SL DELAWARE HOLDINGS, INC.
MTE CORPORATION
RFL ELECTRONICS INC.
SL MONTEVIDEO TECHNOLOGY, INC.
CEDAR CORPORATION
TEAL ELECTRONICS CORPORATION
MEX HOLDINGS LLC
SL POWER ELECTRONICS CORPORATION
SLGC HOLDINGS, INC.
SLW HOLDINGS, INC.
SL AUBURN, INC.
SL SURFACE TECHNOLOGIES, INC.
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ARTICLE 1 THE REVOLVING, LOAN FACILITY | 1 | ||
Section 1.1 Commitment to Lend | 1 | ||
Section 1.2 Manner of Borrowing | 2 | ||
Section 1.3 Disbursements | 2 | ||
Section 1.4 Letters of Credit and Letter of Credit Fees | 2 | ||
Section 1.5 Swing Line Loans | 5 | ||
Section 1.6 Increase in Revolving Credit Facility | 8 | ||
ARTICLE 2 PAYMENTS AND PREPAYMENTS | 9 | ||
Section 2.1 Reductions In Commitment | 9 | ||
Section 2.2 Optional Prepayments of Loans | 9 | ||
Section 2.3 Repayment of Loans In Connection with Reductions of Commitment | 10 | ||
ARTICLE 3 INTEREST AND FEES | 10 | ||
Section 3.1 Interest | 10 | ||
Section 3.2 Election of Interest Rate | 10 | ||
Section 3.3 Interest Upon Default | 11 | ||
Section 3.4 Fees | 12 | ||
Section 3.5 Computation of Interest and Related Fees | 12 | ||
Section 3.6 Determination of Dollar Equivalent | 12 | ||
ARTICLE 4 GENERAL MATTERS CONCERNING LOANS SECTION | 13 | ||
Section 4.1 Manner of Tendering Payments by Borrowers | 13 | ||
Section 4.2 The Notes | 13 | ||
Section 4.3 Loan Account | 14 | ||
Section 4.4 Additional Provisions Concerning Certain Loans | 14 | ||
Section 4.5 Taxes | 17 | ||
Section 4.6 Payment Generally; Agent’s Clawback | 18 | ||
Section 4.7 Sharing of Payments by Lenders | 20 | ||
ARTICLE 5 CONDITIONS PRECEDENT | 21 | ||
Section 5.1 Conditions Precedent to Initial Loan | 21 | ||
Section 5.2 Payment of Fees and Costs | 23 | ||
Section 5.3 Conditions Precedent to Each Loan | 23 | ||
Section 5.4 Method of Satisfying Certain Conditions | 23 |
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ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF BORROWERS | 24 | ||
Section 6.1 Organization and Qualification | 24 | ||
Section 6.2 Capitalization and Ownership of Subsidiary Borrowers | 24 | ||
Section 6.3 Authorization and Execution | 24 | ||
Section 6.4 Enforceability; Consents | 25 | ||
Section 6.5 Security Interests in Collateral | 25 | ||
Section 6.6 Real Property of Borrowers | 25 | ||
Section 6.7 Absence of Conflict with other Agreements; Etc | 25 | ||
Section 6.8 Business | 25 | ||
Section 6.9 Condition of Assets | 26 | ||
Section 6.10 Use of Proceeds | 26 | ||
Section 6.11 Litigation | 26 | ||
Section 6.12 Indebtedness | 26 | ||
Section 6.13 Financial Statements | 26 | ||
Section 6.14 Fiscal Year | 26 | ||
Section 6.15 Title to Assets | 27 | ||
Section 6.16 Patents, Trademarks, Licenses and Franchises | 27 | ||
Section 6.17 Compliance with Law | 27 | ||
Section 6.18 Compliance with ERISA | 27 | ||
Section 6.19 Compliance with Regulations U and X | 29 | ||
Section 6.20 Investment Company Act | 29 | ||
Section 6.21 [Intentionally Omitted] | 29 | ||
Section 6.22 Absence of Default | 29 | ||
Section 6.23 Agreements with Affiliates | 29 | ||
Section 6.24 No Burdensome Agreements; Material Agreements | 29 | ||
Section 6.25 Solvency | 29 | ||
Section 6.26 Taxes | 30 | ||
Section 6.27 Environmental Compliance | 30 | ||
Section 6.28 Labor Disputes and Acts of God | 31 | ||
ARTICLE 7 FINANCIAL COVENANTS | 31 | ||
Section 7.1 Financial Covenants | 31 | ||
Section 7.2 Calculations | 32 |
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ARTICLE 8 COVENANTS CONCERNING REPORTING REQUIREMENTS | 32 | ||
Section 8.1 Financial Statements | 32 | ||
Section 8.2 Officer’s Compliance Certificates | 33 | ||
Section 8.3 Auditors Reports | 33 | ||
Section 8.4 Notice of Default | 33 | ||
Section 8.5 Notice Concerning Representations and Warranties | 34 | ||
Section 8.6 Notice of Litigation | 34 | ||
Section 8.7 SEC Disclosure | 34 | ||
Section 8.8 Conditions Affecting Collateral | 34 | ||
Section 8.9 ERISA Notices | 34 | ||
Section 8.10 Environmental Matters | 35 | ||
Section 8.11 Miscellaneous | 35 | ||
Section 8.12 Authorization of Third Parties to Deliver Information | 35 | ||
ARTICLE 9 BUSINESS COVENANTS | 36 | ||
Section 9.1 Indebtedness | 36 | ||
Section 9.2 Liens | 36 | ||
Section 9.3 Investments and Acquisitions | 38 | ||
Section 9.4 Restricted Payments | 39 | ||
Section 9.5 Affiliate Transactions | 40 | ||
Section 9.6 Disposition of Assets | 40 | ||
Section 9.7 Liquidation or Merger | 41 | ||
Section 9.8 Change in Organizational Documents | 41 | ||
Section 9.9 Issuance of Equity | 41 | ||
Section 9.10 Environmental Violations | 41 | ||
Section 9.11 Preservation of Existence, Etc | 42 | ||
Section 9.12 Permitted Businesses | 42 | ||
Section 9.13 Compliance with Law | 42 | ||
Section 9.14 Payment of Taxes and Claims | 42 | ||
Section 9.15 Tax Consolidation | 42 | ||
Section 9.16 Maintenance of Properties | 43 | ||
Section 9.17 Insurance | 43 | ||
Section 9.18 Compliance with ERISA | 44 | ||
Section 9.19 Maintenance of Records; Fiscal Year | 45 |
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Section 9.20 Inspections and Field Examinations | 45 | ||
Section 9.21 Exchange of Notes | 45 | ||
Section 9.22 Compliance with Federal Reserve Regulations | 45 | ||
Section 9.23 Limitations on Certain Restrictive Provisions | 46 | ||
Section 9.24 Corporate Separateness | 46 | ||
Section 9.25 Deposit and Securities Accounts | 46 | ||
Section 9.26 Collateral; Lockbox | 46 | ||
Section 9.27 Joinder of Subsidiaries | 47 | ||
Section 9.28 Further Assurances | 48 | ||
ARTICLE 10 DEFAULT | 49 | ||
Section 10.1 Events of Default | 49 | ||
Section 10.2 Remedies | 51 | ||
Section 10.3 Cash Collateral | 52 | ||
Section 10.4 Application of Funds | 52 | ||
ARTICLE 11 DEFINITIONS | 53 | ||
Section 11.1 Defined Terms | 53 | ||
Section 11.2 Accounting Terms | 76 | ||
Section 11.3 Other Definitional Provisions | 76 | ||
ARTICLE 12 AGENT | 76 | ||
Section 12.1 Authority | 76 | ||
Section 12.2 Expenses | 77 | ||
Section 12.3 Action by Agent | 77 | ||
Section 12.4 Exculpatory Provisions | 77 | ||
Section 12.5 Investigation by Lenders | 78 | ||
Section 12.6 Notice of Events of Default | 78 | ||
Section 12.7 Resignation; Termination | 78 | ||
Section 12.8 Sharing | 79 | ||
Section 12.9 Other Relationships | 79 | ||
ARTICLE 13 MISCELLANEOUS | 79 | ||
Section 13.1 Notices | 79 | ||
Section 13.2 Duration; Survival | 80 | ||
Section 13.3 Borrower Representative | 80 | ||
Section 13.4 No Implied Waiver; Rights Cumulative | 80 |
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Section 13.5 Amendments, etc | 80 | ||
Section 13.6 Successors and Assigns | 82 | ||
Section 13.7 Descriptive Headings | 85 | ||
Section 13.8 Governing Law | 85 | ||
Section 13.9 Payments Due on Non-Business Days | 85 | ||
Section 13.10 Counterparts | 85 | ||
Section 13.11 Maximum Lawful Interest Rate | 86 | ||
Section 13.12 Set-off of Bank Accounts | 86 | ||
Section 13.13 Severability | 86 | ||
Section 13.14 Payment and Reimbursement of Costs and Expenses; Indemnification | 87 | ||
Section 13.15 Consent to Jurisdiction | 88 | ||
Section 13.16 Termination | 88 | ||
Section 13.17 Waiver of Right to Jury Trial | 88 | ||
Section 13.18 Confidentiality | 89 | ||
Section 13.19 USA Patriot Act | 89 | ||
Section 13.20 Conversion of Currencies | 89 | ||
Section 13.21 Amendment and Restatement | 90 |
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SCHEDULES | ||||
A Commitments and Applicable Percentages | ||||
6.1 Organization and Qualification | ||||
6.2 Capitalization and Ownership of Subsidiary Borrowers | ||||
6.6 Real Property | ||||
6.11 Litigation | ||||
6.16 Intellectual Property | ||||
6.18 ERISA | ||||
6.23 Agreements with Affiliates | ||||
6.24 Material Agreements | ||||
6.27 Environmental | ||||
9.1 Indebtedness | ||||
9.2 Liens; Foreign Subsidiary Intellectual Property | ||||
EXHIBITS | ||||
A Form of Notes | ||||
B Form of Request for Advance | ||||
C Form of Conversion Notice | ||||
D Form of Compliance Certificate | ||||
E Form of Assignment and Assumption | ||||
F Form of Joinder Agreement |
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Revolving Credit Loans Then the | ||||||||||
Applicable Margin is | ||||||||||
Tier | If the Total Leverage Ratio is: | LIBOR Rate+ | Base Rate+ | |||||||
1 | Less than or equal to 1.50 to 1.00 | 1.75 | % | 0 | % | |||||
2 | Greater than 1.50 to 1.00, but less than or equal to 2.50 to 1.00 | 2.25 | % | 0.50 | % | |||||
3 | Greater than 2.50 to 1.00, but less than or equal to 3.00 to 1.00 | 2.75 | % | 0.75 | % | |||||
4 | Greater than 3.00 to 1.00 | 3.25 | % | 1.00 | % |
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Then the Commitment Fee | ||||||
Tier | If the Total Leverage Ratio is: | Margin is | ||||
1 | Less than or equal to 1.50 to 1.00 | 0.35 | % | |||
2 | Greater than 1.50 to 1.00, but less than or equal to 2.50 to 1.00 | 0.45 | % | |||
3 | Greater than 2.50 to 1.00, but less than or equal to 3.00 to 1.00 | 0.60 | % | |||
4 | Greater than 3.00 to 1.00 | 0.75 | % |
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Parent Borrower: | ||||||
SL INDUSTRIES, INC. | ||||||
By: | /s/ David R. Nuzzo | |||||
Name: David R. Nuzzo | ||||||
Title: Vice President & Chief Financial Officer | ||||||
Phone: (856) 222-5515 | ||||||
Fax: (856) 727-1683 | ||||||
E-Mail: david.nuzzo@slindustries.com | ||||||
Subsidiary Borrowers: | ||||||
SL DELAWARE, INC. | ||||||
SL DELAWARE HOLDINGS, INC. | ||||||
MTE CORPORATION | ||||||
RFL ELECTRONICS INC. | ||||||
SL MONTEVIDEO TECHNOLOGY, INC. | ||||||
CEDAR CORPORATION | ||||||
TEAL ELECTRONICS CORPORATION | ||||||
MEX HOLDINGS LLC | ||||||
SL POWER ELECTRONICS CORPORATION | ||||||
SLGC HOLDINGS, INC. | ||||||
SLW HOLDINGS, INC. | ||||||
SL AUBURN, INC. | ||||||
SL SURFACE TECHNOLOGIES, INC. | ||||||
By: | /s/ David R. Nuzzo | |||||
Name: David R. Nuzzo | ||||||
Title: Authorized Officer | ||||||
See contact information above |
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BANK OF AMERICA, N.A., in its capacity as Agent | ||||||
By: | /s/ Anne Zeschke | |||||
Name: Anne Zeschke | ||||||
Title: Vice President | ||||||
For payments and requests for credit extensions: | ||||||
Mail Stop: NC1-001-04-39 | ||||||
101 North Tryon Street | ||||||
Charlotte, NC 28255 | ||||||
Attn: Brian Greuling | ||||||
Phone: 704-386-3767 | ||||||
Fax: 704-683-9368 | ||||||
E-Mail: brian.t.greuling@bankofamerica.com | ||||||
For all other notice purposes: | ||||||
Mail Stop IL1-231-10-41 | ||||||
231 South LaSalle Street | ||||||
Chicago, IL 60604 | ||||||
Attn: Laura Call | ||||||
Phone: 312-828-3559 | ||||||
Fax: 877-207-2883 | ||||||
E-Mail: laura.call@bankofamerica.com | ||||||
Wire Transfer Information: | ||||||
Bank of America, N.A. | ||||||
Attention: Corporate Credit Services | ||||||
Account Number: 136-621-225-0600 | ||||||
Reference: SL Industries | ||||||
ABA Number: 026009593 |
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BANK OF AMERICA, N.A., in its capacity as a Lender | ||||||
By: | /s/ Christian Barrow | |||||
Name: Christian Barrow | ||||||
Title: | ||||||
Bank of America, N.A. | ||||||
1600 John F. Kennedy Boulevard | ||||||
4 Penn Center, Suite 1100 | ||||||
Philadelphia, PA 19103 | ||||||
Attn: Christian Barrow | ||||||
Phone: 267.675.0109 | ||||||
Fax: 212.548.8911 | ||||||
christian.d.barrow@bankofamerica.com |
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PNC BANK, NATIONAL ASSOCIATION | ||||||
By: | /s/ John Siegrist | |||||
Name: John Siegrist | ||||||
Title: Senior Vice President | ||||||
PNC Bank, National Association | ||||||
1600 Market Street | ||||||
Philadelphia, PA 19103 | ||||||
Attn: John Siegrist, Senior Vice President | ||||||
Phone: 215-585-5355 | ||||||
Fax: | ||||||
John.siegrist@pnc.com |
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KEYBANK, N.A. | ||||||
By: | /s/ Ronald W. Gale | |||||
Name: Ronald W. Gale | ||||||
Title: Director | ||||||
KeyBank Capital Markets Inc. | ||||||
45 Rockefeller Plaza | ||||||
33rd Floor | ||||||
New York, NY 10111 | ||||||
Attn: Ronald W. Gale, Director | ||||||
Phone: 212-424-1828 | ||||||
Fax: | ||||||
rgale@keybanccm.com |
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