
assumption, may (in its sole discretion and without any obligation
to do so) make available to the Borrower a corresponding amount. If
such corresponding amount is not in fact made available to the
Administrative Agent by such Lender and the Administrative Agent
has made available same to the Borrower, the Administrative Agent
shall be entitled to recover such corresponding amount from such
Lender. If such Lender does not pay such corresponding amount
forthwith upon the Administrative Agent’s demand therefor,
the Administrative Agent shall promptly notify the Borrower and the
Borrower shall immediately pay such corresponding amount to the
Administrative Agent. The Administrative Agent shall also be
entitled to recover from such Lender or the Borrower, as the case
may be, interest on such corresponding amount in respect of each
day from the date such corresponding amount was made available by
the Administrative Agent to the Borrower, to the date such
corresponding amount is recovered by the Administrative Agent, at a
rate per annum equal to (i) if paid by such Lender, the
Federal Funds Effective Rate or (ii) if paid by the Borrower,
the then-applicable rate of interest, calculated in accordance with
Section 2.8, for the respective Loans.
(c) Nothing in this
Section 2.4 shall be deemed to relieve any Lender from its
obligation to fulfill its commitments hereunder or to prejudice any
rights that the Borrower may have against any Lender as a result of
any default by such Lender hereunder (it being understood, however,
that no Lender shall be responsible for the failure of any other
Lender to fulfill its commitments hereunder).
2.5 Repayment of
Loans; Evidence of Debt . (a) The Borrower shall
repay to the Administrative Agent, for the benefit of the
applicable Lenders, (i) on the Revolving Credit Maturity Date,
all then outstanding Revolving Credit Loans and (ii) on the
Swingline Maturity Date, all then outstanding Swingline
Loans.
(b) Each Lender shall
maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to the
appropriate lending office of such Lender resulting from each Loan
made by such lending office of such Lender from time to time,
including the amounts of principal and interest payable and paid to
such lending office of such Lender from time to time under this
Agreement.
(c) The Administrative Agent,
on behalf of the Borrower, shall maintain the Register pursuant to
Section 13.6(b), and a subaccount for each Lender, in which
Register and subaccounts (taken together) shall be recorded
(i) the amount of each Loan made hereunder, whether such Loan
is a Revolving Credit Loan or a Swingline Loan, the Type of each
Loan made
57
EXECUTION
COPY
and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each
Lender or the Swingline Lender and (iii) the amount of any sum
received by the Administrative Agent from the Borrower and each
Lender’s share thereof.
(d) The entries made in the
Register and accounts and subaccounts maintained pursuant to
Sections 2.5(b) and 2.5(c) shall, to the extent permitted by
Applicable Law, be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded;
provided , however , that the failure of any Lender
or the Administrative Agent to maintain such account, such Register
or such subaccount, as applicable, or any error therein, shall not
in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loans made to the Borrower in accordance
with the terms of this Agreement.
2.6 Conversions and
Continuations . (a) The Borrower shall have the option on
any Business Day to convert all or a portion equal to at least the
Minimum Borrowing Amount of the outstanding principal amount of
Revolving Credit Loans of one Type into a Borrowing or Borrowings
of another Type and the Borrower shall have the option on any
Business Day to continue the outstanding principal amount of any
Eurodollar Loans for an additional Interest Period;
provided that (i) no partial conversion of Eurodollar
Loans shall reduce the outstanding principal amount of Eurodollar
Loans made pursuant to a single Borrowing to less than the Minimum
Borrowing Amount, (ii) ABR Loans may not be converted into
Eurodollar Loans if an Event of Default is in existence on the date
of the conversion and the Administrative Agent has, or the Required
Lenders have, determined in its or their sole discretion not to
permit such conversion, (iii) Eurodollar Loans may not be
continued as Eurodollar Loans for an additional Interest Period if
an Event of Default is in existence on the date of the proposed
continuation and the Administrative Agent has, or the Required
Lenders have, determin
|