CREDIT AGREEMENT
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1. | CERTAIN DEFINITIONS | 1 | ||||||
1.1 | Certain Definitions | 1 | ||||||
1.2 | Construction | 19 | ||||||
1.3 | Accounting Principles | 19 | ||||||
2. | REVOLVING CREDIT AND SWING LOAN FACILITIES | 19 | ||||||
2.1 | Revolving Credit Commitments | 19 | ||||||
2.2 | Nature of the Lenders’ Obligations with Respect to Revolving Credit Loans | 22 | ||||||
2.3 | Commitment Fees | 22 | ||||||
2.4 | Revolving Credit Loan Requests; Swing Loan Requests | 22 | ||||||
2.5 | Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans | 23 | ||||||
2.6 | Notes | 25 | ||||||
2.7 | Use of Proceeds | 25 | ||||||
2.8 | Letter of Credit Subfacility | 25 | ||||||
3. | INTEREST RATES | 31 | ||||||
3.1 | Interest Rate Options | 31 | ||||||
3.2 | Interest Periods | 32 | ||||||
3.3 | Interest After Default | 32 | ||||||
3.4 | LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available | 33 | ||||||
3.5 | Selection of Interest Rate Options | 34 | ||||||
4. | PAYMENTS | 34 | ||||||
4.1 | Payments | 34 | ||||||
4.2 | Pro Rata Treatment of Lenders | 35 | ||||||
4.3 | Sharing of Payments by Lenders | 35 | ||||||
4.4 | Presumptions by Administrative Agent | 36 | ||||||
4.5 | Interest Payment Dates | 36 | ||||||
4.6 | Voluntary Prepayments; Reduction of Revolving Credit Commitments | 36 | ||||||
4.7 | Mandatory Prepayments | 38 | ||||||
4.8 | Increased Costs | 39 | ||||||
4.9 | Taxes | 41 | ||||||
4.10 | Indemnity | 42 | ||||||
4.11 | Settlement Date Procedures | 43 | ||||||
4.12 | Interbank Market Presumption | 43 | ||||||
5. | REPRESENTATIONS AND WARRANTIES | 44 | ||||||
5.1 | Representations and Warranties | 44 | ||||||
5.2 | Updates to Schedules | 47 |
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6. | CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT | 48 | ||||||
6.1 | First Loans and Letters of Credit | 48 | ||||||
6.2 | Each Loan or Letter of Credit | 49 | ||||||
7. | COVENANTS | 49 | ||||||
7.1 | Affirmative Covenants | 49 | ||||||
7.2 | Negative Covenants | 51 | ||||||
7.3 | Reporting Requirements | 56 | ||||||
8. | DEFAULT | 58 | ||||||
8.1 | Events of Default | 58 | ||||||
8.2 | Consequences of Event of Default | 60 | ||||||
9. | THE ADMINISTRATIVE AGENT | 62 | ||||||
9.1 | Appointment and Authority | 62 | ||||||
9.2 | Rights as a Lender | 62 | ||||||
9.3 | Exculpatory Provisions | 62 | ||||||
9.4 | Reliance by Administrative Agent | 63 | ||||||
9.5 | Delegation of Duties | 64 | ||||||
9.6 | Resignation of Administrative Agent | 64 | ||||||
9.7 | Non-Reliance on Administrative Agent and Other Lenders | 65 | ||||||
9.8 | Administrative Agent’s Fee | 65 | ||||||
9.9 | Authorization to Release Collateral and Guarantors | 65 | ||||||
9.10 | No Reliance on Administrative Agent’s Customer Identification Program | 65 | ||||||
10. | MISCELLANEOUS | 66 | ||||||
10.1 | Modifications, Amendments or Waivers | 66 | ||||||
10.2 | No Implied Waivers; Cumulative Remedies | 66 | ||||||
10.3 | Expenses; Indemnity; Damage Waiver | 67 | ||||||
10.4 | Holidays | 68 | ||||||
10.5 | Notices; Effectiveness; Electronic Communication | 69 | ||||||
10.6 | Severability | 69 | ||||||
10.7 | Duration; Survival | 69 | ||||||
10.8 | Successors and Assigns | 70 | ||||||
10.9 | Confidentiality | 73 | ||||||
10.10 | Counterparts; Integration; Effectiveness | 74 | ||||||
10.11 | CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL | 74 | ||||||
10.12 | USA Patriot Act Notice | 75 |
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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 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)(1) | - | GUARANTOR JOINDER | ||
EXHIBIT 1.1(G)(2) | - | GUARANTY AGREEMENT | ||
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 2.4(b) | - | SWING LOAN REQUEST | ||
EXHIBIT 7.3(c) | - | QUARTERLY COMPLIANCE CERTIFICATE |
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Exhibit 1.1(G)(1).
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Average of London interbank offered rates quoted by Bloomberg or appropriate successor as shown on | ||
LIBOR Rate = | Bloomberg Page BBAM1 | |
1.00 - LIBOR Rate Reserve Percentage |
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Fiscal Year Ended December 31, | Maximum Amount | |||||||
2007 | $ | 75,000,000.00 | ||||||
2008 | 90,000,000.00 | |||||||
2009 | 90,000,000.00 | |||||||
2010 | 115,000,000.00 | |||||||
2011 | 115,000,000.00 | |||||||
2012 | 115,000,000.00 |
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: | ||||||
ATTEST: | GSI COMMERCE SOLUTIONS, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
GUARANTORS: | ||||||
ATTEST: | GSI COMMERCE, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
ATTEST: | 935 KOP ASSOCIATES, LLC | |||||
BY:GSI COMMERCE, INC., its sole member and manager | ||||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary, | Title: EVP, Finance and CFO | |||||
GSI Commerce, Inc. | ||||||
ATTEST: | 1075 FIRST GLOBAL ASSOCIATES, LLC | |||||
BY: | GSI COMMERCE, INC., its sole member and manager | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary, | Title: EVP, Finance and CFO | |||||
GSI Commerce, Inc. | ||||||
ATTEST: | GSI LEGACY HOLDINGS, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO |
ATTEST: | ASFD, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
ATTEST: | GSI COMMERCE CALL CENTER, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
ATTEST: | GSI COMMERCE SOUTH, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
ATTEST: | GSI EQUIPMENT, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: EVP, Finance and CFO | |||||
ATTEST: | 7601 TRADE PORT DRIVE, LLC | |||||
BY:GSI COMMERCE SOLUTIONS, INC., its sole member and manager | ||||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary, | Title: EVP, Finance and CFO | |||||
GSI Commerce Solutions, Inc. | ||||||
ATTEST: | ONLINE DIRECT, INC. | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: President |
ATTEST: | PROMOTIONS DISTRIBUTOR SERVICES CORPORATION | |||||
/s/ Jonathan Schoenfeld | By: | /s/ Michael R. Conn | ||||
Jonathan Schoenfeld, Assistant Secretary | Title: President |
PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent | ||||||
By: | /s/ John M. Dinapoli | |||||
Name: John M. Dinapoli Title: Senior Vice President | ||||||
BANK OF AMERICA, N.A. | ||||||
By: | /s/ Michael Strigel | |||||
Name: Michael Strigel Title: Vice President |
HSBC BANK USA, NA | ||||||
By: | /s/ Susan A. Waters | |||||
Name: Susan A. Waters Title: Vice President |
SOVEREIGN BANK | ||||||
By: | /s/ Dennis Wasilewski | |||||
Name: Dennis Wasilewski Title: Senior Vice President |