amended August 7, 2009
as Administrative Agent, Issuing Lender and Swingline Lender,
as Syndication Agent,
and J.P. MORGAN SECURITIES INC.
Page | ||||
ARTICLE I DEFINITIONS | ||||
Section 1.01 Defined Terms | 1 | |||
Section 1.02 Computation of Time Periods and Other Definitional Provisions | 44 | |||
Section 1.03 Accounting Terms and Determinations | 45 | |||
Section 1.04 Classes and Types of Borrowings | 45 | |||
Section 1.05 Amended and Restated Agreement | 45 | |||
ARTICLE II THE CREDIT FACILITIES | ||||
Section 2.01 Commitments to Lend | 46 | |||
Section 2.02 Notice of Borrowings | 50 | |||
Section 2.03 Notice to Lenders; Funding of Loans | 51 | |||
Section 2.04 Evidence of Loans | 52 | |||
Section 2.05 Letters of Credit | 53 | |||
Section 2.06 Interest | 62 | |||
Section 2.07 Extension and Conversion | 63 | |||
Section 2.08 Maturity of Loans | 64 | |||
Section 2.09 Prepayments | 65 | |||
Section 2.10 Adjustment of Commitments | 69 | |||
Section 2.11 Fees | 71 | |||
Section 2.12 Pro-Rata Treatment | 73 | |||
Section 2.13 Sharing of Payments | 73 | |||
Section 2.14 Payments; Computations | 74 | |||
ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY | ||||
Section 3.01 Taxes | 75 | |||
Section 3.02 Change in Law, Etc. | 77 | |||
Section 3.03 Basis for Determining Interest Rate Inadequate or Unfair | 77 | |||
Section 3.04 Increased Costs and Reduced Return | 78 | |||
Section 3.05 Funding Losses | 79 | |||
Section 3.06 Base Rate Loans Substituted for Affected Eurodollar Loans | 80 | |||
ARTICLE IV CONDITIONS | ||||
Section 4.01 Conditions to Closing | 80 | |||
Section 4.02 Conditions to All Credit Extensions | 87 | |||
Section 4.03 Effective Date | 88 | |||
ARTICLE V REPRESENTATIONS AND WARRANTIES |
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Section 5.01 Organization and Good Standing | 89 | |||
Section 5.02 Power; Authorization; Enforceable Obligations | 89 | |||
Section 5.03 No Conflicts | 89 | |||
Section 5.04 No Default | 90 | |||
Section 5.05 Financial Condition | 90 | |||
Section 5.06 No Material Change | 92 | |||
Section 5.07 Title to Properties; Possession Under Leases | 92 | |||
Section 5.08 Litigation | 92 | |||
Section 5.09 Taxes | 92 | |||
Section 5.10 Compliance with Law | 92 | |||
Section 5.11 Employee Benefit Arrangements | 92 | |||
Section 5.12 Subsidiaries | 94 | |||
Section 5.13 Governmental Regulations, Etc. | 94 | |||
Section 5.14 Purpose of Loans and Letters of Credit | 95 | |||
Section 5.15 Labor Matters | 95 | |||
Section 5.16 Environmental Matters | 95 | |||
Section 5.17 Intellectual Property | 95 | |||
Section 5.18 Solvency | 96 | |||
Section 5.19 Disclosure | 96 | |||
Section 5.20 Collateral Documents | 97 | |||
Section 5.21 Ownership | 97 | |||
Section 5.22 Certain Transactions | 98 | |||
ARTICLE VI AFFIRMATIVE COVENANTS | ||||
Section 6.01 Information | 98 | |||
Section 6.02 Preservation of Existence and Franchises | 101 | |||
Section 6.03 Books and Records; Lender Meeting | 102 | |||
Section 6.04 Compliance with Law; Employee Benefit Arrangements | 102 | |||
Section 6.05 Payment of Taxes | 102 | |||
Section 6.06 Insurance; Certain Proceeds | 103 | |||
Section 6.07 Maintenance of Property | 103 | |||
Section 6.08 Use of Proceeds | 104 | |||
Section 6.09 Audits/Inspections | 104 | |||
Section 6.10 Additional Credit Parties; Additional Security | 104 | |||
Section 6.11 Interest Rate Protection Agreements | 107 | |||
Section 6.12 Contributions | 107 | |||
ARTICLE VII NEGATIVE COVENANTS | ||||
Section 7.01 Limitation on Debt | 107 | |||
Section 7.02 Restriction on Liens | 110 | |||
Section 7.03 Nature of Business | 112 | |||
Section 7.04 Consolidation, Merger and Dissolution | 112 | |||
Section 7.05 Asset Dispositions | 113 | |||
Section 7.06 Investments | 116 | |||
Section 7.07 Restricted Payments, etc. | 118 | |||
Section 7.08 Prepayments of Debt, etc. | 120 | |||
Section 7.09 Transactions with Affiliates | 121 |
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Section 7.10 Fiscal Year; Organizational and Other Documents | 122 | |||
Section 7.11 Restrictions with Respect to Intercorporate Transfers | 122 | |||
Section 7.12 Ownership of Subsidiaries; Limitations on Holdings and the Borrower | 123 | |||
Section 7.13 Sale and Leaseback Transactions | 124 | |||
Section 7.14 Capital Expenditures | 124 | |||
Section 7.15 Additional Negative Pledges | 125 | |||
Section 7.16 Impairment of Security Interests | 125 | |||
Section 7.17 Financial Covenants | 125 | |||
Section 7.18 No Other “Designated Senior Debt” | 126 | |||
Section 7.19 Independence of Covenants | 126 | |||
ARTICLE VIII DEFAULTS | ||||
Section 8.01 Events of Default | 127 | |||
Section 8.02 Acceleration; Remedies | 129 | |||
Section 8.03 Allocation of Payments After Event of Default | 130 | |||
ARTICLE IX AGENCY PROVISIONS | ||||
Section 9.01 Appointment; Authorization | 132 | |||
Section 9.02 Delegation of Duties | 133 | |||
Section 9.03 Exculpatory Provisions | 133 | |||
Section 9.04 Reliance on Communications | 134 | |||
Section 9.05 Notice of Default | 134 | |||
Section 9.06 Credit Decision; Disclosure of Information by Administrative Agent | 134 | |||
Section 9.07 No Reliance on Arranger’s or Agent’s Customer Identification Program | 135 | |||
Section 9.08 Indemnification | 135 | |||
Section 9.09 Agents in Their Individual Capacity | 136 | |||
Section 9.10 Successor Agents | 136 | |||
Section 9.11 Certain Other Agents | 136 | |||
Section 9.12 Agents’ Fees; Arranger Fee | 137 | |||
ARTICLE X MISCELLANEOUS | ||||
Section 10.01 Notices and Other Communications | 137 | |||
Section 10.02 No Waiver; Cumulative Remedies | 138 | |||
Section 10.03 Amendments, Waivers and Consents | 138 | |||
Section 10.04 Expenses | 140 | |||
Section 10.05 Indemnification | 140 | |||
Section 10.06 Successors and Assigns | 141 | |||
Section 10.07 Confidentiality and Disclosure | 145 | |||
Section 10.08 Set-off | 146 | |||
Section 10.09 Interest Rate Limitation | 146 | |||
Section 10.10 Counterparts | 146 | |||
Section 10.11 Integration | 146 | |||
Section 10.12 Survival of Representations and Warranties | 147 | |||
Section 10.13 Severability | 147 | |||
Section 10.14 Headings | 147 |
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Section 10.15 Defaulting Lenders | 147 | |||
Section 10.16 Governing Law; Submission to Jurisdiction | 147 | |||
Section 10.17 Waiver of Jury Trial | 148 | |||
Section 10.18 Binding Effect | 148 | |||
Section 10.19 Lenders’ U.S. Patriot Act Compliance Certification | 148 | |||
Section 10.20 U.S. Patriot Act Notice | 149 | |||
Section 10.21 Amendment and Restatement | 149 | |||
Section 10.22 Reaffirmation and Grant of Security Interests | 149 |
Schedule 1.01B | — | Consolidated EBITDA; Non-Cash Accounting Adjustments in Respect of the Acquisition | ||
Schedule 1.01C | — | Refinanced Agreements | ||
Schedule 1.01D | — | Management Group | ||
Schedule 1.01E | — | Lender Addresses | ||
Schedule 1.01F | — | Insignificant Subsidiaries | ||
Schedule 1.01G | — | Historical Financial Covenant Information | ||
Schedule 2.05 | — | Existing Letters of Credit | ||
Schedule 4.01(k)(i) | — | Mortgaged Properties | ||
Schedule 5.02 | — | Required Consents, Authorizations, Notices and Filings | ||
Schedule 5.04 | — | Defaults, Etc. | ||
Schedule 5.05 | — | Certain Liabilities | ||
Schedule 5.08 | — | Litigation | ||
Schedule 5.09 | — | Taxes | ||
Schedule 5.10 | — | Compliance with Law | ||
Schedule 5.11 | — | ERISA | ||
Schedule 5.12 | — | Subsidiaries | ||
Schedule 5.16 | — | Environmental Matters | ||
Schedule 5.17 | — | Intellectual Property | ||
Schedule 5.20(c) | — | Mortgage Recordings | ||
Schedule 5.21 | — | Ownership of Holdings | ||
Schedule 5.22 | — | Broker’s Fees | ||
Schedule 6.10(b) | — | Exceptions to Additional Security | ||
Schedule 7.02 | — | Existing Liens | ||
Schedule 7.05 | — | Scheduled Asset Dispositions | ||
Schedule 7.06 | — | Existing Investments | ||
Schedule 7.09 | — | Transactions with Affiliates |
Exhibit A-1 | — | Form of Notice of Borrowing | ||
Exhibit A-2 | — | Form of Notice of Extension/Conversion | ||
Exhibit A-3 | — | Form of Letter of Credit Request | ||
Exhibit A-4 | — | Form of Swingline Loan Request | ||
Exhibit B-1 | — | Form of Revolving Note | ||
Exhibit B-2 | — | Form of Term B Note | ||
Exhibit B-3 | — | Form of Swingline Note | ||
Exhibit C | — | Form of Assignment and Acceptance |
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Exhibit D-1 | — | Form of Opinion of Counsel for the Borrower and the Other Credit Parties | ||
Exhibit D-2 | — | Form of Opinion of Special Local Counsel for the Borrower and the Other Credit Parties | ||
Exhibit D-3 | — | Form of Opinion of Special Local Counsel for the Borrower and the Other Credit Parties (Real Property Collateral) | ||
Exhibit E | — | Intentionally omitted | ||
Exhibit F-3 | — | Form of Perfection Certificate | ||
Exhibit F-4 | — | Form of Mortgage | ||
Exhibit G | — | Form of Intercompany Note | ||
Exhibit H | — | Form of Intercompany Note Subordination Provisions | ||
Exhibit I | — | Form of Credit Party Accession Agreement | ||
Exhibit J | — | Form of OFAC/Anti-Terrorism Compliance Certificate | ||
Exhibit K | — | Form of Solvency Certificate | ||
Exhibit L | — | Form of Secretary’s Certificate | ||
Exhibit M | — | Form of Effective Date Certificate | ||
Exhibit N | — | Form of Acknowledgment and Agreement | ||
Exhibit O | — | Form of Lender Consent |
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DEFINITIONS
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Letter of Credit Fees | ||||||||||||||||
for purposes of | ||||||||||||||||
R-1 Revolving Loans | Section 2.11(b)(i) | |||||||||||||||
Applicable Margin | ||||||||||||||||
Applicable Margin | For Base | |||||||||||||||
Leverage | For | Rate | Applicable Margin For Letter of | |||||||||||||
Pricing Level | Ratio | Eurodollar Loans | Loans | Credit Fee | ||||||||||||
I | ³3.5 to 1.0 | 3.00 | % | 2.00 | % | 3.00 | % | |||||||||
II | <3.5 to 1.0 but | 2.75 | % | 1.75 | % | 2.75 | % | |||||||||
³2.5 to 1.0 | ||||||||||||||||
III | <2.5 to 1.0 but | 2.50 | % | 1.50 | % | 2.50 | % | |||||||||
³1.5 to 1.0 | ||||||||||||||||
IV | <1.5 to 1.0 | 2.25 | % | 1.25 | % | 2.25 | % |
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Fiscal Quarters Ended During | Ratio | |||
Effective Date through 9/30/06 | 4.25 to 1.0 | |||
10/01/06 through 6/30/07 | 4.00 to 1.0 | |||
7/01/07 through 6/30/08 | 3.75 to 1.0 | |||
7/01/08 through 9/30/08 | 3.50 to 1.0 | |||
10/01/08 through 12/31/08 | 3.25 to 1.0 | |||
1/01/09 through 12/31/09 | 3.00 to 1.0 | |||
1/01/10 through 12/31/10 | 2.75 to 1.0 | |||
1/01/11 through 3/31/11 | 2.50 to 1.0 | |||
4/01/11 through 3/31/12 | 2.25 to 1.0 |
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THE CREDIT FACILITIES
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Principal Amortization Payment | ||||||||||||
Principal Amortization Payment Date | Term B-1 Loan | Term B-2 Loan | Term B-3 Loan | |||||||||
September 30, 2009 | $ | 0 | $ | 1,869,654.01 | $ | 0 | ||||||
December 31, 2009 | $ | 0 | $ | 1,869,654.01 | $ | 0 | ||||||
March 31, 2010 | $ | 0 | $ | 1,869,654.01 | $ | 0 | ||||||
June 30, 2010 | $ | 9,350,262.75 | $ | 1,869,654.01 | $ | 0 | ||||||
September 30, 2010 | $ | 9,975,596.72 | $ | 1,869,654.01 | $ | 0 | ||||||
December 31, 2010 | $ | 9,975,596.72 | $ | 1,869,654.01 | $ | 0 | ||||||
March 31, 2011 | $ | 9,975,596.72 | $ | 1,869,654.01 | $ | 0 | ||||||
June 30, 2011 | $ | 1,869,654.01 | $ | 0 | ||||||||
September 30, 2011 | $ | 1,869,654.01 | $ | 0 | ||||||||
December 31, 2011 | $ | 1,869,654.01 | $ | 0 | ||||||||
March 31, 2012 | $ | 130,875,780.39 | the aggregate | |||||||||
outstanding | ||||||||||||
principal balance | ||||||||||||
thereof as of such date |
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TAXES, YIELD PROTECTION AND ILLEGALITY
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CONDITIONS
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REPRESENTATIONS AND WARRANTIES
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AFFIRMATIVE COVENANTS
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NEGATIVE COVENANTS
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Fiscal Quarters Ended During | Ratio | |||
Effective Date through 12/31/06 | 1.20 to 1.0 | |||
1/01/07 through 12/31/07 | 1.25 to 1.0 | |||
1/01/08 through 12/31/08 | 1.30 to 1.0 | |||
1/01/09 through 12/31/09 | 1.35 to 1.0 | |||
1/01/10 through 3/31/12 | 1.40 to 1.0 |
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Period | Amount | |||
2006 | $ | 15,000,000 | ||
2007 | $ | 16,000,000 | ||
2008 | $ | 16,000,000 | ||
2009 | $ | 17,000,000 | ||
2010 | $ | 17,000,000 | ||
2011 | $ | 18,000,000 | ||
2012 | $ | 18,000,000 |
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Calendar Quarters Ended During | Ratio | |
Effective Date through 9/30/06 | 4.50 to 1.0 | |
10/01/06 through 6/30/07 | 4.25 to 1.0 | |
7/01/07 through 6/30/08 | 4.00 to 1.0 | |
7/01/08 through 9/30/08 | 3.75 to 1.0 | |
10/01/08 through 12/31/08 | 3.50 to 1.0 | |
1/01/09 through 12/31/09 | 3.25 to 1.0 | |
1/01/10 through 12/31/10 | 3.00 to 1.0 | |
1/01/11 through 3/31/11 | 2.75 to 1.0 | |
4/01/11 through 3/31/12 | 2.50 to 1.0 |
Calendar Quarters Ended During | Ratio | |
Effective Date through 3/31/12 | 2.50 to 1.0 |
Calendar Quarters Ended During | Ratio | |
Effective Date through 3/31/12 | 1.15 to 1.0 |
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DEFAULTS
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AGENCY PROVISIONS
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MISCELLANEOUS
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THE HILLMAN GROUP, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
10590 Hamilton Avenue Cincinnati, Ohio 45231-0012 THE HILLMAN COMPANIES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
10590 Hamilton Avenue Cincinnati, Ohio 45231-0012 HILLMAN INVESTMENT COMPANY | ||||
By: | ||||
Name: | ||||
Title: | ||||
10590 Hamilton Avenue Cincinnati, Ohio 45231-0012 |
GE BUSINESS FINANCIAL SERVICES INC., as Issuing Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
500 West Monroe Street Chicago, IL 60661 |
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GE BUSINESS FINANCIAL SERVICES INC., as Swingline Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
500 West Monroe Street Chicago, IL 60661 |
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GE BUSINESS FINANCIAL SERVICES INC., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
500 West Monroe Street Chicago, IL 60661 |
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JPMORGAN CHASE BANK, as Syndication Agent | ||||
By: | ||||
Name: | ||||
Title: | ||||
270 Park Avenue New York, NY 10017 |
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GE CAPITAL MARKETS, INC., as Joint Lead Arranger and Joint Bookrunner | ||||
By: | ||||
Name: | ||||
Title: |
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J.P. MORGAN SECURITIES INC., as Joint Lead Arranger and Joint Bookrunner | ||||
By: | ||||
Name: | ||||
Title: |
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