EXHIBIT 4(C)
AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF OCTOBER 13, 1994
BY AND AMONG
WOLVERINE WORLD WIDE, INC.
NBD BANK, N.A.
HARRIS TRUST AND SAVINGS BANK
COMERICA BANK
OLD KENT BANK AND TRUST COMPANY
AND
NBD BANK, NA., AS AGENT
TABLE OF CONTENTS
ARTICLE I. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE II. THE COMMITMENTS . . . . . . . . . . . . . . . . . . . . . . . . 9
2.1 Commitments of the Banks.. . . . . . . . . . . . . . . . . . . 9
2.2 Termination and Reduction of Commitments.. . . . . . . . . . . 9
2.3 Commitment Fees. . . . . . . . . . . . . . . . . . . . . . . . 10
2.4 Unavailable Portion of Commitment; Fee
Adjustment.. . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.5 Agent's Fee. . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.6 Closing Fee. . . . . . . . . . . . . . . . . . . . . . . . . . 10
ARTICLE III. THE LOANS. . . . . . . . . . . . . . . . . . . . . . . . . . . 10
3.1 Disbursement of Loans. . . . . . . . . . . . . . . . . . . . . 10
3.2 Conditions for Disbursement of Initial Loan. . . . . . . . . . 12
3.3 Conditions for Disbursement of Each Loan.. . . . . . . . . . . 13
3.4 Minimum Amounts. . . . . . . . . . . . . . . . . . . . . . . . 13
3.5 Subsequent Elections as to Loans.. . . . . . . . . . . . . . . 13
3.6 Discretion of the Banks as to Manner of Funding. . . . . . . . 14
ARTICLE IV. PAYMENTS AND PREPAYMENTS OF LOANS . . . . . . . . . . . . . . . 14
4.1 Principal Payments.. . . . . . . . . . . . . . . . . . . . . . 14
4.2 Interest Payments. . . . . . . . . . . . . . . . . . . . . . . 14
4.3 Optional Prepayment. . . . . . . . . . . . . . . . . . . . . . 14
4.4 Mandatory Prepayment.. . . . . . . . . . . . . . . . . . . . . 15
4.5 Payment Method.. . . . . . . . . . . . . . . . . . . . . . . . 15
4.6 No Setoff or Deduction.. . . . . . . . . . . . . . . . . . . . 15
4.7 Payment on Non-Business Day; Payment
Computations.. . . . . . . . . . . . . . . . . . . . . . . . . 15
ARTICLE V. YIELD PROTECTION AND CONTINGENCIES. . . . . . . . . . . . . . . . 16
5.1 Additional Costs.. . . . . . . . . . . . . . . . . . . . . . . 16
5.2 Limitation of Requests and Elections.. . . . . . . . . . . . . 16
5.3 Illegality and Impossibility.. . . . . . . . . . . . . . . . . 17
5.4 Additional Contingencies.. . . . . . . . . . . . . . . . . . . 17
5.5 Indemnification. . . . . . . . . . . . . . . . . . . . . . . . 18
5.6 Capital Adequacy.. . . . . . . . . . . . . . . . . . . . . . . 18
ARTICLE VI. REPRESENTATIONS AND WARRANTIES . . . . . . . . . . . . . . . . . 19
6.1 Corporate Existence and Power. . . . . . . . . . . . . . . . . 19
6.2 Corporate Authority. . . . . . . . . . . . . . . . . . . . . . 19
6.3 Binding Effect.. . . . . . . . . . . . . . . . . . . . . . . . 19
6.4 Subsidiaries.. . . . . . . . . . . . . . . . . . . . . . . . . 20
6.5 Litigation.. . . . . . . . . . . . . . . . . . . . . . . . . . 20
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6.6 Financial Condition. . . . . . . . . . . . . . . . . . . . . . 20
6.7 Use of Loans.. . . . . . . . . . . . . . . . . . . . . . . . . 21
6.8 Consents, Etc. . . . . . . . . . . . . . . . . . . . . . . . . 21
6.9 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
6.10 Title to Properties. . . . . . . . . . . . . . . . . . . . . . 21
6.11 Note Agreements. . . . . . . . . . . . . . . . . . . . . . . . 21
6.12 Environmental and Safety Matters.. . . . . . . . . . . . . . . 21
6.13 Indebtedness.. . . . . . . . . . . . . . . . . . . . . . . . . 22
ARTICLE VII. COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . . . 22
7.1 Affirmative Covenants. . . . . . . . . . . . . . . . . . . . . 22
(a) Preservation of Corporate Existence, Etc.. . . . . . . . . 22
(b) Compliance with Laws, Etc. . . . . . . . . . . . . . . . . 23
(c) Maintenance of Insurance.. . . . . . . . . . . . . . . . . 23
(d) Reporting Requirements.. . . . . . . . . . . . . . . . . . 23
(e) Access to Records, Books, Etc. . . . . . . . . . . . . . . 24
7.2 Negative Covenants.. . . . . . . . . . . . . . . . . . . . . . 25
(a) Current Ratio. . . . . . . . . . . . . . . . . . . . . . . 25
(b) Tangible Net Worth.. . . . . . . . . . . . . . . . . . . . 25
(c) Total Liabilities to Tangible Net Worth. . . . . . . . . . 25
(d) Fixed Charge Coverage Ratio. . . . . . . . . . . . . . . . 25
(e) Indebtedness . . . . . . . . . . . . . . . . . . . . . . . 25
(f) Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . 25
(g) Merger; Sale of Assets; Etc. . . . . . . . . . . . . . . . 26
(h) Nature of Business.. . . . . . . . . . . . . . . . . . . . 26
ARTICLE VIII. DEFAULT . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
8.1 Events of Default. . . . . . . . . . . . . . . . . . . . . . . 27
8.2 Remedies.. . . . . . . . . . . . . . . . . . . . . . . . . . . 29
ARTICLE IX. THE AGENT AND THE BANKS. . . . . . . . . . . . . . . . . . . . . 30
9.1 Appointment of Agent.. . . . . . . . . . . . . . . . . . . . . 30
9.2 Scope of Agency. . . . . . . . . . . . . . . . . . . . . . . . 30
9.3 Duties of Agent. . . . . . . . . . . . . . . . . . . . . . . . 31
9.4 Resignation of Agent.. . . . . . . . . . . . . . . . . . . . . 31
9.5 Pro Rata Sharing by Banks. . . . . . . . . . . . . . . . . . . 32
ARTICLE X. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . 32
10.1 Amendments; Etc. . . . . . . . . . . . . . . . . . . . . . . . 32
10.2 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
10.3 Conduct No Waiver; Remedies Cumulative. . . . . . . . . . . . 33
10.4 Reliance on and Survival of Various Provisions.. . . . . . . . 34
10.5 Expenses.. . . . . . . . . . . . . . . . . . . . . . . . . . . 34
10.6 Successors and Assigns.. . . . . . . . . . . . . . . . . . . . 34
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10.7 Counterparts.. . . . . . . . . . . . . . . . . . . . . . . . . 35
10.8 Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . 36
10.9 Headings.. . . . . . . . . . . . . . . . . . . . . . . . . . . 36
10.10 Construction of Certain Provisions. . . . . . . . . . . . . . 36
10.11 Integration and Severability. . . . . . . . . . . . . . . . . 36
10.12 Interest Rate Limitation. . . . . . . . . . . . . . . . . . . 36
10.13 Independence of Covenants . . . . . . . . . . . . . . . . . . 36
10.14 Waiver of Jury Trial. . . . . . . . . . . . . . . . . . . . . 37
SCHEDULE 6.4 Subsidiaries
SCHEDULE 6.5 Litigation
SCHEDULE 6.12 Environmental and Safety Matters
SCHEDULE 6.13 Indebtedness Greater than $100,000
SCHEDULE 7.2(e) Permitted Indebtedness
EXHIBIT A REVOLVING CREDIT NOTE
EXHIBIT B REQUEST FOR LOAN
EXHIBIT C REQUEST FOR CONTINUATION OR CONVERSION OF LOAN
EXHIBIT D ASSIGNMENT AND ACCEPTANCE
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THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated October 13,
1994 (this "Agreement"), is among WOLVERINE WORLD WIDE, INC., a Delaware
corporation (the "Company"), the Banks named in Section 2.1 hereof
(collectively, the "Banks" and, individually, a "Bank"), and NBD BANK,
N.A., a national banking association as agent for the Banks (in such
capacity, the "Agent").
RECITAL
The Company desires to amend and restate in its entirety the
Credit Agreement among the Company, NBD Bank, N.A., Harris Trust and
Savings Bank, Old Kent Bank and Trust Company, Comerica Bank (as successor
by merger to Manufacturers Bank, N.A.) and the Agent dated as of March 11,
1993 (the "Prior Credit Agreement"), in order to obtain a revolving bank
credit in principal sum not to exceed $50,000,000 to provide funds for its
general corporate and working capital purposes, and the Banks are willing
to so amend and restate the Prior Credit Agreement on the terms and
conditions herein set forth.
AGREEMENT
In consideration of the premises and of the mutual agreements
herein contained, the parties hereto agree that the Prior Credit Agreement
shall be amended and restated in its entirety as follows:
ARTICLE I. DEFINITIONS
1.1 As used herein the following terms shall have the following
respective meanings:
"Affiliate", when used with respect to any person, means any
person which, directly or indirectly, controls or is controlled by or is
under common control with such person. For purposes of this definition,
control (including the correlative meanings of the terms "controlled by"
and "under common control with"), with respect to any person, means
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such person, whether through
the ownership of voting securities or by contract or otherwise.
"Applicable Margin" means the following margins for purposes of
determining the Eurodollar Rate, as indicated in the following table:
Fixed Charge Coverage Ratio
Total Liabilities 3.0 to 1.0
to Tangible Net Less than through Greater than
Worth Ratio 3.0 to 1.0 4.0 to 1.0 4.0 to 1.0
Greater than
1.0 to 1.0 1.00% .875% .75%
0.8 to 1.0
through
1.0 to 1.0 .875% .75% .625%
Less than
0.8 to 1.0 .75% .625% .50%
The Applicable Margin shall be adjusted as of the first day of
each fiscal quarter of the Company based on the Total Liabilities to
Tangible Net Worth Ratio and the Fixed Charge Coverage Ratio at the end of
the fiscal quarter immediately preceding the fiscal quarter most recently
ended.
"Business Day" means a day other than a Saturday, Sunday or
other day on which the Agent or any Bank is not open for the transaction of
substantially all of its banking functions.
"Commitments" means the commitments of the Banks to lend
hereunder pursuant to Section 2.1, in the respective amounts specified in
Section 2.1, as such amounts may be reduced from time to time pursuant to
Section 2.2.
"Contingent Liabilities" of any person means, as of any date, all
obligations of such person or of others for which such person is
contingently liable, as obligor, guarantor, surety or in any other
capacity, or in respect of which obligations such person assures a creditor
against loss or agrees to take any action to prevent any such loss (other
than endorsements of negotiable instruments for collection in the ordinary
course of business), including without limitation all reimbursement
obligations of such person in respect of any letters of credit or similar
obligations and all obligations of such person to advance funds to, or to
purchase assets, property or services from, any other person in order to
maintain the financial condition of such other person.
"Current Assets" and "Current Liabilities" of any person means,
as of any date, all assets or liabilities, respectively, of such person
which, in accordance with generally accepted accounting principles, should
be classified as current assets or current liabilities, respectively, on a
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balance sheet of such person; provided, however, that for purposes of
calculating the covenant contained in Section 7.2(a) and to the extent not
otherwise included therein, all Loans and interest thereon shall be
included in the term "Current Liabilities".
"Current Ratio" of any person means, as of any date, the ratio of
Current Assets of such person to Current Liabilities of such person.
"Dollars" and "$" means the lawful money of the United States of
America.
"Effective Date" means the effective date specified in the final
paragraph of this Agreement.
"Environmental Laws" at any date means all provisions of law,
statute, ordinances, rules, regulations, judgments, writs, injunctions,
decrees, orders, awards and standards (but only to the extent such
standards could be determined to be legally binding or the violation of
such standards could give rise to liability of the Company or any of its
Subsidiaries) promulgated by the government of the United States of America
or any foreign government or by any state, province, municipality or other
political subdivision thereof or therein or by any court, agency,
instrumentality, regulatory authority or commission of any of the foregoing
concerning the protection of, or regulating the discharge of substances
into, the environment.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
"Eurodollar Business Day" means, with respect to any Eurodollar
Rate Loan, a day which is both a Business Day and a day on which dealings
in Dollar deposits are carried out in the interbank market selected by the
Agent with respect to such Eurodollar Rate Loan.
"Eurodollar Interest Period" means, with respect to any
Eurodollar Rate Loan, the period commencing on the day such Eurodollar Rate
Loan is made or converted to a Eurodollar Rate Loan and ending on the date
1, 2, 3, or 6 months thereafter, as the Company may elect under Section 3.1
or 3.5, and each subsequent period commencing on the expiry of the
immediately preceding Eurodollar Interest Period and ending on the date 1,
2, 3, or 6 months thereafter, as the Company may elect under Section 3.1 or
3.5, provided, however, that (a) any Eurodollar Interest Period which
commences on the last Eurodollar Business Day of a calendar month (or on
any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last Eurodollar
Business Day of the appropriate subsequent calendar month, (b) each
Eurodollar Interest Period which would otherwise end on a day which is not
a Eurodollar Business Day shall end on the next succeeding Eurodollar
Business Day or, if such next succeeding Eurodollar Business Day falls in
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the next succeeding calendar month, on the next preceding Eurodollar
Business Day, and (c) no Eurodollar Interest Period shall be permitted
which would end after the Termination Date.
"Eurodollar Rate" means, with respect to any Eurodollar Rate Loan
and the related Eurodollar Interest Period, the per annum rate that is
equal to the sum of:
(a) the Applicable Margin, plus
(b) the per annum rate of interest determined by dividing (i)
the per annum rate of interest at which deposits in Dollars for such
Eurodollar Interest Period in an aggregate amount comparable to the amount
of the Agent's portion of such Eurodollar Rate Loan are offered to NBD
Bank, N.A. by other prime banks in the London or Nassau interbank market,
selected in the Agent's discretion, at approximately 11:00 a.m. Detroit
time, as the case may be, on the second Eurodollar Business Day prior to
the first day of such Eurodollar Interest Period; by (ii) a percentage
equal to 100% minus that percentage (expressed as a decimal) that is
specified on the first day of such Eurodollar Interest Period by the Board
of Governors of the Federal Reserve System (or any successor agency
thereto) for determining the maximum reserve requirement (including,
without limitation, any marginal, emergency or special reserves) with
respect to eurocurrency funding (currently referred to as "Eurocurrency
liabilities" in Regulation D of such Board) maintained by a member bank of
such System;
all as conclusively determined by the Agent, such sum to be rounded up, if
necessary, to the nearest whole multiple of 1/100 of 1%, and such
Eurodollar Rate to be adjusted as and when any change occurs in the reserve
requirements referred to in subparagraph (b) above.
"Eurodollar Rate Loan" means any Loan which bears interest at
the Eurodollar Rate.
"Event of Default" means any of the events or conditions
described in Section 8.1.
"Existing Note Agreements" means the Note Agreements, each dated
as of August 1, 1994, Re: $30,000,000 7.81% Senior Notes Due August 15,
2004, together with any document or instrument executed pursuant thereto,
between the Company and each of Teachers Insurance and Annuity Association
of America, The Minnesota Mutual Life Insurance Company, Farm Bureau Life
Insurance Company of Michigan, FB Annuity Company, Federated Life Insurance
Company and Federated Mutual Insurance Company.
"Fixed Charge Coverage Ratio" shall have the meaning ascribed
thereto in Section 7.2(f).
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"Fixed Charges" means, for any period, the sum of (i) the excess
of (x) all Interest expense on all Indebtedness (including imputed interest
charges with respect to any lease, which in accordance with generally
accepted accounting principles, is or should be capitalized on the books of
the lessee) of the Company and its Subsidiaries payable with respect to
such period over (y) all interest earnings received during such period and
(ii) 33-1/3% of all Rentals (excluding Rentals payable with respect to
leases which are or should be capitalized on the books of the lessee)
payable during such period by the Company and its Subsidiaries.
"Floating Rate Loan" means any Loan which bears interest at the
Prime Rate.
"generally accepted accounting principles" means generally
accepted accounting principles in effect from time to time applied on a
basis consistent with that reflected in the financial statements referred
to in Section 6.6.
"Indebtedness" of any person means, as of any date, (a) all
obligations of such person for borrowed money, (b) all obligations as
lessee under any lease which, in accordance with generally accepted
accounting principles, is or should be capitalized on the books of the
lessee, and (c) all obligations of others similar in character to those
described in clauses (a) and (b) of this definition for which such person
is liable, contingently or otherwise, as obligor, guarantor or in any other
capacity, or in respect of which obligations such person assures a creditor
against loss or agrees to take any action to prevent any such loss (other
than endorsements of negotiable instruments for the collection in the
ordinary course of business), including without limitation all
reimbursement obligations of such person in respect of letters of credit
or similar obligations and all obligations of such person to advance funds
to, or to purchase assets, property or services from, any other person in
order to maintain the financial condition of such person.
"Interest" means, for any period, all interest and all
amortization of debt discount and expense on any particular Indebtedness
for which such calculations are being made.
"Interest Payment Date" means (a) with respect to any Floating
Rate Loan, the first Business Day of each month, commencing with the first
such day occurring after the Effective Date, and (b) with respect to any
Eurodollar Rate Loan, the last day of the Interest Period with respect to
such Eurodollar Rate Loan and, if such Interest Period exceeds three
months, the day in the third month following the month the Loan proceeds
were disbursed (or, in the case of the continuation of a Loan as, or
conversion of a Loan to, a Eurodollar Rate Loan, the day in the third month
following the month in which such continuation or conversion occurred) that
numerically corresponds to the date on which the Loan proceeds were
disbursed (or to the date on which such continuation or conversion
occurred) or, if there is no numerically corresponding day, the last
Eurodollar Business Day of that third month.
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"Interest Period" means any Eurodollar Interest Period.
"Loan" means any borrowing under Section 3.1 and "Loans" means
all of the borrowings under Section 3.1.
"Majority Banks" means Banks holding not less than 66-2/3% of the
aggregate principal amount of the Notes then outstanding (or 66-2/3% of the
Commitments if no principal amount is outstanding under the Notes).
"Material Subsidiary" shall mean any Subsidiary of the Company
if:
(1) The assets of such Subsidiary (valued at the greater of book
or fair market) as at the end of the immediately preceding fiscal year
exceed 5% of Consolidated Total Assets (as defined in the Existing Note
Agreements) of the Company and its Subsidiaries; or
(2) The aggregate sum of all assets (valued at the greater of
book or fair market) of such Subsidiary, when combined with the assets of
all other Subsidiaries to which Section 8.1(i) would have applied if not
for the limitations set forth herein at any time during the three-year
period immediately preceding the date of such determination, exceeds 5% of
Consolidated Total Assets of the Company and its Subsidiaries; or
(3) The percentage of Consolidated Net Earnings (as defined in
the Existing Note Agreements) of the Company and its Subsidiaries
contributed by such Subsidiary during the immediately preceding fiscal year
exceeds 5%; or
(4) 5% is less than the sum of (i) the percentage of
Consolidated Net Earnings of the Company and its Subsidiaries contributed
by such Subsidiary during its Applicable Year and (ii) the percentage of
Consolidated Net Earnings of the Company and its Subsidiaries contributed
during its Applicable Year by each other Subsidiary of the Company to which
Section 8.1(i) would have applied at any time during the three-year period
immediately preceding the date of such determination if not for the
limitations set forth herein. The "Applicable Year" for each such
Subsidiary shall be the last complete fiscal year of the Company and its
Subsidiaries immediately preceding the date of the occurrence of the
relevant event or circumstance described in Section 8.1(i).
"Net Income" of any person means, for any period, the net income
(after deduction for income and other taxes of such person determined by
reference to income or profits of such person) for such period, all as
determined in accordance with generally accepted accounting principles.
"Net Income Available for Fixed Charges" means, for any period,
the sum of (i) consolidated Net Income of the Company and its Subsidiaries
during such period plus (ii) to the extent deducted in determining Net
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Income, all provisions for all federal, state or other income taxes made by
the Company and its Subsidiaries during such period plus (iii) consolidated
Fixed Charges of the Company and its Subsidiaries during such period.
"Notes" means the promissory notes of the Company issued to the
Banks evidencing the Loans, in substantially the form annexed hereto as
Exhibit A, as amended or modified from time to time and together with any
promissory note or notes issued in exchange or replacement therefor.
"Overdue Rate" means (a) in respect of principal on Floating Rate
Loans, a rate per annum that is equal to the sum of three percent (3%) plus
the Prime Rate, (b) in respect of Eurodollar Rate Loans, a rate per annum
that is equal to the sum of three percent (3%) plus the per annum rate in
effect thereon until the end of the then-current Eurodollar Interest Period
for such Loan and thereafter a rate per annum that is equal to the sum of
three percent (3%) plus the Prime Rate, and (c) in respect of other amounts
payable by the Company hereunder (other than interest) a per annum rate
that is equal to the sum of three percent (3%) plus the Prime Rate.
"PBGC" means the Pension Benefit Guaranty Corporation and any
entity succeeding to any or all of its functions under ERISA.
"person" shall include an individual, a corporation, an
association, a partnership, a trust or estate, a joint stock company, an
unincorporated organization, a joint venture, a government (foreign or
domestic), and any agency or political subdivision thereof, and any other
entity.
"Plan" means, with respect to any person, any employee benefit or
other plan maintained by such person for its employees and covered by Title
IV of ERISA or to which Sec. 412 of the Internal Revenue Code of 1986, as
amended from time to time, applies.
"Prime Rate" means the greater of (a) the per annum rate
announced by the Agent from time to time as its "prime rate", which "prime
rate" may not be the lowest rate charged by the Agent to any of its
customers, such Prime Rate to change simultaneously with any change in such
"prime rate", and (b) the per annum rate equal to the sum of one-half of
one percent (1/2%) per annum plus the per annum rate established and
announced by the Agent from time to time as the opening federal funds rate
paid or payable by the Agent in its regional federal funds market for
overnight borrowings from other banks.
"Rentals" means, with respect to any period, the excess of (x)
all fixed rents (including all payments which the lessee is obligated to
make to the lessor on termination of the lease or surrender of the
property) payable with respect to such period by the Company or its
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Subsidiaries as lessee or sublessee under a lease of real or personal
property (exclusive of any amounts required to be paid by the Company or
its Subsidiaries, whether designated as rents or additional rents, on
account of maintenance, repairs, insurance, taxes and similar charges) over
(y) all such amounts received by the Company and its Subsidiaries as lessor
under a lease of real or personal property during such period.
"Subsidiary" of any person means any corporation (whether now
existing or hereafter organized or acquired) in which at least a majority
of the securities of each class having ordinary voting power for the
election of directors (other than securities which have such power only by
reason of the happening of a contingency), at the time as of which any
determination is being made, is owned, beneficially and of record, by such
person or by one or more of the other Subsidiaries of such person or by any
combination thereof.
"Tangible Net Worth" of any person means, as of any date (a) the
amount of any capital stock or similar ownership liability plus (or minus
in the case of a deficit) the capital surplus and retained earnings of such
person and the amount of any foreign currency translation adjustment
account shown as a capital account of such person, less (b) the net book
value of all items of the following character which are included in the
assets of such person: (i) goodwill, including without limitation the
excess of cost over book value of any asset, (ii) organization or
experimental expenses, (iii) unamortized debt discount and expense, (iv)
stock discount and expense, (v) patents, trademarks, trade names and
copyrights, (vi) treasury stock, (vii) deferred taxes and deferred charges,
(viii) franchises, licenses and permits, and (ix) other assets which are
deemed intangible assets under generally accepted accounting principles.
"Termination Date" means the earlier to occur of (a) October 13,
1998, and (b) the date on which the Commitments shall be terminated
pursuant to Section 2.2 or 8.2.
"Total Liabilities" of any person means, as of any date, all
obligations which, in accordance with generally accepted accounting
principles, are or should be classified as liabilities on a balance sheet
of such person.
"Total Liabilities to Tangible Net Worth Ratio" means, as of any
date, the ratio of consolidated Total Liabilities of the Company and its
Subsidiaries to consolidated Tangible Net Worth of the Company and its
Subsidiaries.
1.2 As used herein, the terms "Agent", "Bank", "Banks",
"Company" and "this Agreement" shall have the respective meanings ascribed
thereto in the introductory paragraph of this Agreement. Such terms,
together with the other terms defined in Section 1.1, shall include both
the singular and the plural forms thereof and shall be construed
accordingly. All computations required hereunder and all financial terms
used herein shall be made or construed in accordance with generally
accepted accounting principles unless such principles are inconsistent with
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the express requirements of this Agreement. Use of the terms "herein",
"hereof", and "hereunder" shall be deemed references to this Agreement in
its entirety and not to the Section or clause in which such term appears.
ARTICLE II. THE COMMITMENTS
2.1 Commitments of the Banks. The aggregate Commitment of the
Banks shall be $50,000,000. Each Bank agrees, for itself only, subject to
the terms and conditions of this Agreement, to lend to the Company from
time to time from the Effective Date until the Termination Date, sums not
to exceed in aggregate principal amount at any time outstanding the amount
set forth opposite its name below (or such proportionate lesser amount as
may result from a reduced amount of the available aggregate Commitment of
the Banks during such period):
NAME OF BANK COMMITMENT AMOUNT
NBD Bank, N.A. $27,500,000
Harris Trust $10,000,000
and Savings
Bank
Comerica Bank $ 7,500,000
Old Kent Bank and $ 5,000,000
Trust Company
$50,000,000
Each borrowing under this Section 2.1 shall be made from the
Banks pro rata in accordance with their Commitments.
2.2 Termination and Reduction of Commitments. The Company shall
have the right to terminate or reduce the aggregate Commitments at any time
and from time to time, provided that (a) the Company shall give five days'
prior written notice of such termination or reduction to the Agent (with
sufficient executed copies for each Bank) specifying the amount and
effective date thereof, (b) each partial reduction of the aggregate
Commitments shall be in a minimum amount of $3,000,000 and in an integral
multiple of $1,000,000, and shall reduce all Commitments proportionately,
(c) no such termination or reduction shall be permitted with respect to any
portion of the Commitments as to which a request for a Loan pursuant to
Section 3.1 is then pending, and (d) the Commitments may not be terminated
if any Loans are then outstanding and may not be reduced below the
principal amount of Loans then outstanding. The Commitments or any portion
thereof so terminated or reduced may not be reinstated.
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2.3 Commitment Fees. The Company agrees to pay to the Agent for
the pro rata benefit of the Banks a commitment fee on the daily average
unused amount of the Commitments, for the period from the Effective Date to
but excluding the Termination Date, in arrears, at a rate equal to three-
eighths of one percent (3/8%) per annum. Accrued commitment fees shall be
payable quarterly, in arrears, on the first Business Day of each January,
April, July and October, commencing on such Business Day in the month of
January, 1995, and on the Termination Date.
2.4 Unavailable Portion of Commitment; Fee Adjustment. The
Company may, by a written notice delivered to the Agent, designate as
unavailable up to $20,000,000 of the Commitment, in increments of
$5,000,000, provided that the maximum unavailable portion of the Commitment
may not exceed the lesser of (i) $20,000,000 or (ii) the unused portion of
the Commitment at the time of such designation. In the event of such
designation, the commitment fee payable with respect to the unavailable
portion of the Commitment for the period subsequent to the date of
receiving such designation by the Agent shall be three-sixteenths of one
percent (3/16%) rather than three-eighths of one percent (3/8%) as
specified in Section 2.3. The Company may thereafter, upon not less than
three (3) Business Days' prior written notice to the Agent, elect to make
available hereunder all or any portion of the Commitment previously
designated as unavailable, in increments of $5,000,000, provided, that the
Company shall pay to the Agent for the Banks' ratable benefit on or before
the date such reinstated availability becomes effective, a commitment fee
recovery computed on such reinstated amount at the rate of three-sixteenths
of one percent (3/16%) per annum for a period of ninety (90) days.
2.5 Agent's Fee. The Company agrees to pay to the Agent an
agency fee for its services as Agent under this Agreement in such amounts
and at such times as may be agreed upon by the Company and the Agent.
2.6 Closing Fee. The Company agrees to pay to the Agent for the
pro rata benefit of the Banks a closing fee in an amount equal to $62,500,
payable on the Effective Date.
ARTICLE III. THE LOANS
3.1 Disbursement of Loans. (a)The Company shall give the Agent
notice of each requested Loan in substantially the form of Exhibit B hereto
(with sufficient executed copies for each Bank) not later than 11:00 a.m.
Detroit time (i) three Eurodollar Business Days prior to the date of such
requested Loan in the case of any Eurodollar Rate Loan, and (ii) on the
date of such requested Loan in the case of a Floating Rate Loan, which
notice shall specify whether a Eurodollar Rate Loan or Floating Rate Loan
-10-
is requested and, in the case of each requested Eurodollar Rate Loan, the
Interest Period to be initially applicable to such Loan. The Agent shall
provide notice of such requested Loan to each Bank by 2:00 p.m. Detroit
time on the date such notice is received by the Agent.
(b) Subject to the terms and conditions of this Agreement,
the proceeds of any such requested Loan shall be made available to the
Company by depositing the proceeds thereof, in immediately available funds,
in an account maintained and designated by the Company at the principal
office of the Agent, provided, that the proceeds of the initial Loan shall
be used to pay all amounts owing to the Banks pursuant the Prior Credit
Agreement and the promissory notes issued by the Company thereunder, at
which time the commitments of the Banks under the Prior Credit Agreement
shall be terminated. Each Bank, on the date of any such requested Loan,
shall make its pro rata share of such Loan available in immediately
available funds at the principal office of the Agent for disbursement to
the Company. Unless the Agent shall have received notice from any Bank
prior to the date of any requested borrowing under this Section 3.1 that
such Bank will not make available to the Agent such Bank's pro rata portion
of such borrowing, the Agent may assume that such Bank has made such
portion available to the Agent on the date of such borrowing in accordance
with this Section 3.1(b). If and to the extent such Bank shall not have so
made such pro rata portion available to the Agent, the Agent may (but shall
not be obligated to) make such amount available to the Company, and such
Bank and the Company severally agree to pay to the Agent forthwith on
demand such amount together with interest thereon, for each day from the
date such amount is made available to the Company by the Agent until the
date such amount is paid to the Agent, at a rate per annum equal to the
rate at which overnight borrowings are available to the Agent from other
banks in its regional federal funds market. If such Bank shall pay to the
Agent such amount, the amount so paid shall constitute a Loan by such Bank
as a part of such borrowing for purposes of this Agreement. The failure of
any Bank to make its pro rata portion of any such borrowing available to
the Agent shall not relieve any other Bank of its obligations to make
available its pro rata portion of such borrowing on the date of such
borrowing, but no Bank shall be responsible for failure of any other Bank
to make such pro rata portion available to the Agent on the date of any
such borrowing. Acceptance by the Company of any Loan in an amount less
than the amount requested by the Company as a result of any Bank's failure
to make its pro rata portion of such borrowing available shall not
constitute a waiver of the Company's right against such Bank for any
damages resulting therefrom.
(c) All borrowings hereunder shall be evidenced by the
Notes, and all such borrowings shall be due and payable and bear interest
as provided in Article IV hereof. Each Bank is hereby authorized by the
Company to note on the schedule attached to its Note or on its books and
records, the date, the amount of its pro rata share of and the type of each
Loan and the duration of the related Interest Period (if applicable), the
amount of each payment or prepayment of principal thereon, and the other
information provided for on such schedule, which schedule shall constitute
-11-
prima facie evidence of the information so noted, provided that failure of
any Bank to make any such notation shall not relieve the Company of its
obligation to repay the outstanding principal amount of the Loans, all
accrued interest thereon and other amounts payable with respect thereto in
accordance with the terms of the Notes and this Agreement. Subject to the
terms and conditions of this Agreement, the Company may borrow, prepay
pursuant to Section 4.1 and reborrow Loans under this Section 3.1.
3.2 Conditions for Disbursement of Initial Loan. The obligation
of the Banks to make the initial Loan hereunder is subject to receipt by
each Bank of the following documents and satisfaction of the following
conditions, each in form and substance satisfactory to each Bank:
(a) Certificates of recent date of the appropriate
authority or official of the Company's state of incorporation listing all
charter documents of the Company on file in that office and certifying as
to the good standing and corporate existence of the Company, together with
copies of such charter documents of the Company certified as of a recent
date by such authority or official and certified as true and correct as of
the Effective Date by a duly authorized officer of the Company;
(b) Copies of the by-laws of the Company, together with all
authorizing resolutions and evidence of other corporate action taken by the
Company to authorize the execution, delivery and performance by the Company
of this Agreement and the Notes and the consummation of the transactions
contemplated hereby, each certified as true and correct as of the Effective
Date by a duly authorized officer of the Company;
(c) Certificates of incumbency of the Company containing,
and attesting to the genuineness of, the signatures of those officers
authorized to act on behalf of the Company in connection with this
Agreement and the Notes and the consummation of the transactions
contemplated hereby, certified as true and correct as of the Effective Date
by a duly authorized officer of the Company;
(d) The Notes duly executed on behalf of the Company,
appropriately completed for each Bank and dated on or before the date of
such Loan;
(e) The favorable written opinion of Warner, Norcross &
Judd, counsel for the Company, with respect to each of the matters as any
of the Banks may reasonably request;
(f) Payment of the closing fee described in Section 2.6;
and
(g) Simultaneously with disbursement of the initial Loan
hereunder, payment in full of all principal of all promissory notes issued
pursuant to the Prior Credit Agreement and all accrued interest thereon
through the Effective Date, together with payment in full of all other
indebtedness under the Prior Credit Agreement, including without limitation
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the payment of all commitment and facility fees accrued through the
Effective Date under the Prior Credit Agreement, and on the Effective Date
all commitments to lend under the Prior Credit Agreement shall terminate.
3.3 Conditions for Disbursement of Each Loan. The obligation of
the Banks to make any Loan (including the initial Loan) is subject to the
satisfaction of the following conditions precedent:
(a) The representations and warranties contained in Article
VI shall be true and correct on and as of the date such Loan is made as if
such representations and warranties were made on and as of such date; and
(b) No Event of Default, and no event or condition which
would become such an Event of Default with notice or lapse of time, or
both, shall exist or shall have occurred and be continuing on the date such
Loan is made.
The Company shall be deemed to have made a certification to the Banks at
the time of the making of each Loan to the effects set forth in clauses (a)
and (b) of this Section 3.3.
3.4 Minimum Amounts. Except for conversions and prepayments of
all Loans of a particular type and conversions or payments required
pursuant to Section 4.4 or Article V, each Eurodollar Rate Loan and each
conversion and prepayment thereof shall be in a minimum amount of
$4,000,000 and in an integral multiple of $1,000,000, and each Floating
Rate Loan and each conversion and prepayment thereof shall be in a minimum
amount of $1,000,000 and in an integral multiple of $100,000.
3.5 Subsequent Elections as to Loans. The Company may elect to
continue a Eurodollar Rate Loan of one type as a Eurodollar Rate Loan of
the then-existing type or may elect to convert a Eurodollar Rate Loan of
one type to a Loan of another type by giving notice thereof to the Agent
(with sufficient executed copies for each Bank) in substantially the form
of Exhibit C hereto not later than 11:00 a.m. Detroit time (a) three
Eurodollar Business Days prior to the date any such continuation of or
conversion to a Eurodollar Rate Loan is to be effective, and (b) on the
date such continuation or conversion is to be effective in all other cases,
provided that an outstanding Eurodollar Rate Loan may only be converted on
the last day of the then-current Interest Period with respect to such Loan
and, provided further, if a continuation of a Loan as, or a conversion of a
Loan to, a Eurodollar Rate Loan is requested, such notice shall also
specify the Interest Period to be applicable thereto upon such continuation
or conversion. The Agent shall provide notice of such election to each
Bank by 2:00 p.m. Detroit time on the date such notice is received by the
Agent. If the Company shall fail timely to deliver such a notice with
respect to any outstanding Eurodollar Rate Loan, the Company shall be
deemed to have elected to convert such Loan to a Floating Rate Loan on the
last day of the then-current Interest Period with respect to such Loan.
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3.6 Discretion of the Banks as to Manner of Funding.
Notwithstanding any provision of this Agreement to the contrary, each Bank
shall be entitled to fund and maintain its funding of all or any part of
its portion of the Loans in any manner it sees fit, it being understood,
however that for the purposes of this Agreement all determinations
hereunder shall be made as if each Bank had actually funded and maintained
each Eurodollar Rate Loan during each related Interest Period through the
purchase of deposits in the relevant interbank market having a maturity
corresponding to such related Interest Period and bearing an interest rate
equal to the Eurodollar Rate for such Interest Period.
ARTICLE IV. PAYMENTS AND PREPAYMENTS OF LOANS
4.1 Principal Payments. Unless earlier payment is required
under this Agreement, the Company shall pay to the Banks on the Termination
Date the outstanding principal amount of the Loans.
4.2 Interest Payments. The Company shall pay interest to the
Banks on the unpaid principal amount of each Loan, for the period
commencing on the date such Loan is made until such Loan is paid in full,
on each Interest Payment Date and at maturity (whether at stated maturity,
by acceleration or otherwise), and thereafter on demand, at the following
rates per annum:
(a) During such periods that such Loan is a Floating Rate
Loan, the Prime Rate.
(b) During such periods that such Loan is an Eurodollar
Rate Loan, the Eurodollar Rate applicable to such Loan for each related
Eurodollar Interest Period.
(c) Notwithstanding any of the foregoing paragraphs, the
Company hereby agrees to pay interest on demand at the Overdue Rate on the
outstanding principal amount of any Loan and any other amount payable by
the Company hereunder (other than interest) commencing upon the occurrence
and continuing thereafter during the continuance of any Event of Default.
4.3 Optional Prepayment. The Company may at any time and from
time to time prepay all or a portion of the Loans without premium or
penalty, provided that the Company may not prepay any portion of any such
Loan as to which an election for a continuation of or a conversion to any
Eurodollar Rate Loan is pending pursuant to Section 3.5 and, provided,
further, that unless earlier payment is required under this Agreement, any
such Eurodollar Rate Loan may only be prepaid on the last day of the then-
current Interest Period with respect to such Loan.
-14-
4.4 Mandatory Prepayment. In addition to all other payments and
prepayments made by the Company on the Loans, if at any time the aggregate
Loans exceeds the aggregate Commitment of the Banks, the Company shall
forthwith pay to the Banks an amount not less than the amount of such
excess.
4.5 Payment Method. All payments to be made by the Company
hereunder will be made in Dollars and in immediately available funds to the
Agent for the account of the Banks at its address set forth in Section 10.2
not later than 11:00 a.m. Detroit time on the date on which such payment
shall become due. Payments received after 11:00 a.m. Detroit time shall be
deemed to be payments made prior to 11:00 a.m. Detroit time on the next
succeeding Business Day. At the time of making each such payment, the
Company shall specify to the Agent that obligation of the Company hereunder
to which such payment is to be applied or, in the event that the Company
fails to so specify or if an Event of Default shall have occurred and be
continuing, the Agent may apply such payments as it may determine in its
sole discretion. On the day such payments are deemed received, the Agent
shall remit to the Banks their pro rata shares of such payments, in
immediately available funds, (a) in the case of payments of principal of
and interest on the Loans, determined with respect to each such Bank by the
ratio which the outstanding principal balance of its Note bears to the
outstanding principal amount of all Notes, and (b) in the case of fees paid
pursuant to Article II and other amounts payable hereunder, determined with
respect to each such Bank by the ratio which the Commitment of such Bank
bears to the Commitments of all the Banks.
4.6 No Setoff or Deduction. All payments of principal of and
interest on the Loans and other amounts payable by the Company hereunder
shall be made by the Company without setoff or counterclaim, and free and
clear of, and without deduction or withholding for, or on account of, any
present or future taxes, levies, imposts, duties, fees, assessments, or
other charges of whatever nature, imposed by any governmental authority, or
by any department, agency or other political subdivision or taxing
authority.
4.7 Payment on Non-Business Day; Payment Computations. Except
as otherwise provided in this Agreement to the contrary, whenever any
installment of principal of, or interest on, any Loan outstanding hereunder
or any other amount due hereunder becomes due and payable on a day which is
not a Business Day, the maturity thereof shall be extended to the next
succeeding Business Day and, in the case of any installment of principal,
interest shall be payable thereon at the rate per annum determined in
accordance with this Agreement during such extension. Computations of
interest and other amounts due under this Agreement shall be made on the
basis of a year of 360 days for the actual number of days elapsed,
including the first day but excluding the last day of the relevant period.
-15-
ARTICLE V. YIELD PROTECTION AND CONTINGENCIES
5.1 Additional Costs. In the event that the adoption after the
Effective Date of any applicable law, treaty, rule or regulation (whether
domestic or foreign), or any interpretation or administration after the
Effective Date of any applicable law, treaty, rule or regulation (whether
domestic or foreign) by any governmental authority charged with the
interpretation or administration thereof, or compliance by any Bank with
any request or directive of any such authority (whether or not having the
force of law), shall (a) affect the basis of taxation of payments to any
Bank of any amounts payable by the Company under this Agreement (other than
federal or state income taxes or taxes imposed on the overall net income of
the Bank or the Michigan Single Business Tax), or (b) shall impose, modify
or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit extended
by any Bank, or (c) shall impose any penalty or other condition with
respect to this Agreement, the Notes or the Loans, and the result of any of
the foregoing is to increase the cost to any Bank of making or maintaining
any Eurodollar Rate Loan or to reduce the amount of any sum receivable by
such Bank thereon, then, provided the Bank has complied with the notice
provisions of this Section 5.1, the Company shall pay to such Bank, from
time to time upon request by such Bank, additional amounts sufficient to
compensate the Bank for such increased cost to or reduced sum receivable by
the Bank to the extent such Bank is not expressly compensated therefor in
the computation of the interest rate applicable to such Loan. Any Bank
seeking reimbursement shall give the Company written notice, in reasonable
detail, of the law, treaty, rule or regulation, or any interpretation or
administration thereof, which may give rise to the increased cost or
reduced sum receivable to the Bank and the reimbursement obligation of the
Company. Such notice, together with a detailed statement as to the amount
of such increased cost or reduced sum receivable, prepared in good faith,
shall be given to the Company within 90 days after such Bank has actual
notice of such law, treaty, rule or regulation, or any applicable
interpretation or administration thereof, and the Company shall make
payment to such Bank of the amount due within 15 days after receipt by the
Company of such notice and statement.
5.2 Limitation of Requests and Elections. Notwithstanding any
other provision of this Agreement to the contrary, if, upon receiving a
request for a Eurodollar Rate Loan pursuant to Section 3.1, or a request
for a continuation of a Eurodollar Rate Loan as a Eurodollar Rate Loan of
the then existing type pursuant to Section 3.5, or conversion of a Loan to
a Eurodollar Rate Loan pursuant to Section 3.5, (a) in the case of any
Eurodollar Rate Loan, deposits in Dollars for periods comparable to the
Interest Period elected by the Company are not available to any Bank in the
relevant inter-bank or secondary market, or (b) the Eurodollar Rate will
not adequately and fairly reflect the cost to any Bank of making or
maintaining the related Eurodollar Rate Loan, as the case may be, or (c) by
reason of national or international financial, political or economic
conditions or by reason of any applicable law, treaty, rule or regulation
(whether domestic or foreign) now or hereafter in effect, or the
interpretation or administration thereof by any governmental authority
-16-
charged with the interpretation or administration thereof, or compliance by
any Bank with any request or directive of such authority (whether or not
having the force of law), including without limitation exchange controls,
it is impracticable, unlawful or impossible for any Bank (i) to make the
relevant Eurodollar Rate Loan or (ii) to continue such Eurodollar Rate Loan
as a Eurodollar Rate Loan of the then existing type or (iii) to convert a
Loan to such a Eurodollar Rate Loan, then the Company shall not be
entitled, so long as such circumstances continue, to request a Eurodollar
Rate Loan of the affected type pursuant to Section 3.1 or a continuation of
or conversion to a Eurodollar Rate Loan of the affected type pursuant to
Section 3.5. In the event that such circumstances no longer exist, the
Banks shall again consider requests for Eurodollar Rate Loans of the
affected type pursuant to Section 3.1, and requests for continuations of
and conversions to Eurodollar Rate Loans of the affected type pursuant to
Section 3.5.
5.3 Illegality and Impossibility. In the event that any
applicable law, treaty, rule or regulation (whether domestic or foreign)
now or hereafter in effect and whether or not presently applicable to any
Bank, or any interpretation or administration thereof by any governmental
authority charged with the interpretation or administration thereof, or
compliance by any Bank with any request or directive of such authority
(whether or not having the force of law), including without limitation
exchange controls, shall make it unlawful or impossible for any Bank to
maintain any Eurodollar Rate Loan under this Agreement, the Company shall
upon receipt of notice thereof from such Bank, repay in full to all of the
Banks the then outstanding principal amount of each Eurodollar Rate Loan so
affected together with all accrued interest thereon to the date of payment
and all amounts due to the Banks, if any, under Section 5.5, (a) on the
last day of the then-current Interest Period applicable to such Loan if the
Bank may lawfully continue to maintain such Loan to such day, or (b)
immediately if the Bank may not continue to maintain such Loan to such day.
5.4 Additional Contingencies. If by reason of the adoption
after the Effective Date of any applicable law, treaty, rule or regulation,
or any interpretation or administration after the Effective Date of any
applicable law, treaty, rule or regulation by any governmental authority
charged with the interpretation or administration thereof, or compliance by
any Bank with any request or directive of such authority (whether or not
having the force of law), the ability of the Agent to establish the Prime
Rate shall be limited or restricted (other than by limitations or
restrictions affecting the charging of interest generally), the Agent shall
promptly provide notice thereof to the Company and the Banks. Thereafter,
the Company, the Agent and the Banks shall negotiate with a view to
agreeing to a mutually acceptable alternative basis to make and maintain
Floating Rate Loans. If an alternative basis is agreed upon within 30 days
after the date of such notice, it shall apply in accordance with the terms
of such agreement. If such alternative basis is not agreed upon within
such 30-day period, the Company shall on the 31st day after such notice is
given repay in full the then-outstanding principal amount of each Floating
Rate Loan so affected together with accrued interest thereon (computed at
the rate applicable to such Floating Rate Loans immediately preceding the
-17-
imposition of such limitations or restrictions for the period after such
imposition) and, during the continuance of such circumstances, the Company
shall not be entitled to request Floating Rate Loans so affected pursuant
to Section 3.1 or continuations of or conversions to Floating Rate Loans so
affected pursuant to Section 3.5.
5.5 Indemnification. If the Company makes any payment of
principal with respect to any Eurodollar Rate Loan on any other date than
the last day of an Interest Period applicable thereto (whether pursuant to
Section 4.4, Section 5.3, Section 8.2 or otherwise), or if the Company
fails to borrow any Eurodollar Rate Loan after notice has been given in
accordance with Section 3.1 (except if such failure is due to circumstances
described in Section 5.2), or fails to make any payment of principal or
interest in respect of a Eurodollar Rate Loan when due, the Company shall
reimburse each Bank on demand for any resulting loss or expense incurred by
each such Bank, including without limitation any loss incurred in
obtaining, liquidating or employing deposits from third parties, provided
that (a) the Company shall not be required to reimburse any Bank under this
Section 5.5 for any such loss or expense not attributable to the relevant
Loan (i.e., the Loan with respect to which such nonconforming payment is
made, or the Loan that is not borrowed by the Company after such notice is
given, or the Loan with respect to which such due payment is not made)
being a Eurodollar Rate Loan, and (b) the Company shall have no liability
under this Section 5.5 with respect to any prepayment pursuant to Section
5.3 that is required due to the application of any law, treaty, rule or
regulation, any interpretation or administration thereof, or any request or
directive, as the case may be, in effect prior to the Effective Date. A
detailed statement as to the amount of such loss or expense, prepared in
good faith and submitted by such Bank to the Company, shall be prima facie
evidence of the amount thereof.
5.6 Capital Adequacy. In the event that the adoption after the
Effective Date of any applicable law, treaty, rule or regulation (whether
domestic or foreign), or any interpretation or administration after the
Effective Date of any applicable law, treaty, rule or regulation by any
governmental authority charged with the interpretation or administration
thereof, or compliance by any Bank or any corporation controlling such Bank
with any request or directive of any such authority (whether or not having
force of law) regarding capital adequacy or a change therein, or compliance
by any Bank, any such controlling corporation or any of their branches
with any request or directive regarding capital adequacy of any such
authority, has or would have the effect of reducing the rate of return on
such Bank's or such controlling corporation's capital as a consequence of
its obligations hereunder to a level below that which such Bank or such
controlling corporation would have achieved but for any of the foregoing by
an amount deemed by such Bank to be material, the Company shall pay to such
Bank, from time to time upon request by such Bank, additional amounts
sufficient to compensate such Bank or such controlling corporation for such
reduction, provided that the Company shall not be required to pay such
compensation to any Bank or corporation controlling such Bank, as the case
may be, to the extent such reduction is attributable to any such law,
treaty, rule or regulation, or interpretation or administration thereof, or
-18-
request or directive, as the case may be, that is not generally applicable
to (a) in the case of each Bank that is a national bank, all national
banks, or (b) in the case of any of the Banks, all banks organized under
the same authority as such Bank (i.e., if such Bank is a State of Michigan
chartered bank, all State of Michigan chartered banks and if such Bank is a
federal savings bank, all federal savings banks, etc.) in any of the states
in which such Bank has an office. Any Bank seeking reimbursement shall
give the Company written notice, and reasonable detail, of the law, treaty,
rule or regulation, or any interpretation or administration thereof, which
may give rise to the increased cost or reduce some receivable to the Bank
or such controlling corporation and the reimbursement obligation of the
Company. Such notice, together with a detailed statement as to the amount
of such increased cost or reduce some receivable, prepared in good faith,
shall be given to the Company within ninety (90) days after such Bank has
actual notice of such law, treaty, rule or regulation, or any applicable
interpretation or administration thereof, and the Company shall make
payment to such Bank of the amount due within fifteen (15) days after
receipt by the Company of such notice and statement.
ARTICLE VI. REPRESENTATIONS AND WARRANTIES
The Company represents and warrants that:
6.1 Corporate Existence and Power. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Delaware and is duly qualified to do business in each additional
jurisdiction in which (a) such qualification is necessary under applicable
law and (b) the failure to be so qualified would have a material adverse
effect on the properties, business, prospects, profits or condition
(financial or otherwise) of the Company or of the Company and its
Subsidiaries taken as a whole. The Company has all requisite corporate
power to own its properties land to carry on its business as now being
conducted and as proposed to be conducted, and to execute and deliver this
Agreement and the Notes and to engage in the transactions contemplated by
this Agreement.
6.2 Corporate Authority. The execution, delivery and
performance by the Company of this Agreement and the Notes are within its
corporate powers, have been duly authorized by all necessary corporate
action and are not in contravention of any law, rule or regulation, or any
judgment, decree, writ, injunction, order or award of any arbitrator, court
or governmental authority, or of the terms of the Company's charter or by-
laws, or of any contract or undertaking to which the Company is a party or
by which the Company or its property may be bound or affected.
6.3 Binding Effect. This Agreement is, and the Notes when
delivered hereunder will be, legal, valid and binding obligations of the
Company enforceable against the Company in accordance with their respective
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting
-19-
enforcement of creditors' rights generally and by general principles of
equity (whether applied in a proceeding at law or in equity).
6.4 Subsidiaries. Schedule 6.4 hereto correctly sets forth the
corporate name, jurisdiction of incorporation and ownership percentage with
respect to each Subsidiary of the Company. Each such Subsidiary and each
corporation becoming a Subsidiary of the Company after the date hereof is
and will be a corporation duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation and is and
will be duly qualified to do business in each additional jurisdiction in
which (a) such qualification is necessary under applicable law and (b) the
failure to be so qualified would have a material adverse effect on the
properties, business, prospects, profits or condition (financial or
otherwise) of the Company or of the Company and its Subsidiaries taken as a
whole, except WWW Europe, Ltd., which is in the process of being dissolved
and liquidated, is not in good standing in the United Kingdom, which is the
jurisdiction in which it was organized. Each Subsidiary of the Company has
and will have all requisite corporate power to own its properties and to
carry on its business as now being conducted and as proposed to be
conducted. All outstanding shares of capital stock of each class of each
Subsidiary of the Company have been and will be validly issued and are
fully paid and nonassessable and, except as otherwise indicated in Schedule
6.4 hereto or disclosed in writing to the Banks from time to time, are and
will be owned, beneficially and of record, by the Company or another
Subsidiary of the Company free and clear of any liens, charges,
encumbrances or rights of others whatsoever.
6.5 Litigation. Except as disclosed on Schedule 6.5 hereto,
there is no action, suit or proceeding pending or, to the best of the
Company's knowledge, threatened against or affecting the Company or any of
its Subsidiaries before or by any court, governmental authority, or
arbitrator, which if adversely decided might result, either individually or
collectively, in any material adverse change in the business, properties,
operations or conditions, financial or otherwise, of the Company or of the
Company and its Subsidiaries taken as a whole, and, to the best of the
Company's knowledge, there is no basis for any such action, suit or
proceeding.
6.6 Financial Condition. The consolidated balance sheet of the
Company and its Subsidiaries and the consolidated statements of income,
retained earnings and changes in financial position of the Company and its
Subsidiaries for the fiscal year ended December 31, 1993, and certified by
Ernst & Young, independent certified public accountants, and the interim
consolidated balance sheet and interim consolidated statements of income,
retained earnings and changes in financial position of the Company and its
Subsidiaries, as of or for the fifth accounting period ended on May 21,
1994, copies of which have been furnished to the Banks, fairly present the
consolidated financial position of the Company and its Subsidiaries as at
the respective dates thereof, and the consolidated results of operations of
the Company and its Subsidiaries for the respective periods indicated, all
in accordance with generally accepted accounting principles consistently
applied (subject, in the case of said interim statements, to year-end audit
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adjustments). There has been no material adverse change in the business,
properties, operations or condition, financial or otherwise, of the Company
or of the Company and its Subsidiaries taken as a whole, since December 31,
1993.
6.7 Use of Loans. Neither the Company nor any of its
Subsidiaries extends or maintains, in the ordinary course of business,
credit for the purpose, whether immediate, incidental, or ultimate, of
buying or carrying margin stock (within the meaning of Regulation U of the
Board of Governors of the Federal Reserve System), and no part of the
proceeds of any Loan will be used for the purpose, whether immediate,
incidental, or ultimate, of buying or carrying any such margin stock or
maintaining or extending credit to others for such purpose.
6.8 Consents, Etc. No consent, approval or authorization of or
declaration, registration or filing with any governmental authority or any
nongovernmental person or entity, including without limitation any creditor
or stockholder of the Company or any of its Subsidiaries, is required on
the part of the Company in connection with the execution, delivery and
performance of this Agreement or the Notes or the transactions contemplated
hereby or as a condition to the legality, validity or enforceability of
this Agreement or the Notes.
6.9 Taxes. The Company and its Subsidiaries have filed all tax
returns (federal, state and local) required to be filed and have paid all
taxes shown thereon to be due, including interest and penalties, or have
established adequate financial reserves on their respective books and
records for payment thereof.
6.10 Title to Properties. Except as set forth in the financial
statements described in Section 6.6 or as otherwise disclosed in the
financial statements delivered pursuant to Section 7.1(d), the Company and
its Subsidiaries have good and marketable title to, and valid indefeasible
ownership interests in, all of their respective material properties and
assets free and clear of any lien, charge, security interest or other
encumbrance of any kind, except such as are permitted by Section 7.2(f).
6.11 Existing Note Agreements. There is no default under any
Existing Note Agreement, as amended or modified from time to time, or under
any agreement, document or instrument issued in exchange or substitution
therefor or as a supplement thereto, nor is there any event or condition
which would, unless sooner cured, become such a default with notice or
lapse of time, or both.
6.12 Environmental and Safety Matters. Except as described on
Schedule 6.12 attached hereto, (a) the Company and each Subsidiary is in
substantial compliance with all federal, state and local laws, ordinances
and regulations relating to safety and industrial hygiene or to the
environmental condition, including without limitation all Environmental
Laws in jurisdictions in which the Company or any Subsidiary owns or
operates, or has owned or operated, a facility or site, or arranges or has
arranged for disposal or treatment of hazardous substances, solid waste, or
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other wastes, accepts or has accepted for transport any hazardous
substances, solid wastes or other wastes or holds or has held any interest
in real property or otherwise; (b) no material demand, claim, notice, suit,
suit in equity, action, administrative action, investigation or inquiry
whether brought by any governmental authority, private person or entity or
otherwise, arising under, relating to or in connection with any
Environmental Laws is pending or threatened against the Company or any of
its Subsidiaries, any real property in which the Company or any such
Subsidiary holds or has held an interest or any past or present operation
of the Company or any Subsidiary; (c) neither the Company nor any of its
Subsidiaries (i) is the subject of any federal or state investigation
evaluating whether any remedial action is needed to respond to a release of
any toxic substances, radioactive materials, hazardous wastes or related
materials into the environment, (ii) has received any notice of any toxic
substances, radioactive materials, hazardous waste or related materials in,
or upon any of its properties in violation of any Environmental Laws, or
(iii) knows of any basis for any such investigation, notice or violation;
and (d) no material release, threatened release or disposal of hazardous
waste, solid waste or other wastes is occurring or has occurred on, under
or to any real property in which the Company or any of its Subsidiaries
holds any interest or performs any of its operations, in violation of any
Environmental Law. Notwithstanding the foregoing, the Company will not be
in default or breach of this Section unless and until any of the events or
matters referenced in this Section is reasonably expected to result in any
material adverse change in the business, operations, properties, or
condition, financial or otherwise, of the Company and its Subsidiaries, on
a consolidated basis.
6.13 Indebtedness. All Indebtedness of the Company and its
Subsidiaries in a principal amount equal to or greater than $100,000, other
than the Existing Note Agreements, is listed on Schedule 6.13 hereto.
ARTICLE VII. COVENANTS
7.1 Affirmative Covenants. The Company covenants and agrees
that, until the Termination Date and thereafter until the payment in full
of the principal of and accrued interest on the Notes and the performance
of all other obligations of the Company under this Agreement, unless the
Majority Banks shall otherwise consent in writing, it shall, and except as
to subsection (d), shall cause each of its Subsidiaries to:
(a) Preservation of Corporate Existence, Etc. Preserve and
maintain its corporate existence, rights, privileges, licenses, franchises
and permits and qualify and remain qualified as a validly existing
corporation in good standing in each jurisdiction where the failure to so
qualify and be in good standing would have a material adverse effect on the
business, property, operations or condition, financial or otherwise, of the
Company or of the Company and its Subsidiaries taken as a whole.
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(b) Compliance with Laws, Etc. Comply in all material
respects with all applicable laws, rules, regulations and orders of any
governmental authority (compliance to include, without limitation, paying
before the same become delinquent all taxes, assessments and governmental
charges imposed upon it or upon its property), noncompliance with which
could materially and adversely affect the financial condition or operations
of the Company or of the Company and its Subsidiaries taken as a whole, or
the legality, validity or enforceability of this Agreement or the Notes,
except to the extent that compliance with any of the foregoing is then
being contested in good faith by appropriate legal proceedings and with
respect to which adequate financial reserves have been established on the
books and records of the Company or such Subsidiary.
(c) Maintenance of Insurance. Maintain insurance with
responsible and reputable insurance companies or associations in such
amounts and covering such risks as is usually carried by companies engaged
in similar businesses and owning similar properties similarly situated.
(d) Reporting Requirements. Furnish to the Banks the
following:
(i) Immediately after becoming aware of the occurrence
of any Event of Default or any event or condition which, with
notice or lapse of time, or both, would constitute an Event of
Default, a statement of the chief financial officer of the
Company setting forth details of such Event of Default or such
event or condition and the action which the Company has taken and
proposes to take with respect thereto;
(ii) As soon as available and in any event within 45
days after the end of each of the first three fiscal quarters of
each fiscal year of the Company, the consolidated balance sheet
of the Company and its Subsidiaries as of the end of such
quarter, and the related consolidated statements of income,
retained earnings and changes in financial position for the
period commencing at the end of the previous fiscal year and
ending with the end of such quarter, setting forth in each case
in comparative form the corresponding figures for the
corresponding date or period of the preceding fiscal year, all in
reasonable detail and duly certified (subject to year-end audit
adjustments) by the chief financial officer of the Company as
having been prepared in accordance with generally acceptable
accounting principles, together with a certificate of the chief
financial officer of the Company stating (A) that no Event of
Default or event or condition which, with notice or lapse of
time, or both, would constitute an Event of Default, has occurred
and is continuing or, if an Event of Default or such an event or
condition has occurred and is continuing, a statement setting
forth the details thereof and the action which the Company has
taken and proposes to take with respect thereto, and (B) that a
computation (which computation shall accompany such certificate
and shall be in reasonable detail) showing whether compliance
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with Sections 7.2(a) through (d) is in conformity with the terms
of this Agreement;
(iii) As soon as available and in any event within 90
days after the end of each fiscal year of the Company, a copy of
the consolidated balance sheet of the Company and its
Subsidiaries as of the end of such fiscal year and the related
consolidated statements of income, retained earnings and changes
in financial position of the Company and its Subsidiaries for
such fiscal year, certified without qualifications unacceptable
to either the Agent or the Majority Banks by Ernst & Young, or
other independent certified public accountants selected by the
Company and acceptable to the Agent, together with a certificate
of such accountants stating (A) that they have reviewed this
Agreement and stating further whether, in the course of their
review of such financial statements, they have become aware of
any Event of Default or any event or condition which, with notice
or lapse of time, or both, would constitute an Event of Default
and, if such an Event of Default or such a condition or event
then exists and is continuing, a statement setting forth the
nature and status thereof, and (B) that a computation by the
Company (which computation shall accompany such certificate and
shall be in reasonable detail) showing whether compliance with
Sections 7.2(a) through (d), is in conformity with the terms of
this Agreement;
(iv) Promptly after the sending or filing thereof,
copies of all reports, proxy statements and financial statements
which the Company or any of its Subsidiaries sends to any of
their respective security holders or to any securities exchange
or to the Securities and Exchange Commission or any successor
agency thereof;
(v) Promptly, written notice of any extension,
renewal, supplement, amendment, modification, substitution,
restatement or replacement of, to or for any Existing Note
Agreement, together with a copy of such extension, renewal,
supplement, amendment, modification, substitution, restatement or
replacement, as the case may be, and all documents issued in
connection therewith; and
(vi) Promptly, such other information respecting the
business, properties or the condition or operations, financial or
otherwise, of the Company or any of it Subsidiaries as any Bank
may from time to time reasonably request.
(e) Access to Records, Books, Etc. At any reasonable time
and from time to time, permit any Bank or any agents or representatives
thereof to examine and make copies of and abstracts from the records and
books of account of, and visit the properties of, the Company and its
Subsidiaries, and to discuss the affairs, finances and accounts of the
Company and its Subsidiaries with their respective officers and employees.
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7.2 Negative Covenants. Until the Termination Date and
thereafter until payment in full of the principal of and accrued interest
on the Notes and the performance of all other obligations of the Company
under this Agreement, the Company agrees that, unless the Majority Banks
shall otherwise consent in writing, it shall not itself and shall not
permit any Subsidiary to:
(a) Current Ratio. Permit or suffer the consolidated
Current Ratio of the Company and its Subsidiaries to be less than 1.5 to
1.0 at any time.
(b) Tangible Net Worth. Permit or suffer consolidated
Tangible Net Worth of the Company and its Subsidiaries to be less than the
sum of (i) $92,000,000 plus (ii) an amount equal to 40% of the Net Income
of the Company and its Subsidiaries for each fiscal quarter of the Company,
such Net Income for each fiscal quarter of the Company to be added
effective as of the last day of such fiscal quarter, commencing with the
fiscal quarter ending June 30, 1994, provided that if such Net Income is
negative in any fiscal quarter, it shall not be subtracted from the amount
required to be maintained pursuant to this subsection or from any future
amount to be added to the amount of Tangible Net Worth to be maintained
under this subsection.
(c) Total Liabilities to Tangible Net Worth. Permit or
suffer the ratio of consolidated Total Liabilities of the Company and its
Subsidiaries to consolidated Tangible Net Worth of the Company and its
Subsidiaries to be greater than 1.5 to 1.0 at any time.
(d) Fixed Charge Coverage Ratio. Permit or suffer the
ratio of (i) the consolidated Net Income Available for Fixed Charges for
the period of twelve-complete calendar months immediately preceding the
date of any computation hereunder to (ii) the consolidated Fixed Charges
for such period (the "Fixed Charge Coverage Ratio") to be less than 2.0 to
1.0 at any time.
(e) Indebtedness. Create, incur, assume, guaranty or in
any manner become liable in respect of, or suffer to exist, at any time any
Indebtedness other than:
(i) the Loans;
(ii) Indebtedness permitted by Section 5.8 of the
Existing Note Agreements (including all subsections thereof as
modified below), which entire Section 5.8 of the Existing Note
Agreements as modified below, together with definitions of
defined terms used therein and exhibits referred to therein, is
by this reference incorporated and made a part of this Agreement
with the same force and effect as though herein set forth in
full, except that reference to "20% of Consolidated Adjusted Net
Worth" contained in Section 5.8(a)(3) of the Existing Note
Agreements as incorporated herein shall be deemed reference to
20% of consolidated Tangible Net Worth (as defined in this
Agreement) of the Company and its Subsidiaries; and
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(iii) Indebtedness described on Schedule 7.2(e) hereto.
(f) Liens. Create, incur or suffer to exist, any lien
(including without limitation any pledge, mortgage, title retaining
contract or other type of security interest, hereinafter "Liens") to exist
on any of its property, real, personal or mixed, tangible or intangible,
whether now owned or hereafter acquired, except those permitted by Section
5.9 of the Existing Note Agreements (including all subsections thereof) as
modified below, which entire Section 5.9 of the Existing Note Agreements as
modified below, together with defined terms used therein and exhibits
referred to therein, is by this reference incorporated in and made a part
of this Agreement with the same force and effect as though herein set forth
in full, except that (i) Section 5.9(a)(7) of the Existing Note Agreements
is excluded and not incorporated herein, and all Liens described in such
Section 5.9(a)(7) shall not be permitted unless otherwise permitted by
Section 5.9(a)(9) of the Existing Note Agreements as incorporated herein;
and (ii) reference to "20% of Consolidated Adjusted Net Worth" contained in
Section 5.8(a)(3) of the Existing Note Agreements (as incorporated herein
pursuant to Section 5.9(a)(9) of the Existing Note Agreements) shall be
deemed reference to 20% of consolidated Tangible Net Worth (as defined in
this Agreement) of the Company and its Subsidiaries.
(g) Merger; Sale of Assets; Etc. Sell, lease, transfer or
otherwise dispose of all or a substantial portion of its assets or business
to any person or purchase or otherwise acquire all or a substantial portion
of any assets of any person, or all or a substantial portion of the shares
of stock of or other ownership interest in any other person, nor merge or
consolidate with any other person; provided, however, any of the foregoing
shall be permitted if permitted under Section 5.10 of the Existing Note
Agreements, which Section 5.10 of the Existing Note Agreements (including
all subsections thereof), together with all defined terms used therein and
exhibits referred to therein, is by this reference incorporated in and made
a part of this Agreement with the same force and effect as though herein
set forth in full, except that (i) Section 5.10(a)(3) of the Existing Note
Agreements is excluded and not incorporated herein, and all transactions
described therein shall not be permitted, and (ii) all references in
Section 5.10(a)(2) of the Existing Note Agreements to the "Notes" and "this
Agreement" shall be deemed references to the Notes issued by the Company to
the Banks hereunder and this Agreement among the Company, the Banks and the
Agent, respectively, and all references in Section 5.10 of the Existing
Note Agreements to an "Event of Default" and "Default" shall mean an Event
of Default hereunder and any event or condition which with notice or lapse
of time, or both, would become such an Event of Default hereunder,
respectively.
(h) Nature of Business. Engage in any business if, as a
result, the general nature of the business, taken on a consolidated basis,
which would then be engaged in by the Company and its Subsidiaries would be
substantially changed from the general nature of the business engaged in by
the Company and its Subsidiaries on the Effective Date.
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Whenever any section or other provision of the Existing Note Agreements is
incorporated in Sections 7.2(e), (f) and (g) hereof or otherwise in this
Agreement, such sections and provisions shall be incorporated in the form
contained in the Existing Note Agreements in the form as certified by the
Company to the Banks as of the Effective Date and without giving effect to
any retroactive or other amendments thereto executed at any time unless
described in such certification and included therewith as of the Effective
Date, and such sections and provisions shall be and continue effective
regardless of whether the Existing Note Agreements continue in effect or
the promissory notes issued thereunder are paid, and no supplement,
amendment, modification, waiver, consent or termination of the Existing
Note Agreements made or granted after the Effective Date shall have any
effect whatsoever upon the sections and provisions thereof as they are
incorporated herein.
ARTICLE VIII. DEFAULT
8.1 Events of Default. The occurrence of any one of the
following events or conditions shall be deemed an "Event of Default"
hereunder unless waived pursuant to Section 10.1:
(a) The Company shall (i) fail to pay when due any
principal of the Notes, or (ii) fail to pay within five days after the date
when due any interest on the Notes or any commitment or facility fees or
any other amount payable hereunder; or
(b) Any representation or warranty made by the Company in
Article VI hereof, or in any other document or certificate furnished by or
on behalf of the Company in connection with this Agreement, shall prove to
have been incorrect in any material respect when made; or
(c) The Company shall fail to perform or observe any term,
covenant or agreement contained in Section 7.2 other than subsection (f);
or
(d) The Company shall fail to perform or observe any term,
covenant or agreement contained in subsection (f) of Section 7.2 and, if
such failure relates to a nonconsensual Lien, either (i) such failure shall
remain unremedied for 30 calendar days after the earlier of (1) the day on
which the President, the Chief Executive Officer, the Chief Financial
Officer or the Treasurer of the Company first obtains knowledge of such
failure or (2) the day on which notice of such failure is given to the
Company by the Agent or any Bank (the "Commencement Date") or (ii) the
Company or its Subsidiary, as the case may be, shall fail, before the
expiration of 15 calendar days after the Commencement Date, to begin, and
at all times thereafter to continue, to contest such nonconsensual Lien in
good faith by appropriate legal proceedings; or
(e) The Company shall fail to perform or observe any other
term, covenant or agreement contained in this Agreement (other than such
failures addressed in Sections 8.1(c) and (d) above), and any such failure
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shall remain unremedied for 30 calendar days after notice thereof shall
have been given to the Company by the Agent or any Bank; or
(f) (i) Any Indebtedness of the Company or any of its
Subsidiaries aggregating more than $3,000,000 (other than Indebtedness
hereunder) becomes or is declared to be due and payable prior to the stated
maturity thereof as a result of any default or event of default occurring
with respect thereto, or (ii) any part of the principal of, the premium, if
any, or the interest on, or any other payment of money due under, any
Indebtedness of the Company or any of its Subsidiaries aggregating more
than $3,000,000 is not paid when due or within the period of grace, if any,
provided with respect thereto, or (iii) the Company or any of its
Subsidiaries fails to perform or observe any other covenant or agreement
contained in any document(s) evidencing or securing any Indebtedness
aggregating more than $3,000,000, or in any agreement(s) or instrument(s)
under which any such Indebtedness was issued or created, and such
nonperformance or nonconformity continues beyond the period of grace, if
any, provided with respect thereto, if the effect of such failure is to
cause, or permit the holder or holders of such Indebtedness (or a trustee
on behalf of such holder or holders) to cause, or permit any party to such
document to cause, any payment in respect of such Indebtedness aggregating
more than $3,000,000 to become due prior to their respective due dates,
including without limitation the occurrence of any event of default of the
Company or any of its Subsidiaries under any of the Existing Note
Agreements; or
(g) One or more judgments or orders for the payment of
money which, together with other such judgments or orders which are not
otherwise covered by insurance or reserves, exceed the aggregate amount of
$5,000,000, shall be rendered against the Company or any of its
Subsidiaries and (i) enforcement proceedings shall have been commenced by
any creditor upon such judgment(s) or order(s) in such aggregate amount and
for a period of 20 consecutive days after commencement of such proceedings
(A) such judgment(s) or order(s) in such aggregate amount shall have
remained unsatisfied and (B) such proceedings shall have remained unstayed,
or (ii) for a period of 20 consecutive days, such judgment(s) or order(s)
in such aggregate amount shall have remained unsatisfied and a stay of
enforcement thereof, by reason of pending appeal or otherwise, shall not
have been in effect, or (iii) the total of such judgment(s) or order(s)
with respect to which at least one of the foregoing clauses (i) and (ii)
applies shall equal or exceed $5,000,000; or
(h) The occurrence of any "reportable event," as defined in
ERISA, which is finally determined after all applicable appeal periods have
expired to constitute grounds (i) for termination by the PBGC of any Plan
maintained by or on behalf of the Company or any trade or business (whether
or not incorporated) which together with the Company would be treated as a
single employer under Section 4001 of ERISA or (ii) for the appointment by
the appropriate United States District Court of a trustee to administer
such Plan and such reportable event is not corrected and such determination
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is not revoked within 30 days after notice thereof has been given to the
administrator of such Plan or to the Company or such trade or business, as
the case may be; or the institution of proceedings by the PBGC to
terminate any such Plan or to appoint a trustee to administer such Plan and
the failure of the Company to (i) appropriately, diligently and in good
faith successfully contest such proceedings within the applicable required
period therefor or (ii) to establish adequate financial reserves on its
books and records with respect thereto; or the appointment of a trustee by
the appropriate United States District Court to administer any such Plan;
or
(i) The Company or any of its Material Subsidiaries shall
generally not pay its debts as they become due, or shall admit in writing
its inability to pay its debts generally, or shall make a general
assignment for the benefit of creditors, or shall institute, or there shall
be instituted against the Company or any of its Material Subsidiaries, any
proceeding or case seeking to adjudicate it a bankrupt or insolvent or
seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating
to bankruptcy, insolvency or reorganization or relief or protection of
debtors or seeking the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for it or for any
substantial part of its property, and, if such proceeding is instituted
against the Company or such Material Subsidiary and is being contested by
the Company or such Material Subsidiary, as the case may be, in good faith
by appropriate proceedings, such proceedings shall remain undismissed or
unstayed for a period of 60 days; or the Company or such Material
Subsidiary shall take any action (corporate or other) to authorize or
further any of the actions described above in this subsection.
8.2 Remedies. (a) Upon the occurrence and during the
continuance of any Event of Default, the Agent shall, upon being directed
to do so by the Majority Banks, by notice to the Company terminate the
Commitments or declare the outstanding principal of, and accrued interest
on, the Notes and all other amounts due under this Agreement to be
immediately due and payable, or both, whereupon the Commitments shall
terminate forthwith or all such amounts shall become immediately due and
payable, or both, as the case may be, provided that in the case of any
event or condition described in Section 8.1(i) with respect to the Company,
the Commitments shall automatically terminate forthwith and all such
amounts shall automatically become immediately due and payable without
notice; in each case without demand, presentment, protest, diligence,
notice of dishonor or other formality, all of which are hereby expressly
waived.
(b) Upon the occurrence and during the continuance of any
Event of Default, the Agent may, and upon being directed to do so by the
Majority Banks shall, in addition to the remedies provided in Section
8.2(a), enforce its rights and those of the Banks either by suit in equity,
or by action at law, or by other appropriate proceedings, whether for the
specific performance (to the extent permitted by law) of any covenant or
agreement contained in this Agreement or in the Notes or in aid of the
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exercise of any power granted in this Agreement or the Notes, and may
enforce the payment of the Notes and any of its other rights available to
the Agent or the Banks at law or in equity.
(c) Upon the occurrence and during the continuance of any
Event of Default hereunder and, except for the occurrence of any Event or
Default set forth in Section 8.1(i), a declaration of acceleration pursuant
to Section 8.2(a), each Bank may at any time and from time to time, without
notice to the Company (any requirement for such notice being expressly
waived by the Company) set off and apply against any and all of the
obligations of the Company to the Banks and the Agent now or hereafter
existing under this Agreement any and all deposits (general or special,
time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Bank to or for the credit or the
account of the Company and any property of the Company from time to time in
possession of such Bank, irrespective of whether the Banks shall have made
any demand hereunder and although such obligations may be contingent and
unmatured. The rights of the Banks under this Section 8.2(c) are in
addition to other rights and remedies (including, without limitation, other
rights of setoff) which the Banks may have.
ARTICLE IX. THE AGENT AND THE BANKS
9.1 Appointment of Agent. NBD Bank, N.A. is hereby appointed
Agent for the Banks and accepts such appointment and agrees to act as such
upon the conditions herein set forth. The Agent shall have no duties or
responsibilities except those expressly set forth in this Agreement, and
shall not, by reason of this Agreement, have a fiduciary relationship with
any Bank.
9.2 Scope of Agency. Neither the Agent nor any of its
directors, officers or agents shall be liable for any action taken or
omitted by any of them hereunder or under the Notes, except for its, his or
her own gross negligence or willful misconduct and except as provided in
Section 9.3; or be responsible for any recitals, warranties or
representations herein or in the Notes or for the execution or validity of
this Agreement or the Notes; or be required to make any inquiry concerning
the performance by the Company of any of its obligations under this
Agreement or the Notes. In the absence of gross negligence or willful
misconduct, the Agent shall be entitled to rely, without liability
therefor, upon any certificate or other document or other communication
believed by it to be genuine and correct and to have been signed or sent by
the proper officer or person and upon the advice of legal counsel (which
may be legal counsel for the Company), independent public accountants and
other experts concerning all matters pertaining to the agency. The Company
agrees, upon demand, to pay or to reimburse the Agent for the payment of
all reasonable compensation of such counsel, accountants and other experts
and all other reasonable out-of-pocket expenses of the Agent. To the
extent that the Company shall fail to pay or to reimburse the Agent for the
payment of the same, each Bank shall reimburse the Agent pro rata in
accordance with the Commitments, and any such amount so paid shall be
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immediately due and payable to the Banks by the Company. The Banks agree
to indemnify the Agent ratably in accordance with the Commitments for any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against the
Agent in its capacity as such in any way relating to or arising out of this
Agreement or the transactions contemplated hereby, provided that no Bank
shall be liable for any of the foregoing to the extent they arise from the
Agent's gross negligence or willful misconduct.
9.3 Duties of Agent. In carrying out the agency, the Agent
shall have only the duties and responsibilities expressly set forth in this
Agreement and in performing such duties and responsibilities the Agent
shall exercise the same degree of care as it would if the Loans were
entirely for its own account, but the Agent shall not be deemed to have
knowledge of the occurrence of any Event of Default, or any event or
condition which with notice or lapse of time, or both, could become such an
Event of Default and need not take or continue any action with respect
thereto or toward the enforcement of this Agreement or the Notes, nor
prosecute or defend any suit with respect to this Agreement or the Notes,
unless directed to do so by the Majority Banks and unless indemnified to
its satisfaction against any loss, cost, liability or expense which it
might incur as a consequence of taking such action. The Agent may employ
agents and attorneys and shall not be answerable for the negligence or
misconduct of any such agents or attorneys selected by it with reasonable
care. The Agent in its capacity as a Bank hereunder shall have the same
rights and powers hereunder as any other Bank and may exercise the same as
though it were not acting as the Agent hereunder. Each Bank agrees that it
has, independently and without reliance on the Agent or any other Bank, and
based on such documents and information as it has deemed appropriate, made
its own credit analysis of the Company and its Subsidiaries in connection
with its decision to enter into this Agreement and that it will,
independently and without reliance upon the Agent or any other Bank, and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not
taking action under this Agreement.
9.4 Resignation of Agent. The Agent may resign as such at any
time upon 30 days' prior written notice to the Company and the Banks. In
the event of any such resignation, the Majority Banks shall, by an
instrument in writing delivered to the Company and the Agent, appoint a
successor which shall be an incorporated bank or trust company. If a
successor is not so appointed or does not accept such appointment at least
5 days before the Agent's resignation becomes effective, the Agent may
appoint a temporary successor to act until such appointment by the Majority
Banks is made and accepted. Any successor to the Agent shall execute and
deliver to the Company and the Banks an instrument accepting such
appointment and thereupon such successor Agent, without further act, deed,
conveyance or transfer shall become vested with all of the properties,
rights, interests, powers, authorities and obligations of its predecessor
hereunder with like effect as if originally named as Agent hereunder. Upon
request of such successor Agent, the Company and the Agent ceasing to act
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shall execute and deliver such instruments of conveyance, assignment and
further assurance and do such other things as may reasonably be required
for more fully and certainly vesting and confirming in such successor Agent
all such properties, rights, interests, powers, authorities and
obligations.
9.5 Pro Rata Sharing by Banks. Each Bank agrees with every
other Bank that, in the event that it shall receive and retain any payment
on account of any Note in excess of its pro rata portion, according to the
principal amount of the Notes then outstanding, of the payment due all of
the Banks, whether such payment be voluntary, involuntary or by operation
of law, by application of set-off of any indebtedness or otherwise, then
such Bank shall promptly purchase from the other Banks, without recourse,
for cash and at face value, ratably in accordance with the principal amount
of the Notes then outstanding, interests in the Notes of the other Banks in
such an amount that each Bank shall have received payment pro rata on
account of the Notes in accordance with the unpaid principal amount thereof
then owing to it; provided, that if any such purchase be made by any Bank
and if any such excess payment relating thereto or any part thereof is
thereafter recovered from such Bank, appropriate adjustment in the related
purchase from the other Banks shall be made by rescission and restoration
of the purchase price as to the portion of such excess payment so
recovered. It is further agreed that, to the extent there is then owing by
the Company to any Bank Indebtedness other than that evidenced by the
Notes, to which such Bank may apply any involuntary payments of
indebtedness by the Company, including those resulting from exercise of
rights of set-off or similar rights, such Bank shall apply all such
involuntary payments first to obligations of the Company to the Banks
hereunder and under the Notes and then to such other Indebtedness owed to
such Bank by the Company.
ARTICLE X. MISCELLANEOUS
10.1 Amendments; Etc. This Agreement and any term or provision
hereof may be amended, waived or terminated by an instrument in writing
executed by the Company and the Majority Banks, provided that, except by an
instrument in writing executed by the Company and all of the Banks, no such
amendment, waiver or termination shall:
(a) Authorize or permit the extension of the time or times
of payment or prepayment of the principal of, or interest on, the Notes or
any of them, including without limitation amending the Termination Date, or
the increase or reduction in principal amount thereof or the reduction in
the rate of interest thereon, or the rate of any fees or compensating
balances or any other modification in the terms of the payment or
prepayment of the principal of or interest on the Notes; or
(b) Amend or change the respective amounts of the Banks'
Commitments set forth in Section 2.1, or reduce the percentage of the
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aggregate principal amount of the Notes required by the provisions of this
Section for the taking of any action under this Section 10.1; or
(c) Permit the termination of the obligations of any Bank
hereunder, provided that upon any such termination, (i) the Company shall
have the option to select a bank to replace such terminating Bank and to
assume the rights and obligations of such Bank hereunder, provided that
such replacement bank is acceptable to each non-terminating Bank, and (ii)
in the event that such terminating Bank is not so replaced, each
non-terminating Bank shall be entitled, but shall not be obligated, to
increase its Commitment by an amount equal to that amount of the
terminating Bank's Commitment bearing the same ratio to such terminating
Bank's Commitment as such non-terminating Bank's Commitment bears to the
aggregate Commitment of all non-terminating Banks. In the event that any
non-terminating Bank shall not elect to increase its Commitment as
specified in clause (ii), each Bank making such election shall be entitled,
but shall not be obligated, to further increase its Commitment by an amount
equal to that amount of each non-electing Bank's Commitment bearing the
same ratio to such non-electing Bank's Commitment as such electing Bank's
Commitment bears to the aggregate Commitment of all electing Banks. The
procedure set forth in the preceding sentence shall be followed until the
entire Commitment of the terminating Bank is allocated or until no
non-terminating Bank shall desire to further increase its Commitment.
Any such amendment, waiver or termination shall be effective only
in the specific instance and for the specific purpose for which given.
10.2 Notices. (a) Except as otherwise provided in Section
10.2(c), all notices, requests, consents and other communications hereunder
shall be in writing and shall be delivered or sent to the Company at 9341
Courtland Drive, Rockford, Michigan 49351, Attention: Treasurer; and to
the Agent at 611 Woodward Avenue, Detroit, Michigan 48226, Attention:
Michigan Banking Division; and to the Banks at the respective addresses for
notices set forth on the signature pages hereof, or to such other address
as may be designated by the Company, the Agent or any Bank by notice to the
other parties hereto. All notices shall be deemed to have been given at
the time of actual delivery thereof to such address or, if sent by the
Agent or any Bank to the Company by certified or registered mail, postage
prepaid, to such address, on the date of mailing.
(b) Notices by the Company with respect to terminations or
reductions of the Commitments pursuant to Section 2.2, requests for Loans
pursuant to Section 3.1, requests for continuations or conversions of Loans
pursuant to Section 3.5 and notices of prepayment pursuant to Section 4.3
shall be irrevocable and binding on the Company.
(c) Any notice to be given by the Company to the Banks
pursuant to Sections 3.1, 3.5 or 4.3 and any notice to be given by the
Banks hereunder, may be given by telephone or by facsimile transmission and
must be immediately confirmed in writing in the manner provided in Section
10.2(a). Any such notice given by telephone and facsimile transmission
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shall be deemed effective upon receipt thereof by the party to whom such
notice is given.
10.3 Conduct No Waiver; Remedies Cumulative. No course of
dealing on the part of the Agent or the Banks, nor any delay or failure on
the part of the Agent or the Banks in exercising any right, power or
privilege hereunder shall operate as a waiver of such right or privilege or
otherwise prejudice the Agent's or any Bank's rights and remedies
hereunder; nor shall any single or partial exercise thereof preclude any
further exercise thereof or the exercise of any other right, power or
privilege. No right or remedy conferred upon or reserved to the Banks
under this Agreement is intended to be exclusive of any other right or
remedy, and every right and remedy shall be cumulative and in addition to
every other right or remedy given hereunder or now or hereafter existing
under any applicable law. Every right and remedy given by this Agreement
or by applicable law to the Agent or the Banks may be exercised from time
to time and as often as may be deemed expedient by them.
10.4 Reliance on and Survival of Various Provisions. All terms,
covenants, agreements, representations and warranties of the Company made
herein or in any certificate or other document delivered pursuant hereto
shall be deemed to be material and to have been relied upon by each Bank,
notwithstanding any investigation heretofore or hereafter made by any Bank
or on any Bank's behalf, and those covenants and agreements of the Company
set forth in Article V and in Section 10.5 shall survive the repayment in
full of the Loans and the termination of the Commitments.
10.5 Expenses. The Company agrees to pay and save the Agent and
the Banks harmless from liability for the payment of (a) the reasonable
fees and expenses of Dickinson, Wright, Moon, Van Dusen & Freeman, counsel
for the Agent, in connection with the preparation, execution and delivery
of this Agreement and the Notes and the consummation of the transactions
contemplated hereby, and in connection with any amendments, waivers or
consents in connection therewith, and (b) all reasonable costs and expenses
of the Agent and the Banks (including reasonable fees and expenses of
counsel) in connection with any Event of Default or the enforcement of this
Agreement or the Notes.
10.6 Successors and Assigns. (a) This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns, provided that the Company may not, without the
prior consent of the Banks, assign its rights or obligations hereunder or
under the Notes and the Banks shall not be obligated to make any Loan
hereunder to any entity other than the Company.
(b) Any Bank may sell a participation interest to any
financial institution or institutions, and such financial institution or
institutions may further sell, a participation interest (undivided or
divided) in, the Loans and such Bank's rights and benefits under this
Agreement and the Notes, and to the extent of that participation, such
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participant or participants shall have no rights or benefits against the
Company hereunder, provided, however, that (i) such Bank's obligations
under this Agreement shall remain unmodified and fully effective and
enforceable against such Bank, (ii) such Bank shall remain solely
responsible to the other parties hereto for the performance of such
obligations, (iii) such Bank shall remain the holder of its Note for all
purposes of this Agreement, (iv) the Company, the Agent and the other Banks
shall continue to deal solely and directly with such Bank in connection
with such Bank's rights and obligations under this Agreement, and (v) such
Bank shall not grant to its participant any rights to consent or withhold
consent to any action taken by such Bank or the Agent under this Agreement
other than action requiring the consent of all of the Banks hereunder.
(c) Each Bank may, with the prior consent of the Company
and the Agent (and not otherwise), assign to one or more banks or other
entities all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its
Commitment, the Loans owing to it and the Note or Notes held by it);
provided, however, that (i) each such assignment shall be of a uniform, and
not a varying, percentage of all rights and obligations, (ii) except in the
case of an assignment of all of a Bank's rights and obligations under this
Agreement, (A) the amount of the Commitment of the assigning Bank being
assigned pursuant to each such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no
event be less than $3,000,000, and in integral multiples of $1,000,000
thereafter, or such lesser amount as the Company and the Agent may consent
to and (B) after giving effect to each such assignment, the amount of the
Commitment of the assigning Bank when the Commitments are at their lower
amounts shall in no event be less than $3,000,000, and (iii) the parties to
each such assignment shall execute and deliver to the Agent, for its
acceptance and recording, an Assignment and Acceptance in the form of
Exhibit D hereto (an "Assignment and Acceptance"), together with any Note
or Notes subject to such assignment and a processing fee of $5,000. Upon
such execution, delivery, acceptance and recording, from and after the
effective date specified in such Assignment and Acceptance, (x) the
assignee thereunder shall be a party hereto and, to the extent that rights
and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Bank
hereunder and (y) the Bank assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the remaining portion of an assigning Bank's
rights and obligations under this Agreement, such Bank shall cease to be a
party hereto).
(d) The Agent shall at all times maintain a minimum
Commitment of $3,000,000, unless such Commitment is terminated pursuant to
Section 2.2 or 8.2.
10.7 Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the
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same instrument and any of the parties hereto may execute this Agreement by
signing any such counterpart, and this Agreement shall enter into force and
effect only if counterparts executed by the Company and by each Bank named
in Section 2.1(a) are returned to and executed by the Agent. Upon such
execution by the Agent, this Agreement shall be deemed effective as of the
Effective Date.
10.8 Governing Law. This Agreement is a contract made under, and
the rights and obligations of the parties hereunder shall be governed by
and construed in accordance with, the laws of the State of Michigan
applicable to contracts made and to be performed entirely within such
State.
10.9 Headings. The headings of the various subdivisions hereof
are for the convenience of reference only and shall in no way modify any of
the terms or provisions hereof.
10.10 Construction of Certain Provisions. All computations
required hereunder and all financial terms used herein shall be made or
construed in accordance with generally accepted accounting principles
unless such principles are inconsistent with the express requirements of
this Agreement. If any provision of this Agreement refers to any action to
be taken by any person, or which such person is prohibited from taking,
such provision shall be applicable whether such action is taken directly or
indirectly by such person, whether or not expressly specified in such
provision.
10.11 Integration and Severability. This Agreement embodies the
entire agreement and understanding among the Company, the Agent and the
Banks, and supersedes all prior agreements and understandings relating to
the subject matter hereof. In case any one or more of the obligations of
the Company under this Agreement or the Notes shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining obligations of the Company shall not in any
way be affected or impaired thereby, and such invalidity, illegality or
enforceability in one jurisdiction shall not affect the validity, legality
or enforceability of the obligations of the Company under this Agreement or
the Notes in any other jurisdiction.
10.12 Interest Rate Limitation. Notwithstanding any provisions
of this Agreement or the Notes, in no event shall the amount of interest
paid or agreed to be paid by the Company exceed an amount computed at the
highest rate of interest permissible under applicable law. If, from any
circumstances whatsoever, fulfillment of any provision of this Agreement or
the Notes at the time performance of such provision shall be due, shall
involve exceeding the interest rate limitation validly prescribed by law
which a court of competent jurisdiction may deem applicable hereto, then,
ipso facto, the obligations to be fulfilled shall be reduced to an amount
computed at the highest rate of interest permissible under applicable law,
and if for any reason whatsoever the Banks shall ever receive as interest
an amount which would be deemed unlawful under such applicable law, such
interest shall be automatically applied to the payment of principal of the
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Loans outstanding hereunder (whether or not then due and payable) and not
to the payment of interest, or shall be refunded to the Company if such
principal has been paid in full.
10.13 Independence of Covenants. All covenants contained herein
shall be given independent effect so that if a particular action or
condition is not permitted by any of such covenants, the fact that it would
be permitted by an exception to, or be otherwise within the limitation of,
another covenant shall not avoid the occurrence of an Event of Default if
such action is taken or condition exits.
10.14 Waiver of Jury Trial. The Banks and the Agent and the
Company, after consulting or having had the opportunity to consult with
counsel, knowingly, voluntarily and intentionally waive any right any of
them may have to a trial by jury in any litigation based upon or arising
out of this Agreement or any related instrument or agreement or any of the
transactions contemplated by this Agreement or any course of conduct,
dealing, statement (whether oral or written) or actions of any of them.
Neither any Bank, the Agent, nor the Company shall seek to consolidate, by
counterclaim or otherwise, any such action in which a jury trial has been
waived with any other action in which a jury trial cannot be or has not
been waived. These provisions shall not be deemed to have been modified in
any respect or relinquished by any party thereto except by a written
instrument executed by such party.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and delivered as of the 13th day of October, 1994,
which shall be the Effective Date of this Agreement, notwithstanding the
day and year first above written.
Address for Notices: WOLVERINE WORLD WIDE, INC.
9341 Courtland Drive
Rockford, Michigan 49351 By: /s/ Thomas P. Mundt
Attention: Treasurer
Telephone: (616) 866-5500 Its: Vice President of Strategic
Telecopy: (616) 866-0257 Planning and Treasurer
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Address for Notices: NBD BANK, N.A., individually
as a Bank and as Agent
611 Woodward Avenue
Detroit, Michigan 48226 By: /s/ William Goodhue
Attention: Michigan Banking Division William Goodhue
Telephone: (313) 225-2227 Its: Vice President
Telecopy: (313) 225-1671
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Address for Notices: HARRIS TRUST AND SAVINGS BANK
111 West Monroe Street
P.O. Box 755
Chicago, Illinois 60690 By: /s/ Peter Krawchuk
Attention: Peter Krawchuk Peter Krawchuk
Telephone: (312) 461-2783 Its: Vice President
Telecopy: (312) 461-2591
Address for Notices: COMERICA BANK
P.O. Box 75000
Detroit, Michigan 48275-3269 By: /s/ Robert M. Porterfield
Attention: Robert M. Porterfield Robert M. Porterfield
Telephone: (313) 222-7802 Its: Vice President
Telecopy: (313) 222-9516
Address for Notices: OLD KENT BANK AND TRUST COMPANY
Corporate Banking Department
1 Vandenberg Center By: /s/ Calvin Hekman
Grand Rapids, Michigan 49503 Calvin Hekman
Attention: Calvin Hekman Its: Vice President
Telephone: (616) 771-5265
Telecopy: (616) 771-4641
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EXHIBIT A
REVOLVING CREDIT NOTE
$___________________ ______________, 1994
Detroit, Michigan
FOR VALUE RECEIVED, the undersigned, WOLVERINE WORLD WIDE, INC.,
a Delaware corporation (the "Company"), hereby promises to pay to the order
of ____________________, a _______________ (the "Bank"), at the principal
banking office of NBD Bank, N.A., the Agent, at 611 Woodward Avenue,
Detroit, Michigan, in lawful money of the United States of America and in
immediately available funds, the principal sum of __________ Dollars
($__________) or such lesser aggregate principal sum outstanding of loans
made by the Bank to the Company under the Credit Agreement referred to
below, on the Termination Date; and to pay interest on the unpaid principal
balance hereof from time to time outstanding, in like money and funds, for
the period from the date hereof until such loans shall be paid in full, at
the rates per annum and on the dates provided in the Credit Agreement
referred to below.
The Bank is hereby authorized by the Company to note on the
schedule attached to this Note, or on its books and records, the date,
amount and type of each loan made by the Bank under the Credit Agreement,
the interest rate and duration of the related Interest Period (if
applicable), the amount of each payment or prepayment of principal thereon
and the other information provided for on such schedule, which schedule or
such books and records, as the case may be, shall constitute prima facie
evidence of the information so noted, provided that any failure by the Bank
to make any such notation shall not relieve the Company of its obligation
to repay the outstanding principal amount of this Note, all accrued
interest hereon and any amount payable with respect hereto in accordance
with the terms of this Note and the Credit Agreement.
The Company and each endorser or guarantor hereof waives demand,
presentment, protest, diligence, notice of dishonor and any other formality
in connection with this Note. Should the indebtedness evidenced by this
Note or any part thereof be collected in any proceeding or be placed in the
hands of attorneys for collection, the Company agrees to pay, in addition
to the principal and interest due and payable hereon, all costs of
collecting this Note, including attorneys' fees and expenses.
This Note evidences one or more loans made by the Bank under an
Amended and Restated Credit Agreement, dated on or about the date hereof
(as amended, supplemented, extended or otherwise modified from time to
time, the "Credit Agreement"), by and among the Company, the banks
(including the Bank) named therein and NBD Bank, N.A., as agent, to which
reference is hereby made for a statement of the circumstances under which
this Note is subject to prepayment and under which its due date may be
accelerated. Capitalized terms used but not defined in this Note shall
have the respective meanings assigned to them in the Credit Agreement.
WOLVERINE WORLD WIDE, INC.
By: _____________________________________
Its: ________________________________
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Schedule to Revolving Credit Note, dated
__________________, 1994 made by Wolverine World Wide, Inc.
(in favor of ______________________)
Principal
Date Amount
Loan Principal Type Interest Paid, Pre- Principal
Made or Amount of of Interest Period (if paid or Balance Notation
Converted Loan Loan Rate applicable) Converted Outstanding Made by
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EXHIBIT B
REQUEST FOR LOAN
[Date]
NBD Bank, N.A.
Harris Trust and Savings Bank
Comerica Bank
Old Kent Bank and Trust Company
The undersigned (the "Company") hereby requests a Loan pursuant to
Section 3.1 of the Amended and Restated Credit Agreement, dated as of
October __, 1994(as amended, supplemented, extended or otherwise modified
from time, the "Credit Agreement"), among the Company, each of you, and NBD
Bank, N.A., as agent, in the amount of $_____________, to be made on
_______________, 19__, and to be evidenced by the Company's Note. After
giving effect to such Loan, the aggregate outstanding principal amount of
the Loans on the date thereof will be $__________. Capitalized terms used
but not defined herein shall have the respective meanings assigned to them
in the Credit Agreement.
Such Loan shall be a ____________________[insert either Eurodollar
Rate Loan or Floating Rate Loan] and the initial Interest Period, if such
requested Loan is a Eurodollar Rate Loan, shall be ________________ [insert
permitted Interest Period].
In support of this request, the Company hereby certifies that:
1. The representations and warranties contained in Article VI of the
Credit Agreement are true and correct on and as of the date hereof, and
will be true and correct on the date of the making of such Loan, as if such
representations and warranties were made on and as of such dates.
2. No Event of Default, and no event or condition which might become
such an Event of Default with notice or with lapse of time, or both, has
occurred and is continuing or will exist on the date of the making of such
Loan.
Acceptance of the proceeds of such Loan by the Company shall be deemed to
be a further representation that the representations made herein are true
and correct at the time such proceeds are disbursed.
WOLVERINE WORLD WIDE, INC.
By:___________________________
Its:_______________________
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EXHIBIT C
REQUEST FOR CONTINUATION OR CONVERSION OF LOAN
[Date]
NBD Bank, N.A.
Harris Trust and Savings Bank
Comerica Bank
Old Kent Bank and Trust Company
The undersigned (the "Company") hereby requests that $_______ of
the principal amount of the Loan originally made on _______________, 19__,
which Loan is currently a ________________________ [insert type of Loan
based on type of interest rate applicable], be continued as or converted
to, as the case may be, a _______________________ [insert type of Loan
requested based on type of interest rate desired] on _______________, 19__.
If such Loan is requested to be converted to a Eurodollar Rate Loan, the
Company hereby elects an Interest Period for such Loan of
______________________ [insert permitted Interest Period]. Capitalized
terms used but not defined herein shall have the respective meanings
assigned to them in the Amended and Restated Credit Agreement, dated as of
October ___, 1994 (as amended, supplemented, extended or otherwise modified
from time to time, the "Credit Agreement") among the Company, each of you
and NBD Bank, N.A., as agent.
In support of this request, the Company hereby certifies that:
1. The representations and warranties contained in Article VI
of the Credit Agreement are true and correct on and as of the date hereof,
and will be true and correct on the date of the continuation or conversion
of such Loan, as if such representations and warranties were made on and as
of such dates.
2. No Event of Default, and no event or condition which might
become such an Event of Default with notice or with lapse of time, or both,
has occurred and is continuing or will exist on the date of the
continuation or conversion of such Loan.
Acceptance of the continuation or conversion of such Loan by the Company
shall be deemed to be a further representation that the representations
made herein are true and correct at the time such proceeds are disbursed.
WOLVERINE WORLD WIDE, INC.
By: ________________________________
Its:___________________________
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EXHIBIT D
ASSIGNMENT AND ACCEPTANCE
Reference is made to the Amended and Restated Credit Agreement,
dated as of October ___, 1994 (the "Credit Agreement"), among WOLVERINE
WORLD WIDE, INC., a Delaware corporation (the "Borrower"), the banks named
therein (the "Banks") and NBD BANK, N.A., as agent for the Banks (the
"Agent"). Terms defined in the Credit Agreement are used herein with the
same meaning.
1. The "Assignor" and the "Assignee" referred to on Schedule 1
agree as follows:
2. The Assignor hereby sells and assigns (without recourse) to
the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, an interest in and to the Assignor's rights and obligations under
the Credit Agreement as of the date hereof equal to the percentage interest
specified on Schedule 1 of all outstanding rights and obligations under the
Credit Agreement. After giving effect to such sale and assignment, the
Assignee's Commitments and the amounts of the Loans owing to the Assignee
will be as set forth on Schedule 1.
3. The Assignor (i) represents and warrants that it is the
legal and beneficial owner of the interest being assigned by it hereunder
and that such interest is free and clear of any adverse claim; (ii) makes
no representation or warranty and assumes no responsibility with respect to
any statements, warranties or representations made in or in connection with
the Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement or any other
instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or the performance or observance by
the Borrower of any of its obligations under the Credit Agreement or any
other instrument or document furnished pursuant thereto; and (iv) attaches
the Note or Notes held by the Assignor and requests that the Agent exchange
such Note or Notes for a new Note or Notes payable to the order of the
Assignee in an amount equal to the Commitments assumed by the Assignee
pursuant hereto and the Assignor in an amount equal to the Commitments
retained by the Assignor under the Credit Agreement, respectively, as
specified on Schedule 1.
4. The Assignee (i) confirms that it has received a copy of the
Credit Agreement, together with copies of the financial statements referred
to therein and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Assignment and Acceptance; (ii) agrees that it will, independently and
without reliance upon the Agent, the Assignor or any other Bank and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action
under the Credit Agreement; (iii) appoints and authorizes the Agent to take
such action as agent on its behalf and to exercise such powers and
discretion under the Credit Agreement as are delegated to the Agent by the
terms thereof, together with such powers and discretion as are reasonably
incidental thereto; (iv) agrees that it will perform in accordance with
their terms of all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Bank; and (v) if the
Assignee is organized under the laws of a jurisdiction outside the United
States, attaches the forms prescribed by the Internal Revenue Service of
the United States certifying as to the Assignee's status for purposes of
determining exemption from United States withholding taxes with respect to
all payments to be made to the Assignee under the Credit Agreement and the
Notes or such other documents as are necessary to indicate that all such
payments are subject to such taxes at a rate reduced by an applicable tax
treaty.
5. Following the execution of this Assignment and Acceptance,
it will be delivered to the Agent for acceptance by the Agent. The
effective date for this Assignment and Acceptance (the "Effective Date")
shall be the date of acceptance hereof by the Agent, unless otherwise
specified on Schedule 1.
6. Upon such acceptance by the Agent, as of the Effective Date,
(i) the Assignee shall be a party to the Credit Agreement and, to the
extent provided in this Assignment and Acceptance, have the rights and
obligations of a Lender thereunder and (ii) the Assignor shall, to the
extent provided in this Assignment and Acceptance, relinquish its rights
and be released from its obligations under the Credit Agreement. All
representations and agreements by the Assignor and the Assignee herein may
be relied upon by the Agent and the Banks under the Credit Agreement.
7. Upon such acceptance and recording by the Agent, from and
after the Effective Date, the Agent shall make all payments under the
Credit Agreement and the Notes in respect of the interest assigned hereby
(including, without limitation, all payments of principal, interest and
commitment fees with respect thereto) to the Assignee. The Assignor and
Assignee shall make all appropriate adjustments in payments under the
Credit Agreement and the Notes for periods prior to the Effective Date
directly between themselves.
8. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the laws of the State of Michigan.
9. This Assignment and Acceptance may be executed in any number
of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Delivery
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of an executed counterpart of Schedule 1 to this Assignment and Acceptance
by telecopier shall be effective as delivery of a manually executed
counterpart of this Assignment and Acceptance.
IN WITNESS WHEREOF, the Assignor and the Assignee have caused this
Assignment and Acceptance to be executed by their officers thereunto duly
authorized as of the date described in Section 4 above.
[ASSIGNOR]
By: ____________________________________
Its: _______________________________
[ASSIGNEE]
________________________________________
By: ____________________________________
Its: _______________________________
Accepted and Agreed:
WOLVERINE WORLD WIDE, INC.
By: __________________________
Its: ______________________
Dated: _______________________
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NBD BANK, N.A. as Agent
By: __________________________
Its: ______________________
Dated: _______________________
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