as Borrower,
as Parent and a Guarantor,
and VALEANT PHARMACEUTICALS INTERNATIONAL, INC.,
as Guarantors,
as Sole Lead Arranger, Sole Bookrunner and Syndication Agent,
as Administrative Agent and Collateral Agent,
Page | ||||
SECTION 1. DEFINITIONS AND INTERPRETATION | 1 | |||
1.1. Definitions | 1 | |||
1.2. Accounting Terms | 31 | |||
1.3. Interpretation, etc. | 32 | |||
1.4. Currency Matters | 33 | |||
1.5. Pro Forma Transactions | 33 | |||
SECTION 2. LOANS AND LETTERS OF CREDIT | 33 | |||
2.1. Revolving Loans | 33 | |||
2.2. Swing Line Loans | 34 | |||
2.3. Issuance of Letters of Credit and Purchase of Participations Therein | 36 | |||
2.4. Pro Rata Shares; Availability of Funds | 40 | |||
2.5. Use of Proceeds | 40 | |||
2.6. Evidence of Debt; Register; Lenders’ Books and Records; Notes | 40 | |||
2.7. Interest on Loans | 41 | |||
2.8. Conversion/Continuation | 43 | |||
2.9. Default Interest | 43 | |||
2.10. Fees | 43 | |||
2.11. Voluntary Prepayments/Commitment Reductions | 44 | |||
2.12. Mandatory Prepayments | 45 | |||
2.13. Application of Prepayments | 46 | |||
2.14. General Provisions Regarding Payments | 47 | |||
2.15. Ratable Sharing | 48 | |||
2.16. Making or Maintaining Eurodollar Rate Loans | 49 | |||
2.17. Increased Costs; Capital Adequacy | 50 | |||
2.18. Taxes; Withholding, etc. | 51 | |||
2.19. Obligation to Mitigate | 54 | |||
2.20. Defaulting Lenders | 55 | |||
2.21. Removal or Replacement of a Lender | 55 | |||
2.22. Interest Act (Canada) | 56 | |||
SECTION 3. CONDITIONS PRECEDENT | 57 | |||
3.1. Closing Date | 57 | |||
3.2. Conditions to Each Credit Extension | 61 | |||
SECTION 4. REPRESENTATIONS AND WARRANTIES | 61 | |||
4.1. Organization; Requisite Power and Authority; Qualification | 62 | |||
4.2. Equity Interests and Ownership | 62 | |||
4.3. Due Authorization | 62 | |||
4.4. No Conflict | 62 | |||
4.5. Governmental Consents | 62 | |||
4.6. Binding Obligation | 63 | |||
4.7. Historical Financial Statements | 63 | |||
4.8. Projections | 63 | |||
4.9. No Material Adverse Change | 63 | |||
4.10. Adverse Proceedings, etc. | 63 |
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4.11. Payment of Taxes | 63 | |||
4.12. Properties | 64 | |||
4.13. Environmental Matters | 64 | |||
4.14. No Defaults | 65 | |||
4.15. Governmental Regulation | 65 | |||
4.16. Employee Matters | 65 | |||
4.17. Employee Benefit Plans | 66 | |||
4.18. Canadian Employee Benefit Plans | 66 | |||
4.19. Solvency | 67 | |||
4.20. Compliance with Statutes, etc. | 67 | |||
4.21. Disclosure | 67 | |||
4.22. PATRIOT Act and PCTFA | 67 | |||
4.23. Creation, Perfection, etc. | 68 | |||
4.24. Senior Indebtedness | 68 | |||
4.25. OFAC Matters | 68 | |||
SECTION 5. AFFIRMATIVE COVENANTS | 68 | |||
5.1. Financial Statements and Other Reports | 68 | |||
5.2. Existence | 72 | |||
5.3. Payment of Taxes and Claims | 72 | |||
5.4. Maintenance of Properties | 73 | |||
5.5. Insurance | 73 | |||
5.6. Books and Records; Inspections | 73 | |||
5.7. [Reserved] | 74 | |||
5.8. Compliance with Laws | 74 | |||
5.9. Environmental | 74 | |||
5.10. Subsidiaries | 75 | |||
5.11. Additional Material Real Estate Assets | 76 | |||
5.12. [Reserved | 77 | |||
5.13. Further Assurances | 77 | |||
5.14. Maintenance of Ratings | 77 | |||
5.15. Post-Closing Matters | 77 | |||
5.16. Canadian Employee Benefit Plans | 77 | |||
SECTION 6. NEGATIVE COVENANTS | 77 | |||
6.1. Indebtedness | 77 | |||
6.2. Liens | 80 | |||
6.3. No Further Negative Pledges | 83 | |||
6.4. Restricted Junior Payments | 83 | |||
6.5. Restrictions on Subsidiary Distributions | 85 | |||
6.6. Investments | 85 | |||
6.7. Leverage Ratio | 86 | |||
6.8. Fundamental Changes; Disposition of Assets; Acquisitions | 87 | |||
6.9. Disposal of Subsidiary Interests | 88 | |||
6.10. Sales and Leasebacks | 89 | |||
6.11. Transactions with Shareholders and Affiliates | 89 | |||
6.12. Conduct of Business | 89 | |||
6.13. Amendments or Waivers with Respect to Subordinated Indebtedness | 89 | |||
6.14. Amendments or Waivers of Organizational Documents | 89 | |||
6.15. Fiscal Year | 90 |
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6.16. Specified Subsidiary Dispositions | 90 | |||
6.17. Biovail Insurance | 90 | |||
6.18. Establishment of Defined Benefit Plan | 90 | |||
6.19. After Acquired Liens/Additional Guarantors | 90 | |||
SECTION 7. GUARANTY | 90 | |||
7.1. Guaranty of the Obligations | 90 | |||
7.2. Contribution by Guarantors | 91 | |||
7.3. Payment by Guarantors | 91 | |||
7.4. Liability of Guarantors Absolute | 91 | |||
7.5. Waivers by Guarantors | 93 | |||
7.6. Guarantors’ Rights of Subrogation, Contribution, etc. | 93 | |||
7.7. Subordination of Other Obligations | 94 | |||
7.8. Continuing Guaranty | 94 | |||
7.9. Authority of Guarantors or Borrower | 94 | |||
7.10. Financial Condition of Borrower | 94 | |||
7.11. Bankruptcy, etc. | 95 | |||
7.12. Discharge of Guaranty upon Sale of Guarantor | 95 | |||
SECTION 8. EVENTS OF DEFAULT | 95 | |||
8.1. Events of Default | 95 | |||
SECTION 9. AGENTS | 98 | |||
9.1. Appointment of Agents | 98 | |||
9.2. Powers and Duties | 98 | |||
9.3. General Immunity | 99 | |||
9.4. Agents Entitled to Act as Lender | 100 | |||
9.5. Lenders’ Representations, Warranties and Acknowledgment | 100 | |||
9.6. Right to Indemnity | 100 | |||
9.7. Successor Administrative Agent, Collateral Agent and Swing Line Lender | 101 | |||
9.8. Collateral Documents and Guaranty | 103 | |||
9.9. Withholding Taxes | 104 | |||
SECTION 10. MISCELLANEOUS | 105 | |||
10.1. Notices | 105 | |||
10.2. Expenses | 106 | |||
10.3. Indemnity | 107 | |||
10.4. Set-Off | 108 | |||
10.5. Amendments and Waivers | 108 | |||
10.6. Successors and Assigns; Participations | 110 | |||
10.7. Independence of Covenants | 113 | |||
10.8. Survival of Representations, Warranties and Agreements | 113 | |||
10.9. No Waiver; Remedies Cumulative | 113 | |||
10.10. Marshalling; Payments Set Aside | 114 | |||
10.11. Severability | 114 | |||
10.12. Obligations Several; Independent Nature of Lenders’ Rights | 114 | |||
10.13. Headings | 114 | |||
10.14. APPLICABLE LAW | 114 | |||
10.15. CONSENT TO JURISDICTION | 114 | |||
10.16. WAIVER OF JURY TRIAL | 115 |
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10.17. Confidentiality | 116 | |||
10.18. Usury Savings Clause | 116 | |||
10.19. Counterparts | 117 | |||
10.20. Effectiveness; Entire Agreement | 117 | |||
10.21. PATRIOT Act; PCTFA | 117 | |||
10.22. Electronic Execution of Assignments | 117 | |||
10.23. No Fiduciary Duty | 117 | |||
10.24. Judgment Currency | 118 | |||
10.25. Joint and Several Liability | 118 | |||
10.26. Advice of Counsel; No Strict Construction | 118 | |||
10.27. Day Not a Business Day | 119 | |||
10.28. Limitations Act, 2002 | 119 |
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APPENDICES: | A | Revolving Commitments | ||
B | Notice Addresses | |||
SCHEDULES: | 1.1(b) | Closing Date Guarantors | ||
3.1(e)(i) | Mortgaged Properties | |||
4.1 | Jurisdictions of Organization and Qualification | |||
4.2 | Equity Interests and Ownership | |||
4.12 | Real Estate Assets | |||
4.18 | Certain Defined Benefit Plans | |||
5.10 | Barbados Collateral Documents | |||
5.15 | Post-Closing Matters | |||
6.1 | Certain Indebtedness | |||
6.2 | Certain Liens | |||
6.3 | Certain Negative Pledges | |||
6.5 | Certain Restrictions on Subsidiary Distributions | |||
6.6 | Certain Investments | |||
6.11 | Certain Affiliate Transactions | |||
EXHIBITS: | A-1 | Funding Notice | ||
A-2 | Conversion/Continuation Notice | |||
B-1 | Revolving Loan Note | |||
B-2 | Swing Line Note | |||
C | Compliance Certificate | |||
D | Assignment Agreement | |||
E | Certificate re Non-Bank Status | |||
F-1 | Closing Date Certificate | |||
F-2 | Solvency Certificate | |||
G | Counterpart Agreement | |||
H-1 | Form of Canadian Guarantee | |||
H-2 | Form of Barbados Guarantee | |||
I-1 | Form of Pledge and Security Agreement | |||
I-2 | Form of Canadian Pledge and Security Agreement | |||
J-1 | Intercompany Note | |||
J-2 | Subordination Agreement | |||
K | [Reserved] | |||
L | Contribution Agreement | |||
M | Collateral Questionnaire |
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(i) | in the case of Revolving Loans: |
• | if a Base Rate Loan, at the Base Rateplus the Applicable Margin; or |
• | if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rateplus the Applicable Margin; and |
(ii) | in the case of Swing Line Loans, at the Base Rateplus the Applicable Margin. |
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(i) | Any time and from time to time: |
• | with respect to Base Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount); |
• | with respect to Eurodollar Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount); and |
• | with respect to Swing Line Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $500,000, and in integral multiples of $100,000 in excess of that amount). |
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(ii) | All such prepayments shall be made: |
• | upon not less than one Business Day’s prior written or telephonic notice in the case of Base Rate Loans; |
• | upon not less than three Business Days’ prior written or telephonic notice in the case of Eurodollar Rate Loans; and |
• | upon written or telephonic notice on the date of prepayment, in the case of Swing Line Loans; |
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VALEANT PHARMACEUTICALS INTERNATIONAL | ||||
By: | ||||
Name: | ||||
Title: | ||||
VALEANT PHARMACEUTICALS INTERNATIONAL, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
ATON PHARMA, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
CORIA LABORATORIES, LTD. | ||||
By: | ||||
Name: | ||||
Title: | ||||
DOW PHARMACEUTICAL SCIENCES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
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VALEANT PHARMACEUTICALS NORTH AMERICA LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
DR. LEWINN’S PRIVATE FORMULA INTERNATIONAL, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
OCEANSIDE PHARMACEUTICALS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
PRINCETON PHARMA HOLDINGS, LLC | ||||
By: | ||||
Name: | ||||
Title: | ||||
PRIVATE FORMULA CORP. | ||||
By: | ||||
Name: | ||||
Title: | ||||
RENAUD SKIN CARE LABORATORIES, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
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VALEANT BIOMEDICALS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
BIOVAIL AMERICAS CORP. | ||||
By: | ||||
Name: | ||||
Title: | ||||
PRESTWICK PHARMACEUTICALS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
BIOVAIL HOLDINGS INTERNATIONAL SRL | ||||
By: | ||||
Name: | ||||
Title: | ||||
VALEANT INTERNATIONAL (BARBADOS) SRL | ||||
By: | ||||
Name: | ||||
Title: | ||||
BIOVAIL LABORATORIES INTERNATIONAL (BARBADOS) SRL | ||||
By: | ||||
Name: | ||||
Title: | ||||
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HYTHE PROPERTY INCORPORATED | ||||
By: | ||||
Name: | ||||
Title: | ||||
VALEANT CANADA GP LIMITED | ||||
By: | ||||
Name: | ||||
Title: | ||||
VALEANT CANADA LP by its sole general partner, VALEANT CANADA GP LIMITED | ||||
By: | ||||
Name: | ||||
Title: | ||||
V-BAC HOLDING CORP. | ||||
By: | ||||
Name: | ||||
Title: | ||||
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GOLDMAN SACHS LENDING PARTNERS LLC, as Administrative Agent, Collateral Agent and Swing Line Lender | ||||||
By: | ||||||
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GOLDMAN SACHS BANK USA, as a Lender | ||||||
By: | ||||||
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TO CREDIT AND GUARANTY AGREEMENT
Pro | ||||||||
Lender | Revolving Commitment | Rata Share | ||||||
Goldman Sachs Bank USA | $ | 200,000,000 | 100.00 | % | ||||
Total | $ | 200,000,000 | 100.00 | % |
TO CREDIT AND GUARANTY AGREEMENT
Irvine, California 92618
Attention: General Counsel
Facsimile: (949) 461-6661
Mississauga, ON L5N 8M5
Attention: Chief Financial Officer
Telecopier: (905) 286-3029
Mississauga, ON L5N 8M5
Attention: Legal Department
Telecopier: (905) 286-3385
as Lead Arranger and Syndication Agent
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700
as a Lender
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (917) 977-3966
as Administrative Agent, Collateral Agent and
Swing Line Lender
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700
200 West Street
New York, New York 10282
Attention: Gabe Jacobson
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700