and
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1. CERTAIN DEFINITIONS | 1 | |||
1.1 Certain Definitions | 1 | |||
1.2 Construction | 24 | |||
1.3 Accounting Principles | 25 | |||
2. REVOLVING CREDIT AND SWING LOAN FACILITIES | 25 | |||
2.1 Revolving Credit Commitments | 25 | |||
2.1.1 Revolving Credit Loans | 25 | |||
2.1.2 Swing Loan Commitment | 25 | |||
2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans | 26 | |||
2.3 Commitment Fees | 26 | |||
2.4 Revolving Credit Loan Requests; Swing Loan Requests | 26 | |||
2.4.1 Revolving Credit Loan Requests | 26 | |||
2.4.2 Swing Loan Requests | 27 | |||
2.5 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans | 27 | |||
2.5.1 Making Revolving Credit Loans | 27 | |||
2.5.2 Presumptions by the Administrative Agent | 28 | |||
2.5.3 Making Swing Loans | 28 | |||
2.5.4 Repayment of Revolving Credit Loans | 28 | |||
2.5.5 Borrowings to Repay Swing Loans | 28 | |||
2.6 Notes | 29 | |||
2.7 Use of Proceeds | 29 | |||
2.8 Letter of Credit Subfacility | 29 | |||
2.8.1 Issuance of Letters of Credit | 29 | |||
2.8.2 Letter of Credit Fees | 30 | |||
2.8.3 Disbursements, Reimbursement | 30 | |||
2.8.4 Repayment of Participation Advances | 31 | |||
2.8.5 Documentation | 32 | |||
2.8.6 Determinations to Honor Drawing Requests | 32 | |||
2.8.7 Nature of Participation and Reimbursement Obligations | 32 | |||
2.8.8 Indemnity | 34 | |||
2.8.9 Liability for Acts and Omissions | 34 | |||
2.8.10 Issuing Lender Reporting Requirements | 35 | |||
2.8.11 Reduction of Revolving Credit Commitment | 35 | |||
2.8.12 Commercial Letters of Credit | 36 | |||
2.8.13 Defaulting Lenders | 36 | |||
3. INTEREST RATES | 38 | |||
3.1 Interest Rate Options | 38 | |||
3.1.1 Revolving Credit Interest Rate Options; Swing Line Interest Rate | 39 |
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3.1.2 Rate Quotations | 39 | |||
3.2 Interest Periods | 39 | |||
3.2.1 Amount of Borrowing Tranche | 39 | |||
3.2.2 Renewals | 39 | |||
3.3 Interest After Default | 40 | |||
3.3.1 Interest Rate | 40 | |||
3.3.2 Letter of Credit Fees and Other Obligations | 40 | |||
3.3.3 Acknowledgment; Payable on Demand | 40 | |||
3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available | 40 | |||
3.4.1 Unascertainable | 40 | |||
3.4.2 Illegality; Increased Costs; Deposits Not Available | 40 | |||
3.4.3 Administrative Agent’s and Lender’s Rights | 41 | |||
3.5 Selection of Interest Rate Options | 41 | |||
4. PAYMENTS | 42 | |||
4.1 Payments | 42 | |||
4.2 Pro Rata Treatment of Lenders | 42 | |||
4.3 Sharing of Payments by Lenders | 42 | |||
4.4 Presumptions by Administrative Agent | 43 | |||
4.5 Interest Payment Dates | 44 | |||
4.6 Voluntary Prepayments | 44 | |||
4.6.1 Right to Prepay | 44 | |||
4.6.2 Replacement of a Lender | 45 | |||
4.7 Increased Costs | 45 | |||
4.7.1 Increased Costs Generally | 45 | |||
4.7.2 Capital Requirements | 46 | |||
4.7.3 Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans | 46 | |||
4.7.4 Delay in Requests | 47 | |||
4.8 Taxes | 47 | |||
4.8.1 Payments Free of Taxes | 47 | |||
4.8.2 Payment of Other Taxes by the Borrower | 47 | |||
4.8.3 Indemnification by the Borrower | 47 | |||
4.8.4 Evidence of Payments | 48 | |||
4.8.5 Status of Lenders | 48 | |||
4.8.6 Treatment of Certain Refunds | 49 | |||
4.9 Indemnity | 50 | |||
4.10 Settlement Date Procedures | 50 | |||
5. REPRESENTATIONS AND WARRANTIES | 51 | |||
5.1 Representations and Warranties | 51 | |||
5.1.1 Financial Condition | 51 | |||
5.1.2 No Change | 52 | |||
5.1.3 Existence; Compliance with Law | 52 | |||
5.1.4 Power; Authorization; Enforceable Obligations | 52 |
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5.1.5 No Legal Bar | 52 | |||
5.1.6 Litigation | 52 | |||
5.1.7 No Default | 53 | |||
5.1.8 Ownership of Property; Liens | 53 | |||
5.1.9 Intellectual Property | 53 | |||
5.1.10 Taxes | 53 | |||
5.1.11 Federal Regulations | 53 | |||
5.1.12 Labor Matters | 53 | |||
5.1.13 Investment Company Act; Other Regulations | 54 | |||
5.1.14 Subsidiaries | 54 | |||
5.1.15 Environmental Matters | 54 | |||
5.1.16 Accuracy of Information, etc. | 55 | |||
5.1.17 Security Documents | 55 | |||
5.1.18 Solvency | 56 | |||
5.1.19 ERISA Compliance | 56 | |||
6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT | 56 | |||
6.1 First Loans and Letters of Credit | 57 | |||
6.1.1 Deliveries | 57 | |||
6.2 Each Loan or Letter of Credit | 58 | |||
7. COVENANTS | 59 | |||
7.1 Affirmative Covenants | 59 | |||
7.1.1 Financial Statements | 59 | |||
7.1.2 Certificates; Other Information | 60 | |||
7.1.3 Payment of Obligations | 60 | |||
7.1.4 Maintenance of Existence; Compliance | 61 | |||
7.1.5 Maintenance of Property; Insurance | 61 | |||
7.1.6 Inspection of Property; Books and Records; Discussions | 61 | |||
7.1.7 Notices | 61 | |||
7.1.8 Environmental Laws | 62 | |||
7.1.9 Additional Collateral, etc. | 62 | |||
7.1.10 Intentionally Omitted | 64 | |||
7.1.11 Further Assurances | 64 | |||
7.1.12 Anti-Terrorism Laws | 64 | |||
7.1.13 Operating Accounts | 64 | |||
7.2 Negative Covenants | 65 | |||
7.2.1 Financial Covenants | 65 | |||
7.2.2 Limitation on Liens | 65 | |||
7.2.3 Limitation on Guarantee Obligations | 67 | |||
7.2.4 Limitation on Fundamental Changes | 68 | |||
7.2.5 Limitation on Sale of Assets | 68 | |||
7.2.6 Limitation on Restricted Payments | 69 | |||
7.2.7 Limitation on Investments, Loans, Advances and Acquisitions | 70 | |||
7.2.8 Sale and Leaseback | 71 | |||
7.2.9 Limitation on Transactions with Affiliates | 71 |
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7.2.10 Indebtedness | 72 | |||
7.2.11 Limitation on Modifications of Tax Agreement and Mafco Assignment and Assumption Agreement | 73 | |||
7.2.12 Hedge Agreements | 73 | |||
7.2.13 Changes in Fiscal Periods | 73 | |||
7.2.14 Limitation on Negative Pledge Clauses | 73 | |||
7.2.15 Limitation on Lines of Business | 73 | |||
7.2.16 Limitation on Restrictions on Subsidiary Distributions | 73 | |||
8. DEFAULT | 74 | |||
8.1 Events of Default | 74 | |||
8.2 Consequences of Event of Default | 76 | |||
8.2.1 Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings | 76 | |||
8.2.2 Bankruptcy, Insolvency or Reorganization Proceedings | 77 | |||
8.2.3 Set-off | 77 | |||
8.2.4 Application of Proceeds | 77 | |||
8.3 Right to Cure | 78 | |||
9. THE ADMINISTRATIVE AGENT | 79 | |||
9.1 Appointment and Authority | 79 | |||
9.2 Rights as a Lender | 79 | |||
9.3 Exculpatory Provisions | 79 | |||
9.4 Reliance by Administrative Agent | 80 | |||
9.5 Delegation of Duties | 80 | |||
9.6 Resignation of Administrative Agent | 80 | |||
9.7 Non-Reliance on Administrative Agent and Other Lenders | 81 | |||
9.8 No Other Duties, etc. | 82 | |||
9.9 Administrative Agent’s Fee | 82 | |||
9.10 Release Collateral and Guarantors and Authorization Therefor | 82 | |||
9.11 No Reliance on Administrative Agent’s Customer Identification Program | 82 | |||
10. MISCELLANEOUS | 82 | |||
10.1 Modifications, Amendments or Waivers | 82 | |||
10.1.1 Increase of Commitment | 83 | |||
10.1.2 Extension of Payment; Reduction of Principal Interest or Fees; Modification of Terms of Payment | 83 | |||
10.1.3 Release of Collateral or Guarantor | 83 | |||
10.1.4 Miscellaneous | 83 | |||
10.2 No Implied Waivers; Cumulative Remedies | 83 | |||
10.3 Expenses; Indemnity; Damage Waiver | 84 | |||
10.3.1 Costs and Expenses | 84 | |||
10.3.2 Indemnification by the Borrower | 84 | |||
10.3.3 Reimbursement by Lenders | 85 | |||
10.3.4 Waiver of Consequential Damages, Etc | 85 | |||
10.3.5 Payments | 85 |
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10.4 Holidays | 85 | |||
10.5 Notices; Effectiveness; Electronic Communication | 86 | |||
10.5.1 Notices Generally | 86 | |||
10.5.2 Electronic Communications | 86 | |||
10.5.3 Change of Address, Etc. | 86 | |||
10.6 Severability | 87 | |||
10.7 Duration; Survival | 87 | |||
10.8 Successors and Assigns | 87 | |||
10.8.1 Successors and Assigns Generally | 87 | |||
10.8.2 Assignments by Lenders | 87 | |||
10.8.3 Register | 89 | |||
10.8.4 Participations | 89 | |||
10.8.5 Limitations upon Participant Rights Successors and Assigns Generally | 89 | |||
10.8.6 Certain Pledges; Successors and Assigns Generally | 90 | |||
10.9 Confidentiality | 90 | |||
10.9.1 General | 90 | |||
10.9.2 Sharing Information With Affiliates of the Lenders | 90 | |||
10.10 Counterparts; Integration; Effectiveness | 90 | |||
10.10.1 Counterparts; Integration; Effectiveness | 90 | |||
10.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL | 91 | |||
10.11.1 Governing Law | 91 | |||
10.11.2 SUBMISSION TO JURISDICTION | 91 | |||
10.11.3 WAIVER OF VENUE | 92 | |||
10.11.4 SERVICE OF PROCESS | 92 | |||
10.11.5 WAIVER OF JURY TRIAL | 92 | |||
10.12 USA Patriot Act Notice | 92 |
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SCHEDULES | ||||
Schedule 1.1(A) | - | Pricing Grid | ||
Schedule 1.1(B) | - | Commitment of Lenders and Addresses for Notices | ||
Schedule 5.1.4 | Power; Authority; Enforceable Obligations | |||
Schedule 5.1.14 | Subsidiaries | |||
Schedule 7.2.2(xii) | Permitted Liens | |||
Schedule 7.2.10(iii) | Existing Indebtedness | |||
EXHIBITS | ||||
Exhibit 1.1(A) | - | Assignment and Assumption Agreement | ||
Exhibit 1.1(G)(2) | Guaranty and Collateral Agreement | |||
Exhibit 1.1(M) | Mafco Assignment and Assumption Agreement | |||
Exhibit 1.1(N)(1) | - | Revolving Credit Note | ||
Exhibit 1.1(N)(2) | - | Swing Loan Note | ||
Exhibit 2.4.1 | Loan Request | |||
Exhibit 2.4.2 | - | Swing Loan Request |
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MAFCO WORLDWIDE CORPORATION | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
PNC BANK, NATIONAL ASSOCIATION, as a Lender, Issuing Lender and Administrative Agent | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
UNION BANK, N.A., as a Lender | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
VARIABLE PRICING AND FEES BASED ON LEVERAGE RATIO
Consolidated | Commitment | Letter of | Revolving Credit | Revolving Credit LIBOR Rate | ||||||||||||||
Level | Leverage Ratio | Fee | Credit Fee | Base Rate Spread | Spread | |||||||||||||
I | Less than 1.50 to 1.0 | 0.125 | % | 1.50 | % | 0.50 | % | 1.50 | % | |||||||||
II | Greater than or equal to 1.50 to 1.0 but less than 2.0 to 1.0 | 0.140 | % | 1.75 | % | 0.75 | % | 1.75 | % | |||||||||
III | Greater than or equal to 2.0 to 1.0 | 0.155 | % | 2.0 | % | 1.00 | % | 2.0 | % |
SCHEDULE 1.1(A) - 1
SCHEDULE 1.1(A) - 2
Amount of | ||||||||
Commitment for | ||||||||
Revolving Credit | ||||||||
Lender | Loans | Ratable Share | ||||||
Name: PNC Bank, National Association Address: 1950 East Route 70, 3rd Floor, Cherry Hill, New Jersey 08003 Attention: William Cornelius Telephone: (856) 489-2713 Telecopy: (856) 489-2785 | $ | 25,000,000 | 56 | % | ||||
Name: Union Bank, N.A. Address: 445 S. Figueroa St., 16th Floor Los Angeles, CA 90071 Attention: Megan Webtser Telephone: (213) 236-7517 Telecopy: (213) 236-7636 | $ | 20,000,000 | 44 | % | ||||
Total | $ | 45,000,000 | 100 | % |
SCHEDULE 1.1(B) - 1
Part 2 — Addresses for Notices to the Borrower: | ||
ADMINISTRATIVE AGENT | ||
Name: PNC Bank, National Association | ||
Address: 1950 East Route 70, 3rd Floor | ||
Cherry Hill, New Jersey 08003 | ||
Attention: William Cornelius | ||
Telephone: | (856) 489-2713 | |
Telecopy: | (856) 489-1847 | |
With a Copy To: | ||
Agency Services, PNC Bank, National Association | ||
Mail Stop: P7-PFSC-04-I | ||
Address: 500 First Avenue | ||
Pittsburgh, PA 15219 | ||
Attention: | Agency Services | |
Telephone: | 412 762 6442 | |
Telecopy: | 412 762 8672 | |
BORROWER: | ||
Name: | Mafco Worldwide Corporation | |
Address: | 300 Jefferson Avenue | |
Camden, New Jersey 08104 | ||
Attention: | Lynn Seeholzer, Treasurer | |
Telephone | (856) 968-4067 | |
Telecopy: | (856) 225-1418 |