REVOLVING CREDIT AGREEMENT
as Borrower,
as Administrative Agent and Issuing Bank
Page | ||||
ARTICLE I Definitions | 1 | |||
Section 1.01Defined Terms | 1 | |||
Section 1.02Classification of Loans and Borrowings | 19 | |||
Section 1.03Terms Generally | 19 | |||
Section 1.04Accounting Terms; GAAP | 19 | |||
ARTICLE II The Credits | 19 | |||
Section 2.01Commitments | 19 | |||
Section 2.02Revolving Loans and Borrowings | 20 | |||
Section 2.03Requests for Revolving Borrowings | 20 | |||
Section 2.04Letters of Credit | 21 | |||
Section 2.05Funding of Borrowings | 25 | |||
Section 2.06Interest Elections | 26 | |||
Section 2.07Termination and Reduction of Commitments | 27 | |||
Section 2.08Repayment of Loans; Evidence of Debt | 27 | |||
Section 2.09Voluntary Prepayment of Loans | 28 | |||
Section 2.10Fees | 29 | |||
Section 2.11Interest | 30 | |||
Section 2.12Alternate Rate of Interest | 30 | |||
Section 2.13Increased Costs | 31 | |||
Section 2.14Break Funding Payments | 32 | |||
Section 2.15Taxes | 32 | |||
Section 2.16Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 35 | |||
Section 2.17Mitigation Obligations; Replacement of Lenders | 37 | |||
Section 2.18Increase in the Commitments | 38 | |||
Section 2.19Defaulting Lenders | 38 | |||
ARTICLE III Representations and Warranties | 40 | |||
Section 3.01Organization; Powers | 40 | |||
Section 3.02Authorization; Enforceability | 40 | |||
Section 3.03Governmental Approvals; No Conflicts | 40 | |||
Section 3.04Financial Condition; No Material Adverse Change | 41 | |||
Section 3.05Properties | 41 | |||
Section 3.06Litigation and Environmental Matters | 41 | |||
Section 3.07Compliance with Laws and Agreements | 42 | |||
Section 3.08Investment and Holding Company Status | 42 | |||
Section 3.09Taxes | 42 | |||
Section 3.10ERISA | 42 | |||
Section 3.11Disclosure | 42 | |||
Section 3.12Subsidiaries | 42 | |||
Section 3.13Margin Stock | 43 | |||
Section 3.14Use of Proceeds | 43 | |||
Section 3.15Insurance | 43 | |||
Section 3.16Swap Agreements | 43 |
-i-
Page | ||||
Section 3.17Solvency | 43 | |||
ARTICLE IV Conditions | 43 | |||
Section 4.01Effective Date | 43 | |||
Section 4.02Each Credit Event | 45 | |||
Section 4.03Condition Subsequent | 45 | |||
ARTICLE V Affirmative Covenants | 45 | |||
Section 5.01Financial Statements; Ratings Change and Other Information | 45 | |||
Section 5.02Notices of Material Events | 47 | |||
Section 5.03Existence; Conduct of Business | 47 | |||
Section 5.04Payment of Obligations | 47 | |||
Section 5.05Maintenance of Properties | 47 | |||
Section 5.06Books and Records; Inspection Rights | 47 | |||
Section 5.07Compliance with Laws | 48 | |||
Section 5.08Use of Proceeds and Letters of Credit | 48 | |||
Section 5.09Insurance | 48 | |||
Section 5.10Required Guarantors | 48 | |||
ARTICLE VI Negative Covenants | 48 | |||
Section 6.01Indebtedness Covenant | 49 | |||
Section 6.02Lien Covenant | 50 | |||
Section 6.03Amendments to Other Indebtedness | 50 | |||
Section 6.04Limitation on Fundamental Changes | 50 | |||
Section 6.05Restrictions on Investments, Loans, Advances, Guarantees and Acquisitions | 51 | |||
Section 6.06Swap Agreements | 52 | |||
Section 6.07Restrictions on Transactions with Affiliates | 52 | |||
Section 6.08Restrictions on Restrictive Agreements | 52 | |||
Section 6.09Change in Fiscal Year | 53 | |||
Section 6.10Leverage Ratio | 53 | |||
Section 6.11Fixed Charge Coverage Ratio | 53 | |||
Section 6.12Shareholder Equity | 53 | |||
Section 6.13Dispositions | 53 | |||
ARTICLE VII Events of Default | 54 | |||
ARTICLE VIII The Administrative Agent | 56 | |||
ARTICLE IX Miscellaneous | 58 | |||
Section 9.01Notices | 58 | |||
Section 9.02Waivers; Amendments; Release of Guarantors | 59 | |||
Section 9.03Expenses; Indemnity; Damage Waiver | 60 | |||
Section 9.04Successors and Assigns | 62 | |||
Section 9.05Survival | 65 | |||
Section 9.06Counterparts; Integration; Effectiveness | 65 | |||
Section 9.07Severability | 65 |
-ii-
Page | ||||
Section 9.08Right of Setoff | 66 | |||
Section 9.09Governing Law; Arbitration | 66 | |||
Section 9.10WAIVER OF JURY TRIAL | 68 | |||
Section 9.11Headings | 68 | |||
Section 9.12Confidentiality | 68 | |||
Section 9.13Interest Rate Limitation | 68 | |||
Section 9.14USA Patriot Act | 69 | |||
Section 9.15FINAL AGREEMENT OF THE PARTIES | 69 |
-iii-
Exhibit 1.01A | Form of Guarantee Agreement | |
Exhibit 1.01B | Form of Joinder Agreement | |
Exhibit 1.01C | Form of Revolving Promissory Note | |
Exhibit 1.01D | Form of Security Agreement | |
Exhibit 4.01(h) | Form of Borrowing Request | |
Exhibit 5.01 | Form of Compliance Certificate | |
Exhibit 9.04 | Form of Assignment and Assumption | |
Annex I | Standard Terms and Conditions for Assignment and Assumption |
Schedule 2.01 | Commitments | |
Schedule 3.01 | Qualification Exceptions | |
Schedule 3.06 | Disclosed Matters | |
Schedule 3.12 | List of Subsidiaries | |
Schedule 3.16 | Swap Agreements | |
Schedule 6.01(b) | Existing Indebtedness | |
Schedule 6.02(b) | Existing Liens | |
Schedule 6.05(b) | Existing Investments | |
Schedule 6.08 | Restrictive Agreements |
-iv-
CATEGORY | LEVERAGE RATIO: | BASE RATE MARGIN | EURODOLLAR MARGIN | COMMITMENT FEE RATE | ||||||||||||
1 | ≤ 2.75 | 0.625 | % | 1.625 | % | 0.30 | % | |||||||||
2 | > 2.75 BUT ≤ 3.75 | 0.875 | % | 1.875 | % | 0.40 | % | |||||||||
3 | >3.75 | 1.125 | % | 2.125 | % | 0.50 | % |
-2-
-3-
-4-
-5-
-6-
-7-
-8-
-9-
-10-
-11-
-12-
-13-
-14-
-15-
-16-
-17-
-18-
-19-
-20-
-21-
-22-
-23-
-24-
-25-
-26-
-27-
-28-
-29-
-30-
-31-
-32-
-33-
-34-
-35-
-36-
-37-
-38-
-39-
-40-
-41-
-42-
-43-
-44-
-45-
-46-
-47-
-48-
-49-
-50-
-51-
-52-
-53-
-54-
-55-
-56-
-57-
(i) | if to the Borrower, to: Carriage Services, Inc. Attention: Chief Financial Officer 3040 Post Oak Boulevard, Suite 300 Houston, Texas 77056 Telecopy 713 332 5399 |
-58-
(ii) | with a copy to: Fulbright & Jaworski, LLP | ||
Attention: Frank T. García, Esq. 1301 McKinney Avenue, Suite 5100 Houston, Texas 77010-3095 Telecopy (713) 651-5246 | |||
(iii) | if to the Administrative Agent and Issuing Bank, to: Wells Fargo Bank, N.A. 1100 Louisiana, Third Floor Houston, Texas 77002 Attention: Mr. Warren Ross Telecopy (713) 739 1086 | ||
(iv) | with a copy to: | ||
Andrews Kurth LLP Attention: Mr. Thomas J. Perich 600 Travis, Suite 4200 Houston, Texas 77002 Telecopy (713) 238-7175 |
-59-
-60-
-61-
-62-
-63-
-64-
-65-
-66-
-67-
-68-
-69-
-70-
CARRIAGE SERVICES, INC. | ||||
By: | /s/ Terry E. Sanford | |||
Terry E. Sanford, | ||||
Executive Vice President, Chief Financial Officer, Chief Accounting Officer, Treasurer, and Assistant Secretary | ||||
-71-
WELLS FARGO BANK, N.A., individually as a Lender and as Administrative Agent and Issuing Bank | ||||
By: | /s/ Warren R. Ross | |||
Warren R. Ross, | ||||
Vice President | ||||
-72-
[OTHER BANKS BY SEPARATE SIGNATURE PAGES] | ||||
By: | ||||
Name: | ||||
Title: | ||||
-73-
_________________________ | ||||
By: | ||||
Name: | ||||
Title: | ||||
CREDIT AGREEMENT AND SECURITY AGREEMENT1[1]
1[1] | This form should be used for a new Domestic Subsidiary. | |
2[2] | To be used if the New Obligor Parent is not the Borrower. | |
3[3] | To be used if the New Obligor Parent is not the Borrower. |
NEW OBLIGOR: ________________________________________________ , a ________________________ | |||||
By: | |||||
Name: | |||||
Title: | |||||
NEW OBLIGOR PARENT: ________________________________________________ , a ________________________ | |||||
By: | |||||
Name: | |||||
Title: | |||||
ADMINISTRATIVE AGENT: ______________________ | |||||
By: | |||||
Name: | |||||
Title: | |||||
1. | The following Schedules as described in the Credit Agreement: |
Schedule 2.01 | Commitments | |
Schedule 2.06(k) | Existing Letters of Credit | |
Schedule 3.06 | Disclosed Matters | |
Schedule 3.12 | List of Subsidiaries | |
Schedule 3.16 | Swap Agreements | |
Schedule 6.01(b) | Existing Indebtedness | |
Schedule 6.02(b) | Existing Liens | |
Schedule 6.06(b) | Existing Investments | |
Schedule 6.11 | Restrictive Agreements |
2. | The following Annexes as described in the Security Agreement: |
Annex 1 | Intellectual Property Licenses | |
Annex 2 | Patent Collateral | |
Annex 3 | Securities Collateral | |
Annex 4 | Trademark Collateral | |
Annex 5 | Intentionally Deleted | |
Annex 6 | Debtor Information | |
Annex 7 | Previous Names and Transactions | |
Annex 8 | Offices and Locations of Records | |
Annex 9 | Locations of Inventory and Equipment | |
Annex 10 | Deposit Accounts | |
Annex 11 | Securities Accounts and Commodity Accounts | |
Annex 12 | Instruments and Tangible Chattel Paper | |
Annex 13 | Electronic Chattel Paper | |
Annex 14 | Letters of Credit | |
Annex 15 | Commercial Tort Claims | |
Annex 16 | Third Party Locations |
Provide a copy of all that apply:
Corporation: | Filed Articles of Incorporation/Amendments and Bylaws/Resolutions with Incumbency Certificate | |
Partnership: | Partnership Agreement and filed/recorded Certificate of Partnership | |
Limited Liability Company (LLC): | Article of Organization and Operating Agreement/Member or Manager Consent with Incumbency Certificate | |
Limited Liability Partnership (LLP): | Certificate of registered partnership and partnership agreement | |
Fictitious Name Filing: | Trade Name-Entities doing business under fictitious name; if applicable |
$_____________ | Date: ___________ |
BORROWER: ___________________________, a ___________________ | ||||
By: | ||||
Name: | ||||
Title: | ||||
as Administrative Agent
Page | ||||
ARTICLE I DEFINITIONS | 5 | |||
1.01 Definitions | 5 | |||
1.02 Interpretation | 9 | |||
ARTICLE II COLLATERAL | 9 | |||
2.01 Grant of Security Interest | 9 | |||
2.02 Termination of Security Interests | 10 | |||
2.03 Partial Release of Collateral | 11 | |||
2.04 Security Interest Absolute | 11 | |||
2.05 Joinder of Additional Guarantors | 12 | |||
2.06 Limit of Liability | 12 | |||
2.07 Reinstatement | 12 | |||
ARTICLE III PERFECTION OF SECURITY INTEREST | 13 | |||
3.01 Perfection | 13 | |||
3.02 Perfection of Additional Collateral | 14 | |||
3.03 Intellectual Property Filings | 14 | |||
3.04 Instruments | 14 | |||
3.05 Further Assurances | 14 | |||
3.06 Use of Collateral | 14 | |||
ARTICLE IV REPRESENTATIONS AND WARRANTIES | 15 | |||
4.01 Title | 15 | |||
4.02 Chief Executive Office; Change of Name; Jurisdiction of Organization | 15 | |||
4.03 Prior Transactions | 15 | |||
4.04 Records | 15 | |||
4.05 Changes in Circumstances | 15 | |||
4.06 Inventory and Equipment | 15 | |||
4.07 Title to Equity Interests | 15 | |||
4.08 Financing Statements | 16 | |||
4.09 Deposit Accounts | 16 | |||
4.10 Investment Property | 16 | |||
4.11 Delivery of Certificated Securities Collateral | 16 | |||
4.12 Perfection of Uncertificated Securities Collateral | 16 | |||
4.13 Instruments and Tangible Chattel Paper | 16 | |||
4.14 Electronic Chattel Paper and Transferable Records | 16 | |||
4.15 Letters of Credit | 17 | |||
4.16 Commercial Tort Claims | 17 | |||
ARTICLE V COVENANTS | 17 | |||
5.01 Access to Records | 17 | |||
5.02 Other Financing Statements and Liens | 17 | |||
5.03 Reports | 17 | |||
5.04 Adverse Claims | 17 | |||
5.05 Prohibition of Certain Changes | 18 | |||
5.06 Opinion of Counsel | 18 | |||
5.07 Collateral Held by Others | 18 | |||
5.08 Records | 18 |
Page | ||||
5.09 Collection of Accounts | 18 | |||
5.10 Disposition of Collateral | 19 | |||
5.11 Protection of Intellectual Property | 19 | |||
5.12 Special Provisions Relating to Certain Collateral | 19 | |||
ARTICLE VI REMEDIES | 21 | |||
6.01 Events of Default, Etc. | 21 | |||
6.02 Deficiency | 24 | |||
6.03 Private Sale | 24 | |||
6.04 Application of Proceeds | 24 | |||
6.05 Attorney-in-Fact | 25 | |||
6.06 Expenses | 25 | |||
6.07 Administrative Agent’s Right to Perform on Debtor’s Behalf | 26 | |||
6.08 Custody and Preservation | 26 | |||
6.09 Preservation of Rights | 26 | |||
6.10 Rights of Secured Parties | 26 | |||
6.11 No Marshalling | 26 | |||
6.12 Remedies Cumulative | 27 | |||
ARTICLE VII MISCELLANEOUS | 27 | |||
7.01 Waivers of Rights Inhibiting Enforcement | 27 | |||
7.02 Notices | 27 | |||
7.03 Assignment | 28 | |||
7.04 Successors and Assigns | 28 | |||
7.05 Amendment and Waiver | 28 | |||
7.06 No Implied Waiver | 28 | |||
7.07 Severability | 28 | |||
7.08 Entire Agreement | 28 | |||
7.09 Execution in Counterparts | 29 | |||
7.10 Governing Law | 29 | |||
7.11 Headings | 29 | |||
7.12 Interpretation | 29 | |||
7.13 Waiver of Jury Trial | 29 | |||
7.14 Survival, Etc. | 29 | |||
7.15 Agents, Etc. | 29 | |||
7.16 Limitation of Liability | 30 | |||
7.17 Subrogation | 30 | |||
7.18 Authority of the Administrative Agent | 30 | |||
7.19 No Oral Agreements | 31 |
Annex 1 Intellectual Property Licenses |
Annex 2 Patent Collateral |
Annex 3 Equity Interest Collateral |
Annex 4 Trademark Collateral |
Annex 5 Filing Offices |
Annex 6 Debtor Information |
Annex 7 Prior Transactions |
Annex 8 Offices and Locations of Records |
Annex 9 Locations of Inventory and Equipment |
Annex 10 Deposit Accounts |
Annex 11 Securities Accounts and Commodity Accounts |
Annex 12 Instruments and Tangible Chattel Paper |
Annex 13 Electronic Chattel Paper |
Annex 14 Letters of Credit |
Annex 15 Commercial Tort Claims |
Exhibit A Deposit Account Control Agreement |
Exhibit B Patent Security Agreement |
Exhibit C Trademark Security Agreement |
Annex 2.
Annex 15.
BORROWER: ________________________________________, a _____________________ | ||||
By: | ||||
Name: | ||||
Title: | ||||
SUBSIDIARIES: ____________________________________________ | ||||
By: | ||||
Name: | ||||
Title: | ||||
ADMINISTRATIVE AGENT: __________________________________________ | ||||
By: | ||||
Name: | ||||
Title: | ||||
A-1
A-2
A-3
A-4
[Name of Debtor] | ||||
By: | ||||
Name: | ||||
Title: | ||||
WELLS FARGO BANK, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Name of Depositary Bank] | ||||
By: | ||||
Name: | ||||
Title: |
A-5
A-6
A-7
B-1
B-2
[__________________________________________] | ||||
By: | ||||
Name: | ||||
Title: |
B-3
TO
GRANT OF PATENT SECURITY INTEREST
Patent No. | Issue Date | Invention | Inventor | |||
Applicant’s | Date | Application | ||||||
Name | Filed | Number | Invention | Inventor | ||||
B-4
C-1
C-2
[________________________________________________] | ||||
By: | ||||
Name: | ||||
Title: |
C-3
TO
GRANT OF TRADEMARK SECURITY INTEREST
United States | Registration or | Registration | ||||
Registered Owner | Trademark/Service Mark | Serial Number | or Filing Date | |||
C-4
_________________
_________________
Attention: _________________ | ||
Telecopy: (713) ________ |
Re: Revolving Credit Agreement dated as of ____________, 2011, by and among _________________ (the “Borrower”), _________________, as Administrative Agent and the Lenders party to the Credit Agreement |
(a) | Amount of Loan: $_________ | |
(b) | Requested funding date: ___________________ | |
(c) | Type of Loan: | |
_________ Loan; or | ||
_________ Eurodollar Loan | ||
(d) | Requested Interest Period for Eurodollar Loan: ______________ | |
(e) | Location and number of the Borrower’s account to which funds are to be disbursed: | |
________________ | ||
________________ |
Exhibit 4.01(h) - Page 1
Very truly yours, | ||||
, | ||||
a _________________ |
By: | ||||
Name: | ||||
Title: |
(a) | The representations and warranties of the Borrower and its Subsidiaries contained inArticle III of the Credit Agreement and in the Loan Documents were true and correct in all material respects when made, and are repeated at and as of the time of delivery hereof and to the best of the undersigned’s knowledge are true and correct in all material respects at and as of the time of such delivery, except for such representations and warranties as are by their express terms limited to a specific date. | ||
(b) | The worksheet attached hereto asExhibit A sets forth all permitted Indebtedness, which is subject to dollar limitations, of the Borrower and its Subsidiaries pursuant toSection 6.01. | ||
(c) | The Borrower hereby certifies that no Event of Default or Default has occurred or is continuing. | ||
(d) | Calculations for all financial covenants contained in the Credit Agreement are set forth in the worksheet attached hereto asExhibit B. | ||
(e) | Except as set forth onExhibit C attached hereto, there have been no changes in GAAP or in the application thereof, as used in the preparation of the Borrower’s consolidated financial statements, since the date of the audited financial statements referred to inSection 3.04 of the Credit Agreement. |
Exhibit 5.01 - Page 1
BORROWER: _________________ | ||||
By: | ||||
Name: | ||||
Title: |
Exhibit 5.01 - Page 2
EXHIBIT 5.01
Indebtedness of the Type | ||||
Described in the Credit Agreement | Actual Amount | Covenant Amount | ||
Section 6.01(e) (purchase money, etc.) | $__________________ | ≤ $15,000,000 | ||
Section 6.01(f) (CAPEX) | $__________________ | ≤ $15,000,000 | ||
Section 6.01(h) (Unsecured) | $__________________ | ≤ $5,000,000 | ||
Section 6.01(i) (Canadian Acquisition Basket) | $__________________ | ≤ $75,000,000 |
Exhibit 5.01 - Exhibit B-i
EXHIBIT 5.01
Pro Forma | ||||||||
Calculation | Covenant Requirement | |||||||
1. | Fixed Charge Coverage Ratio: | |||||||
(i) EBITDA | ||||||||
Minus: non-financed Maintenance Capital Expenditures | ||||||||
Minus: cash income taxes paid | ||||||||
Plus: income tax refunds received | ||||||||
To | ||||||||
(ii) Interest Expense | ||||||||
Plus: scheduled and required principal payments in respect of Indebtedness actually paid | ||||||||
Plus: cash dividends paid | ||||||||
2. | Leverage Ratio: | |||||||
(i) Senior Debt | ||||||||
To | ||||||||
(ii) Consolidated EBITDA | ||||||||
3. | Shareholder Equity | |||||||
Prior Shareholder Equity of $__________, plus _____ of positive after tax consolidated Net Income since previous calculation |
A. | Consolidated Net Income $________________ |
Exhibit 5.01 - Exhibit B-1
B. | Calculation of Senior Debt |
Exhibit 5.01 - Exhibit B-2
Exhibit 5.01 - Exhibit B-3
1. | Assignor: | ____________________ | ||
2. | Assignee: | ____________________ | ||
[and is an Affiliate/Approved Fund of [identifyLender]4] | ||||
3. | Borrower: | _________________ | ||
4. | Administrative Agent: | _________________, as the administrative agent under the Credit Agreement |
4 | Select as applicable. |
Exhibit 9.04 - Page 1
5. | Credit Agreement: | The $_________ Credit Agreement dated as of __________, 20__ among _________________, the Lenders parties thereto, _________________, as Administrative Agent, and the other agents parties thereto | ||
6. | Assigned Interest: |
AGGREGATE | ||||||||||||
AMOUNT OF | AMOUNT OF | |||||||||||
FACILITY | COMMITMENT/ LOANS | COMMITMENT/ LOANS | PERCENTAGE ASSIGNED OF | |||||||||
ASSIGNED | FOR ALL LENDERS | ASSIGNED | COMMITMENT/LOANS5 | |||||||||
$ | $ | % | ||||||||||
$ | $ | % | ||||||||||
$ | $ | % | ||||||||||
$ | $ | % |
ASSIGNOR [NAME OF ASSIGNOR] | ||||
By: | ||||
Title: |
ASSIGNEE [NAME OF ASSIGNEE] | ||||
By: | ||||
Title: | ||||
5 | Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. |
Exhibit 9.04 - Page 2
Consented to and Accepted: _________________, as[Administrative Agent,]6 and Issuing Bank | ||||
By | ||||
Name: | ||||
Title: | ||||
[Consented to:]7 [_________________] | ||||
By | ||||
Name: | ||||
Title: | ||||
6 | To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. | |
7 | To be added only if the consent of the Borrower is required by the terms of the Credit Agreement. |
Exhibit 9.04 - Page 3
ASSIGNMENT AND ASSUMPTION
8 | Describe Credit Agreement at option of Administrative Agent. | |
9 | The term “Loan Document” should be conformed to that used in the Credit Agreement. | |
10 | The concept of “Foreign Lender” should be conformed to the section in the Credit Agreement governing withholding taxes and gross-up. |
Annex 1 - 1
Annex I - 2
LENDER | COMMITMENT | |||
Wells Fargo Bank, N.A. | $ | 60,000,000 |
Schedule 2.01 - Page 1
Schedule 2.01 - Page 1
Schedule 3.06 - Page 1
Schedule 3.12 - Page 1
Schedule 3.16 - Page 1
Schedule 6.01(b) - Page 1
Schedule 6.01(b) - Page 2
Schedule 6.06(b) - Page 1
Schedule 6.08 - Page 1