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Total Leverage Ratio | Commitment Fee Rate | |
≥ 2.00 | 0.250% | |
x < 2.00 | 0.175% |
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Total Leverage Ratio | Base Rate Applicable Margin | |
(Calculated on a Trailing Four-Quarter Basis) | for Loans | |
≥ 4.00 | 1.000% | |
3.00 ≤ x < 4.00 | 0.500% | |
2.50 ≤ x < 3.00 | 0.250% | |
2.00 ≤ x < 2.50 | 0.000% | |
1.00 ≤ x < 2.00 | 0.000% | |
x < 1.00 | 0.000% |
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Total Leverage Ratio | Adjusted LIBOR | |
(Calculated on a Trailing Four-Quarter Basis) | Applicable Margin for Loans | |
≥ 4.00 | 3.000% | |
3.00 ≤ x < 4.00 | 2.500% | |
2.50 ≤ x < 3.00 | 2.000% | |
2.00 ≤ x < 2.50 | 1.750% | |
1.00 ≤ x < 2.00 | 1.625% | |
x < 1.00 | 1.500% |
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Ratio | Period | |
4.50 to 1.00 | Closing Date through December 30, 2011. | |
4.00 to 1.00 | December 31, 2011 and thereafter. |
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GREATBATCH LTD. | ||||
By: | ||||
Name: | Thomas J. Mazza | |||
Title: | Senior Vice President and Chief Financial Officer |
MANUFACTURERS AND TRADERS TRUST COMPANY, in its capacity as the Administrative Agent, the Issuing Bank, the Swingline Lender and a Lender | |||||
By: | |||||
Name: | Michael J. Prendergast | ||||
Title: | Vice President | ||||
Wire Transfer Information ABA Number: 022000046 Account Number: 3086001950200 Attention: Adam Capizzi Re: Greatbatch, Inc. | |||||
Exhibit A-1 | Form of Amended and Restated RC Note (§2.6) | |
Exhibit A-2 | Form of Amended and Restated Swing Note (§2.6) | |
Exhibit B | Form of Request for Advance (§2.3) | |
Exhibit C | Form of LIBOR Election (§2.8.4) | |
Exhibit D | Form of Amended and Restated Security Agreement (§4.1.3) | |
Exhibit E-1 | Form of Amended and Restated Subsidiary Guaranty and Suretyship Agreement (§4.1.4) | |
Exhibit E-2 | Form of Amended and Restated Parent Guaranty and Suretyship Agreement (§4.1.4) | |
Exhibit F | Form of Amended and Restated Pledge Agreement (§4.1.5) | |
Exhibit G | Form of Officer’s Compliance Certificate (§1.1) | |
Exhibit H | Form of Assignment and Assumption (§11.6.2(d)) | |
Exhibit I | Lender Addendum (§1.1) |
Schedule 5.1.1 | Organization and Qualification | |
Schedule 5.1.2 | Capitalization | |
Schedule 5.1.3 | Equity Ownership | |
Schedule 5.4 | Consents | |
Schedule 5.7 | Litigation | |
Schedule 5.8 | Material Agreements | |
Schedule 5.10 | Intellectual Property | |
Schedule 5.19 | ERISA | |
Schedule 5.24 | Labor | |
Schedule 5.26(a) | Indebtedness | |
Schedule 5.26(b) | Swap Obligations | |
Schedule 8.1 | Other Indebtedness | |
Schedule 8.2 | Other Liens | |
Schedule 8.3 | Other Investments |
ARTICLE 1 | DEFINITIONS | 2 | ||||||
1.1 | Defined Terms | 2 | ||||||
1.2 | Terms Generally | 26 | ||||||
ARTICLE 2 | THE LOANS | 27 | ||||||
2.1 | Revolving Credit Loans | 27 | ||||||
2.1.1 | Commitment to Make RC Loans | 27 | ||||||
2.1.2 | Available Commitment | 27 | ||||||
2.1.3 | Voluntary Commitment Reductions | 27 | ||||||
2.1.4 | Mandatory Prepayments and Reductions in the Facility | 27 | ||||||
2.1.5 | Repayment in connection with Commitment Reductions and on Maturity Date | 29 | ||||||
2.1.6 | Voluntary Prepayment | 29 | ||||||
2.1.7 | Relationship of Commitment Reductions, Mandatory Prepayments and Voluntary Prepayments to Interest Rate Protection Agreements | 30 | ||||||
2.1.8 | Increases in Facility | 30 | ||||||
2.2 | Swing Loans | 31 | ||||||
2.2.1 | Swing Loan Advances | 31 | ||||||
2.2.2 | Terms of Swing Loan Borrowings | 31 | ||||||
2.2.3 | Participation by Lenders | 31 | ||||||
2.2.4 | No Set-off, Etc. | 32 | ||||||
2.2.5 | Certain Limitations | 32 | ||||||
2.2.6 | Resignation of Swingline Lender | 32 | ||||||
2.3 | Borrowing Notice | 33 | ||||||
2.4 | [Reserved] | 34 | ||||||
2.5 | Lenders’ Obligations Several | 34 | ||||||
2.6 | Notes | 34 | ||||||
2.7 | Fees to Lenders | 34 | ||||||
2.7.1 | Commitment Fees | 34 | ||||||
2.7.2 | Letter of Credit Fees | 35 | ||||||
2.7.3 | Other Fees | 35 | ||||||
2.8 | Interest | 35 | ||||||
2.8.1 | Rates | 35 |
(continued)
Page | ||||||||
2.8.2 | Applicable Margin | 36 | ||||||
2.8.3 | Adjustments to Applicable Margin | 37 | ||||||
2.8.4 | LIBOR Election | 38 | ||||||
2.8.5 | Breakage | 38 | ||||||
2.8.6 | Default Rate | 39 | ||||||
2.8.7 | Source of Funds | 39 | ||||||
2.8.8 | Interest Due with Certain Repayments and Prepayments | 39 | ||||||
2.9 | Increased Costs; Unavailability | 39 | ||||||
2.9.1 | Increased Costs Generally | 39 | ||||||
2.9.2 | Capital Requirements | 40 | ||||||
2.9.3 | Certificates for Reimbursement | 40 | ||||||
2.9.4 | Delay in Requests | 40 | ||||||
2.9.5 | Inability to Determine LIBOR | 41 | ||||||
2.9.6 | Laws Affecting LIBOR Availability | 41 | ||||||
2.10 | Purpose | 41 | ||||||
2.11 | Mechanics of Payments: Borrower Payments | 41 | ||||||
2.11.1 | Manner of Making Payments | 41 | ||||||
2.11.2 | Payments by Borrower; Presumptions by Administrative Agent | 42 | ||||||
2.11.3 | Disbursements from Administrative Agent to Lenders | 42 | ||||||
2.11.4 | Authorization to Deduct Funds and Make Loans in Satisfaction of Obligations | 42 | ||||||
2.11.5 | Sharing of Payments by Lenders | 43 | ||||||
2.11.6 | Payments Due on Non-Business Days | 43 | ||||||
2.12 | Mechanics of Payments; Lender Payments | 44 | ||||||
2.12.1 | Funding by Lenders; Presumption by Administrative Agent | 44 | ||||||
2.13 | Taxes | 44 | ||||||
2.13.1 | Payments Free of Taxes | 44 | ||||||
2.13.2 | Payment of Other Taxes by the Borrower | 44 | ||||||
2.13.3 | Indemnification | 45 | ||||||
2.13.4 | Evidence of Payments | 45 | ||||||
2.13.5 | Status of Lenders | 45 |
(continued)
Page | ||||||||
2.13.6 | Treatment of Certain Refunds | 46 | ||||||
2.13.7 | Survival | 46 | ||||||
2.14 | Mitigation Obligations; Replacement of Lenders | 47 | ||||||
2.14.1 | Designation of a Different Lending Office | 47 | ||||||
2.14.2 | Replacement of Lenders | 47 | ||||||
2.15 | Defaulting Lenders | 48 | ||||||
2.15.1 | Defaulting Lender Adjustments | 48 | ||||||
2.15.2 | Defaulting Lender Cure | 50 | ||||||
2.15.3 | New Swing Loans/Letters of Credit | 51 | ||||||
2.16 | Termination of Defaulting Lender | 51 | ||||||
2.17 | Cash Collateral | 51 | ||||||
ARTICLE 3 | LETTERS OF CREDIT | 52 | ||||||
3.1 | Letters of Credit | 52 | ||||||
3.1.1 | Commitment to Issue Letters of Credit | 52 | ||||||
3.1.2 | Reimbursement Obligations | 53 | ||||||
3.1.3 | Limitation on Amount | 53 | ||||||
3.1.4 | Obligations Absolute | 53 | ||||||
3.1.5 | Reliance by Issuing Bank | 54 | ||||||
3.1.6 | Fees | 54 | ||||||
3.1.7 | Participation by Lenders | 54 | ||||||
3.1.8 | Standard of Conduct | 55 | ||||||
3.1.9 | Cash Collateral Account | 55 | ||||||
3.1.10 | Obligations Secured | 55 | ||||||
3.2 | Resignation of Issuing Bank | 55 | ||||||
ARTICLE 4 | CONDITIONS TO FUNDINGS AND ISSUANCE OF LETTERS OF CREDIT | 56 | ||||||
4.1 | Conditions to Initial Funding | 56 | ||||||
4.1.1 | Execution of this Agreement | 56 | ||||||
4.1.2 | Notes | 56 | ||||||
4.1.3 | Amended and Restated Security Agreement | 56 | ||||||
4.1.4 | Amended and Restated Guaranty and Suretyship Agreement | 56 | ||||||
4.1.5 | Amended and Restated Pledge Agreements | 57 |
(continued)
Page | ||||||||
4.1.6 | Control Agreements | 57 | ||||||
4.1.7 | Amended and Restated Intellectual Property Collateral Agreement | 57 | ||||||
4.1.8 | Lien Searches | 57 | ||||||
4.1.9 | Evidence of Insurance | 57 | ||||||
4.1.10 | Repayment of Existing Indebtedness | 57 | ||||||
4.1.11 | Payment of Fees and Costs | 58 | ||||||
4.1.12 | Financial Statements; Projections | 58 | ||||||
4.1.13 | Corporate Proceedings | 59 | ||||||
4.1.14 | Consents and Approvals | 59 | ||||||
4.1.15 | HSBC Acknowledgement | 59 | ||||||
4.1.16 | Material Adverse Change; Compliance with Law | 59 | ||||||
4.1.17 | Opinions of Counsel | 59 | ||||||
4.1.18 | Officer’s Compliance Certificate | 59 | ||||||
4.1.19 | Good Standing | 60 | ||||||
4.1.20 | Other Requirements | 60 | ||||||
4.2 | Requirements for Each Loan/Letter of Credit | 60 | ||||||
4.2.1 | No Default | 60 | ||||||
4.2.2 | Borrowing Notice/Request for Letter of Credit | 60 | ||||||
4.2.3 | Representations and Warranties | 60 | ||||||
4.2.4 | Method of Certifying Certain Conditions | 60 | ||||||
ARTICLE 5 | REPRESENTATIONS AND WARRANTIES | 61 | ||||||
5.1 | Status | 61 | ||||||
5.1.1 | Organization and Qualification | 61 | ||||||
5.1.2 | Capitalization | 61 | ||||||
5.1.3 | Stock Ownership | 62 | ||||||
5.2 | Power and Authority; Enforceability | 62 | ||||||
5.3 | No Violation of Agreements; Absence of Conflicts | 62 | ||||||
5.4 | Recording, Enforceability and Consent | 62 | ||||||
5.5 | Lines of Business | 63 | ||||||
5.6 | Security Interest in Collateral | 63 |
(continued)
Page | ||||||||
5.7 | Litigation; Compliance with Laws; OFAC Requirements | 63 | ||||||
5.8 | No Burdensome Agreements; Material Agreements | 64 | ||||||
5.9 | Condition of Property | 64 | ||||||
5.10 | Licenses; Intellectual Property | 64 | ||||||
5.11 | Title to Properties; Liens | 65 | ||||||
5.12 | Management Agreements | 65 | ||||||
5.13 | Financial Statements and Projections | 65 | ||||||
5.13.1 | Financial Statements | 65 | ||||||
5.13.2 | Undisclosed Liabilities | 66 | ||||||
5.13.3 | Absence of Material Adverse Change | 66 | ||||||
5.13.4 | Projections | 66 | ||||||
5.14 | Tax Returns and Payments; Other Fees | 66 | ||||||
5.15 | Fiscal Year | 66 | ||||||
5.16 | Federal Reserve Regulations | 67 | ||||||
5.17 | Investment Company Act | 67 | ||||||
5.18 | Foreign Assets Control Regulations, Etc. | 67 | ||||||
5.19 | Compliance with ERISA | 67 | ||||||
5.19.1 | Plans | 67 | ||||||
5.19.2 | Favorable Determination Letters | 67 | ||||||
5.19.3 | Compliance | 68 | ||||||
5.19.4 | Absence of Certain Conditions | 68 | ||||||
5.19.5 | Absence of Certain Liabilities | 68 | ||||||
5.20 | Accuracy and Completeness of Disclosure | 69 | ||||||
5.21 | Adequacy of Capital; Solvency | 69 | ||||||
5.22 | Absence of Restrictive Provisions | 69 | ||||||
5.23 | Environmental Compliance | 69 | ||||||
5.24 | Labor Matters | 70 | ||||||
5.25 | Brokers | 71 | ||||||
5.26 | Existing Indebtedness | 71 | ||||||
ARTICLE 6 | REPORTING REQUIREMENTS AND NOTICES | 71 |
(continued)
Page | ||||||||
6.1 | Financial Data and Reporting Requirements; Notice of Certain Events | 72 | ||||||
6.1.1 | Delivery of Quarterly Financial Statements | 72 | ||||||
6.1.2 | Delivery of Annual Financial Statements; Accountants' Certification | 72 | ||||||
6.1.3 | Delivery of Officer's Compliance Certificates | 73 | ||||||
6.1.4 | Auditors’ Reports | 73 | ||||||
6.1.5 | SEC Filings, Etc. | 73 | ||||||
6.1.6 | Annual Budget | 74 | ||||||
6.2 | Notice of Defaults | 74 | ||||||
6.3 | Notice of Disputes and Other Matters | 75 | ||||||
6.3.1 | Certain Litigation | 75 | ||||||
6.3.2 | Conditions Affecting Collateral | 75 | ||||||
6.3.3 | Material Adverse Change | 75 | ||||||
6.3.4 | Representations and Warranties | 75 | ||||||
6.4 | ERISA Notices | 75 | ||||||
6.5 | Intellectual Property | 76 | ||||||
6.6 | Miscellaneous | 76 | ||||||
6.7 | Authorization of Third Parties to Deliver Information | 76 | ||||||
ARTICLE 7 | FINANCIAL COVENANTS | 77 | ||||||
7.1 | Interest Coverage Ratio | 77 | ||||||
7.2 | Total Leverage Ratio | 77 | ||||||
7.3 | Additional Provisions Respecting Calculation of Financial Covenants | 77 | ||||||
ARTICLE 8 | BUSINESS COVENANTS | 79 | ||||||
8.1 | Indebtedness | 79 | ||||||
8.1.1 | In General | 79 | ||||||
8.1.2 | Limitation on Incurrence | 80 | ||||||
8.2 | Liens; and Licenses | 80 | ||||||
8.2.1 | In General | 80 | ||||||
8.2.2 | Negative Pledge | 81 | ||||||
8.2.3 | Licenses | 81 | ||||||
8.3 | Investments, Loans, Acquisitions, Etc. | 81 |
(continued)
Page | ||||||||
8.4 | Restricted Payments | 83 | ||||||
8.4.1 | Intercompany | 83 | ||||||
8.4.2 | Permitted Debenture Payments | 83 | ||||||
8.4.3 | Permitted Stock Repurchases | 83 | ||||||
8.4.4 | Debenture Interest Payments | 84 | ||||||
8.4.5 | Ventures | 84 | ||||||
8.5 | Sale-Leasebacks | 84 | ||||||
8.6 | Transactions with Affiliates | 84 | ||||||
8.7 | Mergers and Dispositions | 85 | ||||||
8.7.1 | Consolidations and Mergers | 85 | ||||||
8.7.2 | Sales and Other Dispositions | 85 | ||||||
8.8 | Management Arrangements | 86 | ||||||
8.9 | Existence | 86 | ||||||
8.10 | Compliance with Law | 86 | ||||||
8.11 | Payment of Taxes and Claims | 86 | ||||||
8.12 | Tax Consolidation | 87 | ||||||
8.13 | Compliance with ERISA | 87 | ||||||
8.14 | Insurance | 88 | ||||||
8.14.1 | Liability, Property Damage, Etc. | 88 | ||||||
8.14.2 | PBGC | 88 | ||||||
8.15 | Maintenance of Properties | 88 | ||||||
8.16 | Maintenance of Records; Fiscal Year | 89 | ||||||
8.17 | Inspection | 89 | ||||||
8.18 | Exchange of Notes | 89 | ||||||
8.19 | Type of Business; Other Activities | 89 | ||||||
8.20 | Issuance of Equity | 90 | ||||||
8.21 | Change in Documents | 90 | ||||||
8.22 | Payment of Subordinated Indebtedness | 90 | ||||||
8.23 | Seniority Over Subordinated Debentures | 90 | ||||||
8.24 | Compliance with Federal Reserve Regulations | 90 |
(continued)
Page | ||||||||
8.25 | Limitations on Certain Restrictive Provisions | 91 | ||||||
8.26 | Environmental Matters | 91 | ||||||
8.27 | Corporate Separateness | 91 | ||||||
8.28 | Certain Obligations Respecting Subsidiaries | 91 | ||||||
8.29 | Further Assurances | 93 | ||||||
8.30 | Reset Provision | 93 | ||||||
8.31 | Post-Closing Covenants | 94 | ||||||
8.31.1 | Tax Clearance Certificates/Letter | 94 | ||||||
8.31.2 | Insurance | 94 | ||||||
ARTICLE 9 | EVENTS OF DEFAULT | 94 | ||||||
9.1 | Events of Default | 94 | ||||||
9.1.1 | Failure to Pay Principal or Reimbursement Obligations | 94 | ||||||
9.1.2 | Failure to Pay Interest, Fees, Etc. | 94 | ||||||
9.1.3 | Cross Default to Indebtedness | 94 | ||||||
9.1.4 | Other Cross-Defaults | 95 | ||||||
9.1.5 | Misrepresentations | 95 | ||||||
9.1.6 | Certain Covenant Defaults | 95 | ||||||
9.1.7 | Other Covenant Defaults | 95 | ||||||
9.1.8 | Other Loan Document Defaults; Security | 96 | ||||||
9.1.9 | Custody or Control of Assets | 96 | ||||||
9.1.10 | Discontinuance of Business | 96 | ||||||
9.1.11 | Insolvency | 96 | ||||||
9.1.12 | Material Adverse Change | 96 | ||||||
9.1.13 | Change of Control | 96 | ||||||
9.1.14 | Subordination | 97 | ||||||
9.1.15 | Interest Rate Protection Agreements | 97 | ||||||
9.1.16 | Judgments | 97 | ||||||
9.1.17 | Change of Management | 97 | ||||||
9.1.18 | Restricted Payment Default | 97 | ||||||
9.2 | Acceleration; Remedies | 97 |
(continued)
Page | ||||||||
9.2.1 | Acceleration upon Insolvency | 97 | ||||||
9.2.2 | Acceleration upon Other Defaults | 97 | ||||||
9.2.3 | Remedies in General | 98 | ||||||
9.3 | Proceeds of Collateral | 98 | ||||||
ARTICLE 10 | AGENCY | 99 | ||||||
10.1 | Appointment and Authority | 99 | ||||||
10.2 | Rights as a Lender | 100 | ||||||
10.3 | Exculpatory Provisions | 100 | ||||||
10.4 | Reliance by Administrative Agent | 101 | ||||||
10.5 | Delegation of Duties | 102 | ||||||
10.6 | Resignation of Administrative Agent | 102 | ||||||
10.7 | Non-Reliance on Administrative Agent and Other Lenders | 103 | ||||||
10.8 | Other Agents | 103 | ||||||
10.9 | Administrative Agent May File Proofs of Claim | 103 | ||||||
10.10 | Collateral and Guaranty Matters | 104 | ||||||
10.11 | No Reliance on Administrative Agent’s Customer Identification Program | 104 | ||||||
10.12 | No Advisory Or Fiduciary Responsibility | 105 | ||||||
ARTICLE 11 | MISCELLANEOUS | 105 | ||||||
11.1 | Notices; Effectiveness; Electronic Communication | 105 | ||||||
11.1.1 | Notices Generally | 105 | ||||||
11.1.2 | Electronic Communications | 106 | ||||||
11.1.3 | Change of Address, Etc. | 107 | ||||||
11.1.4 | Platform | 107 | ||||||
11.2 | Survival of Representations | 107 | ||||||
11.3 | No Implied Waivers | 107 | ||||||
11.4 | Severability | 108 | ||||||
11.5 | Amendments, Waivers and Consents | 108 | ||||||
11.5.1 | In General | 108 | ||||||
11.5.2 | Other Amendments | 109 | ||||||
11.5.3 | Exception | 109 |
(continued)
Page | ||||||||
11.6 | Successors and Assigns | 110 | ||||||
11.6.1 | Successors and Assigns Generally | 110 | ||||||
11.6.2 | Assignments by Lenders | 110 | ||||||
11.6.3 | Register | 112 | ||||||
11.6.4 | Participations | 112 | ||||||
11.6.5 | Limitations upon Participant Rights | 113 | ||||||
11.6.6 | Certain Pledges | 113 | ||||||
11.7 | Calculations and Financial Data | 113 | ||||||
11.8 | Descriptive Headings | 113 | ||||||
11.9 | Governing Law; Jurisdiction; Etc. | 113 | ||||||
11.9.1 | Governing Law | 113 | ||||||
11.9.2 | Submission to Jurisdiction | 114 | ||||||
11.9.3 | Waiver of Venue | 114 | ||||||
11.9.4 | Service of Process | 114 | ||||||
11.10 | Maximum Lawful Interest Rate | 115 | ||||||
11.11 | Right of Setoff | 115 | ||||||
11.12 | Counterparts; Integration; Effectiveness; Electronic Execution | 116 | ||||||
11.12.1 | Counterparts; Integration; Effectiveness | 116 | ||||||
11.12.2 | Electronic Execution of Assignments | 116 | ||||||
11.13 | Treatment of Certain Information; Confidentiality; Advertisement | 116 | ||||||
11.13.1 | Confidentiality | 116 | ||||||
11.13.2 | Information | 117 | ||||||
11.13.3 | Advertisement | 117 | ||||||
11.14 | Expenses; Indemnity; Damage Waiver | 117 | ||||||
11.14.1 | Costs and Expenses | 117 | ||||||
11.14.2 | Indemnification by the Borrower | 118 | ||||||
11.14.3 | Reimbursement by Lenders | 119 | ||||||
11.14.4 | Waiver of Consequential Damages, Etc. | 119 | ||||||
11.14.5 | Payments | 119 | ||||||
11.14.6 | Survival | 119 |
(continued)
Page | ||||||||
11.15 | Certification of Amounts | 119 | ||||||
11.16 | Termination of Security; Partial Release of Security | 119 | ||||||
11.16.1 | Termination of Security | 119 | ||||||
11.16.2 | Partial Release of Security | 120 | ||||||
11.17 | Waiver of Jury Trial | 120 | ||||||
11.18 | Patriot Act Notice | 120 |