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1. CERTAIN DEFINITIONS | 1 | |||
1.1 Certain Definitions | 1 | |||
1.2 Construction | 21 | |||
1.3 Accounting Principles | 21 | |||
2. REVOLVING CREDIT AND SWING LOAN FACILITIES | 22 | |||
2.1 Revolving Credit Commitments | 22 | |||
2.2 Nature of the Lenders’ Obligations with Respect to Revolving Credit Loans | 24 | |||
2.3 Fees | 25 | |||
2.4 Revolving Credit Loan Requests; Swing Loan Requests | 25 | |||
2.5 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans | 26 | |||
2.6 Notes | 28 | |||
2.7 Use of Proceeds | 28 | |||
2.8 Letter of Credit Subfacility | 29 | |||
2.9 Utilization of Commitments in Optional Currencies | 36 | |||
2.10 Currency Repayments | 38 | |||
2.11 Optional Currency Amounts | 38 | |||
3. INTEREST RATES | 38 | |||
3.1 Interest Rate Options | 38 | |||
3.2 Interest Periods | 39 | |||
3.3 Interest After Default | 40 | |||
3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available | 40 | |||
3.5 Selection of Interest Rate Options | 42 | |||
4. PAYMENTS | 42 | |||
4.1 Payments | 42 | |||
4.2 Pro Rata Treatment of Lenders | 42 | |||
4.3 Sharing of Payments by Lenders | 43 | |||
4.4 Presumptions by Administrative Agent | 44 | |||
4.5 Interest Payment Dates | 44 | |||
4.6 Voluntary Prepayments; Reduction of Revolving Credit Commitments | 44 | |||
4.7 Mandatory Prepayments | 46 | |||
4.8 Increased Costs | 48 | |||
4.9 Taxes | 49 | |||
4.10 Indemnity | 51 | |||
4.11 Settlement Date Procedures | 52 | |||
4.12 Interbank Market Presumption | 52 | |||
4.13 Judgment Currency | 52 |
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5. REPRESENTATIONS AND WARRANTIES | 53 | |||
5.1 Representations and Warranties | 53 | |||
5.2 Updates to Schedules | 57 | |||
6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT | 57 | |||
6.1 First Loans and Letters of Credit | 58 | |||
6.2 Each Loan or Letter of Credit | 59 | |||
7. COVENANTS | 59 | |||
7.1 Affirmative Covenants | 59 | |||
7.2 Negative Covenants | 62 | |||
7.3 Reporting Requirements | 67 | |||
8. DEFAULT | 69 | |||
8.1 Events of Default | 69 | |||
8.2 Consequences of Event of Default | 72 | |||
9. THE ADMINISTRATIVE AGENT | 73 | |||
9.1 Appointment and Authority | 73 | |||
9.2 Rights as a Lender | 74 | |||
9.3 Exculpatory Provisions | 74 | |||
9.4 Reliance by Administrative Agent | 75 | |||
9.5 Delegation of Duties | 75 | |||
9.6 Resignation of Administrative Agent | 75 | |||
9.7 Non-Reliance on Administrative Agent and Other Lenders | 76 | |||
9.8 Administrative Agent’s Fee | 77 | |||
9.9 Authorization to Release Collateral and Guarantors | 77 | |||
9.10 No Reliance on Administrative Agent’s Customer Identification Program | 77 | |||
10. MISCELLANEOUS | 77 | |||
10.1 Modifications, Amendments or Waivers | 77 | |||
10.2 No Implied Waivers; Cumulative Remedies | 78 | |||
10.3 Expenses; Indemnity; Damage Waiver | 78 | |||
10.4 Holidays | 80 | |||
10.5 Notices; Effectiveness; Electronic Communication | 81 | |||
10.6 Severability | 82 | |||
10.7 Duration; Survival | 82 | |||
10.8 Successors and Assigns | 82 | |||
10.9 Confidentiality | 85 | |||
10.10 Counterparts; Integration; Effectiveness | 86 | |||
10.11 Choice of Law; Submission to Jurisdiction; Waiver of Venue; Service of Process; Waiver of Jury Trial | 86 | |||
10.12 USA Patriot Act Notice | 88 |
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SCHEDULES | ||||
SCHEDULE 1.1(A) | - | PRICING GRID | ||
SCHEDULE 1.1(B) | - | COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES | ||
SCHEDULE 1.1(P) | - | PERMITTED LIENS | ||
SCHEDULE 2.8 | - | EXISTING LETTERS OF CREDIT | ||
SCHEDULE 5.1(a) | - | QUALIFICATIONS TO DO BUSINESS | ||
SCHEDULE 5.1(b) | - | SUBSIDIARIES | ||
SCHEDULE 5.1(e) | - | MATERIAL LITIGATION | ||
SCHEDULE 5.1(n) | - | ENVIRONMENTAL DISCLOSURES | ||
SCHEDULE 6.1(a) | - | OPINION OF COUNSEL | ||
SCHEDULE 7.1(c) | - | INSURANCE REQUIREMENTS RELATING TO COLLATERAL | ||
SCHEDULE 7.2(a) | - | PERMITTED INDEBTEDNESS | ||
SCHEDULE 7.2(d) | - | EXISTING INVESTMENTS | ||
SCHEDULE 8.1(j) | - | EXISTING 5% SHAREHOLDERS | ||
EXHIBITS | ||||
EXHIBIT 1.1(A) | - | ASSIGNMENT AND ASSUMPTION AGREEMENT | ||
EXHIBIT 1.1(G) | - | GUARANTOR JOINDER | ||
EXHIBIT 1.1(N)(1) | - | REVOLVING CREDIT NOTE | ||
EXHIBIT 1.1(N)(2) | - | SWING LOAN NOTE | ||
EXHIBIT 2.1 | - | LENDER JOINDER | ||
EXHIBIT 2.4 | - | LOAN REQUEST | ||
EXHIBIT 2.8 | - | EXISTING LETTERS OF CREDIT | ||
EXHIBIT 2.4(b) | - | SWING LOAN REQUEST | ||
EXHIBIT 7.3(c) | - | QUARTERLY COMPLIANCE CERTIFICATE |
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London interbank offered rate quoted by Bloomberg or appropriate successor as shown on | ||||
LIBOR Rate = | Bloomberg Page BBAM1 | |||
LIBO Rate | ||||
LIBOR Rate = |
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Total Acquisition Price | Max Expense Add Back | |
less that $50,000,000.00 | $1,000,000.00 | |
$50,000,000.000 or more, but less than $100,000,000.00 | $2,000,000.00 | |
$100,000,000.000 or more, but less than $150,000,000.00 | $3,000,000.00 | |
$150,000,000.000 or more, but less than $200,000,000.00 | $4,000,000.00 | |
$200,000,000.000 or more | $5,000,000.00 |
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Maximum Percentage | Period | |
25% | Through fiscal year end 2009 | |
35% | During fiscal year 2010 and through fiscal year end 2011 | |
40% | after fiscal year end 2011 |
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BORROWER: GSI COMMERCE SOLUTIONS, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
GUARANTORS: GSI COMMERCE, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
935 KOP ASSOCIATES, LLC | ||||
By: | GSI Commerce, Inc., its sole member and manager | |||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
1075 FIRST GLOBAL ASSOCIATES, LLC | ||||
By: | GSI Commerce, Inc., its sole member and manager | |||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
GSI LEGACY HOLDINGS, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: President |
ASFD, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: President | ||||
GSI COMMERCE CALL CENTER, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: President | ||||
GSI COMMERCE SOUTH, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
GSI EQUIPMENT, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: President | ||||
7601 TRADE PORT DRIVE, LLC | ||||
By: | GSI Commerce Solutions, Inc., its sole member and manager | |||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
ONLINE DIRECT, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: President |
PROMOTIONS DISTRIBUTOR SERVICES CORPORATION | ||||
By: | /s/ Michael R. Conn | |||
Title: President | ||||
GSI INTERACTIVE, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
KOP PROMOTIONS, LLC | ||||
By: | /s/ Michael R. Conn | |||
Title: President | ||||
SILVERLIGN GROUP, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
GSI MEDIA, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President, Finance | ||||
RETAIL CONVERGENCE, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President |
SMARTBARGAINS, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
SMARTBARGAINS SECURITY CORPORATION | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
SB.com, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
RETAIL CONVERGENCE.com, LP | ||||
By: | SB.com, Inc., its general partner | |||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
SHOPRUNNER, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President | ||||
E-DIALOG, INC. | ||||
By: | /s/ Michael R. Conn | |||
Title: Executive Vice President |
PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent | ||||
By: | /s/ John M. DiNapoli | |||
Name: | John M. DiNapoli | |||
Title: | Sr. Vice President |
BANK OF AMERICA, N.A. | ||||
By: | /s/ Andrew Richards | |||
Name: | Andrew Richards | |||
Title: | Senior Vice President |
HSBC BANK USA, N.A. | ||||
By: | /s/ Susan A. Waters | |||
Name: | Susan A. Waters | |||
Title: | VP, Senior Relationship Manager |
SOVEREIGN BANK | ||||
By: | /s/ Dennis Wasilewski | |||
Name: | Dennis Wasilewski | |||
Title: | Senior Vice President |
TD BANK, N.A. | ||||
By: | /s/ Thomas M. McGrory | |||
Name: | Thomas M. McGrory | |||
Title: | Vice President |
MORGAN STANLEY BANK | ||||
By: | /s/ Sherrese Clarke | |||
Name: | Sherrese Clarke | |||
Title: | Authorized Signatory |
DEUTSCHE BANK AG NEW YORK BRANCH | ||||
By: | /s/ Stefan Freckmann | |||
Name: | Stefan Freckmann | |||
Title: | Vice President | |||
By: | /s/ Oliver Schwarz | |||
Name: | Oliver Schwarz | |||
Title: | Director |
UBS LOAN FINANCE LLC | ||||
By: | /s/ Ifja R. Otsa | |||
Name: | Ifja R. Otsa | |||
Title: | Associate Director, Banking Products Services, US | |||
By: | /s/ Mary E. Evans | |||
Name: | Mary E. Evans | |||
Title: | Associate Director, Banking Products Services, US |
JPMORGAN CHASE BANK, N.A. | ||||
By: | /s/ James A. Knight | |||
Name: | James A. Knight | |||
Title: | Vice President |