as Borrower,
WH INTERMEDIATE HOLDINGS LTD.,
HBL LTD.,
WH LUXEMBOURG HOLDINGS S.à.R.L.,
HLF LUXEMBOURG HOLDINGS S.à R.L.,
WH CAPITAL CORPORATION,
WH LUXEMBOURG INTERMEDIATE HOLDINGS S.à.R.L.,
HERBALIFE INTERNATIONAL LUXEMBOURG S.à.R.L.,
HV HOLDINGS LTD.,
HERBALIFE DISTRIBUTION LTD.,
HERBALIFE LUXEMBOURG DISTRIBUTION S.à.R.L.,
THE SUBSIDIARY GUARANTORS PARTY HERETO,
as Guarantors,
“RABOBANK INTERNATIONAL”, NEW YORK BRANCH,
HSBC BANK USA, NATIONAL ASSOCIATION,
BANK OF AMERICA, N.A.,
FORTIS CAPITAL CORP.,
and
CITICORP USA, INC.
as Co-Documentation Agents,
and
MORGAN STANLEY SENIOR FUNDING, INC.,
as Co-Syndication Agents,
as Joint Lead Arrangers and Joint Bookrunners,
as Administrative Agent and Collateral Agent
Page | ||||||
ARTICLE I Definitions | 6 | |||||
SECTION 1.01. | Defined Terms | 6 | ||||
SECTION 1.02. | Classification of Loans and Borrowings | 30 | ||||
SECTION 1.03. | Terms Generally | 30 | ||||
SECTION 1.04. | Accounting Terms; GAAP | 30 | ||||
ARTICLE II The Credits | 31 | |||||
SECTION 2.01. | Commitments | 31 | ||||
SECTION 2.02. | Loans | 31 | ||||
SECTION 2.03. | Borrowing Procedure | 33 | ||||
SECTION 2.04. | Evidence of Debt; Repayment of Loans | 33 | ||||
SECTION 2.05. | Fees | 34 | ||||
SECTION 2.06. | Interest on Loans | 35 | ||||
SECTION 2.07. | Termination and Reduction of Commitments | 36 | ||||
SECTION 2.08. | Interest Elections | 37 | ||||
SECTION 2.09. | Amortization of Term Borrowings | 38 | ||||
SECTION 2.10. | Optional and Mandatory Prepayments of Loans | 38 | ||||
SECTION 2.11. | Alternate Rate of Interest | 42 | ||||
SECTION 2.12. | Increased Costs | 42 | ||||
SECTION 2.13. | Breakage Payments | 44 | ||||
SECTION 2.14. | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 44 | ||||
SECTION 2.15. | Taxes | 46 | ||||
SECTION 2.16. | Mitigation Obligations; Replacement of Lenders | 48 | ||||
SECTION 2.17. | Letters of Credit | 49 | ||||
SECTION 2.18. | Facility Increase | 53 | ||||
ARTICLE III Representations and Warranties | 54 | |||||
SECTION 3.01. | Organization; Powers | 54 | ||||
SECTION 3.02. | Authorization; Enforceability | 54 | ||||
SECTION 3.03. | Governmental Approvals; No Conflicts | 55 | ||||
SECTION 3.04. | Financial Statements | 55 | ||||
SECTION 3.05. | Properties | 55 | ||||
SECTION 3.06. | Equity Interests and Subsidiaries; Consent | 56 | ||||
SECTION 3.07. | Litigation; Compliance with Laws | 56 | ||||
SECTION 3.08. | Agreements | 57 | ||||
SECTION 3.09. | Federal Reserve Regulations | 57 | ||||
SECTION 3.10. | Investment Company Act | 57 | ||||
SECTION 3.11. | Use of Proceeds | 57 | ||||
SECTION 3.12. | Taxes | 57 | ||||
SECTION 3.13. | No Material Misstatements | 57 | ||||
SECTION 3.14. | Labor Matters | 58 | ||||
SECTION 3.15. | Solvency | 58 | ||||
SECTION 3.16. | Employee Benefit Plans | 58 | ||||
SECTION 3.17. | Environmental Matters | 59 | ||||
SECTION 3.18. | Insurance | 60 | ||||
SECTION 3.19. | Security Documents | 60 |
1
Page | ||||||
SECTION 3.20. | Material Adverse Changes | 61 | ||||
ARTICLE IV Conditions of Lending | 61 | |||||
SECTION 4.01. | All Credit Extensions | 61 | ||||
SECTION 4.02. | Initial Credit Extension | 62 | ||||
ARTICLE V Affirmative Covenants | 66 | |||||
SECTION 5.01. | Financial Statements, Reports, Etc | 66 | ||||
SECTION 5.02. | Litigation and Other Notices | 69 | ||||
SECTION 5.03. | Existence; Businesses and Properties | 69 | ||||
SECTION 5.04. | Insurance | 70 | ||||
SECTION 5.05. | Taxes | 70 | ||||
SECTION 5.06. | Employee Benefits | 71 | ||||
SECTION 5.07. | Maintaining Records; Access to Properties and Inspections | 71 | ||||
SECTION 5.08. | Use of Proceeds | 71 | ||||
SECTION 5.09. | Compliance with Environmental Laws; Environmental Reports | 71 | ||||
SECTION 5.10. | Interest Rate Protection | 72 | ||||
SECTION 5.11. | Additional Collateral; Additional Guarantors | 72 | ||||
SECTION 5.12. | Security Interests; Further Assurances | 73 | ||||
SECTION 5.13. | Know-Your-Customer Rules | 74 | ||||
SECTION 5.14. | Post-Closing Matters | 75 | ||||
ARTICLE VI Negative Covenants | 75 | |||||
SECTION 6.01. | Indebtedness | 75 | ||||
SECTION 6.02. | Liens | 77 | ||||
SECTION 6.03. | Investments, Loans and Advances | 79 | ||||
SECTION 6.04. | Mergers, Consolidations, Sales and Purchases of Assets | 81 | ||||
SECTION 6.05. | Dividends | 82 | ||||
SECTION 6.06. | Transactions with Affiliates | 84 | ||||
SECTION 6.07. | Financial Covenants | 85 | ||||
SECTION 6.08. | Limitation on Modifications of Indebtedness; Modifications of Certificate of | |||||
Incorporation, Other Constitutive Documents or Bylaws and Certain Other Agreements, Etc. | 85 | |||||
SECTION 6.09. | Limitation on Certain Restrictions on Subsidiaries | 86 | ||||
SECTION 6.10. | Sale and Leaseback Transactions | 86 | ||||
SECTION 6.11. | Holding Companies | 86 | ||||
SECTION 6.12. | Business | 86 | ||||
SECTION 6.13. | Limitation on Accounting Changes | 87 | ||||
SECTION 6.14. | Fiscal Year | 87 | ||||
ARTICLE VII Guarantee | 87 | |||||
SECTION 7.01. | The Guarantee | 87 | ||||
SECTION 7.02. | Obligations Unconditional | 87 | ||||
SECTION 7.03. | Reinstatement | 89 | ||||
SECTION 7.04. | Subrogation; Subordination | 89 | ||||
SECTION 7.05. | Remedies | 89 | ||||
SECTION 7.06. | Instrument for the Payment of Money | 90 | ||||
SECTION 7.07. | General Limitation on Guarantee Obligations | 90 | ||||
SECTION 7.08. | Continuing Guarantee | 90 | ||||
SECTION 7.09. | Release of Guarantors | 90 |
2
Page | ||||||
ARTICLE VIII Events of Default | 91 | |||||
ARTICLE IX Collateral Account; Application of Collateral Proceeds | 94 | |||||
SECTION 9.01. | Collateral Account | 94 | ||||
SECTION 9.02. | Proceeds of Casualty Events and Collateral Dispositions | 95 | ||||
SECTION 9.03. | Application of Proceeds | 95 | ||||
ARTICLE X The Administrative Agent and the Collateral Agent | 96 | |||||
ARTICLE XI Miscellaneous | 98 | |||||
SECTION 11.01. | Notices | 98 | ||||
SECTION 11.02. | Waivers; Amendment | 99 | ||||
SECTION 11.03. | Expenses; Indemnity | 101 | ||||
SECTION 11.04. | Successors and Assigns | 102 | ||||
SECTION 11.05. | Survival of Agreement | 104 | ||||
SECTION 11.06. | Counterparts; Integration; Effectiveness | 105 | ||||
SECTION 11.07. | Severability | 105 | ||||
SECTION 11.08. | Right of Set-off | 105 | ||||
SECTION 11.09. | Governing Law; Jurisdiction; Consent to Service of Process | 105 | ||||
SECTION 11.10. | WAIVER OF JURY TRIAL | 106 | ||||
SECTION 11.11. | Headings | 106 | ||||
SECTION 11.12. | Confidentiality | 106 | ||||
SECTION 11.13. | Interest Rate Limitation | 107 | ||||
SECTION 11.14. | USA Patriot Act Notice | 107 | ||||
ANNEXES | ||||||
Annex I | Amortization Table | |||||
Annex II | Lenders' Notice Information and Commitments | |||||
Annex III | Limitations on Guarantees and Indemnities Under Applicable Foreign Laws | |||||
SCHEDULES | ||||||
Schedule 1.01(a) | Deposit Accounts | |||||
Schedule 1.01(b) | Immaterial Subsidiaries | |||||
Schedule 1.01(e) | Subsidiary Guarantors | |||||
Schedule 3.03 | Governmental Approvals; Compliance with Laws | |||||
Schedule 3.06(a) | Subsidiaries; Non-Guarantor Subsidiaries | |||||
Schedule 3.07 | Litigation | |||||
Schedule 3.08 | Material Agreements | |||||
Schedule 3.18 | Insurance | |||||
Schedule 4.02(g) | Local Counsel | |||||
Schedule 5.14 | Post-Closing Matters | |||||
Schedule 6.01 | Existing Indebtedness | |||||
Schedule 6.02 | Existing Liens | |||||
Schedule 6.03 | Existing Investments |
3
EXHIBITS | ||
Exhibit A | Form of Administrative Questionnaire | |
Exhibit B | Form of Assignment and Acceptance | |
Exhibit C | Form of Borrowing Request | |
Exhibit D | Form of Interest Election Request | |
Exhibit E | [Reserved] | |
Exhibit F | Form of U.S. Security Agreement | |
Exhibit G | Form of Intercompany Note | |
Exhibit H | Form of Joinder Agreement | |
Exhibit I | Form of Perfection Certificate | |
Exhibit J-1 | Form of Revolving Note | |
Exhibit J-2 | Form of Term Note | |
Exhibit K | Form of Financial Officer’s Compliance Certificate | |
Exhibit L | Form of Financial Condition Certificate | |
Exhibit M | Form of Letter of Credit Request |
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7
Senior Credit | Applicable Percentage | |||
Facilities Rating | (Revolving Loans) | |||
Moody’s/S&P | Eurodollar | ABR | ||
³ Ba1/BB+ | 1.25% | 0.25% | ||
<Ba1/BB+ | 1.50% | 0.50% |
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(a) | if to any Loan Party, to Borrower at: |
1800 Century Park East
Los Angeles, California 90067
Attention: William D. Lowe
Phone: (310) 410-9600
Telecopy No.: (310) 557-3913;
2029 Century Park East
Los Angeles, California 90067-3026
Attention: Brian D. Kilb, Esq.
Phone: (310) 552-8500
Telecopy No.: (310) 551-8741;
(b) | if to the Administrative Agent or the Collateral Agent, to it at: |
4 World Financial Center
22nd Floor
New York, New York 10080
Attention: Nancy Meadows
98
Telecopy No.: (212) 738-1186
Four Times Square
New York, NY 10036
Attention: Robert A. Copen
Phone: (212) 735-3536
Telecopy No.: (917) 777-3536; and
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HERBALIFE INTERNATIONAL, INC., | ||||||
a Nevada corporation, as Borrower | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
WH CAPITAL CORPORATION, | ||||||
a Nevada corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL OF AMERICA, INC., | ||||||
a Nevada corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL OF EUROPE, INC., | ||||||
a California corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL COMMUNICATIONS, INC., | ||||||
a California corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: |
HERBALIFE INTERNATIONAL DISTRIBUTION, INC., | ||||||
a California corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE TAIWAN, INC., | ||||||
a California corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL (THAILAND), LTD., | ||||||
a California corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL DO BRASIL LTDA., | ||||||
a corporation dually organized in Brazil and Delaware, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: |
HERBALIFE LTD., | ||||||
a Cayman Islands exempted company with limited liability, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
WH INTERMEDIATE HOLDINGS LTD., | ||||||
a Cayman Islands exempted company with limited liability, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HBL LTD., | ||||||
a Cayman Islands exempted company with limited liability, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HV HOLDINGS LTD., | ||||||
a Cayman Islands exempted company with limited liability, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE DISTRIBUTION LTD., | ||||||
a Cayman Islands exempted company with limited liability, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: |
WH LUXEMBOURG HOLDINGS S.à.R.L., | ||||||
a Luxembourg corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HLF LUXEMBOURG HOLDINGS S.à R.L., | ||||||
a Luxembourg corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
WH LUXEMBOURG INTERMEDIATE HOLDINGS S.à.R.L., | ||||||
a Luxembourg corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE INTERNATIONAL LUXEMBOURG S.à.R.L., | ||||||
a Luxembourg corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
HERBALIFE LUXEMBOURG DISTRIBUTION S.à.R.L., | ||||||
a Luxembourg corporation, as a Guarantor | ||||||
By: | ||||||
Name: | ||||||
Title: |
MERRILL LYNCH, PIERCE, FENNER & SMITH, INCORPORATED, | ||||||
as Joint Lead Arranger and Joint Bookrunner | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
MERRILL LYNCH CAPITAL CORPORATION, | ||||||
as a Lender, Administrative Agent and Collateral Agent | ||||||
By: | ||||||
Name: | ||||||
Title: |
J.P. MORGAN SECURITIES INC., | ||||||
as Joint Lead Arranger, Joint Bookrunner and Co-Syndication Agent | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
JPMORGAN CHASE BANK, N.A., | ||||||
as a Lender | ||||||
By: | ||||||
Name: | ||||||
Title: |
MORGAN STANLEY SENIOR FUNDING, INC., | ||||||
as Joint Lead Arranger, Joint Bookrunner and Co-Syndication Agent | ||||||
By: | ||||||
�� | ||||||
Name: | ||||||
Title: | ||||||
MORGAN STANLEY & CO. INCORPORATED, | ||||||
as a Lender | ||||||
By: | ||||||
Name: | ||||||
Title: |
COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK, B.A. “RABOBANK INTERNATIONAL”, NEW YORK BRANCH, as Co-Documentation Agent, a Lender and Issuing Bank | ||||||
By: | ||||||
Title: | ||||||
By: | ||||||
Name: | ||||||
Title: |
HSBC BANK USA, NATIONAL ASSOCIATION, as Co-Documentation Agent and a Lender | ||||||
By: | ||||||
Title: |
BANK OF AMERICA, N.A., as Co-Documentation Agent and a Lender | ||||||
By: | ||||||
Title: |
FORTIS CAPITAL CORP., as Co-Documentation Agent and a Lender | ||||||
By: | ||||||
Title: |
CITICORP USA, INC., as Co-Documentation Agent and a Lender | ||||||
By: | ||||||
Title: |
[LENDERS], as a Lender | ||||||
By: | ||||||
Title: |
Date | Term Loan Amount | |||
December 31, 2006 | $ | 500,000 | ||
March 31, 2007 | $ | 500,000 | ||
June 30, 2007 | $ | 500,000 | ||
September 30, 2007 | $ | 500,000 | ||
December 31, 2007 | $ | 500,000 | ||
March 31, 2008 | $ | 500,000 | ||
June 30, 2008 | $ | 500,000 | ||
September 30, 2008 | $ | 500,000 | ||
December 31, 2008 | $ | 500,000 | ||
March 31, 2009 | $ | 500,000 | ||
June 30, 2009 | $ | 500,000 | ||
September 30, 2009 | $ | 500,000 | ||
December 31, 2009 | $ | 500,000 | ||
March 31, 2010 | $ | 500,000 | ||
June 30, 2010 | $ | 500,000 | ||
September 30, 2010 | $ | 500,000 | ||
December 31, 2010 | $ | 500,000 | ||
March 31, 2011 | $ | 500,000 | ||
June 30, 2011 | $ | 500,000 | ||
September 30, 2011 | $ | 500,000 | ||
December 31, 2011 | $ | 500,000 | ||
March 31, 2012 | $ | 500,000 | ||
June 30, 2012 | $ | 500,000 | ||
September 30, 2012 | $ | 500,000 | ||
December 31, 2012 | $ | 500,000 | ||
March 31, 2013 | $ | 500,000 | ||
June 30, 2013 | $ | 500,000 | ||
Tranche B Maturity Date | $ | 186,500,000 |
Lender | Revolving Commitment | Term Loan Commitment | ||||||
Merrill Lynch Capital Corporation | $ | 5,000,000 | $ | 63,000,000 | ||||
JPMorgan Chase Bank, N.A. | $ | 15,000,000 | $ | 5,000,000 | ||||
Morgan Stanley Senior Funding, Inc. | $ | 5,000,000 | $ | 0 | ||||
HSBC Bank USA, National Association | $ | 12,000,000 | $ | 20,000,000 | ||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank, B.A. “Rabobank International”, New York Branch | $ | 12,000,000 | $ | 20,000,000 | ||||
Bank of America, N.A. | $ | 16,500,000 | $ | 0 | ||||
Citicorp USA, Inc. | $ | 16,500,000 | $ | 0 | ||||
Fortis Capital Corp. | $ | 5,000,000 | $ | 15,000,000 | ||||
General Electric Capital Corporation | $ | 0 | $ | 20,000,000 | ||||
The Governor and Company of the Bank of Ireland | $ | 0 | $ | 20,000,000 | ||||
Bayerische Hypo- Und Vereinsbank AG, New York Branch | $ | 5,000,000 | $ | 10,000,000 | ||||
Union Bank of California, N.A. | $ | 5,000,000 | $ | 10,000,000 | ||||
The CIT Group/Equipment Financing, Inc. | $ | 0 | $ | 10,000,000 | ||||
Comerica West Incorporated | $ | 3,000,000 | $ | 7,000,000 | ||||
Total | $ | 100,000,000 | $ | 200,000,000 | ||||
Merrill Lynch Capital Corporation | JPMorgan Chase Bank, N.A. | |
Merrill Lynch Capital Corporation | JPMorgan Chase Bank, N.A. | |
4 World Financial Center | 1999 Avenue of the Stars | |
22nd Floor | Floor 27 | |
New York, NY 10080 | Los Angeles, CA 90067-6022 | |
Attention: Nancy Meadows | Attention: Jana Chiat | |
Phone: (212) 449-2879 | Phone: (310) 760-7274 | |
Telecopy No.: (212) 738-1186; and | Telecopy No.: (310) 860-7110; and | |
Merrill Lynch Bank USA | J.P. Morgan Securities Inc. | |
Attention: Document Compliance Specialist | 1999 Avenue of the Stars | |
15 West South Temple, 3rd FL | Floor 27 | |
Salt Lake City, UT 84101 | Los Angeles, CA 90067-6022 |
Phone: (801) 526-8300 | Attention: Lucy B. Nixon | |
Telecopy No.: (801) 531-7470 | Phone: (310) 860-7257 | |
Telecopy No.: (310) 860-7110 | ||
Morgan Stanley Senior Funding, Inc. | HSBC Bank USA, National Association | |
Morgan Stanley Senior Funding, Inc. | HSBC Bank USA, National Association | |
One Pierrepont Plaza, 7th Floor | 660 S. Figueroa Street, Suite 800 | |
300 Cadman Plaza West | Los Angeles, CA 90017 | |
Brooklyn, NY 11201 | Attention: Steven Brennan | |
Attention: Joshua Rawlins/Darragh Dempsey | Phone: (213) 553-8003 | |
Phone: (718) 754-7291/1288 | Telecopy No.: (213) 553-8056 | |
Telecopy No.: (718) 754-7249/7250 | ||
Cooperatieve Centrale | Bank of America, N.A. | |
Raiffeisen-Boerenleenbank, B.A. “Rabobank | ||
International”, New York Branch | Bank of America, N.A. | |
333 South Hope Street, Suite 1300 | ||
Los Angeles, CA 90071-1406 | ||
Rabobank Support Services, Inc. | Attention: Matthew Koenig | |
Corp. Services – Loan Admin. | Phone: (213) 621-7190 | |
10 Exchange Place, 16th Floor | Telecopy No.: (213) 621-3612 | |
Jersey City, NJ 07302 | ||
Attention: Alishia Hazell | ||
Phone: (201) 449-5319 | ||
Telecopy No.: (201) 449-5326; and | ||
Rabobank International | ||
13355 Noel Road, Suite 1000 | ||
Dallas, TX 75240 | ||
Attention: J. David Thomas | ||
Phone: (972) 419-5266 | ||
Telecopy No.: (972) 419-6315 | ||
Citicorp USA, Inc. | Fortis Capital Corp. | |
Citicorp USA, Inc. | Fortis Capital Corp. | |
388 Greenwich Street, 21st Floor | Two Emarcadero Center, Suite 1330 | |
New York, NY 10013 | San Francisco, CA 94111 | |
Attention: Rory Boyle | Attention: Ignacio Solveyra | |
Phone: (212) 816-7964 | Phone: (415) 283-3009 | |
Telecopy No.: (646)291-1866 | Telecopy No.: (415) 283-3013 |
General Electric Capital Corporation | The Governor and Company of the Bank of Ireland | |
General Electric Capital Corporation | ||
Corporate Financial Services | The Governor and Company of the Bank of | |
201 Merritt 7, P.O. Box 5201 | Ireland | |
Norwalk, CT 06856-5201 | Bank of Ireland Leveraged Finance | |
Attention: Ante Sucic | U.S. Representative Office | |
Phone: (203) 956-4223 | 75 Holly Hill Lane | |
Telecopy No.: (203) 956-4003 | Greenwich, CT 06830 | |
Attention: Eimear Lillis | ||
Phone: (203) 861-8969 | ||
Telecopy No.: (203) 552-0656 | ||
Bayerische Hypo- Und Vereinsbank AG, New York Branch | Union Bank of California, N.A. | |
Union Bank of California, N.A. | ||
Bayerische Hypo- Und Vereinsbank AG, New | 445 S. Figueroa Street | |
York Branch | Los Angeles, CA 90071 | |
150 East 42nd Street | Attention: Gail Boyle | |
New York, NY 10017 | Phone: (213) 236-5076 | |
Attention: Marianne Weinzinger | Telecopy No.: (213) 236-7558 | |
Phone: (212) 672-5352 | ||
Telecopy No.: (212) 672-5530 | ||
The CIT Group/Equipment Financing, Inc. | Comerica West Incorporated | |
The CIT Group/Equipment Financing, Inc. | Comerica Bank | |
CIT Syndicated Loan Group | 611 Anton Boulevard, 4th Floor | |
One Stamford Plaza, 263 Tresser Blvd, 9th | Costa Mesa, CA 92626 | |
Floor | Attention: Elise Walker | |
Stamford, CT 06901 | Phone: (714) 433-3226 | |
Attention: Vincent J. Devito | Telecopy No.: (714) 433-3236 | |
Phone: (203) 564-1423 | ||
Telecopy No.: (203) 564-1482 |
BANK NAME | BANK ADDRESS | ACCOUNT NAME | ACCOUNT # | CURRENCY | PURPOSE | |||||
Contact | Street | |||||||||
Phone | City | Country Cody | Category | |||||||
Fax | Country | Currency | Type | |||||||
COUNTRY: | ||||||||||
CityBank N.A. | 52 North Southern Rd, | Herbalife Inc [ILLEGIBLE] Ltd. | 0-123041-033 | THB | Impact / CU. - AC | |||||
[ILLEGIBLE] | [ILLEGIBLE], Bangkok, | |||||||||
Account Manager | Bangkok 10500 | |||||||||
Tel. (662) 232-2358 Direct Line Fax. (662) 639-2475 | ||||||||||
Bangkok Bank | 77-87 Rankland Rd, | Herbalife Inc [ILLEGIBLE] Ltd. | 106-4-56700-9 | THB | General / SV. - A/C | |||||
[ILLEGIBLE] | [ILLEGIBLE] | 108-3-14374-5 | THB | General / CU. - A/C | ||||||
Assistant Manager | Bangkok 10330 | 108-3-14371-1 | THB | Royalty / CU. - A/C | ||||||
Tel. (662) 252-5815 Fax. (662) 253-[ILLEGIBLE] | ||||||||||
[ILLEGIBLE] Commercial Bank | 1060 [ILLEGIBLE] Rd., | Herbalife Inc [ILLEGIBLE] Ltd. | 001-3-48854-4 | THB | General / CU. - A/C | |||||
Branch Manager | Bangkok 10400 | |||||||||
Tel. (662) 256-1234 Tel. (662) 255-1609 | ||||||||||
[ILLEGIBLE] (Old name is Thal Farmers Bank) | 47/27 [ILLEGIBLE] Rd., | Herbalife Inc [ILLEGIBLE] Ltd. | 042-1-11540-0 | THB | General / CU. - A/C | |||||
[ILLEGIBLE] | [ILLEGIBLE] | |||||||||
Assistant to Branch Manager | Bangkok 10330 | |||||||||
Tel. (662) 656-0275 – 83 Ext. 107 Fax (662) 253 - 1423 |
REMARK | (1 | ) | [ILLEGIBLE] INSTRUCTIONS | |||
CityBank — [ILLEGIBLE] Cash wine transfer, Only Citybank A/Cs, are in used. | ||||||
(2 | ) | CASH BALANCE RESTRICTIONS | ||||
Citybank — At the end of each month, the sum amount accrued on a daily basis throughout that month have a minimum cash balance of $10 Million. | ||||||
(3 | ) | COMPUTER ACCESS | ||||
Bangkok Bank — Computer has computer online with bank all the time and has Automation System of T/R between A/C when Current Account is on debit side. | ||||||
[ILLEGIBLE] — Computer has computer online with bank all the time and has Automation System of T/R between A/C when Current Account is on debit side. | ||||||
[ILLEGIBLE] — Computer has computer online with bank all the time and has Automation System of T/R between A/C when Current Account is on debit side. |
Herbalife Dominicana, S.A.
Herbalife Hungary Trading, Limited
Herbalife International Russia 1995 Ltd.
Herbalife International SDN. BHD.
Herbalife International Products N.V.
HBL Products, SA
HBL International Maroc SARL
Herbalife Europe Limited
Herbalife China, LLC
Promotions One, Inc.
Herbalife International de Colombia
Herbalife International del Ecuador
Herbalife Del Ecuador, S.A.
Herbalife International Costa Rica, Sociedad de Responsabilidad Limitada
HV Holdings, Ltd.
Herbalife Distribution Ltd.
HLF Luxembourg Holdings SaRL
HBL Ltd.
HIL Swiss International Gmbh
Herbalife Peru SRL
Herbalife Paraguay SRL
Herbalife International Communications, Inc.
Herbalife International Distribution, Inc.
Herbalife International of Europe, Inc.
Herbalife of Japan K.K.
Herbalife International (Thailand) Ltd.
Herbalife (U.K.) Limited
Herbalife Europe Limited
Herbalife International Do Brasil Ltda.
Herbalife International de Mexico, S.A. de C.V.
Herbalife Products de Mexico, S.A. de C.V.
Herbalife Taiwan, Inc.
1.01(e)-1
(a) | Governmental Approvals. |
(b) | Compliance with Laws. |
(c) | Contractual Approvals. |
(d) | Liens. |
3.03-1
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | shares | Non-Guarantor | ||||||
1. | Herbalife International, Inc. | Nevada | 100,000 shares | 100,000 shares | Borrower | |||||
2. | Herbalife International | Argentina | 12,000 with the ability to increase | 12,000 shares | Non-Guarantor | |||||
Argentina S.A. | up to 5 times by shareholder vote | |||||||||
3. | Herbalife Australasia Pty, Ltd. | Australia | 10,000 shares | 10,000 shares | Non-Guarantor | |||||
4. | Herbalife Foreign Sales Corporation | Barbados | Unlimited # of shares | 1,000 shares | Non-Guarantor | |||||
5. | Herbalife International Belgium, S.A. | Belgium | 200 shares | 200 shares | Non-Guarantor | |||||
6. | Herbalife International Do | Brazil | 2,014,200 shares | 2,014,200 shares | Guarantor | |||||
Brasil Ltda. | Delaware | 100,000 shares | 100,000 shares | |||||||
7. | Herbalife of Canada, Ltd. | Canada | Unlimited authorized number of shares | 100 shares | Non-Guarantor | |||||
8. | Herbalife (China) Health | China | Registered Capital | Non-Guarantor | ||||||
Products Ltd. | of $12,500,000 | |||||||||
9. | Herbalife International Costa Rica, | Costa Rica | 2,000 | Non-Guarantor | ||||||
Soceidad de Responsabilidad Limitada |
3.06(a)-1
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | shares | Non-Guarantor | ||||||
10. | Importadora Y Distribuidora Herbalife | Chile | 30,000 shares | 30,000 shares | Non-Guarantor | |||||
International de Chile, Limitada | ||||||||||
11. | Herbalife Denmark ApS | Denmark | 200 shares | 200 shares | Non-Guarantor | |||||
12. | Herbalife Dominicana, S.A. | Dominican Republic | 400 shares | 100 shares | Non-Guarantor | |||||
(Inactive) | ||||||||||
13. | Herbalife Del Ecuador, S.A. | Ecuador | 20,000 shares | 10,000 shares | Non-Guarantor | |||||
14. | Herbalife International Finland OY | Finland | 4,000 shares | 1,000 shares | Non-Guarantor | |||||
15. | Herbalife International France, S.A. | France | 50,000 shares | 50,000 shares | Non-Guarantor | |||||
16. | Herbalife International Deutschland GmbH | Germany | 1 share | 1 share | Non-Guarantor | |||||
17. | Herbalife International Greece S.A. | Greece | 2,000 shares | 2,000 shares | Non-Guarantor | |||||
18. | Herbalife International of Hong Kong Ltd. | Hong Kong | 10,000 shares | 100 shares | Non-Guarantor | |||||
19. | Herbalife Hungary Trading Limited | Hungary | 12,500,000 | 12,500,000 shares | Non-Guarantor | |||||
20. | Herbalife International India Private Limited | India | 6,000,000 shares | 4,078,625 shares | Non-Guarantor | |||||
21. | PT Herbalife Indonesia | Indonesia | 2000 shares | 550 shares | Non-Guarantor | |||||
22. | Herbalife International of Israel (1990) Ltd. | Israel | 15,100 shares | 100 shares | Non-Guarantor | |||||
23. | Herbalife Italia S.p.A. | Italy | 200,000 shares | 200,000 shares | Non-Guarantor | |||||
24. | Herbalife of Japan K.K. | Japan and Delaware | 50 shares | 50 shares | Guarantor |
3.06(a)-2
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | shares | Non-Guarantor | ||||||
25. | Herbalife Korea Co., Ltd. | Korea and Delaware | 80,000 shares | 35,000 shares | Non-Guarantor | |||||
26. | Herbalife Products Malaysia SDN. BHD. | Malaysia | 5,000,000 shares | 5,000,000 shares | Non-Guarantor | |||||
27. | Herbalife Internacional de Mexico, S.A. de | Mexico | 5,000 shares | 5,000 shares | Guarantor | |||||
C.V. | ||||||||||
28. | Herbalife Products De Mexico, S.A. de C.V. | Mexico | 10,000 shares | 10,000 shares | Guarantor | |||||
29. | Herbalife International (Netherlands) B.V. | Netherlands | 200,000 shares | 40,000 shares | Non-Guarantor | |||||
30. | Herbalife International Products N.V. | Netherlands Antilles | 30,000 shares | 6,000 shares | Non-Guarantor | |||||
31. | Herbalife (NZ) Limited | New Zealand | 10,000 shares | 10,000 shares | Non-Guarantor | |||||
32. | Herbalife Norway Products AS | Norway | 50 shares | 50 shares | Non-Guarantor | |||||
33. | Herbalife Paraguay SRL | Paraguay | 1050 shares | 1050 shares | Non-Guarantor | |||||
34. | Herbalife Peru SRL | Peru | 12,000 shares | 12,000 shares | Non-Guarantor | |||||
35. | Herbalife International Philippines, Inc. | Philippines | 20,000,000 shares | 7,000,000 shares | Non-Guarantor | |||||
36. | Herbalife Polska Sp.z o.o | Poland | 10,000 shares | 100 shares | Non-Guarantor | |||||
37. | Herbalife International, S.A. | Portugal | 5,000 shares | 5,000 shares | Non-Guarantor | |||||
38. | Herbalife International Russia 1995 Ltd. | Israel | 25,200 shares | 100 shares | Non-Guarantor | |||||
39. | Herbalife International Singapore, Pte. Ltd. | Singapore | 1,000,000 shares | 97,000 shares | Non-Guarantor | |||||
40. | Herbalife International Espana, S.A. | Spain | 112,920 shares | 112,920 shares | Non-Guarantor | |||||
41. | Herbalife Sweden Aktiebolag | Sweden | 4,000 shares | 1,000 shares | Non-Guarantor |
3.06(a)-3
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | Shares | Non-Guarantor | ||||||
42. | HBL Products, SA | Switzerland | 100 shares | 100 shares | Non-Guarantor | |||||
43. | Herbalife International Urunleri | Turkey | 1,000 shares | 1,000 shares | Non-Guarantor | |||||
Ticaret Ltd. Sirketi | Delaware | 8,200 shares | 8,200 shares | |||||||
44. | Herbalife (UK) Limited | England | 200,000 shares | 10,000 shares | Guarantor | |||||
45. | Herbalife Europe Limited | England | 100 shares | 1 share | Guarantor | |||||
46. | Vida Herbal Suplementos | Venezuela | 1,000 shares | 1,000 shares | Non-Guarantor | |||||
Alimenticios, C.A. (Venezuela) Vida Herbal Suplementos Alimenticios, C.A., LLC | Delaware | LLC 100% owned by Herbalife International, Inc. | n/a | |||||||
(Delaware) | ||||||||||
47. | Herbalife China, LLC | Delaware | LLC 100% owned by Herbalife International, Inc | n/a | Non-Guarantor | |||||
48. | HIIP Investment Co., LLC | Delaware | Members: 40%: Herbalife International, Inc. 30%: Imitiaz Ebrahim 30%: Bimla Julie Holait | n/a | Non-Guarantor | |||||
49. | Limited Liability Company Herbalife International RS | Russian Federation | Members: 99%: Herbalife International Luxembourg S.a.R.L. 1%: Herbalife International | n/a | Non-Guarantor | |||||
Holding |
3.06(a)-4
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | shares | Non-Guarantor | ||||||
50. | Herbalife International of America, Inc. | Nevada | 2,000,000 shares | 1,171,278 shares | Guarantor | |||||
51. | Herbalife International Communications, Inc. | California | 1,000 shares | 100 shares | Guarantor | |||||
52. | Herbalife International Distribution, Inc. | California | 1,000 shares | 100 shares | Guarantor | |||||
53. | Herbalife International of Europe, Inc. | California | 1,000 shares | 100 shares | Guarantor | |||||
54. | Promotions One, Inc. | California | 1,000 shares | 1,000 shares | Non-Guarantor | |||||
55. | Herbalife International de Colombia, Inc. | California | 1,000 shares | 100 shares | Non-Guarantor | |||||
56. | Herbalife International South Africa, Ltd. | California | 1,000 shares | 100 shares | Non-Guarantor | |||||
57. | Herbalife International del Ecuador, Inc. | California | 1,000 shares | 100 shares | Non-Guarantor | |||||
58. | Herbalife Taiwan, Inc. | California | 1,000 shares | 100 shares | Guarantor | |||||
59. | Herbalife International (Thailand) Ltd. | California | 1,000 shares | 100 shares | Guarantor | |||||
60. | WH Capital Corporation | Nevada | 1,000 shares | 200 shares | Guarantor | |||||
61. | WH Intermediate Holdings Ltd. | Cayman Islands | 50,000 shares | 40,001 shares | Guarantor | |||||
62. | HBL Ltd. | Cayman Islands | 50,000 shares | 100 share | Guarantor | |||||
63. | HV Holdings Ltd. | Cayman Islands | 50,000 shares | 1 share | Guarantor | |||||
64. | Herbalife Distribution Ltd. | Cayman Islands | 50,000 shares | 1 share | Guarantor | |||||
65. | WH Luxembourg Intermediate Holdings | Luxembourg | 23,496 shares | 23,496 shares | Guarantor |
3.06(a)-5
# of issued and | ||||||||||
Jurisdiction of | # of authorized | outstanding | Guarantor/ | |||||||
Name | Incorporation | shares | shares | Non-Guarantor | ||||||
S.a.R.L. | Delaware | n/a | n/a | |||||||
66. | Herbalife International Luxembourg S.aR.L. | Luxembourg | 50 shares | 50 shares | Guarantor | |||||
67. | HLF Luxembourg Holdings S.a.R.L. | Luxembourg | 496 shares | 496 shares | Guarantor | |||||
68. | WH Luxembourg Holdings S.a.R.L. | Luxembourg | 23,636 shares | 23,636 shares | Guarantor | |||||
69. | Herbalife Luxembourg Distribution S.a.R.L. | Luxembourg | 125 shares | 125 shares | Guarantor | |||||
70. | HIL Swiss International GmBH | Switzerland | 20,000 shares | 20,000 shares | Guarantor |
Subsidiary | Shareholders | Number of Shares | ||||
Herbalife International France | Gregory L. Probert | I | ||||
PT Herbalife Indonesia | Benny Hoedoro Hoed | 275 | ||||
Willy Siwu | 275 | |||||
Herbalife International | Gregory L. Probert | 1 | ||||
Gary Huang | 1 | |||||
Abelardo M. Tolentino Jr. | 1 | |||||
J. Harvey P. Ringler | 1 | |||||
Richard Goudis | 1 | |||||
HBL Products. SA | Gregory L. Probert | 1 | ||||
David Steel | 1 | |||||
G. Gard | 1 | |||||
HIIP Investment Co., LLC | Imtiaz Ebrahim | 30 | % | |||
Bimla Julie Holiat | 30 | % | ||||
Herbalife International India Private Limited | HIIP Investment Co., LLC | 24 | % | |||
Herbalife Products Malaysia SDN. BHD | Naraliza Ayub | 750,000 | ||||
Mohd Dehalan Ahmad | 750,000 | |||||
HIL Swiss International GmBH | Robert A. Landolt | 1,000 |
3.06(a)-6
3.07-1
3.08-1
3.18-1
Worldwide Insurance Policies
POLICY | CARRIER | |||||
INSURANCE TYPE | KEY COVERAGES | REFERENCE | Add’l Notes | |||
Policy Period 11/19/05 to 11/19/06 | ||||||
Products Liability Bodily injury and property damages resulting from our products $10 mil. Self-insured retention | Worldwide $15 mil. over $10 mil., excludes Ephedra, each occurrence and in aggregate Claims made, Excludes product recall | 959-1005-CLM-2005 | Max Re Ltd., Bermuda | |||
Excess Products Liability Bodily injury and property damages resulting from our products 2nd Excess - New Layer | Worldwide $15 mil excess $25 mil, excludes Ephedra Following form, Claims Made $10 mil excess $40 mil, excludes Ephedra Maintenance SIR $250,000 | C004188/001 ELU722724/01/2005 | Allied World Assurance AXIS Surplus Insurance | |||
Policy Period 12/1/05 to 12/1/06 | ||||||
Property Coverage R.E.,T.I., Personal Prop., EDP, Inventory, Business Income, etc. | Worldwide $75 mil. per occurrence, $10k Deduct. $25 mil. Earthquake in Japan $10 mil. Earthquake in Cal./$15 $15 mil Other $25 mil Flood anywhere Deductible= 5% of value, min. $100k Inventory in Foreign warehouses | 05DM00460000 | Assicurazionni General | |||
Difference in Conditions Property R. E., T. I., Personal Prop., EDP, Inventory, Business Income, etc. | USA Earthquake, flood, EQ sprinkler $30 mil. excess over Generall Includes Memphis | XHO216044200 | ICW, Essex & Lioyd’s | |||
Marine Open Cargo Inventory only - all movements Includes inter and intra movements in foreign countries (Pays loss at cost plus 50%) Includes TRIA | Worldwide Ocean- $2 mil per occur/aggreg. Truck, rail, air - $1 mil per occurrence Carson Warehouse = $12 mil. Memphis Warehouse = $6 mil. Misc locations= $250k/ On Deck $750k Deductible $10k Whse / $5k per shipment | AH85762 | American Home Assurance Includes exhibition coverage $500k | |||
Foreign Package ($2m) Personal injury liability/B.I. | Worldwide except USA & Canada $2 mil general aggregate / $1 mil each | CXC046609 | ACE USA |
1 of 3
POLICY | CARRIER | |||||
INSURANCE TYPE | KEY COVERAGES | REFERENCE | Add’l Notes | |||
Policy Period 12/16/05 to 12/15/06 | ||||||
Directors & Officers Liability Protects Directors, Officers and Corporation from liability claims for errors, breaches and wrongful acts Claims made polices Side A, B and C coverage Excess Side A DIC Coverage Drop down, no rescission, Side A only | Worldwide $10 mil. aggregate / $2.5m retention $10 mil Excess $10 mil. $10 mil Excess $20 mil. $10 mil Excess $30 mil. $10 mil Excess $40 mil. $10 mil Excess $50 mil. $10 mil Excess $60 mil. $10 mil Excess $70 mil. $10 mil Excess $80 mil. $10 mil Excess $90 mil. $15 mil Ex $100m $10 mil Ex $115m | |||||
68038285 NHS620432 DOX000400601 NY05DOL076541NV V051970 03032247 201390-015 DOXG21944001 C004341/002 4118236 ELU9084805 6802-0037 | Federal (Chubb) RSUI ARCH Navigators Lloyd’s of London Darwin/Platte River Liberty Mutual Ins Co. ACE AWAC Starr Excess XL Insurance Surety Federal (Chubb) | |||||
Employment Practices Liability Wrongful terminations, discrimination, harassments, etc | Worldwide $5 mil. Per claim & aggregate $250k deductible 3rd Party Coverage | V052052 | Lloyd’s of London | |||
Crime Employee dishonesty, fraud, forgery, counterfeit currency | Worldwide $5 mil. on dishonesty, forgery, computer Inside/Outside Premises deductibles $50k/$10k | FI4N411659001 | Liberty Mutual | |||
Fiduciary Liability Wrongful acts & breach of responsibilities on employee benefit plans & ERISA compliance | USA $20 mil aggregate limit $25k deductible pays cost of defense and fines | 81705438 | Federal Insurance (Chubb) | |||
Renewal 12/31/05 to 12/30/06 | ||||||
Workers, Compensation Statutory worker’s injury coverage Loss Retrospective Rating Plan | USA $1 mil. Bodily Injury; $250k SIR 3 annual premium adjustments-plan closes at 30th month after expiration | TRJUB419J720905 | St PaulTravelers Insurance |
2 of 3
POLICY | CARRIER | |||||
INSURANCE TYPE | KEY COVERAGES | REFERENCE | Add’l Notes | |||
Policy Period 2/18/06 to 2/18/07 | ||||||
Employed Lawyer’s Liability covers wrongful acts by corporate counsel, legal staff, organization, and defense cost (licensed legal professional) | Worldwide $10 mil. Claim/aggregate; $5m securities Retention: $100k Indemnifiable; $5k non-indemnity; retro 7-31-02 | 006259454 | American Int’l Speciality Ins. Co. (Increased from $5m to $10m) | |||
Policy Period 2/14/06 to 2/14/07 | ||||||
Commercial General Liability Personal Injury liability / B.I. | USA $2 mil general aggregate/ $1 m occur | XSLG23711229 | ACE (Illinois Union) | |||
Business Auto USA Autos — 4 Vans/GMC Yukon/Mini | USA $1 mil. B.I. & Liability | 72UECTQ3272 | The Hartford | |||
Umbrella Liability All liability, excess over CGL, Auto, foreign policies Excess Umbrella Liability | Worldwide $25 mil per occurrence & aggregate Excess $2m ACE, No deductible $25 mil excess $27m of ASLIC | BE8854718 EXC9251453 | Amer Int’l Specialty Lines (AIG) Great Amer. Ins. Co | |||
MULTI YEAR POLICY EXTENSIONS | ||||||
Period 6/1/06 to 6/1/09 | ||||||
Kidnap, Ransom & Extortion Covers kidnapping & ransoms paid for Insured person, relative or guest | Worldwide, 3 year policy, $50 mil. Limit no deductible, Incl. repatriation costs Various sub-limits on injuries | 647-9384 | Nation Union Fire Ins | |||
Period 11/19/04 to 11/19/07 | ||||||
Products Liability Extended Reporting Period Extended Reporting Period | $25 mil ex $10 mil SIR, Includes Ephedra each occurrence & aggreagate $5 mil ex $35 mil, includes ephedra | AEC 3670881 04 XLX 00710157 Surplus lines tax | American Guarantee (Zurich) Clarendon America | |||
Renewal 4/1/03 to 4/1/06 | ||||||
Products Liability Extended Reporting Period for 4-1-01 to 4-1-03. Extends Reporting Period 3 years to 4-06 | $10 mil. Over $35m, Includes Ephedra, 3yr | C-000181 | Allied World Assurance |
3 of 3
1. | Maples and Calder — Cayman Islands | |
2. | Anderson Mori & Tomotsune — Japan | |
3. | Arendt & Medernach — Luxembourg | |
4. | Basham, Ringe y Correa, S.C. — Mexico | |
5. | SJ Berwin — UK | |
6. | LT — Lenz Thiébaud — Switzerland | |
7. | Schreck Brignone — Nevada |
4.02(g)-1
1. | On or prior to October 21, 2006, Borrower shall deliver to Administrative Agent evidence that: |
2. | Unless waived in writing by Collateral Agent, in its sole discretion, Collateral Agent shall receive a fully executed deposit account control agreement by and among Herbalife International of America, Inc., as pledgor, the Collateral Agent, and SunTrust Bank, as the financial institution relating to account numbers 102-6905 and 102-7960 in the name of Herbalife International of America, Inc. |
3. | Unless waived in writing by Collateral Agent, in its sole discretion, Collateral Agent shall receive a fully executed blocked account control agreement by and among the Borrower, the Collateral Agent, and HSBC Bank USA, National Association (the “Depository”), relating to a collateral account to be established with the Depository. |
4. | Borrower shall use commercially reasonable efforts to remove the liens granted in favor of Morgan Stanley&Co. Incorporated in connection with the Existing Credit Agreement. |
Korea: | Outstanding guarantee with MA & CO (Direct Sales Nutual Aid Corp) | |
Terms: March 17, 2006 thru. March 16, 2007 | ||
Amounts: KRW 460,000,000 | ||
Details: Bank deposits to guarantee Herbalife Korea’s payment on expenses of returning goods and related cost paid by MA & CO. to end customers in advance on behalf of Herbalife Korea. | ||
Terms: May 25, 2006 thru. May 25, 2007 | ||
Amounts: KRW 1,260,000,000 | ||
Details: Bank deposits to guarantee Herbalife Korea’s payment on expenses of returning goods and related cost paid by MA & CO. to end customers in advance on behalf of Herbalife Korea. | ||
Israel: | Rental lien (beneficiaries: O. Segal & A. Shkolnik). These two guarantees were raised to assure that HIL meets all rental fees & obligations towards the owners of the premises; total $22,000. (Per contract signed between all parties.) | |
Laboratory Analysis; beneficiary — MOH. This was issued to assure that any shipment imported by HIL can be checked at random by the Food Services of the MOH, and subjected to a lab analysis. If we refuse or disobey in anyway-the guarantee will be initialized immediately, in addition to various import restrictions, etc. This is standard procedure for food & food supplementary companies. Current guarantee - $5,000. |
Lending Country | Borrowing Country | LOAN DATE | Currency | As of 06/30/2006 | ||||||
BELGIUM | LUX | 7/18/2005 | EUR | 1,400,000.00 | ||||||
CAYMAN | LUX | 1/14/2004 | EUR | 156,158,365.00 | ||||||
DENMARK | LUX | 10/28/2005 | DKK | 8,000,000.00 | ||||||
FINLAND | HEL | 11/11/2005 | EUR | 700,000.00 | ||||||
FINLAND | SWEDEN | 9/23/2005 | EUR | 500,000.00 |
6.01-1
Lending Country | Borrowing Country | LOAN DATE | Currency | As of 06/30/2006 | ||||||
FRANCE | LUX | 5/3/2005 | EUR | 6,000,000.00 | ||||||
GERMANY | LUX | 1/31/2005 | EUR | 6,000,000.00 | ||||||
HIAI | KOREA | 4/7/2006 | KRW | 7,000,000,000.00 | ||||||
HIAI | TURKEY | 1/16/2006 | TRY | 2,050,000.00 | ||||||
HIAI | TURKEY | 2/27/2006 | TRY | 1,500,000.00 | ||||||
HUK | HEL | 6/24/2003 | GBP | 600,000.00 | ||||||
HUK | HII | 4/23/2003 | GBP | 1,800,000.00 | ||||||
ISRAEL | HII | 9/27/2005 | US$ | 1,000,000.00 | ||||||
ISRAEL | HII | 3/22/2006 | US$ | 200,000.00 | ||||||
ITALY | LUX | 2/25/2005 | EUR | 9,400,000.00 | ||||||
JAPAN | HIL-SWISS | 12/15/2005 | JPY | 2,077,476,232.00 | ||||||
LUX | HUNGARY | 10/28/2005 | EUR | 175,000.00 | ||||||
LUX | CHINA | — | US$ | 2,561,737.54 | ||||||
LUX | CHINA | — | US$ | 15,613,000.00 | ||||||
LUX | LUX | 12/17/2004 | EUR | 687,522,442.13 | ||||||
NETHERLANDS | HII | 8/9/2004 | EUR | 750,000.00 | ||||||
NEW ZEALAND | LUX | 12/15/2005 | NZD | 1,000,000.00 | ||||||
NORWAY | LUX | 7/22/2005 | NOK | 10,000,000.00 | ||||||
POLAND | LUX | 12/16/2005 | PLN | 2,500,000.00 | ||||||
PORTUGAL | LUX | 3/22/2006 | EUR | 2,500,000.00 | ||||||
RUSSIA95 | LUX | 3/22/2006 | USD | 750,000.00 | ||||||
SPAIN | LUX | 3/22/2006 | EUR | 3,500,000.00 | ||||||
SWEDEN | HII | 5/8/2002 | SEK | 7,400,000.00 | ||||||
SWEDEN | HII | 9/24/2004 | SEK | 11,100,000.00 | ||||||
TAIWAN | LUX | 3/22/2006 | TWD | 162,000,000.00 |
6.01-2
Israel: | Rental lien (beneficiaries: O. Segal&A. Shkolnik). These two guarantees were raised to assure that HIL meets all rental fees & obligations towards the owners of the premises; total $22,000. (Per contract signed between all parties.) | |
Laboratory Analysis; beneficiary — MOH. This was issued to assure that any shipment imported by HIL can be checked at random by the Food Services of the MOH, and subjected to a lab analysis. If we refuse or disobey in anyway-the guarantee will be initialized immediately, in addition to various import restrictions, etc. This is standard procedure for food & food supplementary companies. Current guarantee - $5,000. | ||
$237k ($237,000), against the First International Bank of Israel, the lien holder. This lien was established in order to ensure our credit terms with the bank, per the July 1st 2006 regulations of the Bank of Israel. We currently have two major accounts in this bank, one a regular checking account, the other a royalty account. |
Terms are as follows: | General checking account: NIS 500,000 | |
Royalty account: NIS 500,000 |
6.02-1
6.03-1
INTERCOMPANY LOANS
INTEREST INCOME/EXPENSE AS OF 06/30/2006
Amt excluding interest | ||||||||||||||
Lending Country | Currency | Borrowing Country | LOAN DATE | Currency | As of 06/30/2006 | |||||||||
BELGIUM | NON-GUARANTOR | EUR | LUX | 7/18/2005 | EUR | 1,400,000.00 | ||||||||
DENMARK | NON-GUARANTOR | DKK | LUX | 10/28/2005 | DKK | 8,000,000.00 | ||||||||
FINLAND | NON-GUARANTOR | EUR | HEL | 11/11/2005 | EUR | 700,000.00 | ||||||||
FINLAND | NON-GUARANTOR | EUR | SWEDEN | 9/23/2005 | EUR | 500,000.00 | ||||||||
FRANCE | NON-GUARANTOR | EUR | LUX | 5/3/2005 | EUR | 6,000,000.00 | ||||||||
GERMANY | NON-GUARANTOR | EUR | LUX | 1/31/2005 | EUR | 6,000,000.00 | ||||||||
HIAI | GUARANTOR | KRW | KOREA | 4/7/2006 | KRW | 7,000,000,000.00 | ||||||||
HIAI | GUARANTOR | TRY | TURKEY | 1/18/2006 | TRY | 2,050,000.00 | ||||||||
HIAI | GUARANTOR | TRY | TURKEY | 2/27/2006 | TRY | 1,500,000.00 | ||||||||
HUK | GUARANTOR | GBP | HEL | 6/24/2003 | GBP | 600,000.00 | ||||||||
HUK | GUARANTOR | GBP | HII | 4/23/2003 | GBP | 1,800,000.00 | ||||||||
ISRAEL | NON-GUARANTOR | US$ | HII | 9/27/2005 | US$ | 1,000,000.00 | ||||||||
ISRAEL | NON-GUARANTOR | US$ | HII | 3/22/2006 | US$ | 200,000.00 | ||||||||
ITALY | NON-GUARANTOR | EUR | LUX | 2/25/2005 | EUR | 9,400,000.00 | ||||||||
JAPAN | GUARANTOR | JPY | HIL-SWISS | 12/15/2005 | JPY | 2,077,476,232.00 | ||||||||
LUX | GUARANTOR | EUR | HUNGARY | 10/28/2005 | EUR | 175,000.00 | ||||||||
LUX | GUARANTOR | US$ | CHINA | US$ | $ | 2,581,737.54 | ||||||||
LUX | GUARANTOR | US$ | CHINA | US$ | $ | 15,613,000.00 | ||||||||
NETHERLANDS | NON-GUARANTOR | EUR | HII | 8/9/2004 | EUR | 750,000.00 | ||||||||
NEW ZEALAND | NON-GUARANTOR | NZD | LUX | 12/15/2005 | NZD | 1,000,000.00 | ||||||||
NORWAY | NON-GUARANTOR | NOK | LUX | 7/22/2005 | NOK | 10,000,000.00 | ||||||||
POLAND | NON-GUARANTOR | PLN | LUX | 12/16/2005 | PLN | 2,500,000.00 | ||||||||
PORTUGAL | NON-GUARANTOR | EUR | LUX | 3/22/2006 | EUR | 2,500,000.00 | ||||||||
RUSSIA95 | NON-GUARANTOR | USD | LUX | 3/22/2006 | USD | 750,000.00 | ||||||||
SPAIN | NON-GUARANTOR | EUR | LUX | 3/22/2006 | EUR | 3,500,000.00 | ||||||||
SWEDEN | NON-GUARANTOR | SEK | HII | 5/8/2002 | SEK | 7,400,000.00 | ||||||||
SWEDEN | NON-GUARANTOR | SEK | HII | 9/24/2004 | SEK | 11,100,000.00 | ||||||||
TAIWAN | GUARANTOR | TWO | LUX | 3/22/2006 | TWD | 162,000,000.00 |
ADMINISTRATIVE QUESTIONNAIRE
Lending Institution: | ||||||||
Name for Signature Pages: | ||||||||
Will sign Agreement | o | |||||||
Will come via Assignment | o | Number of Days post-closing: | ||||||
Name for Signature Blocks: | ||||||||
Name for Publicity: | ||||||||
Address: | ||||||||
Main Telephone: | ||||||||
Telex No./Answer back: | ||||||||
Credit: | Name: | |||
Address: | ||||
Telephone: | ||||
Fax: | ||||
Operations: | Name: | |||
Address: | ||||
Telephone: | ||||
Fax: | ||||
Bank Name: | ||
ABA/Routing No. | ||
Account Name | ||
Account No. | ||
For further credit | ||
Account No. | ||
Attention: | ||
Reference: | ||
Merrill Lynch Capital Corporation 4 World Financial Center, 22nd Floor New York, New York 10080 Main Telephone: (212) 449-2879 Wire Instructions: | Account Administrator Attn: Jennifer Cunningham Tel: (312)750-6232 Fax: (312)499-3336 Bank Name: LaSalle Bank Address: 135 South LaSalle Street Chicago, IL. 60603 ABA #: 071000505 Acct Name: MLCC-Leveraged Finance Acct #: 5800965153 | Secondary Contact Attn: Marisol Esquivel Tel: (312) 499-3953 Fax: (312) 499-3336 |
Exhibit A-1
ASSIGNMENT AND ACCEPTANCE
Exhibit B-1
6. Date of Assignment: | ||||||||
7. Legal Name of the Assignor: | ||||||||
8. Legal Name of the Assignee: | ||||||||
9. The Assignee’s Address for Notices: | ||||||||
Tel.: (_) | ||||||||
Fax: (_) | ||||||||
Percentage Assigned of | ||||||||
Applicable Loan/Commitment | ||||||||
(set forth to at least 8 decimals as | ||||||||
a percentage of the aggregate | ||||||||
Loans or the aggregate | ||||||||
Commitments of all Lenders, as | ||||||||
Loan/Commitment | Principal Amount Assigned | applicable) | ||||||
[Term Loans] | $ | % | ||||||
[Revolving Loans] | $ | % | ||||||
[Letters of Credit] | $ | % | ||||||
Exhibit B-2
The terms set forth above are hereby agreed to: [ ], as Assignor | ||||||
By: | ||||||
Title: | ||||||
[ ], as Assignee | ||||||
By: | ||||||
Title: |
By: | ||||
Title: | ||||
MERRILL LYNCH CAPITAL CORPORATION, as Administrative Agent | ||||
By: | ||||
Title: |
* | To be completed to the extent consent is required under Section 11.04(b) of the Credit Agreement. |
Exhibit B-3
BORROWING REQUEST
as Administrative Agent for
the Lenders referred to below
4 World Financial Center, 22nd Floor
New York, New York 10080
Attention: Nancy Meadows
Fax: (212) 738-1186
Re: Herbalife International, Inc.
(A) | Class of Borrowing: | [Revolving Loan] [Term Loan] | ||
(B) | Principal amount of Borrowing:a | $[ ] | ||
(C) | Date of Borrowing (which is a Business Day): | [ ] | ||
(D) | Type of Borrowing: | [ABR] [Eurodollar] | ||
(E) | Interest Period and the last day thereof:b | [ ] |
(F) | Funds are requested to be disbursed to Borrower’s account with Merrill Lynch Capital Corporation (Account No. [ ]). |
a | Loans comprising any Borrowing must be in an aggregate principal amount that is (i) an integral multiple of $1,000,000 or (ii) equal to the remaining available balance of the applicable Commitments. | |
b | Shall be subject to the definition of the term “Interest Period” in the Credit Agreement. |
Exhibit C-1
HERBALIFE INTERNATIONAL, INC. | ||||||
By: | ||||||
Title: |
Exhibit C-2
INTEREST ELECTION REQUEST
as Administrative Agent for
the Lenders referred to below
4 World Financial Center, 22nd Floor
New York, New York 10080
Attention: Nancy Meadows
Fax: (212) 738-1186
Re:Herbalife International, Inc.
* | Only available for the purpose of minimizing breakage costs in connection with a proposed prepayment of all or a portion of the Loans. | |
** | Only if available to all Lenders. | |
*** | Shall be subject to the definition of the term “Interest Period” in the Credit Agreement. |
Exhibit D-1
HERBALIFE INTERNATIONAL, INC. | ||||||
By: | ||||||
Title: |
Exhibit D-2
U.S. SECURITY AGREEMENT
Exhibit F-1
WH INTERMEDIATE HOLDINGS LTD.,
HBL LTD.,
WH LUXEMBOURG HOLDINGS S.à.R.L.,
HLF LUXEMBOURG HOLDINGS S.à.R.L.,
WH CAPITAL CORPORATION,
WH LUXEMBOURG INTERMEDIATE HOLDINGS S.à.R.L.,
HERBALIFE INTERNATIONAL LUXEMBOURG S.à.R.L.,
HV HOLDINGS LTD.,
HERBALIFE DISTRIBUTION LTD,
HERBALIFE LUXEMBOURG DISTRIBUTION S.à.R.L.,
THE SUBSIDIARY GUARANTORS PARTY HERETO,
as Pledgors
as Collateral Agent
ARTICLE I Definitions and Interpretation; Perfection Certificate | 2 | |||
SECTION 1.01. Definitions | 2 | |||
SECTION 1.02. Interpretation | 8 | |||
SECTION 1.03. Perfection Certificate | 8 | |||
ARTICLE II Grant of Security and Secured Obligations | 7 | |||
SECTION 2.01. Pledge | 7 | |||
SECTION 2.02. Certain Limited Exclusions | 9 | |||
SECTION 2.03. Secured Obligations; Continuing Liability | 9 | |||
ARTICLE III Perfection; Supplements; Further Assurances; Use of Security Agreement Collateral | 10 | |||
SECTION 3.01. Delivery of Certificated Securities Collateral | 10 | |||
SECTION 3.02. Perfection of Uncertificated Securities Collateral | 10 | |||
SECTION 3.03. Financing Statements and Other Flings | 10 | |||
SECTION 3.04. Other Actions | 11 | |||
SECTION 3.05. Supplements; Further Assurances | 14 | |||
ARTICLE IV Representations, Warranties and Covenants | 15 | |||
SECTION 4.01. Title | 15 | |||
SECTION 4.02. Organization; Authority; Enforceability | 15 | |||
SECTION 4.03. Authorizations and Approvals | 15 | |||
SECTION 4.04. Reserved | 16 | |||
SECTION 4.05. Limitation on Liens | 16 | |||
SECTION 4.06. Other Financing Statements | 16 | |||
SECTION 4.07. Chief Executive Office; Change of Name; Jurisdiction of Organization | 16 | |||
SECTION 4.08. Certain Provisions Concerning Securities Collateral | 17 | |||
SECTION 4.09. Certain Provisions Concerning Intellectual Property | 18 | |||
SECTION 4.10. Inspection and Verification | 20 | |||
SECTION 4.11. Payment of Taxes; Contesting Liens; Claims | 21 | |||
SECTION 4.12. Transfers and Other Liens | 21 | |||
SECTION 4.13. Insurance | 21 | |||
ARTICLE V Remedies | 21 | |||
SECTION 5.01. Remedies | 21 | |||
SECTION 5.02. Notice of Sale | 23 | |||
SECTION 5.03. Waiver of Notice and Claims | 23 | |||
SECTION 5.04. Certain Sales of Security Agreement Collateral | 24 | |||
SECTION 5.05. No Waiver; Cumulative Remedies | 24 | |||
ARTICLE VI Obligations Absolute; Waivers | 25 | |||
SECTION 6.01. Liability of the Pledgors Absolute | 25 | |||
SECTION 6.02. General Waivers | 26 | |||
SECTION 6.03. California Waivers | 27 | |||
ARTICLE VII Miscellaneous | 27 | |||
SECTION 7.01. Concerning Collateral Agent | 27 | |||
SECTION 7.02. Collateral Agent May Perform; Collateral Agent Appointed Attorney-in-Fact | 28 |
- i -
SECTION 7.03. Expenses | 29 | |||
SECTION 7.04. Indemnity | 29 | |||
SECTION 7.05. Continuing Security Interest; Assignment | 30 | |||
SECTION 7.06. Termination; Release | 30 | |||
SECTION 7.07. Modification in Writing | 30 | |||
SECTION 7.08. Notices | 30 | |||
SECTION 7.09. Governing Law; Jurisdiction; Consent to Service of Process | 31 | |||
SECTION 7.10. WAIVER OF JURY TRIAL | 31 | |||
SECTION 7.11. Severability of Provisions | 32 | |||
SECTION 7.12. Execution in Counterparts | 32 | |||
SECTION 7.13. Business Days | 32 | |||
SECTION 7.14. No Credit for Payment of Taxes or Imposition | 32 | |||
SECTION 7.15. No Claims Against Collateral Agent | 32 | |||
SECTION 7.16. No Release Under Agreements; No Liability of Collateral Agent or Secured Parties | 32 | |||
SECTION 7.17. Obligations Absolute | 33 | |||
SECTION 7.18. Marshaling; Payments Set Aside | 33 | |||
SECTION 7.19. Release of Pledgors | 33 |
EXHIBITS | ||
Exhibit A | Form of Issuer Acknowledgment |
- ii -
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
ISSUER ACKNOWLEDGMENT
[NAME OF ISSUER] | ||||||
By: | ||||||
Title: |
A-1
INTERCOMPANY PROMISSORY NOTE
$[_____] | New York, New York [Date] |
* | The bracketed portion shall be included only if both Payor and Payee are Loan Parties. |
[NAME OF PAYOR] | ||||||
By: | ||||||
Title: | ||||||
[NAME OF PAYEE] | ||||||
By: | ||||||
Title: |
Exhibit G-3
JOINDER AGREEMENT
[NEW GUARANTOR] | ||||||
By: | ||||||
Title: | ||||||
Acknowledged by: | ||||||
MERRILL LYNCH CAPITAL CORPORATION, | ||||||
as Administrative Agent | ||||||
By: | ||||||
Title: | ||||||
MERRILL LYNCH CAPITAL CORPORATION, | ||||||
as Collateral Agent | ||||||
By: | ||||||
Title: |
PERFECTION CERTIFICATE
I. | Names/Locations. |
A. | Legal Names, Organizations, Jurisdictions of Organization andOrganizational Identification Numbers. The full and exact legal name (as it appears in each respective certificate or articles of incorporation, limited liability membership agreement or similar organizational documents, in each case as amended to date), the type of organization, the jurisdiction of organization (or formation, as applicable), and the organizational identification number of each Loan Party are as follows: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | ||||||||||||||||
B. | Changes in Names, Jurisdiction of Organization or Corporate Structure. Except as set forth below and for the Transactions, no Loan Party has changed its name, jurisdiction of organization or corporate structure in any way (whether by merger, consolidation, change in corporate form, change in jurisdiction of organization or otherwise) within the past year: |
Borrower/Guarantor | Date of Change | [ILLEGIBLE] | |||||||||
C. | Chief Executive Offices and Mailing Addresses. For each Loan Party, the address of its chief executive office, and its preferred mailing address (if different from the address of the chief executive office), is set forth below: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||
II | Information regarding Securities Agreement Collateral. |
A. | Prior Chief Executive Offices. Except as set forth below, noLoan Party has changed its chief executive office within the five years preceding December 21, 2004: |
[ILLEGIBLE] | [ILLEGIBLE] | |||
B. | Tangible Personal Property. For each Loan Party, a complete list of the locations where such Loan Party maintained any of its tangible personal property within the five years preceding December 21, 2004 are set forth below: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | ||||||
C. | Securities Collateral. For each Loan Party, set forth below is a list of all Equity Interests owned together with the type of organization that issued such Equity Interests (e.g., corporation, limited liability company, partnership or trust): |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | ||||||||||||||||||||||||||||||||
D. | Securities Accounts. For each Loan Party, set forth below is a list of all Securities Accounts in which such Loan Party maintains securities or other Financial Assets: |
Borrower/Guarantor | Type of Account | [ILLEGIBLE] | ||||||
E. | Deposit Accounts. With respect to each Loan Party, set forth below is a list of all Deposit Accounts: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||
F.Debt Instruments. Set forth below is a list of all Instruments owed to any of the Loan Parties: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||||||||||||||
G.Intercompany Indebtedness. Set forth below is a complete and accurate list of all Intercompany Indebtedness as of the Closing Date: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||||||||
H. | Intellectual Property. For each Loan Party, set forth below is a list of all copyrights, patents, trademarks, and other intellectual property owned or used, or hereafter adopted, held or used: |
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||||||||||||||
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||||||||||||||
[ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | [ILLEGIBLE] | |||||||||||||||||||||
I.Commercial Tort Claims.For each Loan Party, set forth below is a complete list of all commercial tort claims held by such Loan Party, including a brief description of each. |
Borrower/Guarantor | Claim | [ILLEGIBLE] | |||||||||
By: | ||||||
Title: |
REVOLVING NOTE
$[_____] | New York, New York | |
[Date] |
HERBALIFE INTERNATIONAL, INC., as Borrower | ||||
By: | ||||
Name: | ||||
Title: |
TERM NOTE
$[_____] | New York, New York | |
[Date] |
HERBALIFE INTERNATIONAL, INC., as Borrower | ||||
By: | ||||
Name: | ||||
Title: |
FINANCIAL OFFICER’S COMPLIANCE CERTIFICATE
1. | No Default or Event of Default has occurred and is continuing as of the date hereof [, except as set forth below [specify the nature and extent of all Defaults, and any corrective action taken or proposed to be taken with respect thereto]]. | ||
2. | As of [_____], being the end of Borrower’s last fiscal [quarter/year] (the“Computation Date”): |
a. | Holdings’ Leverage Ratio was [_____]:1.00, as computed on Attachment 1 hereto; | ||
b. | Holdings’ Consolidated Interest Coverage Ratio was [_____]:1.00, as computed on Attachment 2 hereto; and | ||
d. | Holdings’ Capital Expenditures were $[_____]; |
3. | For the fiscal year ending on the Computation Date, Excess Cash Flow of Holdings was $[_____] (as computed on Attachment 3 hereto).* | ||
4. | The financial covenant analyses and information set forth in this Certificate and on Attachments 1 through 6 hereto are true and correct on and as of the date hereof. |
* | To be included in certificates delivered with annual financial statements only. |
By: | ||||
Name: | ||||
Title: | ||||
TO COMPLIANCE CERTIFICATE
1. Consolidated Indebtedness (item 12 of Attachment 5): | $ | [______] | ||
2. Consolidated EBITDA (item 4 of Attachment 4): | $ | [______] | ||
3. Leverage Ratio (item 1divided byitem 2): | [______]:1.00 | |||
4. Maximum Leverage Ratio: | 2.50:1.00 |
TO COMPLIANCE CERTIFICATE
1. Consolidated EBITDA (item 4 of Attachment 4): | $ | [_________] | ||
2. Consolidated Interest Expense (item 3 of Attachment 6):* | $ | [_________] | ||
3. Consolidated Interest Coverage Ratio (item 1divided byitem 2): | [_____]:1.00 | |||
4. Minimum Consolidated Interest Coverage Ratio: | 4.00:1.00 |
* | Computed for the period consisting of the fiscal quarter ending on the Computation Date and each of the three immediately preceding fiscal quarters of Parent;provided that, if the applicable four-fiscal-quarter period would include any period of time before the Closing Date, Consolidated Interest Expense shall be determined on an Annualized Basis. |
TO COMPLIANCE CERTIFICATE
1. Consolidated EBITDA for such fiscal year (item 4 on Attachment 4): | $ | [________] | ||
2. Losses from Asset Sales: | $ | [________] | ||
3. Reduction to noncash working capital for such fiscal year (i.e., the decrease, if any, in Consolidated Current AssetsminusConsolidated Current Liabilities from the beginning to the end of such fiscal year): | $ | [________] | ||
4. Cash income taxes payable with respect to such fiscal year: | $ | [________] | ||
5. Consolidated Interest Expense (item 3 on Attachment 6): | $ | [________] | ||
6. Capital Expenditures made in cash in accordance with Section 6.07(c) of the Credit Agreement during such fiscal year, to the extent funded from internally generated funds: | $ | [________] | ||
7. Permanent repayments of Indebtedness during such fiscal year (including payments of principal in respect of the Revolving Loans to the extent there is an equivalent reduction in the Revolving Commitments): | $ | [________] | ||
8. Aggregate cash payments made in respect of the Tax Indemnity (not to exceed $15 million in any fiscal year): | $ | [________] | ||
9. Additions to non-cash working capital for such fiscal year (i.e., the increase, if any, in Consolidated Current AssetsminusConsolidated Current Liabilities from the beginning to the end of such fiscal year): | $ | [________] | ||
10. Gains from Asset Sales: | $ | [________] | ||
11. Excess Cash Flow (sum of item 1 through item 3minussum of item 4 through item 10): | $ | [________] |
* | Computed for the period consisting of Holdings’ fiscal year ending on the Computation Date. |
TO COMPLIANCE CERTIFICATE
1. Consolidated Net Income of Holdings: | $ | [_____] | ||
2. Amounts deducted in determining Consolidated Net Incomeb | ||||
(a) Consolidated Interest Expense (item 3 on Attachment 6, subject to footnote b below): | $ | [_____] | ||
(b) Provision for taxes based on income: | $ | [_____] | ||
(c) Depreciation | $ | [_____] | ||
(d) Amortization (including amortization of deferred fees and the accretion of original issue discount): | $ | [_____] | ||
(e) Other non-cash items subtracted in determining Consolidated Net Income (including noncash compensation charges arising from any grant of stock, stock options, or other equity-based awards, and non-cash losses or charges related to impairment of goodwill and other intangible assets; but excluding non-cash charges that result in an accrual of a reserve for cash charges in any future period): | $ | [_____] | ||
$ | [_____] | |||
(f) Nonrecurring expenses and charges: | ||||
(g) Transaction Costs: | $ | [_____] | ||
(h) Aggregate cash payments made in respect of the Tax Indemnity (not to exceed $15 million for any fiscal year): | ||||
(i) Sum of items 2(a) through 2(i): | $ | [_____] | ||
3. Amounts added in determining Consolidated Net Incomeb | ||||
(a) Non-cash items to the extent added in determining Consolidated Net Income: | $ | [_____] | ||
4. Consolidated EBITDA (item 1plusitem 2(j)minusitem 3): | $ | [_____] | ||
a | Computed for the period consisting of the fiscal quarter ending on the Computation Date and each of the three immediately preceding fiscal quarters of Holdings. | |
b | Each of the adjustments to Consolidated Net Income shall be added or subtracted therefrom, as applicable, only to the extent and in the same proportion as the opposite operation is performed in determining Consolidated Net Income. |
TO COMPLIANCE CERTIFICATE
1. Obligations for borrowed money: | $ | [__________] | ||
2. Obligations evidenced by bonds, debentures, notes or similar instruments: | $ | [__________] | ||
3. Obligations upon which interest charges are customarily paid or accrued: | $ | [__________] | ||
4. Obligations under conditional sale or other title retention agreements relating to property purchased: | $ | [__________] | ||
5. Obligations issued or assumed as the deferred purchase price of property or services (excluding trade accounts payable incurred in the ordinary course of business): | $ | [__________] | ||
6. Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired, whether or not the obligations secured thereby have been assumed: | $ | [__________] | ||
7. Capital Lease Obligations, Purchase Money Obligations and Synthetic Lease Obligations: | $ | [__________] | ||
8. Obligations in respect of Hedging Agreements,providedthat, the amount of Indebtedness of this type shall be zero unless and until such Indebtedness shall be terminated, in which case the amount of such Indebtedness shall be the termination payment due thereunder: | $ | [__________] | ||
9. Obligations as an account party in respect of letters of credit, letters of guaranty and bankers’ acceptances: | $ | [__________] | ||
10. Attributable Indebtedness: | $ | [__________] | ||
11. Contingent Obligations in respect of Indebtedness or obligations of others of the kinds referred to in items 1 through 10: | $ | [__________] | ||
12. Consolidated Indebtedness (the sum, without duplication, of items 1 through 11): | $ | [__________] |
* | The Indebtedness of any person shall include the Indebtedness of any other entity (including any partnership in which such person is a general partner) to the extent such person is liable therefor as a result of such person’s ownership interest in or other relationship with such entity, except to the extent that the terms of such Indebtedness provide that such person is not liable therefor. Each of the items above shall be computed on a consolidated basis in accordance with GAAP. |
TO COMPLIANCE CERTIFICATE
1. Total consolidated cash interest expense (without regard to limitations on the payment thereof and including commitment fees, letter-of-credit fees, and net amounts payable under Interest Rate Protection Agreements) determined in accordance with GAAP: | $ | [_____] | ||
2. The interest-factor portion of Capital Lease Obligations: | $ | [_____] | ||
3. Consolidated Interest Expense (the sum, without duplication, of items 1 and 2): | $ | [_____] |
* | Computed for the period consisting of the fiscal quarter ending on the Computation Date and each of the three immediately preceding fiscal quarters of Parent. |
FINANCIAL CONDITION CERTIFICATE
1. | I am the chief financial officer of Herbalife International, Inc. (“the Company”), |
2. | Reference is made to that certain Credit Agreement, dated as of July 21, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Herbalife International, Inc., a Nevada corporation (“Borrower”), the Guarantors (such term and each other capitalized term used but not defined herein have the meanings assigned to them in the Credit Agreement), the Lenders, Merrill Lynch Capital Corporation, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and Merrill Lynch Capital Corporation, as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”). |
3. | I have reviewed the terms of Sections 3 and 4 of the Credit Agreement and the definitions and provisions contained in the Credit Agreement relating thereto, together with each of the Transaction Documents, and, in my opinion, have made, or have caused to be made under my supervision, such examination or investigation as is necessary to enable me to express an informed opinion as to the matters referred to herein. |
4. | Based upon my review and examination described in paragraph 3 above, I certify that, as of the date hereof, immediately after the consummation of the Transactions to occur on the Closing Date and immediately following the making of each Loan and after giving effect to the application of the proceeds of each Loan, (a) the fair value of the assets of the Loan Parties, taken as a whole, will exceed their debts and liabilities, subordinated, contingent or otherwise; (b) the present fair saleable value of the property of the Loan Parties, taken as a whole, will be greater than the amount that will be required to pay the probable liability of their collective debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured; (c) the Loan Parties, taken as a whole, will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) the Loan Parties, taken as a whole, will not have unreasonably small capital with which to conduct the business in which they are engaged as such business is now conducted and is proposed to be conducted following the Closing Date. |
Title: Chief Financial Officer |
LETTER OF CREDIT REQUEST
Attn: [TO COME]
[ADDRESS]
[ADDRESS]
Re:Herbalife International, Inc. |
(A) Type of Letter of Credit: | [Standby/Commercial] Letter of Credit for the account of [Borrower/Borrower and [name of Loan Party/Subsidiary]].a | ||
(B) Face amount:b | $[_____] | ||
(C) Date of issuance:c | [_____] | ||
(D) Expiration date:d | [_____] | ||
(E) Name and address of beneficiary: | |||
(G) Other information necessary to prepare such Letter of Credit: [list items] |
a | If Borrower requests a Letter of Credit for the account of a Loan Party or Subsidiary thereof, Borrower must be a co-applicant with respect thereto. | |
b | The stated amount of each Letter of Credit shall be no less than $500,000, or such lesser amount as is acceptable to the Issuing Bank. | |
c | Must be a Business Day at least three Business Days after the date of this request and during the Revolving Availability Period. | |
d | Must comply with Section 2.17(c) of the Credit Agreement. |
HERBALIFE INTERNATIONAL, INC. | ||||
By: | ||||
Name: | ||||
Title: |