Exhibit 10.1
[Published CUSIP Number: _____________]
SECOND AMENDED AND RESTATED
REVOLVING CREDIT AGREEMENT
Dated as of June 2, 2006
among
THE TIMBERLAND COMPANY
THE LENDERS LISTED ON SCHEDULE 1 HERETO
BANK OF AMERICA, N.A., as Administrative Agent
with
BANC OF AMERICA SECURITIES LLC, as Lead Arranger and Sole Book Manager
and
WACHOVIA CAPITAL MARKETS, LLC, as Co-Arranger and Syndication Agent
and
JPMORGAN CHASE BANK, N.A., as Documentation Agent
TABLE OF CONTENTS
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1. DEFINITIONS AND RULES OF INTERPRETATION ............................. 1
1.1. Definitions .................................................. 1
1.2. Rules of Interpretation ...................................... 21
1.3. Additional Alternative Currencies ............................ 22
1.4. Change of Currency ........................................... 22
1.5. Exchange Rates; Currency Equivalents ......................... 23
1.6. Times of Day ................................................. 23
1.7. Letter of Credit Amounts ..................................... 23
1.8. Changes in GAAP .............................................. 23
2. THE REVOLVING CREDIT FACILITY ....................................... 24
2.1. Commitment to Lend ........................................... 24
2.2. Fees ......................................................... 24
2.3. Change of Total Commitment ................................... 25
2.4. Loan Account ................................................. 25
2.5. Interest on Revolving Credit Loans ........................... 26
2.6. Requests for Revolving Credit Loans .......................... 26
2.7. Conversion Options ........................................... 26
2.8. Funds for Revolving Credit Loans ............................. 28
2.9. Failure to Satisfy Conditions Precedent ...................... 29
2.10. Funding Source ............................................... 29
2.11. Optional Prepayments ......................................... 29
2.12. Mandatory Repayments ......................................... 30
3. THE SWING LINE ...................................................... 30
3.1. The Swing Line Loans ......................................... 30
3.2. Notice of Borrowing .......................................... 31
3.3. Interest on Swing Line Loans ................................. 31
3.4. Repayment of Swing Line Loans ................................ 32
3.5. Loan Account ................................................. 33
4. LETTERS OF CREDIT ................................................... 33
4.1. Letter of Credit Commitments ................................. 33
4.2. Drawings and Reimbursements; Funding of Participations ....... 37
4.3. Repayment of Participations .................................. 39
4.4. Obligations Absolute ......................................... 40
4.5. Reliance by Issuer ........................................... 41
4.6. Letter of Credit Fees ........................................ 41
4.7. Letters of Credit Issued for Subsidiaries .................... 42
4.8. Conflict with Issuer Documents ............................... 42
5. CERTAIN GENERAL PROVISIONS .......................................... 42
5.1. Closing Fees ................................................. 42
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TABLE OF CONTENTS
(continued)
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5.2. Administrative Agency Fee .................................... 42
5.3. Funds for Payments ........................................... 42
5.4. Computations ................................................. 44
5.5. Inability to Determine Eurodollar Rate ....................... 45
5.6. Illegality ................................................... 45
5.7. Increased Costs; Mitigation Obligations ...................... 45
5.8. Indemnity .................................................... 47
5.9. Interest After Default ....................................... 47
5.10. Replacement of Lenders ....................................... 48
6. REPRESENTATIONS AND WARRANTIES ...................................... 49
6.1. Corporate Authority .......................................... 49
6.2. Governmental Approvals ....................................... 49
6.3. Financial Statements ......................................... 50
6.4. No Material Adverse Changes, etc ............................. 50
6.5. Franchises, Patents, Copyrights, etc ......................... 50
6.6. Litigation ................................................... 50
6.7. Compliance with Other Instruments, Laws, etc ................. 50
6.8. Tax Status ................................................... 50
6.9. No Event of Default .......................................... 50
6.10. Holding Company and Investment Company Acts .................. 50
6.11. Employee Benefit Plans and Guaranteed Pension Plans .......... 51
6.12. Environmental Compliance ..................................... 51
6.13. Subsidiaries, etc ............................................ 51
6.14. Disclosure ................................................... 51
6.15. Foreign Assets Control Regulations, Etc ...................... 52
7. AFFIRMATIVE COVENANTS ............................................... 52
7.1. Punctual Payment ............................................. 52
7.2. Records and Accounts ......................................... 52
7.3. Financial Statements, Certificates and Information ........... 52
7.4. Notices of Defaults .......................................... 54
7.5. Legal Existence; Maintenance of Properties ................... 54
7.6. Insurance .................................................... 55
7.7. Taxes ........................................................ 55
7.8. Inspection of Properties and Books, etc ...................... 55
7.9. Compliance with Laws, Contracts, Licenses, and Permits ....... 55
7.10. Use of Proceeds and Margin Stock ............................. 56
7.11. Further Assurances ........................................... 56
7.12. Pari Passu ................................................... 56
8. CERTAIN NEGATIVE COVENANTS .......................................... 56
8.1. Restrictions on Indebtedness ................................. 56
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TABLE OF CONTENTS
(continued)
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8.2. Restrictions on Liens ........................................ 57
8.3. Restrictions on Investments .................................. 59
8.4. Restricted Payments .......................................... 60
8.5. Merger, Consolidation and Disposition of Assets .............. 60
8.6. Derivative Transactions ...................................... 61
8.7. Business Activities .......................................... 61
8.8. Fiscal Year .................................................. 62
8.9. Transactions with Affiliates ................................. 62
9. FINANCIAL COVENANTS ................................................. 62
9.1. Fixed Charge Coverage Ratio .................................. 62
9.2. Leverage Ratio ............................................... 62
10. CLOSING CONDITIONS .................................................. 62
10.1. Loan Documents ............................................... 62
10.2. Certified Copies of Governing Documents ...................... 62
10.3. Corporate or Other Action .................................... 63
10.4. Incumbency Certificate ....................................... 63
10.5. Compliance Certificate ....................................... 63
10.6. Opinion of Counsel ........................................... 63
10.7. Termination of Existing Credit Agreement ..................... 63
10.8. Payment of Fees .............................................. 63
11. CONDITIONS TO ALL BORROWINGS ........................................ 63
11.1. Representations True; No Event of Default .................... 63
11.2. No Legal Impediment .......................................... 64
11.3. Proceedings and Documents .................................... 64
11.4. Alternative Currency ......................................... 64
12. EVENTS OF DEFAULT; ACCELERATION; ETC ................................ 64
12.1. Events of Default and Acceleration ........................... 64
12.2. Termination of Commitments ................................... 66
12.3. Remedies ..................................................... 67
13. THE ADMINISTRATIVE AGENT ............................................ 67
13.1. Appointment and Authority .................................... 67
13.2. Rights as a Lender ........................................... 67
13.3. Exculpatory Provisions ....................................... 68
13.4. Reliance by Administrative Agent ............................. 68
13.5. Delegation of Duties ......................................... 69
13.6. Payments ..................................................... 69
13.7. Purchasers of Letter of Credit Participations ................ 70
13.8. Indemnity .................................................... 70
13.9. Non-Reliance on Administrative Agent and Other Lenders ....... 70
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TABLE OF CONTENTS
(continued)
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13.10. Resignation of Administrative Agent .......................... 70
13.11. Administrative Agent May File Proofs of Claim ................ 71
13.12. Notification of Defaults and Events of Default ............... 72
13.13. No Other Duties, Etc ......................................... 72
14. ASSIGNMENT AND PARTICIPATION ........................................ 73
14.1. Conditions to Assignment Generally ........................... 73
14.2. Assignments by Lenders ....................................... 73
14.3. Register ..................................................... 75
14.4. Participations ............................................... 75
14.5. Limitations upon Participant Rights .......................... 75
14.6. Certain Pledges .............................................. 76
14.7. Electronic Execution of Assignments .......................... 76
14.8. Special Purpose Funding Vehicles ............................. 76
14.9. Resignation as Fronting Bank or Swing Line Lender after
Assignment ................................................... 77
15. PROVISIONS OF GENERAL APPLICATIONS .................................. 77
15.1. Setoff ....................................................... 77
15.2. Expenses ..................................................... 78
15.3. Indemnification .............................................. 79
15.4. Treatment of Certain Information; Confidentiality ............ 79
15.5. Survival of Covenants, Etc ................................... 80
15.6. Notices ...................................................... 81
15.7. Governing Law ................................................ 83
15.8. Headings ..................................................... 83
15.9. Counterparts ................................................. 83
15.10. Entire Agreement, Etc ........................................ 83
15.11. Waiver of Jury Trial ......................................... 83
15.12. Consents, Amendments, Waivers, Etc ........................... 84
15.13. No Advisory or Fiduciary Responsibility ...................... 85
15.14. USA PATRIOT Act Notice ....................................... 86
15.15. Severability ................................................. 86
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Exhibits
Exhibit A Form of Loan Request
Exhibit B Form of Swing Line Loan Request
Exhibit C Form of Compliance Certificate
Exhibit D Form of Assignment and Acceptance
Exhibit E Form of Note
Schedules
Schedule 1 Lenders and Commitments
Schedule 1-A Existing Letters of Credit
Schedule 6.6 Litigation
Schedule 6.13 Existing Subsidiaries
Schedule 8.2 Existing Liens
Schedule 14.2.4 Assignment Fee
Schedule 15.6 Administrative Agent's Office
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SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT
This SECOND AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT is made as of
June 2, 2006 by and among THE TIMBERLAND COMPANY (the "Borrower"), a Delaware
corporation having its principal place of business at 200 Domain Drive,
Stratham, NH 03885, and BANK OF AMERICA, N.A. (as successor by merger to Fleet
National Bank), a national banking association, and the other lending
institutions listed on Schedule 1 hereto and BANK OF AMERICA, N.A., as
administrative agent for itself and such other lending institutions.
WHEREAS, the Borrower, the lenders thereto and the Administrative Agent
entered into an Amended and Restated Revolving Credit Agreement dated as of
April 30, 2004 (the "Existing Credit Agreement");
WHEREAS, the Lenders and the Administrative Agent have agreed with the
Borrower to amend and restate the Existing Credit Agreement;
NOW, THEREFORE, the Borrower, the Lenders and the Administrative Agent
agree that as of the Closing Date (as defined below) the Existing Credit
Agreement is amended and restated in its entirety as follows:
1. DEFINITIONS AND RULES OF INTERPRETATION.
1.1. DEFINITIONS. The following terms shall have the meanings set forth in
this Section 1 or elsewhere in the provisions of this Credit Agreement referred
to below:
Adjustment Date. With respect to any quarter, the last Business Day of the
month in which the Administrative Agent's receipt of the Compliance Certificate
required to be delivered pursuant to Section 7.3(c) for such quarter; provided,
however, that in the event that the Borrower fails to deliver any Compliance
Certificate to the Administrative Agent within the time period set forth in
Section 7.3(c), the Adjustment Date shall be the last Business Day of the month
in which such Compliance Certificate was required to be delivered pursuant to
Section 7.3(c).
Administrative Agent. Bank of America, N.A., acting as administrative agent
for the Lenders and each other Person appointed as the successor Administrative
Agent in accordance with Section 13.10.
Administrative Agency Fee. See Section 5.2.
Administrative Agent's Office. The Administrative Agent's address and, as
appropriate, account as set forth on Schedule 15.6, or such other address or
account as the Administrative Agent may from time to time notify to the Borrower
and the Lenders.
Administrative Agent's Special Counsel. Bingham McCutchen LLP or such
other counsel as may be approved by the Administrative Agent.
Administrative Questionnaire. An Administrative Questionnaire in a form
supplied by the Administrative Agent.
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Affected Lender. See Section 5.10.
Affiliate. Any Person that would be considered to be an affiliate of any
other Person under Rule 144(a) of the Rules and Regulations of the Securities
and Exchange Commission, as in effect on the date hereof, if such other Person
were issuing securities.
Agent Parties. See Section 15.6.3.
Alternative Currency. Each of Euro, Sterling, Yen, Swiss Franc, Hong Kong
Dollars, Canadian Dollars, Singapore Dollars, Swedish Krone, Norwegian Krone,
Danish Krone, Australian Dollars, New Zealand Dollars, Thai Baht, India Rupee
and each other currency (other than Dollars) that is approved in accordance with
Section 1.3.
Alternative Currency Equivalent. At any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable
Alternative Currency as determined by the Administrative Agent or the Fronting
Bank, as the case may be, at such time on the basis of the Spot Rate (determined
in respect of the most recent Revaluation Date) for the purchase of such
Alternative Currency with Dollars.
Applicable Margin. For each period commencing on an Adjustment Date through
the date immediately preceding the next Adjustment Date (each a "Rate Adjustment
Period"), the Applicable Margin shall be the applicable margin set forth below
with respect to the Fixed Charge Coverage Ratio, as determined for the Reference
Period of the Borrower and its Subsidiaries ending on the fiscal quarter ended
immediately prior to the applicable Rate Adjustment Period.
APPLICABLE
MARGIN FOR STANDBY DOCUMENTARY
FIXED CHARGE FACILITY EURODOLLAR UTILIZATION LETTER OF LETTER OF
LEVEL COVERAGE RATIO FEE RATE LOANS FEE CREDIT FEE CREDIT FEE
- ----- ----------------- -------- ---------- ----------- ---------- -----------
I Greater than or 0.065% 0.135% 0.05% 0.135% 0.0675%
equal to 7.00
II Greater than or 0.070% 0.180% 0.05% 0.180% 0.090%
equal to 6.00 but
less than 7.00
III Greater than or 0.080% 0.270% 0.05% 0.270% 0.135%
equal to 5.00 but
less than 6.00
IV Greater than or 0.100% 0.350% 0.05% 0.350% 0.175%
equal to 4.00 but
less than 5.00
V Less than 4.00 0.150% 0.475% 0.05% 0.475% 0.2375%
Notwithstanding the foregoing, (a) for the Revolving Credit Loans
outstanding, Standby Letter of Credit Fees, Documentary Letter of Credit Fees
and the Facility Fee, the Applicable
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Margin shall be based on the Compliance Certificate for the fiscal quarter most
recently ended, and (b) if the Borrower fails to deliver any Compliance
Certificate pursuant to Section 7.3(c) hereof then, for the period commencing on
the next Adjustment Date to occur subsequent to such failure through the date
immediately following the date on which such Compliance Certificate is
delivered, the Applicable Margin shall be the Applicable Margin set forth in
Level V above.
Applicable Pension Legislation. At any time, any pension or retirement
benefits legislation (be it national, federal, provincial, territorial or
otherwise) then applicable to the Borrower or any of its Subsidiaries.
Applicable Time. With respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such
Alternative Currency as may be determined by the Administrative Agent or the
Fronting Bank, as the case may be, to be necessary for timely settlement on the
relevant date in accordance with normal banking procedures in the place of
payment.
Approved Fund. Any Fund that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.
Arrangers. The Lead Arranger and the Co-Arranger.
Asset Sale. Any one or series of related transactions, except for sales of
inventory in the ordinary course of business consistent with past practices, in
which the Borrower or any of its Subsidiaries conveys, sells or otherwise
disposes of any of its properties, businesses or assets (including the sale or
issuance of capital stock of any Subsidiary other than to the Borrower or any
Subsidiary of the Borrower) whether owned on the Closing Date or thereafter
acquired.
Assignee Group. Two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.
Assignment and Acceptance. An assignment and acceptance entered into by the
parties to each assignment (with the consent of any party whose consent is
required by Section 14.2) and accepted by the Administrative Agent, in
substantially the form of Exhibit D or any other form approved by the
Administrative Agent.
Assignment Fee. See Section 14.2.4.
Australian Dollar or A$. The lawful currency of Australia.
Auto-Extension Letter of Credit. See Section 4.1.2(c)
Balance Sheet Date. December 31, 2005.
Bank of America. Bank of America, N.A. and its successors.
Base Rate. For any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect
for such day as publicly
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announced from time to time by Bank of America as its "prime rate." The "prime
rate" is a rate set by Bank of America based upon various factors including Bank
of America's costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the
day specified in the public announcement of such change.
Base Rate Loans. Revolving Credit Loans bearing interest calculated by
reference to the Base Rate.
Borrowed Money Indebtedness. Any of (a) the indebtedness of the Borrower
and its Subsidiaries, on a consolidated basis, relating to (i) the borrowing of
money or the obtaining of credit (but excluding the outstanding amount of
undrawn letters of credit), including the issuance of notes or bonds and unpaid
reimbursement obligations under letters of credit or banker's acceptances or
similar facilities, (ii) the deferred purchase price of assets (other than trade
payables incurred in the ordinary course of business), (iii) in respect of any
Synthetic Leases or any Capitalized Leases, and (b) Guarantees of indebtedness
of the type referred to in clause (a) of this definition of another Person.
Borrower. As defined in the preamble hereto.
Borrower Materials. See Section 7.3.
Business Day. Any day on which banking institutions in New York, New York,
are open for the transaction of banking business and, in the case of Eurodollar
Rate Loans, also a day which is a Eurodollar Business Day.
Canadian Dollar or Can$. The lawful currency of Canada.
Capitalized Leases. Leases under which the Borrower or any of its
Subsidiaries is the lessee or obligor, the discounted future rental payment
obligations under which are required to be capitalized on the balance sheet of
the lessee or obligor in accordance with GAAP.
Capital Stock. Any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
equivalent ownership interests in a Person (other than a corporation) and any
and all warrants, rights or options to purchase any of the foregoing.
Cash Collateralize. See Section 4.1.3.
Change in Law. The occurrence, after the date of this Credit Agreement, of
any of the following: (a) the adoption or taking effect of any law, rule,
regulation or treaty, (b) any change in any law, rule, regulation or treaty or
in the administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, guideline or directive
(whether or not having the force of law, but if not having the force of law, as
based on the Administrative Agent's reasonable belief that such request,
guideline or directive is consistent with prudent practice in the financial
services industry at that time) by any Governmental Authority.
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Change of Control. Either (a) an event or series of events by which any
person or group of persons (within the meaning of Section 13 or 14 of the
Securities Exchange Act of 1934) (other than Sidney W. Swartz, his heirs or any
trusts created by or for any of the foregoing, the Swartz Family Charitable
Trust, The Sidney W. Swartz 1982 Family Trust, The Swartz Foundation, The Sidney
and Judith Swartz Charitable Remainder Unitrust, and The Swartz Family
Investments L.L.C.) shall have acquired beneficial ownership (within the meaning
of Rule 13d-3 promulgated by the Securities and Exchange Commission under said
Act), directly or indirectly, of fifty one percent (51%) or more of the voting
power to elect a majority of the Board of Directors of the Borrower; or (b)
during any period of twelve (12) consecutive calendar months, individuals who
were directors of the Borrower on the first day of such period shall cease to
constitute a majority of the board of directors of the Borrower other than by
voluntary resignation, death or retirement.
Closing Date. The first date on which the conditions set forth in Section
10 have been satisfied.
Closing Fee. See Section 5.1.
Co-Arranger. Wachovia Capital Markets, LLC.
Code. The Internal Revenue Code of 1986.
Commitment. With respect to each Lender, the amount set forth on Schedule 1
hereto as the amount of such Lender's commitment to make Revolving Credit Loans
to, and to participate in the issuance, extension, amendment and renewal of
Letters of Credit for the account of, the Borrower, as the same may be increased
or reduced from time to time pursuant to the terms hereof; or if such commitment
is terminated pursuant to the provisions hereof, zero.
Commitment Percentage. With respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Total Commitment
represented by such Lender's Commitment at such time. If the commitment(s) of
each Lender to make Loans and the obligation of the Fronting Bank to issue
Letters of Credit have been terminated pursuant to Section 12.2 or if the Total
Commitment has expired, then the Commitment Percentage of each Lender shall be
determined based on the Commitment Percentage of such Lender most recently in
effect, giving effect to any subsequent assignments. The initial Commitment
Percentage of each Lender is set forth opposite the name of such Lender on
Schedule 1 or in the Assignment and Acceptance pursuant to which such Lender
becomes a party hereto, as applicable.
Committed Borrowing. A borrowing consisting of simultaneous Revolving
Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having
the same Interest Period made by each of the Lenders pursuant to Section 2.
Compliance Certificate. See Section 7.3(c).
Consolidated or consolidated. With reference to any term defined herein,
shall mean that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with GAAP.
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Consolidated EBITDA. With respect to any fiscal period, an amount equal to
the sum of (a) consolidated earnings (or losses) from the operations of the
Borrower and its Subsidiaries for such fiscal period, after all operating
expenses and other proper charges but before payment or provision for any income
taxes or interest expenses for such fiscal period, plus (b) in each case to the
extent deducted in the calculation of consolidated earnings (or loss) from the
operations of the Borrower and its Subsidiaries for such fiscal period and
without duplication (i) depreciation and amortization for such period, (ii)
expenses, not to exceed $15,000,000 in the aggregate, deducted in such period
resulting from the issuance of Capital Stock permitted hereunder, provided that
such expenses are and will be non-cash items in the period when taken and in all
later fiscal periods and (iii) non-cash writedowns of goodwill, such writedowns
not to exceed $30,000,000, in the aggregate all as determined in accordance with
GAAP.
Consolidated Net Income (or Deficit). The consolidated net income (or
deficit) of the Borrower and its Subsidiaries, after deduction of all expenses,
taxes, and other proper charges, determined in accordance with GAAP.
Consolidated Rental Expense. All obligations of the Borrower or any of its
Subsidiaries under any rental agreements or leases of property, other than (a)
obligations that can be terminated by the giving of notice without liability to
the Borrower or such Subsidiary in excess of the liability for rent due as of
the date on which such notice is given and under which no penalty or premium is
paid as a result of any such termination, and (b) obligations in respect of
Capitalized Leases and Synthetic Leases.
Consolidated Total Assets. All assets of the Borrower and its Subsidiaries
determined on a consolidated basis in accordance with GAAP.
Consolidated Total Funded Debt. With respect to the Borrower and its
Subsidiaries, the aggregate amount of Borrowed Money Indebtedness (not including
clause (b) of the definition of such term) of the Borrower and its Subsidiaries.
Consolidated Total Interest Expense. For any period, the aggregate amount
of interest required to be paid or accrued by the Borrower and its Subsidiaries
during such period on all indebtedness of the Borrower and its Subsidiaries
outstanding during all or any part of such period in accordance with GAAP
(including payments consisting of interest in respect of any Capitalized Lease
or any Synthetic Lease).
Conversion Request. A notice given by the Borrower to the Administrative
Agent of the Borrower's election to convert or continue a Loan in accordance
with Section 2.7.
Credit Agreement. This Second Amended and Restated Revolving Credit
Agreement, including the Schedules and Exhibits hereto, as originally executed,
or if this Second Amended and Restated Revolving Credit Agreement is further
amended, varied or supplemented from time to time, as so amended, varied or
supplemented.
Danish Krone or DKr. The lawful currency of Denmark.
Debtor Relief Laws. The Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement,
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receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.
Default. Any event described in Section 12.1 (other than an event described
in Section 12.1(d)) which would constitute, after the giving of notice or the
lapse of time required pursuant to such Section 12.1, an Event of Default.
Delinquent Lender. See Section 13.6.3.
Derivative Transactions. Every obligation of the Borrower or any of its
Subsidiaries under any forward contract, futures contract, swap, option or other
financing agreement or arrangement (including, without limitation, caps, floors,
collars and similar agreements), the value of which is dependent upon interest
rates, currency exchange rates, commodities or other indices.
Distribution. (a) The declaration or payment by the Borrower of any
dividend on or in respect of any shares of any class of Capital Stock of the
Borrower, other than dividends payable solely in shares of common stock of the
Borrower or stock splits; (b) the purchase (including purchases related to the
Borrower's employee stock purchase plans and stock option plans), redemption,
defeasance, retirement or other acquisition by the Borrower of any shares of any
class of Capital Stock of the Borrower, directly or indirectly through a
Subsidiary of the Borrower or otherwise (including the setting apart of assets
for a sinking or other analogous fund to be used for such purpose), other than
any such purchase, redemption or acquisition in exchange for shares of common
stock of the Borrower; or (c) the return of capital by the Borrower to its
shareholders as such.
Documentary Letter of Credit Fee. See Section 4.6.
Documentation Agent. JPMorgan Chase Bank, N.A.
Dollars or $. Dollars in lawful currency of the United States of America.
Dollar Equivalent. At any time, (a) with respect to any amount denominated
in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by
the Administrative Agent or the Fronting Bank, as the case may be, at such time
on the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of Dollars with such Alternative Currency.
Domestic Lending Office. Initially, the office of each Lender designated as
such in Schedule 1 hereto; thereafter, such other office of such Lender, if any,
located within the United States that will be making or maintaining Base Rate
Loans.
Drawdown Date. The date on which any Loan is made or is to be made, and the
date on which any Loan is converted or continued in accordance with Section 2.7.
EBITDA. With respect to any fiscal period of any Person, an amount equal to
the sum of (a) earnings (or loss) from the operations of such Person for such
fiscal period, after all operating
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expenses and other proper charges but before payment or provision for any income
taxes or interest expense for such fiscal period, plus (b) in each case to the
extent deducted in the calculation of such Person's earnings (or loss) from the
operations for such fiscal period and without duplication, (i) depreciation and
amortization for such period, (ii) expenses, not to exceed $15,000,000 in the
aggregate, deducted in such period resulting from the issuance of Capital Stock
permitted hereunder, provided that such expenses are and will be non-cash items
in the period when taken and in all later fiscal periods and (iii) non-cash
writedowns of goodwill, such writedowns not to exceed $30,000,000 in the
aggregate,, all as determined in accordance with GAAP.
Eligible Assignee. Any Person that meets the requirements to be an assignee
under Sections 14.2.3, 14.2.5 and 14.2.6 (subject to such consents, if any, as
may be required under Section 14.2.3).
Employee Benefit Plan. Any employee benefit plan within the meaning of
Section 3(3) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate, other than a Guaranteed Pension Plan or a Multiemployer Plan.
EMU. The economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992
and the Amsterdam Treaty of 1998.
EMU Legislation. The legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European
currency.
Environmental Laws. Any and all federal, state, local and foreign statutes,
laws, judicial decisions, regulations, ordinances, rules, judgments, orders,
decrees, injunctions, permits, concessions, grants, franchises, licenses,
agreements and other governmental restrictions relating to the environment, the
effect of the environment on human health or to emissions, discharges or
releases of pollutants, contaminants, Hazardous Substances or wastes into the
environment, including without limitation, ambient air, surface water, ground
water or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, Hazardous Substances or wastes or the clean-up or
other remediation thereof.
Environmental Liability. Any liability, contingent or otherwise (including
any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Borrower or any of its Subsidiaries directly or
indirectly resulting from or based upon (a) its or their act or omission with
respect to violation of any Environmental Law, (b) its or their act or omission
with respect to the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Substances, (c) its or their act or
omission with respect to exposure to any Hazardous Substances, (d) its or their
act or omission with respect to the release or threatened release of any
Hazardous Substances into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.
Equity Related Purchase Obligation. Any (a) derivatives or other
transactions with any financial institution, commodities or stock exchange or
clearinghouse (a "Derivatives
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Counterparty") obligating the Borrower or any of its Subsidiaries to make
payments to such Derivatives Counterparty as a result of any change in market
value of any Capital Stock of the Borrower or such Subsidiary and (b)
irrevocable obligations to purchase, redeem, retire or otherwise acquire for
value any shares of Capital Stock issued by such Person or any rights measured
by the value of such Capital Stock.
ERISA. The Employee Retirement Income Security Act of 1974.
ERISA Affiliate. Any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).
Euro or EUR. The lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.
Eurodollar Business Day. Any day on which commercial banks are open for
international business (including dealings in Dollar deposits) in London or such
other eurodollar interbank market as may be selected by the Administrative Agent
in its sole discretion acting in good faith.
Eurodollar Lending Office. Initially, the office of each Lender designated
as such in Schedule 1 hereto; thereafter, such other office of such Lender, if
any, that shall be making or maintaining Eurodollar Rate Loans.
Eurodollar Rate. For any Interest Period with respect to a Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the
following formula:
Eurodollar Base Rate
Eurodollar Rate = ------------------------------------
1.00 - Eurodollar Reserve Percentage
Where,
"Eurodollar Base Rate" means, for such Interest Period, the rate per annum
equal to the British Bankers Association LIBOR Rate ("BBA LIBOR"), as
published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by the Administrative Agent from time
to time) at approximately 11:00 a.m., London time, two (2) Business Days
prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period. If such rate is not available at such time for any
reason, then the "Eurodollar Base Rate" for such Interest Period shall be
the rate per annum determined by the Administrative Agent to be the rate at
which deposits in Dollars for delivery on the first day of such Interest
Period in same day funds in the approximate amount of the Eurodollar Rate
Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America's
London Branch to major banks in the London interbank eurodollar market at
their request at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the commencement of such Interest Period; and
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"Eurodollar Reserve Percentage" means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, carried out to five
decimal places) in effect on such day, whether or not applicable to any
Lender, under regulations issued from time to time by the FRB for
determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as "Eurocurrency Liabilities").
The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be
adjusted automatically as of the effective date of any change in the
Eurodollar Reserve Percentage.
Eurodollar Rate Loans. Revolving Credit Loans bearing interest calculated
by reference to the Eurodollar Rate.
Event of Default. See Section 12.1.
Excluded Taxes. With respect to the Administrative Agent, any Lender, the
Fronting Bank or any other recipient of any payment to be made by or on account
of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by
its overall net income (however denominated), and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision
thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable Domestic Lending Office is located, (b) any branch profits taxes
imposed by the United States or any similar tax imposed by any other
jurisdiction in which the Borrower is located and (c) in the case of a Non-U.S.
Lender (other than an assignee pursuant to a request by the Borrower under
Section 5.10), any withholding tax that is imposed on amounts payable to such
Non-U.S. Lender at the time such Non-U.S. Lender becomes a party hereto (or
designates a new Eurodollar Lending Office) or is attributable to such Non-U.S.
Lender's failure or inability (other than as a result of a Change in Law) to
comply with Section 5.3.4, except to the extent that such Non-U.S. Lender (or
its assignor, if any) was entitled, at the time of designation of a new
Eurodollar Lending Office (or assignment), to receive additional amounts from
the Borrower with respect to such withholding tax pursuant to Section 5.3.3(a).
Executive Order. See Section 6.15.
Existing Credit Agreement. As defined in the preamble hereto.
Existing Letters of Credit. Collectively, the letters of credit listed on
Schedule 1-A hereto issued under the Existing Credit Agreement.
Facility Fee. See Section 2.2.1.
Factorable Receivables. Accounts receivable of the Borrower and its
Subsidiaries that (a) arise from the sales of inventory, (b) are produced in the
ordinary course of business and (c) are not contingent upon any further
performance (other than product guarantees) by the Borrower or any of its
Subsidiaries.
Federal Funds Rate. For any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System
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arranged by Federal funds brokers on such day, as published by the Federal
Reserve Bank of New York on the Business Day next succeeding such day; provided
that (a) if such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so
published on such next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate (rounded upward, if necessary, to a whole multiple
of 1/100 of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent.
Fee Letter. The fee letter, dated as of April 13, 2006, among the Borrower,
the Administrative Agent and the Lead Arranger, as the same may be amended,
restated, supplemented or otherwise modified from time to time.
Fees. Collectively, the Facility Fee, the Utilization Fee, the Letter of
Credit Fees, the Administrative Agency Fee and the Closing Fee.
Final Maturity Date. June 2, 2011.
Financial Affiliate. A Subsidiary of the bank holding company controlling
any Lender, which Subsidiary is engaging in any of the activities permitted by
Section 4(e) of the Bank Holding Company Act of 1956 (12 U.S.C. Section 1843).
Fixed Charge Coverage Ratio. For any Reference Period, the ratio of (a)
Consolidated EBITDA for such period plus Consolidated Rental Expense for such
period to (b) Consolidated Total Interest Expense for such period plus
Consolidated Rental Expense for such period.
Foreign Assets Control Regulation. See Section 6.15.
Foreign Subsidiary. A Subsidiary which is not created or organized under
the laws of the United States of America, or any of its states (or the District
of Columbia) or any territory thereof.
FRB. The Board of Governors of the Federal Reserve System of the United
States.
Fronting Bank. The Administrative Agent or any Lender acceptable to the
Administrative Agent and the Borrower. As used herein, the term "Fronting Bank"
shall refer, as the context requires, to the Fronting Bank issuing, extending,
renewing or amending any particular Letter of Credit or collectively to each and
every Lender which acts as a Fronting Bank hereunder.
Fund. Any Person (other than a natural person) that is (or will be) engaged
in making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.
GAAP or generally accepted accounting principles. Principles that are
consistent with the principles promulgated or adopted by the Financial
Accounting Standards Board and its predecessors, as in effect from time to time.
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Governing Documents. With respect to any Person, its certificate or
articles of incorporation, its by-laws and all shareholder agreements, voting
trusts and similar arrangements applicable to any of its Capital Stock.
Governmental Authority. The government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).
Guarantee. With respect to any Person, the act of guaranteeing, or any act
having the economic effect of guaranteeing or otherwise acting as surety for,
any obligation (other than endorsements for collection or deposit in the
ordinary course of business) (the "primary obligation") of another Person (the
"primary obligor"), in any manner, whether directly or indirectly, and
including, without limitation, any obligation of such Person (i) to purchase or
pay (or advance or supply funds for the purchase of) any security for the
payment of such primary obligation, (ii) to purchase property, securities or
services for the purpose of assuring the payment of such primary obligation, or
(iii) to maintain working capital, equity capital or other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such primary obligation. The "amount" or "principal amount" of
any obligations Guaranteed by any Person shall be an amount equal to the stated
or determinable amount of the primary obligation in respect of which such
guaranty or other contingent obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof
(assuming such Person is required to perform thereunder) as determined by such
Person in good faith.
Guaranteed Pension Plan. Any employee pension benefit plan within the
meaning of Section 3(2) of ERISA maintained or contributed to by the Borrower or
any ERISA Affiliate the benefits of which are guaranteed on termination in full
or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.
Hazardous Substances. Hazardous waste, as defined by 42 U.S.C. Section
6903(5), any hazardous substances as defined by 42 U.S.C. Section 9601(14), any
pollutant or contaminant as defined by 42 U.S.C. Section 9601(33) and any toxic
substances, oil or hazardous materials or other chemicals or substances
regulated by any Environmental Laws.
Hong Kong Dollar or HK$. The lawful currency of Hong Kong.
Honor Date. See Section 4.2.1.
Indemnified Taxes. Taxes other than Excluded Taxes.
Indemnitee. See Section 15.3.
India Rupee or Rs. The lawful currency of India.
Information. See Section 15.4.
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Interest Payment Date. (a) As to any Base Rate Loan, the first day of the
next succeeding calendar quarter with respect to interest accrued during the
immediately preceding calendar quarter, including, without limitation, the
calendar quarter which includes the Drawdown Date of such Base Rate Loan; and
(b) as to any Eurodollar Rate Loan in respect of which the Interest Period is
(i) three (3) months or less, the last day of such Interest Period and (ii) more
than three (3) months, the date that is three (3) months from the first day of
such Interest Period and, in addition, the last day of such Interest Period.
Interest Period. (a) With respect to each Revolving Credit Loan which is a
Base Rate Loan, the period commencing on the Drawdown Date of such Base Rate
Loan and ending on the last day of each calendar quarter; and
(b) With respect to each Revolving Credit Loan which is a Eurodollar
Rate Loan, the period commencing on the Drawdown Date of such Eurodollar Rate
Loan and ending fourteen (14) days, or one (1), two (2), three (3) or six (6)
months thereafter as determined in accordance with the provisions of this Credit
Agreement;
provided that all of the foregoing provisions relating to Interest Periods are
subject to the following:
(i) if any Interest Period with respect to a Eurodollar Rate Loan
would otherwise end on a day that is not a Eurodollar Business Day,
that Interest Period shall be extended to the next succeeding
Eurodollar Business Day unless the result of such extension would be
to carry such Interest Period into another calendar month, in which
event such Interest Period shall end on the immediately preceding
Eurodollar Business Day;
(ii) if any Interest Period with respect to a Base Rate Loan
would end on a day that is not a Business Day, that Interest Period
shall end on the next succeeding Business Day;
(iii) if the Borrower shall fail to give notice as provided in
Section 2.7, the Borrower shall be deemed to have requested a
conversion of the affected Eurodollar Rate Loan to a Base Rate Loan
and the continuance of all Base Rate Loans as Base Rate Loans on the
last day of the then current Interest Period with respect thereto;
(iv) any Interest Period relating to any Eurodollar Rate Loan
(other than for a Eurodollar Rate Loan that has a fourteen (14) day
Interest Period) that begins on the last Eurodollar Business Day of a
calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Eurodollar Business Day of a calendar
month; and
(v) any Interest Period that would otherwise extend beyond the
Final Maturity Date shall end on the Final Maturity Date.
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Investment. Any investment in any Person, whether by means of share
purchase (other than the common stock of the Borrower), capital contribution,
loan, time deposit or otherwise.
ISP. See Section 4.1.4.
Issuer Documents. With respect to any Letter of Credit, the Letter of
Credit Application, and any other document, agreement and instrument entered
into by the Fronting Bank and the Borrower (or any Subsidiary) or in favor of
the Fronting Bank and relating to such Letter of Credit.
Laws. Collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law, but if not having the force
of law, as based on the Administrative Agent's reasonable belief that each of
the above is consistent with prudent practice in the financial services industry
at that time.
Lead Arranger. Banc of America Securities LLC.
Lenders. Bank of America and the other lending institutions listed on
Schedule 1 hereto and any other Person who becomes an assignee of any rights and
obligations of a Lender pursuant to Section 14.
Lending Office. The Domestic Lending Office or Eurodollar Lending Office of
a Lender, as applicable.
Letter of Credit. See Section 4.1.1.
Letter of Credit Application. See Section 4.1.2(a).
Letter of Credit Borrowing. An extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Committed Borrowing. Upon a Letter of Credit Borrowing, the
Unpaid Reimbursement Obligation that is covered by such Letter of Credit
Borrowing shall be deemed to be represented by, and not in addition to, such
Letter of Credit Borrowing.
Letter of Credit Expiration Date. The day that is seven (7) days prior to
the Final Maturity Date then in effect (or, if such day is not a Business Day,
the next preceding Business Day).
Letter of Credit Fees. Collectively, Standby Letter of Credit Fees and
Documentary Letter of Credit Fees.
Letter of Credit Participation. See Section 4.2.2.
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Leverage Ratio. As at any date of determination, the ratio of (a)
Consolidated Total Funded Debt outstanding on such date to (b) Consolidated
EBITDA for the Reference Period ending on such date.
Lien. Any mortgage, deed of trust, security interest, pledge,
hypothecation, attachment, encumbrance, lien (statutory, judgment or otherwise),
or other security agreement or preferential arrangement that has the practical
effect of creating a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any
Capitalized Lease, any Synthetic Lease, any financing lease involving
substantially the same economic effect as any of the foregoing and the filing of
any financing statement under the UCC or comparable law of any jurisdiction).
Loan Account. With respect to (a) any Revolving Credit Loan, the records or
accounts kept by the Administrative Agent and any Lender with respect to such
Revolving Credit Loan and (b) any Swing Line Loan, the records or accounts kept
by the Administrative Agent and the Swing Line Lender with respect to such Swing
Line Loan.
Loan Documents. This Credit Agreement, the Fee Letter, the Letter of Credit
Applications and the Letters of Credit.
Loan Request. See Section 2.6.
Loans. Collectively, the Revolving Credit Loans and the Swing Line Loans.
Material Adverse Effect. A material adverse effect on the business or
financial condition, assets, operations or income of the Borrower and its
Subsidiaries, taken as a whole.
Material Debt. See Section 12.1(f).
Material Plan(s). A Guaranteed Pension Plan(s) having aggregate Unfunded
Liabilities in excess of $10,000,000.
Maximum Drawing Amount. The Dollar Equivalent of the maximum aggregate
amount that the beneficiaries may at any time draw under outstanding Letters of
Credit, as such aggregate amount may be reduced from time to time pursuant to
the terms of the Letters of Credit; provided that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
Maximum Drawing Amount of such Letter of Credit shall be the Dollar Equivalent
of the maximum aggregate amount after giving effect to all such increases,
whether or not such maximum aggregate amount is in effect at such time.
Maximum Swing Line Loan Amount. See Section 3.1.
Moody's. Moody's Investors Services, Inc. and any successor thereto.
Multiemployer Plan. Any multiemployer plan within the meaning of Section
3(37) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate.
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New Zealand Dollar or NZ$. The lawful currency of New Zealand.
Non-Extension Notice Date. See Section 4.1.2(c).
Non-U.S. Lender. See Section 5.3.4.
Norwegian Krone or NKr. The lawful currency of Norway.
Note. A promissory note made by the Borrower in favor of a Lender
evidencing Loans made by such Lender, substantially in the form of Exhibit E.
Obligations. All indebtedness, obligations and liabilities of any of the
Borrower and its Subsidiaries to any of the Lenders, any Fronting Bank and the
Administrative Agent, individually or collectively, existing on the date of this
Credit Agreement or arising thereafter, direct or indirect, joint or several,
absolute or contingent, matured or unmatured, liquidated or unliquidated,
secured or unsecured, arising by contract, operation of law or otherwise,
arising or incurred under this Credit Agreement or any of the other Loan
Documents or in respect of any of the Loans made or Reimbursement Obligations
incurred or any of the Letter of Credit Applications, Letters of Credit or other
instruments at any time evidencing any thereof.
Other Taxes. All present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment
made hereunder or under any other Loan Document or from the execution, delivery
or enforcement of, or otherwise with respect to, this Credit Agreement or any
other Loan Document.
outstanding. With respect to the Loans, the aggregate unpaid principal
thereof as of any date of determination.
Participant. See Section 14.4.
Participating Member State. Each state so described in any EMU Legislation.
Patriot Act. See Section 15.14.
PBGC. The Pension Benefit Guaranty Corporation created by Section 4002 of
ERISA and any successor entity or entities having similar responsibilities.
Permitted Acquisition. Any acquisition permitted by Section 8.5.1(b).
Permitted Factoring Transaction. Any sale or other transfer by the Borrower
or any of its Subsidiaries of Factorable Receivables, which sale or transfer
does not involve the creation of any recourse obligation in respect thereof on
the part of the Borrower or any of its Subsidiaries (other than with respect to
matters of title to, and the character of (other than the collectability) of,
the Factorable Receivables so sold or transferred); provided that the aggregate
principal amount of Factorable Receivables that may be sold or transferred
pursuant to Permitted Factoring Transactions during any fiscal year of the
Borrower shall not exceed ten percent (10%) of Consolidated Total Assets.
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Person. Any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or
other entity.
Platform. See Section 7.3.
Pro Forma Basis. Pro Forma Basis shall mean (a) in connection with any
proposed acquisition to be made under Section 8.3, the calculation of compliance
with the financial covenants described in Section 9 by the Borrower including
the financial results of a Person, business or assets to be acquired as
determined in accordance with paragraph (i) below for the applicable fiscal
quarter of the Borrower, after giving effect on a pro forma basis in the manner
described below to such acquisition as if such acquisition had occurred at the
beginning of the most recently ended four fiscal quarter period for which
financial statements for the Borrower are then available and (b) following any
acquisition or disposition of any Person, business or assets permitted
hereunder, the calculation of compliance with the financial covenants described
in Section 9 (but, for the avoidance of doubt, not for the purposes of
calculating the Applicable Margin) by the Borrower for the fiscal quarter in
which such acquisition or disposition occurred and, with respect to any such
acquisition, each of the three fiscal quarters immediately following such
acquisition with reference to the financial results of such Person, business or
assets as determined in accordance with paragraph (i) below after giving effect
on a pro forma basis in the manner described below to such acquisition or
disposition as if such Person, business or assets had been acquired or disposed
of on the first day of the four fiscal quarter period tested:
(i) Financial Results. In connection with any acquisition or
disposition of any Person, business or assets described above, the Borrower
shall provide to the Administrative Agent the audited (if available) or
unaudited historical financial results of such Person, business or assets,
if available, or the Borrower's good faith estimate of the same prepared by
it based on reasonable assumptions and expectations of the financial
performance of such Person, business or assets, which such estimates,
assumptions and expectations shall have been reviewed and approved by the
Administrative Agent (such approval not to be unreasonably withheld) (the
"financial results").
(ii) Acquired EBITDA. In determining Consolidated EBITDA for any
period, there shall be (i) included in such Consolidated EBITDA all EBITDA
attributable to any Person, business or assets acquired by (and thereafter
owned by) the Borrower during such period and (ii) excluded from such
Consolidated EBITDA all EBITDA attributable to any Person, business or
assets disposed of by the Borrower during such period. For purposes hereof,
the EBITDA attributable to any such acquired or disposed Person, business
or assets prior to the date of acquisition or disposition thereof shall be
determined in a manner consistent with the method for determining
Consolidated EBITDA, but on a non-consolidated basis.
(iii) Indebtedness. All indebtedness (whether under this Credit
Agreement or otherwise) and any other balance sheet adjustments incurred or
made, or in the case of a disposition, repaid, in connection with an
acquisition or disposition permitted hereunder shall be deemed to have been
incurred, made or repaid on the first day of the fiscal quarter described
in each of clause (a) and clause (b) above, and all indebtedness of the
acquired Person, business or assets which was or will have been repaid in
connection
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with the consummation of such acquisition shall be deemed to have been
repaid concurrently with the incurrence of the indebtedness incurred in
connection with such acquisition.
(iv) Interest. All indebtedness assumed to have been incurred pursuant
to the preceding paragraph (iii) shall be deemed to have borne interest at
(a) the interest rate applicable to such indebtedness, if such interest
rate can be determined, or (b) the sum of (i) the arithmetic mean of (x)
the Eurodollar Rate for Eurodollar Rate Loans having an Interest Period of
one month in effect on the first day of the applicable period and (y) the
Eurodollar Rate for Eurodollar Rate Loans having an Interest Period of one
month in effect on the last day of the applicable period plus (ii) the
Applicable Margin then in effect (after giving effect to such acquisition
or disposition, as the case may be, on a Pro Forma Basis).
Public Lender. See Section 7.3.
Real Estate. All real property at any time owned or leased (as lessee or
sublessee) by the Borrower or any of its Subsidiaries.
Reference Period. As of any date of determination, the period of four (4)
consecutive fiscal quarters of the Borrower and its Subsidiaries ending on such
date, or if such date is not a fiscal quarter end date, the period of four (4)
consecutive fiscal quarters most recently ended (in each case treated as a
single accounting period).
Register. See Section 14.3.
Reimbursement Obligation. The Borrower's obligation to reimburse the
Fronting Bank and the Lenders on account of any drawing under any Letter of
Credit as provided in Section 4.2.
Related Parties. With respect to any Person, such Person's Affiliates and
the partners, directors, officers, employees, agents and advisors of such Person
and of such Person's Affiliates.
Replacement Lender. See Section 5.10.
Replacement Notice. See Section 5.10.
Required Lenders. As of any date, the Lenders whose aggregate Commitments
total greater than fifty percent (50%) of the Total Commitment.
Restricted Payment. In relation to the Borrower and its Subsidiaries, any
(a) Distribution, (b) payment by the Borrower or its Subsidiaries to the
Borrower's or any Subsidiary's shareholders (or other equity holders), in each
case, other than to the Borrower, or to any Affiliate of the Borrower or any
Subsidiary or any Affiliate of the Borrower's or such Subsidiary's shareholders
(or other equity holders) or (c) Equity Related Purchase Obligation.
Revaluation Date. With respect to any Letter of Credit, each of the
following: (i) each date of issuance of a Letter of Credit denominated in an
Alternative Currency, (ii) each date of an
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amendment of any such Letter of Credit having the effect of increasing the
amount thereof (solely with respect to the increased amount), (iii) each date of
any payment by the Fronting Bank under any Letter of Credit denominated in an
Alternative Currency, (iv) the first Business Day of each month, (iv) in the
case of the Existing Letters of Credit, June 2, 2006, and (v) such additional
dates as the Administrative Agent or the Fronting Bank shall reasonably
determine or the Required Lenders shall reasonably require, based on changes in
the relative values of the affected currencies.
Revolving Credit Loan(s). Singly, any of, and collectively, all of, the
revolving credit loans made by the Lenders in accordance with their respective
Commitment Percentages to the Borrower as contemplated by Section 2.1 hereof.
All Revolving Credit Loans shall be denominated in Dollars.
Singapore Dollar or S$. The lawful currency of Singapore.
S&P. Standard & Poor's Ratings Services, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.
SPC. See Section 14.8.
Spot Rate. For a currency, the rate determined by the Administrative Agent
or the Fronting Bank, as applicable, to be the rate quoted by the Person acting
in such capacity as the spot rate for the purchase by such Person of such
currency with another currency through its principal foreign exchange trading
office at approximately 11:00 a.m. on the date two (2) Business Days prior to
the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the Fronting Bank may obtain such spot rate from another
financial institution designated by the Administrative Agent or the Fronting
Bank if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided further
that the Fronting Bank may use such spot rate quoted on the date as of which the
foreign exchange computation is made in the case of any Letter of Credit
denominated in an Alternative Currency.
Standby Letter of Credit Fee. See Section 4.6.
Sterling and L. The lawful currency of the United Kingdom.
Subsidiary. Any corporation, association, trust, or other business entity
of which the designated parent shall at any time own directly or indirectly
through a Subsidiary or Subsidiaries at least a majority (by number of votes) of
the outstanding Voting Stock.
Subsidiary Letters of Credit. Trade letters of credit issued for the
account of the Foreign Subsidiaries of the Borrower by any of the Lenders under
their respective letter of credit facilities.
Swedish Krone or Sk. The lawful currency of Sweden.
Swing Line Lender. Bank of America or a successor Swing Line Lender.
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Swing Line Loan. A Revolving Credit Loan made by the Swing Line Lender
pursuant to Section 3.1 hereof.
Swing Line Loan Maturity Date. See Section 3.2.
Swing Line Loan Request. See Section 3.2.
Swiss Franc or SwF. The lawful currency of Switzerland.
Synthetic Lease. Any lease of goods or other property, whether real or
personal, which is treated as an operating lease under GAAP and as a loan or
financing for U.S. income tax purposes.
Taxes. All present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental
Authority, including any interest, additions to tax or penalties applicable
thereto.
Thai Baht or Bht. The lawful currency of Thailand.
Total Commitment. The sum of the Commitments of the Lenders, as in effect
from time to time.
Trading With the Enemy Act. See Section 6.15.
Type. As to any Revolving Credit Loan, its nature as a Base Rate Loan or a
Eurodollar Rate Loan.
UCP. See Section 4.1.4.
Unfunded Liabilities. With respect to any Guaranteed Pension Plan at any
time, the amount by which (if any) (i) the value of all benefit liabilities
under such Guaranteed Pension Plan, determined on a plan termination basis using
all of the assumptions prescribed by the PBGC for purposes of Section 4044 of
ERISA, exceeds (ii) the fair market value of all Guaranteed Pension Plan assets
allocable to such liabilities under Title IV of ERISA (excluding any accrued but
unpaid contributions), but only to the extent that such excess represents a
potential liability of the Borrower or any ERISA Affiliate to the PBGC or any
other Person under Title IV of ERISA.
Unpaid Reimbursement Obligation. Any Reimbursement Obligation for which the
Borrower does not reimburse the Fronting Bank and the Lenders on the date
specified in, and in accordance with, Section 4.2. Upon a Letter of Credit
Borrowing, the Unpaid Reimbursement Obligation that is covered by such Letter of
Credit Borrowing shall be deemed to be represented by, and not in addition to,
such Letter of Credit Borrowing.
Utilization Fee. See Section 2.2.2.
Voting Stock. Stock or similar interests, of any class or classes (however
designated), the holders of which are at the time entitled, as such holders, to
vote for the election of a majority of the directors (or persons performing
similar functions) of the corporation, association, trust or
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other business entity involved, whether or not the right so to vote exists by
reason of the happening of a contingency.
Yen and Y. The lawful currency of Japan.
1.2. RULES OF INTERPRETATION.
(a) A reference to any document or agreement shall include such
document or agreement as amended, modified or supplemented from time to
time in accordance with its terms and the terms of this Credit Agreement.
(b) The singular includes the plural and the plural includes the
singular.
(c) A reference to any law includes any amendment or modification to
such law.
(d) A reference to any Person includes its permitted successors and
permitted assigns.
(e) Accounting terms not otherwise defined herein have the meanings
assigned to them by GAAP applied on a consistent basis by the accounting
entity to which they refer.
(f) The words "include", "includes" and "including" are not limiting.
(g) All terms not specifically defined herein or by GAAP, which terms
are defined in the Uniform Commercial Code as in effect in the State of New
York, have the meanings assigned to them therein, with the term
"instrument" being that defined under Article 9 of the Uniform Commercial
Code.
(h) Reference to a particular "Section" refers to that section of this
Credit Agreement unless otherwise indicated.
(i) The words "herein", "hereof", "hereunder" and words of like import
shall refer to this Credit Agreement as a whole and not to any particular
section or subdivision of this Credit Agreement.
(j) Unless otherwise expressly indicated, in the computation of
periods of time from a specified date to a later specified date, the word
"from" means "from and including," the words "to" and "until" each mean "to
but excluding," and the word "through" means "to and including."
(k) This Credit Agreement and the other Loan Documents may use several
different limitations, tests or measurements to regulate the same or
similar matters. All such limitations, tests and measurements are, however,
cumulative and are to be performed in accordance with the terms thereof.
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(l) This Credit Agreement and the other Loan Documents are the result
of negotiation among, and have been reviewed by counsel to, among others,
the Administrative Agent and the Borrower and are the product of
discussions and negotiations among all parties.
1.3. ADDITIONAL ALTERNATIVE CURRENCIES.
(a) The Borrower may from time to time request that Letters of Credit
be issued in a currency other than those specifically listed in the
definition of "Alternative Currency;" provided that such requested currency
is a lawful currency (other than Dollars) that is readily available and
freely transferable and convertible into Dollars. Such request shall be
subject to the approval of the Administrative Agent and the Fronting Bank.
(b) Any such request shall be made to the Administrative Agent not
later than 11:00 a.m., twenty (20) Business Days prior to the date of the
desired Letter of Credit Borrowing (or such other time or date as may be
agreed by the Administrative Agent and the Fronting Bank, in their sole
discretion). The Administrative Agent shall promptly notify the Fronting
Bank of any such request thereof. The Fronting Bank shall notify the
Administrative Agent, not later than 11:00 a.m., ten (10) Business Days
after receipt of such request whether it consents, in its sole discretion,
to the issuance of Letters of Credit in such requested currency.
(c) Any failure by the Fronting Bank to respond to such request within
the time period specified in the preceding sentence shall be deemed to be a
refusal by the Fronting Bank to permit Letters of Credit to be issued in
such requested currency. If the Administrative Agent and the Fronting Bank
consent to the issuance of Letters of Credit in such requested currency,
the Administrative Agent shall so notify the Borrower and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency
hereunder for purposes of any Letter of Credit issuances. If the
Administrative Agent shall fail to obtain consent to any request for an
additional currency under this Section 1.3, the Administrative Agent shall
promptly so notify the Borrower. Any specified currency of an Existing
Letter of Credit that is neither Dollars nor one of the Alternative
Currencies specifically listed in the definition of "Alternative Currency"
shall be deemed an Alternative Currency with respect to such Existing
Letter of Credit only.
1.4. CHANGE OF CURRENCY.
(a) Each obligation of the Borrower to make a payment denominated in
the national currency unit of any member state of the European Union that
adopts the Euro as its lawful currency after the date hereof shall be
redenominated into Euro at the time of such adoption (in accordance with
the EMU Legislation). If, in relation to the currency of any such member
state, the basis of accrual of interest expressed in this Credit Agreement
in respect of that currency shall be inconsistent with any convention or
practice in the London interbank market for the basis of accrual of
interest in respect of the Euro, such expressed basis shall be replaced by
such convention or practice with effect from the date on which such member
state adopts the Euro as its lawful currency.
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(b) Each provision of this Credit Agreement shall be subject to such
reasonable changes of construction as the Administrative Agent may from
time to time specify to be appropriate to reflect the adoption of the Euro
by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.
(c) Each provision of this Credit Agreement also shall be subject to
such reasonable changes of construction as the Administrative Agent may
from time to time specify to be appropriate to reflect a change in currency
of any other country and any relevant market conventions or practices
relating to the change in currency.
1.5. EXCHANGE RATES; CURRENCY EQUIVALENTS.
(a) The Administrative Agent or the Fronting Bank, as applicable,
shall determine the Spot Rates as of each Revaluation Date to be used for
calculating Dollar Equivalent amounts of Letter of Credit Borrowings
denominated in Alternative Currencies. Such Spot Rates shall become
effective as of such Revaluation Date and shall be the Spot Rates employed
in converting any amounts between the applicable currencies until the next
Revaluation Date to occur. Except for purposes of financial statements
delivered by the Borrower hereunder or calculating financial covenants
hereunder or except as otherwise provided herein, the applicable amount of
any currency (other than Dollars) for purposes of the Loan Documents shall
be such Dollar Equivalent amount as so determined by the Administrative
Agent or the Fronting Bank, as applicable.
(b) Wherever in this Credit Agreement in connection with the issuance,
amendment or extension of a Letter of Credit, an amount, such as a required
minimum or multiple amount, is expressed in Dollars, but such Letter of
Credit is denominated in an Alternative Currency, such amount shall be the
relevant Alternative Currency Equivalent of such Dollar amount (rounded to
the nearest unit of such Alternative Currency, with 0.5 of a unit being
rounded upward), as determined by the Administrative Agent or the Fronting
Bank, as the case may be.
1.6. TIMES OF DAY. Unless otherwise specified, all references herein to
times of day shall be references to U.S. Eastern time (daylight or standard, as
applicable).
1.7. LETTER OF CREDIT AMOUNTS. Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Maximum
Drawing Amount.
1.8. CHANGES IN GAAP. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan
Document, and either the Borrower or the Required Lenders shall so request, the
Administrative Agent, the Lenders and the Borrower shall negotiate in good faith
to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein and (ii) the
Borrower shall provide to the Administrative Agent and the Lenders financial
statements and other documents required under this Credit Agreement or as
reasonably requested hereunder setting forth a
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reconciliation between calculations of such ratio or requirement made before and
after giving effect to such change in GAAP.
2. THE REVOLVING CREDIT FACILITY.
2.1. COMMITMENT TO LEND. Subject to the terms and conditions set forth in
this Credit Agreement, each of the Lenders severally agrees to lend to the
Borrower and the Borrower may borrow, repay, and reborrow from time to time from
the Closing Date to the Final Maturity Date upon notice by the Borrower to the
Administrative Agent given in accordance with Section 2.6, such sums, in
Dollars, as are requested by the Borrower up to a maximum aggregate amount
outstanding (after giving effect to all amounts requested) at any one time equal
to such Lender's Commitment minus such Lender's Commitment Percentage of the sum
of the Maximum Drawing Amount and all Unpaid Reimbursement Obligations; provided
that the sum of the outstanding amount of the Loans (after giving effect to all
amounts requested) plus the Maximum Drawing Amount and all Unpaid Reimbursement
Obligations shall not at any time exceed the Total Commitment at such time. The
Revolving Credit Loans shall be made pro rata in accordance with each Lender's
Commitment Percentage. Each request for a Revolving Credit Loan hereunder shall
constitute a representation and warranty by the Borrower that the conditions set
forth in Section 10 and Section 11, in the case of the initial Revolving Credit
Loans to be made on the Closing Date, and Section 11, in the case of all other
Revolving Credit Loans, have been satisfied on the date of such request.
2.2. FEES.
2.2.1. FACILITY FEE. The Borrower agrees to pay to the Administrative
Agent for the accounts of the Lenders in accordance with their respective
Commitment Percentages a facility fee (the "Facility Fee") calculated at
the rate per annum of the Applicable Margin with respect to the Facility
Fee as in effect from time to time on the Total Commitment. The Facility
Fee shall be payable quarterly in arrears on the first day of each calendar
quarter for the immediately preceding calendar quarter (or portion thereof)
commencing on the first such date following the date hereof, with a final
payment on the Final Maturity Date or any earlier date on which the
Commitments shall terminate.
2.2.2. UTILIZATION FEE. The Borrower agrees to pay to the
Administrative Agent for the accounts of the Lenders in accordance with
their respective Commitment Percentages a utilization fee (the "Utilization
Fee") calculated at the rate per annum of the Applicable Margin with
respect to the Utilization Fee as in effect from time to time on all
outstanding Loans and Letters of Credit under this Credit Agreement for
each day on which the aggregate of the outstanding Loans (including Swing
Line Loans) plus the aggregate available Maximum Drawing Amount of all
outstanding Letters of Credit and Unpaid Reimbursement Obligations exceeds
fifty percent (50%) of the Total Commitment. The Utilization Fee shall be
payable quarterly in arrears on the first day of each calendar quarter for
the immediately preceding calendar quarter (or portion thereof) commencing
on the first such date following the date hereof, with a final payment on
the Final Maturity Date or any earlier date on which the Commitments shall
terminate.
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2.3. CHANGE OF TOTAL COMMITMENT.
(a) The Borrower shall have the right at any time and from time to
time upon five (5) Business Days prior written notice to the Administrative
Agent to reduce by $5,000,000 or an integral multiple of $1,000,000 in
excess thereof or to terminate entirely the Total Commitment, whereupon the
Commitments of the Lenders shall be reduced pro rata in accordance with
their respective Commitment Percentages of the amount specified in such
notice or, as the case may be, terminated. Promptly after receiving any
notice of the Borrower delivered pursuant to this Section 2.3, the
Administrative Agent will notify the Lenders of the substance thereof. Upon
the effective date of any such reduction or termination, the Borrower shall
pay to the Administrative Agent for the respective accounts of the Lenders
the full amount of any Facility Fee then accrued to the date of reduction
on the amount of the reduction. No reduction or termination of the
Commitments may be reinstated.
(b) So long as no Default or Event of Default shall have occurred and
be continuing, and subject to all terms and conditions set forth herein,
the Borrower may request, by prior written notice to the Administrative
Agent, that the Total Commitment be increased to an aggregate amount not to
exceed $300,000,000. The Borrower may, after initially requesting the
existing Lenders to increase on a pro rata basis their respective
Commitments and after receiving confirmation in writing that such Lenders
do not wish to increase their respective Commitments (or if the aggregate
desired increase in Commitments by the existing Lenders is not sufficient
to satisfy the increase in Total Commitment requested by the Borrower),
solicit one or more Eligible Assignees satisfactory to the Administrative
Agent to become new Lenders; provided that (a) each Person that becomes a
new Lender shall agree to become a party to, and shall assume and agree to
be bound by, this Credit Agreement, subject to all terms and conditions
thereof; (b) no Lender shall have an obligation to the Borrower to increase
its Commitment; and (c) in no event shall the Total Commitment be increased
under this Section 2.3 to an amount greater than $300,000,000. Each of the
Lenders agrees that after an increase in the Total Commitment hereunder,
the Administrative Agent may, without further consent of the Lenders, amend
Schedule 1 to reflect such increase and may amend the Credit Agreement and
the other Loan Documents to make such conforming changes to the Credit
Agreement and the other Loan Documents as the Administrative Agent may
determine are necessary and adjust the Commitment Percentages of the
Lenders.
2.4. LOAN ACCOUNT. The Revolving Credit Loans and the Obligations of the
Borrower in respect thereof shall be evidenced by one or more Loan Accounts
maintained by the Administrative Agent and by each Lender in the ordinary course
of business. The Loan Accounts maintained by the Administrative Agent and each
Lender shall be conclusive absent manifest error of the amount of the Revolving
Credit Loans made by the Lenders to the Borrower and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict
between the Loan Accounts maintained by any Lender and the Loan Accounts of the
Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the
request of any Lender made through the Administrative
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Agent, the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Note, which shall evidence such Lender's Revolving
Credit Loans in addition to such Loan Accounts. Each Lender may attach schedules
to its Note and endorse thereon the date, Type (if applicable), amount and
maturity of its Revolving Credit Loans and payments with respect thereto.
2.5. INTEREST ON REVOLVING CREDIT LOANS. Except as otherwise provided in
Section 5.9, at the Borrower's option, each Revolving Credit Loan shall bear
interest at a rate equal to (i) the Eurodollar Rate plus the Applicable Margin
with respect to Eurodollar Rate Loans or (ii) the Base Rate. The Borrower
promises to pay interest on each Revolving Credit Loan in arrears on each
Interest Payment Date with respect thereto.
2.6. REQUESTS FOR REVOLVING CREDIT LOANS. The Borrower shall give to the
Administrative Agent written notice in the form of Exhibit A hereto (or
telephonic notice confirmed in a writing in the form of Exhibit A hereto) of
each Revolving Credit Loan requested hereunder (a "Loan Request") (a) on or
prior to 1:00 p.m. (New York time) on the proposed Drawdown Date of any Base
Rate Loan and (b) by 1:00 p.m. (New York time) on or prior to the third
Eurodollar Business Days prior to the proposed Drawdown Date of any Eurodollar
Rate Loan; provided, however, that if the Borrower wishes to request Eurodollar
Rate Loans having an Interest Period other than fourteen (14) days, one (1), two
(2), three (3) or six (6) months in duration as provided in the definition of
"Interest Period", the applicable notice must be received by the Administrative
Agent not later than 1:00 p.m. four (4) Business Days prior to the proposed
Drawdown Date of such Eurodollar Rate Loans, whereupon the Administrative Agent
shall give prompt notice to the Lenders of such request and determine whether
the requested Interest Period is acceptable to all of them. Not later than 1:00
p.m., three (3) Business Days prior to the proposed Drawdown Date of such
Eurodollar Rate Loans, the Administrative Agent shall notify the Borrower (which
notice may be by telephone) whether or not the requested Interest Period has
been consented to by all the Lenders.. Each such notice shall specify (i) the
principal amount of the Revolving Credit Loan requested, (ii) the proposed
Drawdown Date of such Revolving Credit Loan, (iii) the Interest Period for such
Revolving Credit Loan and (iv) the Type of such Revolving Credit Loan. Promptly
upon receipt of any such notice, the Administrative Agent shall notify each of
the Lenders thereof. If the Borrower fails to specify a Type of Revolving Credit
Loan in a Loan Request, then the applicable Revolving Credit Loans shall be made
as Base Rate Loans. Each Loan Request shall be irrevocable and binding on the
Borrower and shall obligate the Borrower to accept the Revolving Credit Loan
requested from the Lenders on the proposed Drawdown Date. Each Loan Request for
a Base Rate Loan shall be in a minimum aggregate amount of $500,000 or an
integral multiple of $100,000 in excess thereof. Each Loan Request for a
Eurodollar Rate Loan shall be in a minimum aggregate amount of $1,000,000 or an
integral multiple of $500,000 in excess thereof.
2.7. CONVERSION OPTIONS.
2.7.1. CONVERSION TO DIFFERENT TYPE OF REVOLVING CREDIT LOAN. The
Borrower may elect from time to time to convert any outstanding Revolving
Credit Loan to a Revolving Credit Loan of another Type, provided that (a)
with respect to any such conversion of a Eurodollar Rate Loan to a Base
Rate Loan, the Borrower shall give the Administrative Agent written notice,
in the form of a Conversion Request (or telephonic
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notice confirmed in a writing in the form of the Conversion Request) not
later than 1:00 p.m. (New York time) three (3) Business Days prior to such
election; (b) with respect to any such conversion of a Base Rate Loan to a
Eurodollar Rate Loan, the Borrower shall give the Administrative Agent
written notice in the form of a Conversion Request (or telephonic notice
confirmed in a writing in the form of the Conversion Request) not later
than 1:00 p.m. (New York time) three (3) Eurodollar Business Days prior to
such election, provided, however, that if the Borrower wishes to request a
Eurodollar Rate Loan having an Interest Period other than fourteen (14)
days, one (1), two (2), three (3) or six (6) months in duration as provided
in the definition of "Interest Period", the applicable notice must be
received by the Administrative Agent not later than 1:00 p.m. four (4)
Eurodollar Business Days prior to the proposed Drawdown Date of such
Eurodollar Rate Loan, whereupon the Administrative Agent shall give prompt
notice to the Lenders of such request and determine whether the requested
Interest Period is acceptable to all of them; (c) with respect to any such
conversion of a Eurodollar Rate Loan into a Base Rate Loan, such conversion
shall only be made on the last day of the Interest Period with respect
thereto and (d) no Revolving Credit Loan may be converted into a Eurodollar
Rate Loan when any Default or Event of Default has occurred and is
continuing without the consent of the Required Lenders. On the date on
which such conversion is being made each Lender shall take such action as
is necessary to transfer its Commitment Percentage of such Revolving Credit
Loans to its Domestic Lending Office or its Eurodollar Lending Office, as
the case may be. All or any part of outstanding Revolving Credit Loans of
any Type may be converted into a Revolving Credit Loan of another Type as
provided herein, provided that (i) any partial conversion of a Base Rate
Loan into a Eurodollar Rate Loan shall be in an aggregate principal amount
of $1,000,000 or a whole multiple of $500,000 in excess thereof and (ii)
any partial conversion of a Eurodollar Rate Loan into a Base Rate Loan
shall be in an aggregate principal amount of $500,000 or a whole multiple
of $100,000 in excess thereof. Each Conversion Request relating to the
conversion of a Base Rate Loan to a Eurodollar Rate Loan shall be
irrevocable by the Borrower.
2.7.2. CONTINUATION OF TYPE OF REVOLVING CREDIT LOAN. Any Revolving
Credit Loan of any Type may be continued as a Revolving Credit Loan of the
same Type upon the expiration of an Interest Period with respect thereto by
compliance by the Borrower with the notice provisions contained in Section
2.7.1; provided that no Eurodollar Rate Loan may be continued as such when
any Event of Default has occurred and is continuing without the consent of
the Required Lenders. If the Required Lenders do not consent, the
Eurodollar Rate Loan shall be automatically converted to a Base Rate Loan
on the last day of the first Interest Period relating thereto ending during
the continuance of any Event of Default of which officers of the
Administrative Agent active upon the Borrower's account have actual
knowledge. In the event that the Borrower fails to provide any such notice
with respect to the continuation of any Eurodollar Rate Loan as such, then
such Eurodollar Rate Loan shall be automatically converted to a Base Rate
Loan on the last day of the first Interest Period relating thereto. The
Administrative Agent shall notify the Lenders promptly when any such
automatic conversion contemplated by this Section 2.7.2 is scheduled to
occur.
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2.7.3. EURODOLLAR RATE LOANS. Any conversion to or from Eurodollar
Rate Loans shall be in such amounts and be made pursuant to such elections
so that, after giving effect thereto, the aggregate principal amount of all
Eurodollar Rate Loans having the same Interest Period shall not be less
than $1,000,000 or a whole multiple of $500,000 in excess thereof.
2.7.4. APPLICABILITY OF CONVERSION AND CONTINUATION PROVISIONS TO
SWING LINE LOANS. Notwithstanding anything to the contrary contained
herein, the provisions of this Section 2.7 shall not apply to Swing Line
Loans.
2.8. FUNDS FOR REVOLVING CREDIT LOANS.
2.8.1. FUNDING PROCEDURES. Not later than 3:00 p.m. (New York time) on
the proposed Drawdown Date of any Revolving Credit Loans, each of the
Lenders will make available to the Administrative Agent, at the
Administrative Agent's Office, in immediately available funds, the amount
of such Lender's Commitment Percentage of the amount of the requested
Revolving Credit Loans. Upon receipt from each Lender of such amount, and
upon receipt of the documents required by Section 10 for the Closing Date
and Section 11 thereafter and the satisfaction of the other conditions set
forth therein, to the extent applicable, the Administrative Agent will make
available to the Borrower, in immediately available funds, the aggregate
amount of such Revolving Credit Loans made available to the Administrative
Agent by the Lenders. The failure or refusal of any Lender to make
available to the Administrative Agent at the aforesaid time and place on
any Drawdown Date the amount of its Commitment Percentage of the requested
Revolving Credit Loans shall not relieve any other Lender from its several
obligation hereunder to make available to the Administrative Agent the
amount of such other Lender's Commitment Percentage of any requested
Revolving Credit Loans.
2.8.2. FUNDING BY LENDERS; PRESUMPTION BY ADMINISTRATIVE AGENT. Unless
the Administrative Agent shall have received notice from a Lender prior to
the Drawdown Date of any Committed Borrowing of Eurodollar Rate Loans (or,
in the case of any Committed Borrowing of Base Rate Loans, prior to 12:00
noon on the date of such Committed Borrowing) that such Lender will not
make available to the Administrative Agent such Lender's share of such
Committed Borrowing, the Administrative Agent may assume that such Lender
has made such share available on such date in accordance with Section 2.8.1
(or, in the case of a Committed Borrowing of Base Rate Loans, that such
Lender has made such share available in accordance with and at the time
required by Section 2.8.1) and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. In such event, if a
Lender has not in fact made its share of the applicable Committed Borrowing
available to the Administrative Agent, then the applicable Lender and the
Borrower severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount in immediately available funds with
interest thereon, for each day from and including the date such amount is
made available to the Borrower but excluding the date of payment to the
Administrative Agent, at (i) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees
customarily
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charged by the Administrative Agent in connection with the foregoing, and
(ii) in the case of a payment to be made by the Borrower, the interest rate
applicable to Base Rate Loans. If the Borrower and such Lender shall pay
such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period. If such
Lender pays its share of the applicable Loan to the Administrative Agent,
then the amount so paid shall constitute such Lender's Commitment included
in such Committed Borrowing. Any payment by the Borrower shall be without
prejudice to any claim the Borrower may have against a Lender that shall
have failed to make such payment to the Administrative Agent.
2.8.3. PAYMENTS BY BORROWER; PRESUMPTIONS BY ADMINISTRATIVE AGENT.
Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Fronting Bank
hereunder that the Borrower will not make such payment, the Administrative
Agent may assume that the Borrower has made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute
to the Lenders or the Fronting Bank, as the case may be, the amount due. In
such event, if the Borrower has not in fact made such payment, then each of
the Lenders or the Fronting Bank, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender or the Fronting Bank, in immediately available
funds with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.
A notice of the Administrative Agent to any Lender or the Borrower
with respect to any amount owing under Sections 2.8.2 or 2.8.3 shall be
conclusive, absent manifest error.
2.9. FAILURE TO SATISFY CONDITIONS PRECEDENT. If any Lender makes available
to the Administrative Agent funds for any Loan to be made by such Lender as
provided in the foregoing provisions of this Section 2, and such funds are not
made available to the Borrower by the Administrative Agent because the
conditions to the making of such Loan set forth in Section 11 or Section 12, as
applicable, are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.
2.10. FUNDING SOURCE. Nothing herein shall be deemed to obligate any Lender
to obtain the funds for any Loan in any particular place or manner or to
constitute a representation by any Lender that it has obtained or will obtain
the funds for any Loan in any particular place or manner.
2.11. OPTIONAL PREPAYMENTS. The Borrower shall have the right, at its
election, to repay the outstanding amount of the Revolving Credit Loans, as a
whole or in part, at any time without penalty or premium (including, without
limitation, Section 5.8), provided that the Borrower shall comply with Section
5.8 as a result of any Eurodollar Rate Loan being repaid in whole or in part
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prior to the last day of the Interest Period relating thereto. The Borrower
shall give the Administrative Agent (a) no later than 11:00 a.m. (New York time)
on the proposed date of prepayment, written notice of any proposed prepayment
pursuant to this Section 2.11 of Base Rate Loans, and (b) notice by 11:00 a.m.
(New York time) on the third Eurodollar Business Day prior to the date of
proposed prepayment pursuant to this Section 2.11 of Eurodollar Rate Loans, in
each case specifying the proposed date of prepayment of Revolving Credit Loans
and the principal amount to be prepaid. Each such partial prepayment of the
Revolving Credit Loans shall be in an integral multiple of $1,000,000 or an
integral multiple of $500,000 in excess thereof, shall be accompanied by the
payment of accrued interest on the principal prepaid to the date of prepayment
and shall be applied, in the absence of instruction by the Borrower, first to
the principal of Base Rate Loans and then to the principal of Eurodollar Rate
Loans. Each partial prepayment shall be allocated among the Lenders, in
proportion, as nearly as practicable, to the respective unpaid principal amount
of each Lender's Revolving Credit Loan, with adjustments to the extent
practicable to equalize any prior repayments not exactly in proportion.
2.12. MANDATORY REPAYMENTS. If at any time the sum of the outstanding
amount of the Loans, the Maximum Drawing Amount and all Unpaid Reimbursement
Obligations exceeds the Total Commitment at such time, then the Borrower shall
immediately (i) pay the amount of such excess to the Administrative Agent for
the respective accounts of the Lenders for application: first, to any Unpaid
Reimbursement Obligations; second, to the Swing Line Loans; third, to the
Revolving Credit Loans; and fourth, to provide to the Administrative Agent cash
collateral for Reimbursement Obligations as contemplated by Section 4.2 and/or
(ii) Cash Collateralize the Maximum Drawing Amount of any outstanding Letters of
Credit and the Unpaid Reimbursement Obligations in an aggregate amount equal to
such excess, (i) or (ii) being at the option of the Borrower, provided, however,
that the Borrower shall not be required to Cash Collateralize the Unpaid
Reimbursement Obligations pursuant to this Section 2.12 unless after the payment
in full of the Loans the total outstanding Obligations exceed the Total
Commitment then in effect. Each payment of any Unpaid Reimbursement Obligations
or prepayment of Revolving Credit Loans shall be allocated among the Lenders, in
proportion, as nearly as practicable, to each Reimbursement Obligation or (as
the case may be) the respective unpaid principal amount of each Lender's
Revolving Credit Loan, with adjustments to the extent practicable to equalize
any prior payments or repayments not exactly in proportion. Further, the
Borrower promises to pay on the Final Maturity Date, and there shall become
absolutely due and payable on the Final Maturity Date, all of the Loans
outstanding on such date, together with any and all accrued and unpaid interest
thereon.
3. THE SWING LINE.
3.1. THE SWING LINE LOANS. Subject to the terms and conditions hereinafter
set forth, upon notice by the Borrower made to the Swing Line Lender in
accordance with Section 3.2 hereof, the Swing Line Lender agrees to lend to the
Borrower Swing Line Loans, in Dollars, on any Business Day prior to the Final
Maturity Date in an aggregate principal amount not to exceed $30,000,000 (the
"Maximum Swing Line Loan Amount"). Each Swing Line Loan shall be in a minimum
amount equal to $500,000 or an integral multiple of $100,000 in excess thereof.
Notwithstanding any other provisions of this Credit Agreement and in addition to
the limit set forth above, at no time shall the aggregate principal amount of
all outstanding Swing Line Loans exceed the remainder of (i) the Total
Commitment then in effect minus (ii) the sum of, without
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duplication, (A) the aggregate principal amount of all Revolving Credit Loans
outstanding, plus (B) the Maximum Drawing Amount, plus (C) all Unpaid
Reimbursement Obligations; provided, however, subject to the limitations set
forth in this Section 3.1 from time to time the sum of the aggregate outstanding
Swing Line Loans plus all outstanding Revolving Credit Loans made by the Swing
Line Lender may exceed the Swing Line Lender's Commitment or Commitment
Percentage of the Total Commitment then in effect.
3.2. NOTICE OF BORROWING. When the Borrower desires the Swing Line Lender
to make a Swing Line Loan, the Borrower shall send to the Administrative Agent
and the Swing Line Lender written notice in the form of Exhibit B hereto (or
telephonic notice confirmed in a writing in the form of Exhibit B hereto) of
each Swing Line Loan requested hereunder (a "Swing Line Loan Request") not later
than 1:00 p.m. (New York time) on the proposed Drawdown Date of any Swing Line
Loan. Each such Swing Line Loan Request shall set forth the principal amount of
the proposed Swing Line Loan and the date on which the proposed Swing Line Loan
would mature (the "Swing Line Loan Maturity Date") which shall in no event be
later than the earliest of (i) the date which is ten (10) days following the
Drawdown Date of such Swing Line Loan, (ii) the occurrence of a Default or Event
of Default and (iii) the Final Maturity Date. Each Swing Line Loan Request shall
be irrevocable and binding on the Borrower and shall obligate the Borrower to
borrow the Swing Line Loan from the Swing Line Lender on the proposed Drawdown
Date thereof. Promptly after receipt by the Swing Line Lender of any telephonic
Swing Line Loan Request, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has also received such Swing Line Loan Request and, if not, the Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the
contents thereof. Unless the Swing Line Lender has received notice (by telephone
or in writing) from the Administrative Agent (including at the request of any
Lender) prior to 2:00 p.m. (New York time) on the Drawdown Date of the proposed
Swing Line Loan (A) directing the Swing Line Lender not to make such Swing Line
Loan as a result of the limitations set forth in the proviso to the first
sentence of Section 3.1, or (B) that one or more of the applicable conditions
specified in Sections 10 and 11 is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 3:00
p.m. on the borrowing date specified in such Swing Line Loan Request, make the
amount of its Swing Line Loan available to the Borrower at its office by
crediting the account of the Borrower on the books of the Swing Line Lender in
immediately available funds. The Swing Line Lender shall not be obligated to
make any Swing Line Loans at any time when any Lender is a Delinquent Lender
unless the Swing Line Lender has entered into arrangements reasonably
satisfactory to it to eliminate the Swing Line Lender's risk with respect to
such Delinquent Lender, which may include cash collateralizing such Delinquent
Lender's Commitment Percentage of the outstanding Swing Line Loans and any such
additional Swing Line Loans to be made.
3.3. INTEREST ON SWING LINE LOANS. Except as otherwise provided in Section
5.9 hereof, each Swing Line Loan shall bear interest for the period commencing
on the Drawdown Date thereof and ending on the Swing Line Loan Maturity Date
with respect thereto at the rate per annum quoted by the Swing Line Lender upon
receipt of a Swing Line Loan Request (but which rate shall not exceed the Base
Rate in effect on the date of quotation). The Borrower promises to pay interest
on each Swing Line Loan in arrears on the Swing Line Loan Maturity Date with
respect thereto.
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3.4. REPAYMENT OF SWING LINE LOANS.
3.4.1. FUNDING BY THE BORROWER. The Borrower shall repay each
outstanding Swing Line Loan on the Swing Line Loan Maturity Date. The
Borrower shall have the right, at its election, to prepay the outstanding
amount of each Swing Line Loan, as a whole or in part, prior to the Swing
Line Loan Maturity Date, provided that the Borrower shall indemnify the
Swing Line Lender and hold the Swing Line Lender harmless from and against
any loss, cost or expense (including loss of anticipated profits and costs
of redeployment of funds) that the Swing Line Lender may sustain or incur
as a consequence of such prepayment of such Swing Line Loan. The Borrower
shall give the Swing Line Lender written notice of any proposed prepayment
of any Swing Line Loan by not later than 11:00 a.m. (New York time) on the
proposed date of prepayment, specifying the proposed date of prepayment of
such Swing Line Loans and the principal amount to be prepaid. Each such
partial prepayment of the Swing Line Loans shall be in an amount equal to
$500,000 or an integral multiple of $100,000 in excess thereof and shall be
accompanied by the payment of accrued interest on the principal prepaid to
the date of prepayment.
3.4.2. FUNDING WITH REVOLVING CREDIT LOANS. Upon notice by the Swing
Line Lender on any Business Day on which a Swing Line Loan is outstanding
after the Swing Line Loan Maturity Date, each of the Lenders hereby agrees
to make Revolving Credit Loans constituting Base Rate Loans to the Borrower
having outstanding Swing Line Loans, (a) by 3:00 p.m. (New York time) if
such notice is given to the Lenders by 1:00 p.m. on such Business Day or
(b) on the next succeeding Business Day if such notice is not given by 1:00
p.m. (New York time) on such Business Day. Such Revolving Credit Loans
shall be in an amount equal to such Lender's Commitment Percentage of the
aggregate amount of all Swing Line Loans outstanding to the Borrower. The
proceeds thereof shall be applied directly to the Swing Line Lender to
repay the Swing Line Lender for such outstanding Swing Line Loans. Each
Lender hereby absolutely, unconditionally and irrevocably agrees to make
such Revolving Credit Loans notwithstanding (i) that the amount of such
Revolving Credit Loan may not comply with the applicable minimums set forth
herein, (ii) the failure of the Borrower to meet the conditions set forth
in Sections 10 or 11 hereof, (iii) the occurrence or continuance of a
Default or an Event of Default hereunder, (iv) the date of such Revolving
Credit Loan, and (v) the Total Commitment in effect at such time. In the
event that it is impracticable for such Revolving Credit Loan to be made
for any reason on the date otherwise required above, then each Lender
hereby agrees that it shall forthwith purchase (as of the date such
Revolving Credit Loan would have been made, but adjusted for any payments
received from the Borrower on or after such date and prior to such
purchase) from the Swing Line Lender, and the Swing Line Lender shall sell
to each Lender, such participations in the Swing Line Loans (including all
accrued and unpaid interest thereon) outstanding as shall be necessary to
cause the Lenders to share in such Swing Line Loans pro rata based on their
respective Commitment Percentages (without regard to any termination of the
Total Commitment hereunder) by making available to the Swing Line Lender an
amount equal to such Lender's participation in the Swing Line Loans;
provided that (A) all interest payable on the Swing Line Loans shall be for
the account of the Swing Line Lender as a funding and administrative fee
until the date as of which the respective participation is
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purchased, and (B) at the time any purchase of such participation is
actually made, the purchasing Lender shall be required to pay the Swing
Line Lender interest on the principal amount of the participation so
purchased for each day from and including the date such Revolving Credit
Loan would otherwise have been made until the date of payment for such
participation at the rate of interest in effect applicable to Base Rate
Loans during such period.
3.5. LOAN ACCOUNT. The Swing Line Loans and the Obligations of the Borrower
in respect thereof shall be evidenced by one or more Loan Accounts maintained by
the Administrative Agent and by each Lender in the ordinary course of business.
The Loan Accounts maintained by the Administrative Agent and each Lender shall
be conclusive absent manifest error of the amount of the Swing Line Loans made
by the Lenders to the Borrower and the interest and payments thereon. Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Obligations. In the event of any conflict between the
Loan Accounts maintained by any Lender and the Loan Accounts of the
Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the
request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note,
which shall evidence such Lender's Swing Line Loans in addition to such Loan
Accounts. Each Lender may attach schedules to its Note and endorse thereon the
date, Type (if applicable), amount and maturity of its Swing Line Loans and
payments with respect thereto.
4. LETTERS OF CREDIT.
4.1. LETTER OF CREDIT COMMITMENTS.
4.1.1. COMMITMENT TO ISSUE LETTERS OF CREDIT.
(a) Subject to the terms and conditions hereof and the execution and
delivery by the Borrower of a Letter of Credit Application (as defined
below), the Fronting Bank on behalf of the Lenders and in reliance upon the
agreement of the Lenders set forth in Section 4.2 and upon the
representations and warranties of the Borrower contained herein, agrees, in
its individual capacity, (1) from time to time on any Business Day during
the period from the Closing Date until the Letter of Credit Expiration
Date, to issue letters of credit (individually, a "Letter of Credit")
denominated in Dollars or in one or more Alternative Currencies for the
account of the Borrower or its Subsidiaries, and to amend or extend Letters
of Credit previously issued by it, in accordance with Section 4.1.2 below,
and (2) to honor drawings under the Letters of Credit, and the Lenders
severally agree to participate in Letters of Credit issued for the account
of the Borrower or its Subsidiaries and any drawings thereunder; provided,
however, that, after giving effect to such request, the sum of the
aggregate Maximum Drawing Amount and all Unpaid Reimbursement Obligations
shall not exceed $125,000,000 at any one time and (b) the sum of (i) the
Maximum Drawing Amount on all Letters of Credit, (ii) all Unpaid
Reimbursement Obligations, and (iii) the amount of all Loans outstanding
shall not exceed the Total Commitment at such time. As of the Closing Date,
the Existing Letters of Credit shall be
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deemed to be Letters of Credit issued pursuant and subject to the
conditions of this Section 4 and the Borrower hereby affirms its
obligations thereunder.
(b) The Fronting Bank shall not issue any Letter of Credit, if:
(i) subject to Section 4.1.1(c), the expiry date of such
requested Letter of Credit would occur more than twelve months after
the date of issuance or last extension, unless the Required Lenders
have approved such expiry date; or
(ii) the expiry date of such requested Letter of Credit would
occur after the Letter of Credit Expiration Date, unless all the
Lenders have approved such expiry date.
(c) The Fronting Bank shall not be under any obligation to issue any
Letter of Credit if:
(i) any order, judgment or decree of any Governmental Authority
or arbitrator shall by its terms purport to enjoin or restrain the
Fronting Bank from issuing such Letter of Credit, or any Law
applicable to the Fronting Bank or any request or directive (whether
or not having the force of law, but if not having the force of law, as
based on the Administrative Agent's reasonable belief that such
request or directive is consistent with prudent practice in the
financial services industry at that time) from any Governmental
Authority with jurisdiction over the Fronting Bank shall prohibit, or
request that the Fronting Bank refrain from, the issuance of letters
of credit generally or such Letter of Credit in particular or shall
impose upon the Fronting Bank with respect to such Letter of Credit
any restriction, reserve or capital requirement (for which the
Fronting Bank is not otherwise compensated hereunder) not in effect on
the Closing Date, or shall impose upon the Fronting Bank any
unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which the Fronting Bank in good faith deems material
to it;
(ii) the issuance of such Letter of Credit would violate one or
more policies of the Fronting Bank applicable to letters of credit
generally;
(iii) except as otherwise agreed by the Administrative Agent and
the Fronting Bank, such Letter of Credit is in an initial stated
amount less than $50,000;
(iv) except as otherwise agreed by the Administrative Agent and
the Fronting Bank, such Letter of Credit is to be denominated in a
currency other than Dollars or an Alternative Currency; or
(v) a default of any Lender's obligations to fund under Section
4.2 exists or any Lender is at such time a Delinquent Lender
hereunder, unless the Fronting Bank has entered into satisfactory
arrangements with the Borrower or such Lender to eliminate the
Fronting Bank's risk with respect to such Lender.
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(d) The Fronting Bank shall not amend any Letter of Credit if the
Fronting Bank would not be permitted at such time to issue such Letter of
Credit in its amended form under the terms hereof.
(e) The Fronting Bank shall be under no obligation to amend any Letter
of Credit if (A) the Fronting Bank would have no obligation at such time to
issue such Letter of Credit in its amended form under the terms hereof, or
(B) the beneficiary of such Letter of Credit does not accept the proposed
amendment to such Letter of Credit.
(f) The Fronting Bank shall act on behalf of the Lenders with respect
to any Letters of Credit issued by it and the documents associated
therewith, and the Fronting Bank shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Section 13 with
respect to any acts taken or omissions suffered by the Fronting Bank in
connection with Letters of Credit issued by it or proposed to be issued by
it and Issuer Documents pertaining to such Letters of Credit as fully as if
the term "Administrative Agent" as used in Section 13 included the Fronting
Bank with respect to such acts or omissions, and (B) as additionally
provided herein with respect to the Fronting Bank.
4.1.2. LETTER OF CREDIT APPLICATIONS.
(a) Each Letter of Credit shall be issued or amended, as the case may
be, upon the request of the Borrower delivered to the Fronting Bank (with a
copy to the Administrative Agent) in the form of a letter of credit
application, appropriately completed and signed by a Responsible Officer of
the Borrower (the "Letter of Credit Application"). Such Letter of Credit
Application must be received by the Fronting Bank and the Administrative
Agent not later than 11:00 a.m. at least two (2) Business Days (or such
later date and time as the Administrative Agent and the Fronting Bank may
agree in a particular instance in their sole discretion) prior to the
proposed issuance date or date of amendment, as the case may be. In the
case of a request for an initial issuance of a Letter of Credit, such
Letter of Credit Application shall specify in form and detail satisfactory
to the Fronting Bank: (A) the proposed issuance date of the requested
Letter of Credit (which shall be a Business Day); (B) the amount and
currency thereof; (C) the expiry date thereof; (D) the name and address of
the beneficiary thereof; (E) the documents to be presented by such
beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing
thereunder; and (G) such other matters as the Fronting Bank may reasonably
require. In the case of a request for an amendment of any outstanding
Letter of Credit, such Letter of Credit Application shall specify in form
and detail satisfactory to the Fronting Bank (A) the Letter of Credit to be
amended; (B) the proposed date of amendment thereof (which shall be a
Business Day); (C) the nature of the proposed amendment; and (D) such other
matters as the Fronting Bank may reasonably require. Additionally, the
Borrower shall furnish to the Fronting Bank and the Administrative Agent
such other documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any Issuer Documents, as the
Fronting Bank or the Administrative Agent may reasonably require.
(b) Promptly after receipt of any Letter of Credit Application, the
Fronting Bank will confirm with the Administrative Agent (by telephone or
in writing) that the
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Administrative Agent has received a copy of such Letter of Credit
Application from the Borrower and, if not, the Fronting Bank will provide
the Administrative Agent with a copy thereof. Unless the Fronting Bank has
received written notice from any Lender, the Administrative Agent or the
Borrower, at least one (1) Business Day prior to the requested date of
issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Section 10 or Section 11 shall not then
be satisfied, then, subject to the terms and conditions hereof, the
Fronting Bank shall, on the requested date, issue a Letter of Credit for
the account of the Borrower (or the applicable Subsidiary) or enter into
the applicable amendment, as the case may be, in each case in accordance
with the Fronting Bank's usual and customary business practices. At the
time of issuance of each Letter of Credit, the Fronting Bank shall notify
the Administrative Agent of the Maximum Drawing Amount of such Letter of
Credit and the other terms of such Letter of Credit. Immediately upon the
issuance of each Letter of Credit, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the
Fronting Bank a risk participation in such Letter of Credit in an amount
equal to the product of such Lender's Commitment Percentage times the
amount of such Letter of Credit.
(c) If the Borrower so requests in any applicable Letter of Credit
Application, the Fronting Bank may, in its sole and absolute discretion,
agree to issue a Letter of Credit that has automatic extension provisions
(each, an "Auto-Extension Letter of Credit"); provided that any such
Auto-Extension Letter of Credit must permit the Fronting Bank to prevent
any such extension at least once in each twelve-month period (commencing
with the date of issuance of such Letter of Credit) by giving prior notice
to the beneficiary thereof not later than a day (the "Non-Extension Notice
Date") in each such twelve-month period to be agreed upon at the time such
Letter of Credit is issued. Unless otherwise directed by the Fronting Bank,
the Borrower shall not be required to make a specific request to the
Fronting Bank for any such extension. Once an Auto- Extension Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but
may not require) the Fronting Bank to permit the extension of such Letter
of Credit at any time to an expiry date not later than the Letter of Credit
Expiration Date; provided, however, that the Fronting Bank shall not permit
any such extension if (A) the Fronting Bank has determined that it would
not be permitted, or would have no obligation, at such time to issue such
Letter of Credit in its revised form (as extended) under the terms hereof,
or (B) it has received notice (which may be by telephone or in writing) on
or before the day that is seven (7) Business Days before the Non-Extension
Notice Date (1) from the Administrative Agent that the Required Lenders
have elected not to permit such extension or (2) from the Administrative
Agent, any Lender or the Borrower that one or more of the applicable
conditions specified in Section 11 is not then satisfied, and in each such
case directing the Fronting Bank not to permit such extension.
(d) Promptly after its delivery of any Letter of Credit or any
amendment to a Letter of Credit to an advising bank with respect thereto or
to the beneficiary thereof, the Fronting Bank will also deliver to the
Borrower and the Administrative Agent a true and complete copy of such
Letter of Credit or amendment.
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4.1.3. CASH COLLATERAL. Upon the request of the Administrative Agent,
(i) if the Fronting Bank has honored any full or partial drawing request
under any Letter of Credit and such drawing has resulted in a Letter of
Credit Borrowing, or (ii) if, as of the Letter of Credit Expiration Date,
any Letter of Credit Participation for any reason remains outstanding, the
Borrower shall, in each case, immediately Cash Collateralize the then
Maximum Drawing Amount of any outstanding Letters of Credit and the Unpaid
Reimbursement Obligation of all Letter of Credit Participations; provided,
however, that in the event of a draw under a Letter of Credit which is
being disputed in good faith by the Borrower under the rules of the ISP and
UCP and in the absence of any other Default or Event of Default, the
obligation of the Borrower to Cash Collateralize shall extend only to that
Letter of Credit. Sections 2.12 and 12.2 set forth certain additional
requirements to deliver Cash Collateral hereunder. For purposes of this
Section 4.1.3, Section 2.12 and Section 12.2, "Cash Collateralize" means to
pledge and deposit with or deliver to the Administrative Agent, for the
benefit of the Fronting Bank and the Lenders, as collateral for the Maximum
Drawing Amount plus the Unpaid Reimbursement Obligations, cash or deposit
account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and the Fronting Bank (which
documents are hereby consented to by the Lenders). Derivatives of such term
have corresponding meanings. If the Cash Collateralization provided in this
Section 4.1.3 occurs, the Borrower hereby grants to the Administrative
Agent, for the benefit of the Fronting Bank and the Lenders, a security
interest in all such cash, deposit accounts and all balances therein and
all proceeds of the foregoing. Cash Collateral shall be maintained in
blocked, non-interest bearing deposit accounts with the Administrative
Agent.
4.1.4. APPLICABILITY OF ISP AND UCP. Unless otherwise expressly agreed
by the Fronting Bank and the Borrower when a Letter of Credit is issued
(including any such agreement applicable to an Existing Letter of Credit),
(i) the rules of the "International Standby Practices 1998" published by
the Institute of International Banking Law & Practice (or such later
version thereof as may be in effect at the time of issuance of the standby
Letter of Credit) (the "ISP") shall apply to each standby Letter of Credit,
and (ii) the rules of the Uniform Customs and Practice for Documentary
Credits, as most recently published by the International Chamber of
Commerce at the time of issuance (the "UCP") shall apply to each
documentary Letter of Credit.
4.2. DRAWINGS AND REIMBURSEMENTS; FUNDING OF PARTICIPATIONS.
4.2.1. Upon receipt from the beneficiary of any Letter of Credit of
any notice of a drawing under such Letter of Credit, the Fronting Bank
shall notify the Borrower and the Administrative Agent thereof. In the case
of a Letter of Credit denominated in an Alternative Currency, the Borrower
shall reimburse the Fronting Bank in such Alternative Currency, unless (A)
the Fronting Bank (at its option) shall have specified in such notice that
it will require reimbursement in Dollars, or (B) in the absence of any such
requirement for reimbursement in Dollars, the Borrower shall have notified
the Fronting Bank promptly following receipt of the notice of drawing that
the Borrower will reimburse the Fronting Bank in Dollars. In the case of
any such reimbursement in Dollars of a drawing under a Letter of Credit
denominated in an Alternative Currency, the Fronting Bank shall notify the
Borrower of the Dollar Equivalent of the amount of the
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drawing promptly following the determination thereof. Not later than 11:00
a.m. on the date of any payment by the Fronting Bank under a Letter of
Credit to be reimbursed in Dollars, or the Applicable Time on the date of
any payment by the Fronting Bank under a Letter of Credit to be reimbursed
in an Alternative Currency (each such date, an "Honor Date"), the Borrower
shall reimburse the Fronting Bank through the Administrative Agent in an
amount equal to the amount of such drawing and in the applicable currency.
If the Borrower fails to so reimburse the Fronting Bank by such time, the
Administrative Agent shall promptly notify each Lender of the Honor Date,
the amount of the Unpaid Reimbursement Obligation (expressed in Dollars in
the amount of the Dollar Equivalent thereof in the case of a Letter of
Credit denominated in an Alternative Currency), and the amount of such
Lender's Applicable Percentage thereof. In such event, the Borrower shall
be deemed to have requested a Committed Borrowing of Base Rate Loans to be
disbursed on the Honor Date in an amount equal to the Unpaid Reimbursement
Obligation, without regard to the minimum and multiples specified in
Section 2.6 for the principal amount of Base Rate Loans, but subject to the
amount of the unutilized portion of the Total Commitment and the conditions
set forth in Section 11 (other than the delivery of a Loan Request). Any
notice given by the Fronting Bank or the Administrative Agent pursuant to
this Section 4.2.1 may be given by telephone if immediately confirmed in
writing; provided that the lack of such an immediate confirmation shall not
affect the conclusiveness or binding effect of such notice.
4.2.2. Each Lender shall upon any notice pursuant to Section 4.2.1
make funds available to the Administrative Agent for the account of the
Fronting Bank, in Dollars, at the Administrative Agent's Office for
Dollar-denominated payments in an amount equal to its Commitment Percentage
of the Unpaid Reimbursement Obligation not later than 1:00 p.m. on the
Business Day specified in such notice by the Administrative Agent,
whereupon, subject to the provisions of Section 4.2.3, each Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the
Borrower in such amount (such participation by a Lender called herein the
"Letter of Credit Participation"). The Administrative Agent shall remit the
funds so received to the Fronting Bank in Dollars.
4.2.3. With respect to any Unpaid Reimbursement Obligation that is not
fully refinanced by a Committed Borrowing of Base Rate Loans because the
conditions set forth in Section 11 cannot be satisfied or for any other
reason, the Borrower shall be deemed to have incurred from the Fronting
Bank a Letter of Credit Borrowing in the amount of the Unpaid Reimbursement
Obligation that is not so refinanced, which Letter of Credit Borrowing
shall be due and payable on demand (together with interest) and shall bear
interest at the rate pursuant to Section 5.9. In such event, each Lender's
payment to the Administrative Agent for the account of the Fronting Bank
pursuant to Section 4.2.2 shall be deemed payment in respect of its Letter
of Credit Participation.
4.2.4. Until each Lender funds its Commitment pursuant to this Section
4.2 to reimburse the Fronting Bank for any amount drawn under any Letter of
Credit, interest in respect of such Lender's Commitment Percentage of such
amount shall be solely for the account of the Fronting Bank.
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4.2.5. Each Lender's obligation to fund its Commitment or make its
Letter of Credit Participation to reimburse the Fronting Bank for amounts
drawn under Letters of Credit, as contemplated by this Section 4.2, shall
be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense
or other right which such Lender may have against the Fronting Bank, the
Borrower or any other Person for any reason whatsoever; (B) the occurrence
or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided,
however, that each Lender's obligation to make Loans pursuant to this
Section 4.2 is subject to the conditions set forth in Section 11 (other
than delivery by the Borrower of a Loan Request). No such Letter of Credit
Participation shall relieve or otherwise impair the obligation of the
Borrower to reimburse the Fronting Bank for the amount of any payment made
by the Fronting Bank under any Letter of Credit, together with interest as
provided herein.
4.2.6. If any Lender fails to make available to the Administrative
Agent for the account of the Fronting Bank any amount required to be paid
by such Lender pursuant to the foregoing provisions of this Section 4.2 by
the time specified in Section 4.2.2, the Fronting Bank shall be entitled to
recover from such Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately
available to the Fronting Bank at a rate per annum equal to the greater of
the Federal Funds Rate and a rate determined by the Fronting Bank in
accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the
Fronting Bank in connection with the foregoing. If such Lender pays such
amount (with interest and fees as aforesaid), the amount so paid shall
constitute such Lender's Commitment included in the relevant Committed
Borrowing or Letter of Credit Participation in respect of the relevant
Letter of Credit Borrowing, as the case may be. A certificate of the
Fronting Bank submitted to any Lender (through the Administrative Agent)
with respect to any amounts owing under this Section 4.2.6 shall be
conclusive absent manifest error.
4.3. REPAYMENT OF PARTICIPATIONS.
4.3.1. At any time after the Fronting Bank has made a payment under
any Letter of Credit and has received from any Lender such Lender's Letter
of Credit Participation in respect of such payment in accordance with
Section 4.2, if the Administrative Agent receives for the account of the
Fronting Bank any payment in respect of the related Unpaid Reimbursement
Obligation or interest thereon (whether directly from the Borrower or
otherwise), the Administrative Agent will distribute to such Lender its
Commitment Percentage thereof in the same funds as those received by the
Administrative Agent.
4.3.2. If any payment received by the Administrative Agent for the
account of the Fronting Bank pursuant to Section 4.2.1 is required to be
returned under any of the circumstances described in Section 15.1
(including pursuant to any settlement entered into by the Fronting Bank in
its discretion), each Lender shall pay to the Administrative Agent for the
account of the Fronting Bank its Commitment Percentage thereof on demand of
the Administrative Agent, plus interest thereon from the date of such
demand to the date
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such amount is returned by such Lender, at a rate per annum equal to the
Federal Funds Rate from time to time in effect. The obligations of the
Lenders under this Section 4.3.2 shall survive the payment in full of the
Obligations and the termination of this Credit Agreement.
4.4. OBLIGATIONS ABSOLUTE. The obligation of the Borrower to reimburse the
Fronting Bank for each drawing under each Letter of Credit and to repay each
Unpaid Reimbursement Obligation shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Credit Agreement under all circumstances, including the following:
(a) any lack of validity or enforceability of such Letter of Credit,
this Credit Agreement, or any other Loan Document;
(b) the existence of any claim, counterclaim, setoff, defense or other
right that the Borrower or any Subsidiary may have at any time against any
beneficiary or any transferee of such Letter of Credit (or any Person for
whom any such beneficiary or any such transferee may be acting), the
Fronting Bank or any other Person, whether in connection with this Credit
Agreement, the transactions contemplated hereby or by such Letter of Credit
or any agreement or instrument relating thereto, or any unrelated
transaction;
(c) any draft, demand, certificate or other document presented under
such Letter of Credit proving to be forged, fraudulent, or invalid in any
respect or any statement therein being untrue or inaccurate in any respect;
or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under such Letter of Credit;
(d) any payment by the Fronting Bank under such Letter of Credit
against presentation of a draft or certificate that does not strictly
comply with the terms of such Letter of Credit, so long as such draft or
certificate complies in all material respects with such terms and the
payment does not result from the Fronting Bank's gross negligence or
willful misconduct; or any payment made by the Fronting Bank under such
Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any
transferee of such Letter of Credit, including any arising in connection
with any proceeding under any Debtor Relief Law;
(e) any adverse change in the relevant exchange rates or in the
availability of the relevant Alternative Currency to the Borrower or any
Subsidiary or in the relevant currency markets generally; or
(f) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing, including any other circumstance that
might otherwise constitute a defense available to, or a discharge of, the
Borrower or any Subsidiary.
The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any claim of
noncompliance with
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the Borrower's instructions or other irregularity, the Borrower will immediately
notify the Fronting Bank. The Borrower shall be conclusively deemed to have
waived any such claim against the Fronting Bank and its correspondents unless
such notice is given as aforesaid.
4.5. RELIANCE BY ISSUER. To the extent not inconsistent with Section 4.4,
the Fronting Bank shall be entitled to rely, and shall be fully protected in
relying upon, any Letter of Credit, draft, writing, resolution, notice, consent,
certificate, affidavit, letter, cablegram, telegram, telecopy, telex, electronic
mail or teletype message, statement, order or other document believed by it to
be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and, if the Fronting Bank shall determine that such advice is
reasonably necessary, upon advice and statements of legal counsel, independent
accountants and other experts selected by the Fronting Bank. The Fronting Bank
shall be fully justified in failing or refusing to take any action under this
Credit Agreement unless it shall first have received such advice or concurrence
of the Required Lenders as it reasonably deems appropriate or it shall first be
indemnified to its reasonable satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Fronting Bank shall in all cases be
fully protected in acting, or in refraining from acting, under this Credit
Agreement in accordance with a request of the Required Lenders, and such request
and any action taken or failure to act pursuant thereto shall be binding upon
the Lenders and all future holders of a Letter of Credit Participation.
4.6. LETTER OF CREDIT FEES. The Borrower shall pay to the Administrative
Agent, for the accounts of the Lenders in accordance with their respective
Commitment Percentages, a letter of credit fee with respect to (a) each standby
Letter of Credit (each, a "Standby Letter of Credit Fee"), equal to the
Applicable Margin per annum with respect to Standby Letter of Credit Fees
multiplied by the daily Maximum Drawing Amount available to be drawn under such
standby Letter of Credit (whether or not such maximum amount is then in effect
under such standby Letter of Credit) and (b) each documentary Letter of Credit
(a "Documentary Letter of Credit Fee"), equal to the Applicable Margin per annum
with respect to Documentary Letter of Credit Fees multiplied by the daily
Maximum Drawing Amount available to be drawn under such documentary Letter of
Credit. Such Letter of Credit Fees shall be payable quarterly in arrears on the
first Business Day of each calendar quarter (or portion thereof) of the Borrower
for the immediately preceding calendar quarter of the Borrower and on the Letter
of Credit Expiration Date. In addition, the Borrower shall pay to the Fronting
Bank a fronting fee for the account of the Fronting Bank in an amount agreed
upon by the Fronting Bank and the Borrower and based on the face amount of each
Letter of Credit, which fronting fee shall be payable in arrears (i) with
respect to each documentary Letter of Credit, upon the issuance thereof and (ii)
with respect to each standby Letter of Credit, on the first Business Day of each
calendar quarter (or portion thereof) of the Borrower for the immediately
preceding calendar quarter of the Borrower and on the Letter of Credit
Expiration Date. In respect of each Letter of Credit, the Borrower shall also
pay to the Fronting Bank for the Fronting Bank's own account the Fronting Bank's
customary issuance, amendment, negotiation or document examination and other
administrative fees in such amounts and at such times as agreed upon between the
Borrower and the Fronting Bank when due. For purposes of calculating fees
pursuant to this Section 4.6 with respect to outstanding Letters of Credit
issued in a currency other than Dollars, the face amount of each such
outstanding Letter of Credit shall be the Dollar equivalent of such face amount
as of the date any such fees are due and at the end of each calendar quarter.
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4.7. LETTERS OF CREDIT ISSUED FOR SUBSIDIARIES. Notwithstanding that a
Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, the Borrower shall be
obligated to reimburse the Fronting Bank hereunder for any and all drawings
under such Letter of Credit. The Borrower hereby acknowledges that the issuance
of Letters of Credit for the account of Subsidiaries inures to the benefit of
the Borrower, and that the Borrower's business derives substantial benefits from
the businesses of such Subsidiaries.
4.8. CONFLICT WITH ISSUER DOCUMENTS. In the event of any conflict between
the terms hereof and the terms of any Issuer Document, the terms hereof shall
control.
5. CERTAIN GENERAL PROVISIONS.
5.1. CLOSING FEES. The Borrower agrees to pay to the Administrative Agent
for the accounts of the Lenders on the Closing Date the Upfront Fee and any
other fees due and payable on the Closing Date (collectively, the "Closing
Fee"), as set forth in the Fee Letter.
5.2. ADMINISTRATIVE AGENCY FEE. The Borrower shall pay to the
Administrative Agent, for the Administrative Agent's own account, an
Administrative Agent's fee (the "Administrative Agency Fee") and such other fees
due and payable to the Administrative Agent (not including the Closing Fee), as
set forth in the Fee Letter.
5.3. FUNDS FOR PAYMENTS.
5.3.1. PAYMENTS TO ADMINISTRATIVE AGENT. All payments of principal,
interest, Reimbursement Obligations, Fees and any other amounts due
hereunder or under any of the other Loan Documents shall be made on the due
date thereof to the Administrative Agent in Dollars, for the respective
accounts of the Lenders and the Administrative Agent, at the Administrative
Agent's Office or at such other place that the Administrative Agent may
from time to time designate, in each case at or about 1:00 p.m. (New York
time or other local time at the place of payment) and in immediately
available funds.
5.3.2. NO OFFSET, ETC. All payments by the Borrower hereunder and
under any of the other Loan Documents shall be made without condition or
deduction for any recoupment, setoff, defense or counterclaim.
5.3.3. TAXES.
(a) Payments Free of Taxes. Any and all payments by or on account of
any obligation of the Borrower hereunder or under any other Loan Document
shall be made free and clear of and without reduction or withholding for
any Indemnified Taxes or Other Taxes, provided that if the Borrower shall
be required by applicable law to deduct any Indemnified Taxes (including
any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this
Section 5.3.3) the Administrative Agent, Lender or Fronting Bank, as the
case may be, receives an amount equal to the sum it would have received had
no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall timely pay the full
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amount deducted to the relevant Governmental Authority in accordance with
applicable law.
(b) Payment of Other Taxes by the Borrower. Without limiting the
provisions of subsection (a) above, the Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable
law.
(c) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent, each Lender and the Fronting Bank, within ten (10)
days after demand therefor, for the full amount of any Indemnified Taxes or
Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section 5.3.3) paid by the
Administrative Agent, such Lender or the Fronting Bank, as the case may be,
and any penalties, interest and reasonable expenses arising therefrom or
with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender or the Fronting Bank (with a copy to
the Administrative Agent), or by the Administrative Agent on its own behalf
or on behalf of a Lender or the Fronting Bank, shall be conclusive absent
manifest error.
(d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental
Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the
Administrative Agent.
(e) Treatment of Certain Refunds. If the Administrative Agent, any
Lender or the Fronting Bank determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section, it shall pay to the Borrower
an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such
refund), without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund), provided that the
Borrower, upon the request of the Administrative Agent, such Lender or the
Fronting Bank, agrees to repay the amount paid over to the Borrower (plus
any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, such Lender or the
Fronting Bank in the event the Administrative Agent, such Lender or the
Fronting Bank is required to repay such refund to such Governmental
Authority. This subsection shall not be construed to require the
Administrative Agent, any Lender or the Fronting Bank to make available its
tax returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.
5.3.4. NON-U.S. LENDERS. Each Lender and the Administrative Agent that
is not a U.S. Person as defined in Section 7701(a)(30) of the Code for
federal income tax
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purposes (a "Non-U.S. Lender") hereby agrees that, if and to the extent it
is legally able to do so, it shall, prior to the date of the first payment
by the Borrower hereunder to be made to such Lender or the Administrative
Agent or for such Lender's or the Administrative Agent's account, deliver
to the Borrower and the Administrative Agent, as applicable, such
certificates, documents or other evidence, as and when required by the Code
or Treasury Regulations issued pursuant thereto, including (a) in the case
of a Non-U.S. Lender that is a "bank" for purposes of Section 881(c)(3)(A)
of the Code, two (2) duly completed copies of Internal Revenue Service Form
W-8BEN or Form W-8ECI and any other certificate or statement of exemption
required by Treasury Regulations, or any subsequent versions thereof or
successors thereto, properly completed and duly executed by such Lender or
the Administrative Agent establishing that with respect to payments of
principal, interest or fees hereunder it is (i) not subject to United
States federal withholding tax under the Code because such payment is
effectively connected with the conduct by such Lender or Administrative
Agent of a trade or business in the United States or (ii) totally exempt or
partially exempt from United States federal withholding tax under a
provision of an applicable tax treaty and (b) in the case of a Non-U.S.
Lender that is not a "bank" for purposes of Section 881(c)(3)(A) of the
Code, a certificate in form and substance reasonably satisfactory to the
Administrative Agent and the Borrower and to the effect that (i) such
Non-U.S. Lender is not a "bank" for purposes of Section 881(c)(3)(A) of the
Code, is not subject to regulatory or other legal requirements as a bank in
any jurisdiction, and has not been treated as a bank for purposes of any
tax, securities law or other filing or submission made to any governmental
authority, any application made to a rating agency or qualification for any
exemption from any tax, securities law or other legal requirements, (ii) is
not a ten percent (10%) shareholder for purposes of Section 881(c)(3)(B) of
the Code and (iii) is not a controlled foreign corporation receiving
interest from a related person for purposes of Section 881(c)(3)(C) of the
Code, together with a properly completed Internal Revenue Service Form W-8
or W-9, as applicable (or successor forms). Each Lender or the
Administrative Agent agrees that it shall, promptly upon a change of its
lending office or the selection of any additional lending office, to the
extent the forms previously delivered by it pursuant to this section are no
longer effective, and promptly upon the Borrower's or the Administrative
Agent's reasonable request after the occurrence of any other event
(including the passage of time) requiring the delivery of a Form W-8BEN,
Form W-8ECI, Form W-8 or W-9 in addition to or in replacement of the forms
previously delivered, deliver to the Borrower and the Administrative Agent,
as applicable, if and to the extent it is properly entitled to do so, a
properly completed and executed Form W-8BEN, Form W-8ECI, Form W-8 or W-9,
as applicable (or any successor forms thereto).
5.4. COMPUTATIONS. All computations of interest on Base Rate Loans, where
the Base Rate is based on the prime rate, Swing Line Loans and of Fees shall be
based on a 365-day year or 366-day year, as the case may be, and paid for the
actual number of days elapsed. All other computations of fees and interest,
including all computations of interest on Eurodollar Rate Loans, shall be based
on a 360-day year and paid for the actual number of days elapsed. Except as
otherwise provided in the definition of the term "Interest Period" with respect
to Eurodollar Rate Loans, whenever a payment hereunder or under any of the other
Loan Documents becomes due on a day that is not a Business Day, the due date for
such payment shall be extended to the next succeeding Business Day, and interest
shall accrue during such extension. The outstanding
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amount of the Revolving Credit Loans and the Swing Line Loans as reflected on
the Loan Accounts from time to time shall be prima facie evidence of the
principal amount thereof owing and unpaid to Lenders, but the failure to record,
or any error in so recording, any amounts in the Loan Accounts shall not limit
or otherwise affect the obligation of the Borrower hereunder to make payments of
principal of, or interest on, the Loans when due.
5.5. INABILITY TO DETERMINE EURODOLLAR RATE. In the event, prior to the
commencement of any Interest Period relating to any Eurodollar Rate Loan, the
Administrative Agent shall determine or be notified by the Required Lenders that
adequate and reasonable methods do not exist for ascertaining the Eurodollar
Rate that would otherwise determine the rate of interest to be applicable to any
Eurodollar Rate Loan during any Interest Period, the Administrative Agent shall
forthwith give notice of such determination (which shall be conclusive and
binding on the Borrower and the Lenders) to the Borrower and the Lenders. In
such event the Administrative Agent shall notify the Borrower that (a) any Loan
Request or Conversion Request with respect to Eurodollar Rate Loans shall be
automatically withdrawn and shall be deemed a request for Base Rate Loans, (b)
each Eurodollar Rate Loan will automatically, on the last day of the then
current Interest Period relating thereto, become a Base Rate Loan, and (c) the
obligations of the Lenders to make Eurodollar Rate Loans shall be suspended
until the Administrative Agent or the Required Lenders determine that the
circumstances giving rise to such suspension no longer exist, whereupon the
Administrative Agent or, as the case may be, the Administrative Agent upon the
instruction of the Required Lenders, shall so notify the Borrower and the
Lenders.
5.6. ILLEGALITY. Notwithstanding any other provisions herein, if any
present or future law, regulation, treaty or directive or in the interpretation
or application thereof shall make it unlawful for any Lender to make or maintain
Eurodollar Rate Loans, such Lender shall forthwith give notice of such
circumstances to the Borrower and the other Lenders and thereupon (a) the
commitment of such Lender to make Eurodollar Rate Loans or convert Base Rate
Loans to Eurodollar Rate Loans shall forthwith be suspended and (b) such
Lender's Revolving Credit Loans then outstanding as Eurodollar Rate Loans, if
any, shall be converted automatically to Base Rate Loans on the last day of each
Interest Period applicable to such Eurodollar Rate Loans or within such earlier
period as may be required by law. The Borrower hereby agrees promptly to pay the
Administrative Agent for the account of such Lender, upon demand by such Lender,
any additional amounts necessary to compensate such Lender for any costs
incurred by such Lender in making any conversion in accordance with this Section
5.6, including any interest or fees payable by such Lender to lenders of funds
obtained by it in order to make or maintain its Eurodollar Rate Loans hereunder.
5.7. INCREASED COSTS; MITIGATION OBLIGATIONS.
5.7.1. INCREASED COSTS GENERALLY. If any Change in Law shall:
(a) impose, modify or deem applicable any reserve, special deposit,
compulsory loan, insurance charge or similar requirement against assets of,
deposits with or for the account of, or credit extended or participated in
by, any Lender (to the extent included in the Eurodollar Rate) or the
Fronting Bank;
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(b) subject any Lender or the Fronting Bank to any tax of any kind
whatsoever with respect to this Credit Agreement, any Letter of Credit, any
participation in a Letter of Credit or any Eurodollar Rate Loan made by it,
or change the basis of taxation of payments to such Lender or the Fronting
Bank in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 5.3.3 and the imposition of, or any change in the rate
of, any Excluded Tax payable by such Lender or the Fronting Bank); or
(c) impose on any Lender or the Fronting Bank or the London interbank
market any other condition, cost or expense affecting this Credit Agreement
or Eurodollar Rate Loans made by such Lender or any Letter of Credit or
participation therein;
and the result of any of the foregoing shall be to increase the cost to
such Lender of making or maintaining any Eurodollar Rate Loan (or of
maintaining its obligation to make any such Loan), or to increase the cost
to such Lender or the Fronting Bank of participating in, issuing or
maintaining any Letter of Credit (or of maintaining its obligation to
participate in or to issue any Letter of Credit), or to reduce the amount
of any sum received or receivable by such Lender or the Fronting Bank
hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender or the Fronting Bank, the Borrower will pay to such
Lender or the Fronting Bank, as the case may be, such additional amount or
amounts as will compensate such Lender or the Fronting Bank, as the case
may be, for such additional costs incurred or reduction suffered.
5.7.2. CAPITAL REQUIREMENTS. If any Lender or the Fronting Bank
determines that any Change in Law affecting such Lender or the Fronting
Bank or any Domestic Lending Office or Eurodollar Lending Office of such
Lender or such Lender's or the Fronting Bank's holding company, if any,
regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender's or the Fronting Bank's capital or on the
capital of such Lender's or the Fronting Bank's holding company, if any, as
a consequence of this Credit Agreement, the Commitments of such Lender or
the Loans made by, or participations in Letters of Credit held by, such
Lender, or the Letters of Credit issued by the Fronting Bank, to a level
below that which such Lender or the Fronting Bank or such Lender's or the
Fronting Bank's holding company could have achieved but for such Change in
Law (taking into consideration such Lender's or the Fronting Bank's
policies and the policies of such Lender's or the Fronting Bank's holding
company with respect to capital adequacy), then from time to time the
Borrower will pay to such Lender or the Fronting Bank, as the case may be,
such additional amount or amounts as will compensate such Lender or the
Fronting Bank or such Lender's or the Fronting Bank's holding company for
any such reduction suffered.
5.7.3. CERTIFICATES FOR REIMBURSEMENT. A certificate of a Lender or
the Fronting Bank setting forth the amount or amounts necessary to
compensate such Lender or the Fronting Bank or its holding company, as the
case may be, as specified in Section 5.7.1 or Section 5.7.2 and delivered
to the Borrower shall be conclusive absent manifest error. The
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Borrower shall pay such Lender or the Fronting Bank, as the case may be,
the amount shown as due on any such certificate within ten (10) days after
receipt thereof.
5.7.4. DELAY IN REQUESTS. Failure or delay on the part of any Lender
or the Fronting Bank to demand compensation pursuant to the foregoing
provisions of this Section shall not constitute a waiver of such Lender's
or the Fronting Bank's right to demand such compensation, provided that the
Borrower shall not be required to compensate a Lender or the Fronting Bank
pursuant to the foregoing provisions of this Section for any increased
costs incurred or reductions suffered more than nine (9) months prior to
the date that such Lender or the Fronting Bank, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender's or the Fronting Bank's intention
to claim compensation therefor (except that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the
nine-month period referred to above shall be extended to include the period
of retroactive effect thereof).
5.7.5. DESIGNATION OF A DIFFERENT LENDING OFFICE. If any Lender
requests compensation under Section 5.7 or the Borrower is required to pay
any additional amount to any Lender or any Governmental Authority for the
account of any Lender pursuant to Section 5.3.3, or if any Lender gives a
notice pursuant to Section 5.6, then such Lender shall use reasonable
efforts to designate a different Lending Office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Sections 5.3.3 or 5.7, as the case may be, in
the future, or eliminate the need for the notice pursuant to Section 5.6,
as applicable, and (ii) in each case, would not subject such Lender to any
unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender.
5.8. INDEMNITY. The Borrower agrees to indemnify each Lender and to hold
each Lender harmless from and against any loss, cost or expense (excluding the
Applicable Margin) that such Lender may sustain or incur as a consequence of (a)
default by the Borrower in payment of the principal amount of or any interest on
any Eurodollar Rate Loans as and when due and payable, including any such loss
or expense arising from interest or fees payable by such Lender to banks of
funds obtained by it in order to maintain its Eurodollar Rate Loans, (b) default
by the Borrower in making a borrowing or conversion after the Borrower has given
(or is deemed to have given) a Loan Request for, or a Conversion Request to, a
Eurodollar Rate Loan relating thereto in accordance with Section 2.6 or Section
2.7 or (c) the making of any payment of a Eurodollar Rate Loan or the making of
any conversion of any such Revolving Credit Loan to a Base Rate Loan on a day
that is not the last day of the applicable Interest Period with respect thereto,
including interest or fees payable by such Lender to lenders of funds obtained
by it in order to maintain any such Loans and costs of redeployment of funds.
5.9. INTEREST AFTER DEFAULT.
5.9.1. OVERDUE AMOUNTS. Overdue principal and (to the extent permitted
by applicable law and after giving effect to any applicable grace period)
interest on the Loans and all other overdue amounts payable hereunder
(including Unpaid
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Reimbursement Obligations) or under any of the other Loan Documents shall
bear interest (or fees in the case of Unpaid Reimbursement Obligations)
compounded monthly and payable on demand at a rate per annum equal to two
percent (2%) above the rate of interest or Letter of Credit Fee then
applicable thereto (or, if no rate of interest is then applicable thereto,
the Base Rate) until such amount shall be paid in full (after as well as
before judgment).
5.9.2. AMOUNTS NOT OVERDUE. During the continuance of an Event of
Default until such Event of Default has been cured or remedied or such
Event of Default has been waived by the Required Lenders pursuant to
Section 15.12, (a) the principal of the Loans not overdue shall bear
interest at a rate per annum equal to two percent (2%) above the rate of
interest then applicable thereto and (b) the Applicable Margin applicable
to Letter of Credit Fees shall be equal to two percent (2%) above the
Letter of Credit Fee otherwise applicable to such Letter of Credit pursuant
to Section 4.6.
5.10. REPLACEMENT OF LENDERS. If any Lender (an "Affected Lender") (a)
makes demand upon the Borrower for (or if the Borrower is otherwise required to
pay) amounts pursuant to Section 5.7, (b) is unable to make or maintain
Eurodollar Rate Loans as a result of a condition described in Section 5.6, (c)
defaults in its obligation to make Loans in accordance with the terms of this
Credit Agreement or purchase any Letter of Credit Participation or (d) elects
not to extend the Final Maturity Date, the Borrower may, so long as no Event of
Default has occurred and is then continuing, within ninety (90) days of receipt
of such demand, notice (or the occurrence of such other event causing the
Borrower to be required to pay such compensation or causing Section 5.6 to be
applicable), default or election not to extend, as the case may be, by notice (a
"Replacement Notice") in writing to the Administrative Agent and such Affected
Lender (i) request the non-Affected Lenders to acquire and assume all of the
Affected Lender's Loans and Commitment as provided herein, but none of such
Lenders shall be under an obligation to do so; or (ii) designate a replacement
Lender satisfactory to the Administrative Agent and the Borrower (the
"Replacement Lender") approved by the Administrative Agent, such approval not to
be unreasonably withheld or delayed. If any satisfactory Replacement Lender
shall be obtained, and/or if any one or more of the non-Affected Lenders shall
agree to acquire and assume all of the Affected Lender's Loans and Commitment,
then such Affected Lender shall assign, in accordance with Section 14, all of
its Commitment, Loans, Letter of Credit Participations and other rights and
obligations under this Credit Agreement and all other Loan Documents to such
Replacement Lender or non-Affected Lenders, as the case may be, in exchange for
payment of the principal amount so assigned and all interest and fees accrued on
the amount so assigned, plus all other Obligations then due and payable to the
Affected Lender; provided, however, that (A) such assignment shall be without
recourse, representation or warranty and shall be on terms and conditions
reasonably satisfactory to such Affected Lender and such Replacement Lender
and/or non-Affected Lenders, as the case may be, and (B) prior to any such
assignment, the Borrower shall have paid to such Affected Lender all amounts
properly demanded and unreimbursed under Section 5.7. Upon the effective date of
such assignment, such institution shall become a "Lender" for all purposes under
this Credit Agreement and the other Loan Documents.
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6. REPRESENTATIONS AND WARRANTIES.
The Borrower represents and warrants to the Lenders and the Administrative
Agent as follows:
6.1. CORPORATE AUTHORITY.
6.1.1. INCORPORATION; GOOD STANDING. The Borrower (a) is a corporation
(or similar business entity) duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation or formation,
(b) has all requisite corporate (or the equivalent company) power to own
its property and conduct its business as now conducted and as presently
contemplated, and (c) is in good standing as a foreign corporation (or
similar business entity) and is duly authorized to do business in each
jurisdiction where such qualification is necessary except where a failure
to be so qualified would not have a Material Adverse Effect. Except as
would not reasonably be expected to result in a Material Adverse Effect,
each of the Subsidiaries of the Borrower (a) is a corporation (or similar
business entity) duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation or formation, (b) has
all requisite corporate (or the equivalent company) power to own its
property and conduct its business as now conducted and as presently
contemplated, and (c) is in good standing as a foreign corporation (or
similar business entity) and is duly authorized to do business in each
jurisdiction where such qualification is necessary.
6.1.2. AUTHORIZATION. The execution, delivery and performance of this
Credit Agreement and the other Loan Documents and the transactions
contemplated hereby and thereby (a) are within the corporate (or the
equivalent company) authority of such Person, (b) have been duly authorized
by all necessary corporate (or the equivalent company) proceedings, (c) do
not and will not conflict with or result in any breach or contravention of
any provision of law, statute, rule or regulation to which the Borrower is
subject or any judgment, order, writ, injunction, license or permit
applicable to the Borrower and (d) do not conflict with any provision of
the Governing Documents of, or any material agreement or other instrument
binding upon, the Borrower.
6.1.3. ENFORCEABILITY. The execution and delivery of this Credit
Agreement and the other Loan Documents will result in valid and legally
binding obligations of such Person enforceable against it in accordance
with the respective terms and provisions hereof and thereof, except as
enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting generally the enforcement
of creditors' rights and except to the extent that availability of the
remedy of specific performance or injunctive relief is subject to the
discretion of the court before which any proceeding therefor may be
brought.
6.2. GOVERNMENTAL APPROVALS. The execution, delivery and performance by the
Borrower of this Credit Agreement and the other Loan Documents and the
transactions contemplated hereby and thereby do not require the approval or
consent of, or filing with, any governmental agency or authority other than
those already obtained except for filings by the
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Borrower with the Securities and Exchange Commission to comply with applicable
reporting requirements.
6.3. FINANCIAL STATEMENTS. There has been furnished to each of the Lenders
consolidated and consolidating balance sheets of the Borrower and its
Subsidiaries as at the Balance Sheet Date, and consolidated and consolidating
statements of income and consolidated statement of cash flow of the Borrower and
its Subsidiaries for the fiscal year then ended, audited by Deloitte & Touche
LLP. Such balance sheets and statements of income and cash flow have been
prepared in accordance with GAAP and fairly present the financial condition of
the Borrower and its Subsidiaries as at the close of business on the date
thereof and the results of operations for the fiscal year then ended.
6.4. NO MATERIAL ADVERSE CHANGES, ETC. Since the Balance Sheet Date there
has been no event or occurrence which has had a Material Adverse Effect.
6.5. FRANCHISES, PATENTS, COPYRIGHTS, ETC. The Borrower and each of its
Subsidiaries possesses all material franchises, patents, copyrights, trademarks,
trade names, licenses and permits, and rights in respect of the foregoing,
adequate for the conduct of its business substantially as now conducted.
6.6. LITIGATION. Except as set forth in Schedule 6.6 hereto, there are no
actions, suits, proceedings or investigations of any kind pending or threatened
against the Borrower or any of its Subsidiaries before any Governmental
Authority, that (a) would reasonably be expected to have a Material Adverse
Effect or (b) question the validity of this Credit Agreement or any of the other
Loan Documents.
6.7. COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC. Neither the Borrower nor
any of its Subsidiaries is in violation of any provision of its Governing
Documents, or any agreement or instrument to which it may be subject or by which
it or any of its properties may be bound or any decree, order, judgment,
statute, license, rule or regulation, in any of the foregoing cases in a manner
that would reasonably be expected to have a Material Adverse Effect.
6.8. TAX STATUS. The Borrower and its Subsidiaries (a) have made or filed
all federal, state and foreign income and all other tax returns, reports and
declarations required by any jurisdiction to which any of them is subject, (b)
have paid all taxes and other governmental assessments and charges shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith and by appropriate proceedings and (c) have set
aside on their books provisions reasonably adequate for the payment of all taxes
for periods subsequent to the periods to which such returns, reports or
declarations apply. There are no unpaid taxes in any material amount claimed to
be due by the taxing authority of any jurisdiction except those being contested
in good faith and by appropriate proceedings, and none of the officers of the
Borrower know of any basis for any such claim.
6.9. NO EVENT OF DEFAULT. No Default or Event of Default has occurred and
is continuing.
6.10. HOLDING COMPANY AND INVESTMENT COMPANY ACTS. Neither the Borrower nor
any of its Subsidiaries is a "holding company", or a "subsidiary company" of a
"holding
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company", or an "affiliate" of a "holding company", as such terms are defined in
the Public Utility Holding Company Act of 1935; nor is it an "investment
company", or an "affiliated company" or a "principal underwriter" of an
"investment company", as such terms are defined in the Investment Company Act of
1940.
6.11. EMPLOYEE BENEFIT PLANS AND GUARANTEED PENSION PLANS. Each Employee
Benefit Plan and Guaranteed Pension Plan has been maintained and operated in
compliance in all material respects with the provisions of ERISA and all
Applicable Pension Legislation and, to the extent applicable, the Code, except
as would not reasonably be expected to have a Material Adverse Effect. The
Borrower and each of the ERISA Affiliates has fulfilled its obligations under
the minimum funding standards of ERISA and the Code with respect to each
Guaranteed Pension Plan. Neither the Borrower nor any ERISA Affiliate has (i)
sought a waiver of the minimum funding standard under Section 412 of the Code in
respect of any Guaranteed Pension Plan, (ii) failed to make any contribution or
payment to any Guaranteed Pension Plan or Multiemployer Plan or in respect of
any Employee Benefit Plan, or made any amendment to any Guaranteed Pension Plan
or Employee Benefit Plan, which has resulted or could result in the imposition
of a Lien or the posting of a bond or other security under ERISA or the Code or
(iii) incurred any liability under Title IV of ERISA other than a liability to
the PBGC for premiums under Section 4007 of ERISA.
6.12. ENVIRONMENTAL COMPLIANCE. In the ordinary course of its business, the
Borrower conducts an ongoing review of the effect of Environmental Laws on the
business, operations and properties of the Borrower and its Subsidiaries, in the
course of which it identifies and evaluates associated liabilities and costs
(including, without limitation, any capital or operating expenditures required
for clean-up or closure of properties presently or previously owned, any capital
or operating expenditures required to achieve or maintain compliance with
environmental protection standards imposed by law or as a condition of any
license, permit or contract, any related constraints on operating activities,
including any periodic or permanent shutdown of any facility or reduction in the
level of or change in the nature of operations conducted thereat, any costs or
liabilities in connection with off-site disposal of wastes or Hazardous
Substances, and any actual or potential liabilities to third parties, including
employees, and any related costs and expenses). On the basis of this review, the
Borrower has reasonably concluded that such associated liabilities and costs,
including the costs of compliance with Environmental Laws, are unlikely to have
a Material Adverse Effect.
6.13. SUBSIDIARIES, ETC. Schedule 6.13 hereto sets forth, as of the Closing
Date, a true and complete list of the only Subsidiaries of the Borrower.
6.14. DISCLOSURE. All information heretofore furnished by the Borrower to
the Administrative Agent or any Lender for purposes of or in connection with
this Credit Agreement or any transaction contemplated hereby is, and all such
information hereafter furnished by the Borrower to the Administrative Agent or
any Lender will be, true and accurate in all material respects on a date as of
which such information is stated or certified. The Borrower has disclosed to the
Administrative Agent and the Lenders in writing any and all facts, other than
general economic conditions, legal standards or regulatory conditions which has
a Material Adverse Effect or would reasonably be likely to result in a Material
Adverse Effect.
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6.15. FOREIGN ASSETS CONTROL REGULATIONS, ETC. None of the requesting or
borrowing of the Loans, the requesting or issuance, extension or renewal of any
Letters of Credit or the use of the proceeds of any thereof will violate the
Trading With the Enemy Act (50 U.S.C. Section 1 et seq., as amended) (the
"Trading With the Enemy Act") or any of the foreign assets control regulations
of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as
amended) (the "Foreign Assets Control Regulations") or any enabling legislation
or executive order relating thereto (which for the avoidance of doubt shall
include, but shall not be limited to (a) Executive Order 13224 of September 21,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the
"Executive Order") and (b) the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
(Public Law 107-56)). Furthermore, neither the Borrower nor any of its
Subsidiaries or other Affiliates (a) is or will become a "blocked person" as
described in the Executive Order, the Trading With the Enemy Act or the Foreign
Assets Control Regulations or (b) engages or will engage in any dealings or
transactions, or be otherwise associated, with any such "blocked person".
7. AFFIRMATIVE COVENANTS.
The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligation to issue, extend, amend or renew any Letters of Credit:
7.1. PUNCTUAL PAYMENT. The Borrower promises to duly and punctually pay or
cause to be paid the principal and interest on the Loans, all Reimbursement
Obligations, the Fees and all other amounts provided for in this Credit
Agreement and the other Loan Documents, all in accordance with the terms of this
Credit Agreement and such other Loan Documents.
7.2. RECORDS AND ACCOUNTS. The Borrower will (a) keep, and cause each of
its Subsidiaries to keep, true and accurate records and books of account in
which full, true and correct entries will be made in accordance with GAAP and
(b) maintain adequate accounts and reserves for all taxes (including income
taxes), depreciation, depletion, obsolescence and amortization of its properties
and the properties of its Subsidiaries, contingencies, and other reserves.
7.3. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The Borrower will
deliver to each of the Lenders:
(a) as soon as practicable, but in any event not later than ninety
(90) days after the end of each fiscal year of the Borrower, the
consolidated balance sheet of the Borrower and its Subsidiaries and the
consolidating balance sheet of the Borrower and its Subsidiaries, each as
at the end of such year and, with respect to the consolidated balance sheet
of the Borrower and its Subsidiaries, setting forth in comparative form the
figures for the previous fiscal year, and the related consolidated
statement of income and consolidated statement of cash flow and
consolidating statement of income, all such consolidated and consolidating
statements to be in reasonable detail and prepared in accordance with GAAP,
and with respect to the consolidated statements, setting forth in
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comparative form the figures for the previous fiscal year, and audited,
without qualification and without an expression of uncertainty as to the
ability of the Borrower or any of its Subsidiaries to continue as going
concerns, by Deloitte & Touche LLP or by other similar independent
certified public accountants of nationally recognized standing, together
with a written statement from such accountants to the effect that they have
read a copy of this Credit Agreement, and that, in making the examination
necessary to said certification, they have obtained no knowledge of any
Default or Event of Default, or, if such accountants shall have obtained
knowledge of any then existing Default or Event of Default they shall
disclose in such statement any such Default or Event of Default; provided
that such accountants shall not be liable to the Lenders for failure to
obtain knowledge of any Default or Event of Default;
(b) as soon as practicable, but in any event not later than forty-five
(45) days after the end of each of the fiscal quarters of the Borrower,
copies of the unaudited consolidated balance sheet of the Borrower and its
Subsidiaries and the unaudited consolidating balance sheet of the Borrower
and its Subsidiaries, each as at the end of such quarter and, with respect
to the unaudited consolidated balance sheet of the Borrower and its
Subsidiaries, setting forth in comparative form the figures for the
corresponding fiscal quarter of the previous fiscal year, and the related
consolidated statement of income and consolidated statement of cash flow
and consolidating statement of income for the portion of the Borrower's
fiscal year then elapsed, all in reasonable detail and prepared in
accordance with GAAP, and with respect to the consolidated statements,
setting forth in comparative form the figures for the corresponding fiscal
quarter of the previous fiscal year, together with a certification by the
Chief Financial Officer, Chief Accounting Officer or the Treasurer of the
Borrower that the information contained in such financial statements fairly
presents the financial position of the Borrower and its Subsidiaries on the
date thereof (subject to year-end adjustments and addition of footnotes);
(c) simultaneously with the delivery of the financial statements
referred to in subsections (a) and (b) above, a statement certified by the
Chief Financial Officer, Chief Accounting Officer or the Treasurer of the
Borrower in substantially the form of Exhibit C hereto (a "Compliance
Certificate") and setting forth in reasonable detail computations
evidencing compliance with the covenants contained in Section 9;
(d) contemporaneously with the filing or mailing thereof, copies of
all filings containing financial statements or proxy statements filed with
the Securities and Exchange Commission or sent to the stockholders of the
Borrower;
(e) from time to time such other financial data and information
(including any and all financial statements and other supporting financial
documents and schedules including copies of any accountant's management
letters with respect to the business, financial condition and other affairs
of the Borrower or any of its Subsidiaries) as the Administrative Agent or
any Lender may reasonably request.
Documents required to be delivered pursuant to this Section 7.3 (to the
extent any such documents are included in materials otherwise filed with the
Securities and Exchange
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Commission) may be delivered electronically; provided that the Borrower shall
deliver paper copies of such documents to the Administrative Agent or any Lender
that requests the Borrower to deliver such paper copies until a written request
to cease delivering paper copies is given by the Administrative Agent or such
Lender. Notwithstanding anything contained herein, in every instance the
Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 7.3(c) to the Administrative Agent.
The Borrower hereby acknowledges that (a) the Administrative Agent and/or
the Lead Arranger will make available to the Lenders and the Fronting Bank
materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, "Borrower Materials") by posting the Borrower Materials on
IntraLinks or another similar electronic system utilizing at least comparable
security and privacy protection methods as those used by IntraLinks on the date
hereof or, in the event such methods are improved by IntraLinks in the future,
such improved methods (the "Platform") and (b) certain of the Lenders may be
"public-side" Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to the Borrower or its securities) (each, a
"Public Lender"). The Borrower hereby agrees that (w) all Borrower Materials
that are to be made available to Public Lenders shall be clearly and
conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word
"PUBLIC" shall appear prominently on the first page thereof; (x) by marking
Borrower Materials "PUBLIC," the Borrower shall be deemed to have authorized the
Administrative Agent, the Arrangers, the Fronting Bank and the Lenders to treat
such Borrower Materials as not containing any material non-public information
with respect to the Borrower or its securities for purposes of United States
Federal and state securities laws; (y) all Borrower Materials marked "PUBLIC"
are permitted to be made available through a portion of the Platform designated
"Public Investor;" and (z) the Administrative Agent and the Arranger shall be
entitled to treat any Borrower Materials that are not marked "PUBLIC" as being
suitable only for posting on a portion of the Platform not designated "Public
Investor." Notwithstanding the foregoing, the Borrower shall be under no
obligation to mark any Borrower Materials "PUBLIC."
7.4. NOTICES OF DEFAULTS. The Borrower will promptly notify the
Administrative Agent and each of the Lenders in writing of the occurrence of any
Default or Event of Default, together with a reasonably detailed description
thereof, and the actions the Borrower proposes to take with respect thereto. If
any Person shall give any notice or take any other action in respect of a
claimed default (whether or not constituting an Event of Default) under this
Credit Agreement or any other note, evidence of indebtedness, indenture or other
obligation evidencing Material Debt to which or with respect to which the
Borrower or any of its Subsidiaries is a party or obligor, whether as principal,
guarantor, surety or otherwise, the Borrower shall forthwith give written notice
thereof to the Administrative Agent and each of the Lenders, describing the
notice or action and the nature of the claimed default.
7.5. LEGAL EXISTENCE; MAINTENANCE OF PROPERTIES. The Borrower will do or
cause to be done all things reasonably necessary to preserve and keep in full
force and effect its legal existence. The Borrower (i) will cause all of its
properties and those of its Subsidiaries used and useful in the conduct of its
business or the business of its Subsidiaries to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment,
(ii) will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Borrower may
be reasonably necessary so that the business
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carried on in connection therewith may be properly and advantageously conducted
at all times, and (iii) will, and will cause each of its Subsidiaries to,
continue to engage primarily in the businesses now conducted by them and in
related businesses; provided that nothing in this Section 7.5 shall prevent the
Borrower from engaging in transactions not prohibited hereunder or from
discontinuing the operation and maintenance of any of its properties or any of
those of its Subsidiaries if such discontinuance is, in the judgment of the
Borrower, desirable in the conduct of its or their business and that do not in
the aggregate have a Material Adverse Effect.
7.6. INSURANCE. The Borrower will, and will cause each of its Subsidiaries
to, maintain with financially sound and reputable insurers insurance with
respect to its properties and business against such casualties and contingencies
as shall be in accordance with the general practices of businesses engaged in
similar activities in similar geographic areas and in amounts, containing such
terms, in such forms and for such periods as may be reasonable and prudent.
7.7. TAXES. The Borrower will, and will cause each of its Subsidiaries to,
duly pay and discharge, or cause to be paid and discharged, before the same
shall become overdue, all taxes, assessments and other governmental charges
imposed upon it and its Real Estate, sales and activities, or any part thereof,
or upon the income or profits therefrom, as well as all claims for labor,
materials, or supplies that if unpaid might by law become a Lien or charge upon
any of its property; provided that any such tax, assessment, charge, levy or
claim need not be paid if the validity or amount thereof shall currently be
contested in good faith by appropriate proceedings and if the Borrower or such
Subsidiary shall have set aside on its books adequate reserves with respect
thereto; and provided further that the Borrower and each Subsidiary of the
Borrower will pay all such taxes, assessments, charges, levies or claims
forthwith upon the commencement of proceedings to foreclose any Lien that may
have attached as security therefor except where the failure to pay would not
reasonably be expected to result in a Material Adverse Effect.
7.8. INSPECTION OF PROPERTIES AND BOOKS, ETC. The Borrower shall permit the
Lenders, through the Administrative Agent or any of the Lenders' other
designated representatives, to visit and inspect any of the properties of the
Borrower or any of its Subsidiaries, to examine the books of account of the
Borrower and its Subsidiaries (and to make copies thereof and extracts
therefrom), and to discuss the affairs, finances and accounts of the Borrower
and its Subsidiaries with, and to be advised as to the same by, its and their
officers, all at such reasonable times and intervals as the Administrative Agent
or any Lender may reasonably request.
7.9. COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS. Except as
would not reasonably be expected to result in a Material Adverse Effect, the
Borrower will, and will cause each of its Subsidiaries to, comply with (a) the
applicable laws and regulations wherever its business is conducted, including
all Environmental Laws, (b) the provisions of its Governing Documents, (c) all
agreements and instruments by which it or any of its properties may be bound and
(d) all applicable decrees, orders, and judgments. If any authorization,
consent, approval, permit or license from any officer, agency or instrumentality
of any government shall become necessary or required in order that the Borrower
or any of its Subsidiaries may fulfill any of its obligations hereunder or any
of the other Loan Documents, the Borrower will, or (as the case may be) will
cause such Subsidiary to, immediately take or cause to be taken all reasonable
steps within the power of the Borrower or such Subsidiary to obtain such
authorization, consent,
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approval, permit or license and furnish the Administrative Agent and the Lenders
with evidence thereof.
7.10. USE OF PROCEEDS AND MARGIN STOCK.
7.10.1. GENERAL. The Borrower shall use proceeds of the Loans solely
for working capital and other lawful corporate purposes and to fund
repurchases of shares of Capital Stock of the Borrower and acquisitions.
The Borrower will obtain Letters of Credit solely for working capital and
general corporate purposes.
7.10.2. REGULATIONS U AND X. The Borrower covenants and agrees that no
portion of any Loan shall be used, and no portion of any Letter of Credit
shall be obtained, for the purpose of purchasing or carrying any "margin
security" or "margin stock" as such terms are used in Regulations U and X
of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts
221 and 224, to the extent that such use would be in violation of
Regulation U and/or X.
7.10.3. MISCELLANEOUS. Notwithstanding anything herein or in any other
Loan Document, there shall be no restrictions on the sale, pledge or
disposition of any margin stock (as defined in Section 7.10.2) or any other
restriction or limitation that would cause margin stock (as defined in
Section 7.10.2) to indirectly secure the Loans or Letters of Credit
hereunder (within the meaning of Regulation U).
7.11. FURTHER ASSURANCES. The Borrower will, and will cause each of its
Subsidiaries to, cooperate with the Lenders and the Administrative Agent and
execute such further instruments and documents as the Lenders or the
Administrative Agent shall reasonably request to carry out to their satisfaction
the transactions contemplated by this Credit Agreement and the other Loan
Documents.
7.12. PARI PASSU. The Borrower shall ensure that its obligations under the
Loan Documents shall at all times rank at least pari passu with all of its other
present and future unsecured and unsubordinated indebtedness with the exception
of any obligations which are mandatorily preferred by applicable law and not by
contract.
8. CERTAIN NEGATIVE COVENANTS.
The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligations to issue, extend, amend or renew any Letters of Credit:
8.1. RESTRICTIONS ON INDEBTEDNESS.
8.1.1. RESTRICTIONS ON GUARANTEES. The Borrower will not, and will not
permit any of its Subsidiaries to, Guarantee the indebtedness or other
obligations of any other Person; provided, however:
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(a) the Borrower and its Subsidiaries may Guarantee the indebtedness
or other obligations of Subsidiaries of the Borrower so long as at the time
of entering into any such Guarantee the aggregate amount of indebtedness or
other obligations Guaranteed by the Borrower and its Subsidiaries shall not
exceed five percent (5%) of Consolidated Total Assets at such time;
(b) the Borrower may Guarantee the Subsidiary Letters of Credit; and
(c) the Borrower may Guarantee Derivative Transactions of its Foreign
Subsidiaries entered into by any such Foreign Subsidiaries with any Lender;
provided, however, if, at any time prior to the Final Maturity Date, any
Subsidiary of the Borrower Guarantees any indebtedness of the Borrower,
other than the indebtedness under this Credit Agreement, then such
Subsidiary shall provide, within ten (10) days of entering into such
Guarantee, to the Administrative Agent, for the benefit of the Lenders, a
pari passu Guarantee of the Obligations plus Governing Documents and an
incumbency certificate of such Subsidiary and a favorable legal opinion
addressed to the Administrative Agent from legal counsel of such
Subsidiary, each such document in form and substance satisfactory to the
Administrative Agent (unless such other guaranteed indebtedness is
subordinated to the Obligations, in which case the Subsidiary guaranty of
the Obligations shall be senior).
8.1.2. RESTRICTIONS ON BORROWED MONEY INDEBTEDNESS. The Borrower will
not, and will not permit any of its Subsidiaries to, incur any Borrowed
Money Indebtedness; provided, however, (a) the Borrower may incur Borrowed
Money Indebtedness so long as the material terms of any Borrowed Money
Indebtedness which is not Borrowed Money Indebtedness relating to the
deferred purchase price of assets (other than trade payables incurred in
the ordinary course of business) or in respect of any Synthetic Leases or
any Capitalized Leases are no more restrictive with respect to covenants
and events of default or other material terms than the terms and conditions
set forth in this Credit Agreement with respect to the Obligations; (b)
Subsidiaries of the Borrower may incur Borrowed Money Indebtedness to the
Borrower and its Subsidiaries to the extent permitted by Section 8.3 and
(c) Subsidiaries of the Borrower may incur Borrowed Money Indebtedness to
Persons other than the Borrower so long as at the time of entering into any
such Borrowed Money Indebtedness the aggregate amount outstanding of such
Borrowed Money Indebtedness does not exceed five percent (5%) of
Consolidated Total Assets at such time.
8.2. RESTRICTIONS ON LIENS. The Borrower will not, and will not permit any
of its Subsidiaries to, (a) create or incur or suffer to be created or incurred
or to exist any Lien upon any of its property or assets of any character whether
now owned or hereafter acquired, or upon the income or profits therefrom; (b)
transfer any of such property or assets or the income or profits therefrom for
the purpose of subjecting the same to the payment of indebtedness or performance
of any other obligation in priority to payment of its general creditors; (c)
acquire, or agree or have an option to acquire, any property or assets upon
conditional sale or other title retention or purchase money security agreement,
device or arrangement; or (d) suffer to exist for a period of more than sixty
(60) days after the same shall have been incurred any indebtedness or
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claim or demand against it that if unpaid might by law or upon bankruptcy or
insolvency, or otherwise, be given any priority whatsoever over its general
creditors; provided that the Borrower or any of its Subsidiaries may create or
incur or suffer to be created or incurred or to exist:
(i) Liens in favor of the Borrower on all or part of the assets
of Subsidiaries of the Borrower securing indebtedness owing by
Subsidiaries of the Borrower to the Borrower;
(ii) Liens to secure taxes, assessments and other government
charges in respect of obligations not overdue or being contested in
good faith by appropriate proceedings or Liens on properties to secure
claims for labor, material or supplies in respect of obligations not
overdue or being contested in good faith by appropriate proceedings;
(iii) deposits or pledges made in connection with, or to secure
payment of, workmen's compensation, unemployment insurance, old age
pensions or other social security obligations;
(iv) Liens on properties in respect of judgments or awards that
have been in force for less than the applicable period for taking an
appeal so long as execution is not levied thereunder or in respect of
which the Borrower or such Subsidiary shall at the time in good faith
be prosecuting an appeal or proceedings for review and in respect of
which a stay of execution shall have been obtained pending such appeal
or review;
(v) Liens of carriers, warehousemen, mechanics and materialmen,
and other like Liens on properties, in existence less than one hundred
twenty (120) days from the date of creation thereof in respect of
obligations not overdue;
(vi) encumbrances on Real Estate consisting of easements, rights
of way, zoning restrictions, restrictions on the use of real property
and defects and irregularities in the title thereto, landlord's or
lessor's liens and other minor Liens, provided that none of such Liens
(A) interferes materially with the use of the property affected in the
ordinary conduct of the business of the Borrower and its Subsidiaries,
and (B) individually or in the aggregate has a Material Adverse
Effect;
(vii) Liens existing on the date hereof and listed on Schedule
8.2 hereto, including any renewals, refinancings and extensions
thereof provided that (x) the aggregate amount of indebtedness secured
by such Liens is not increased by any such renewal, refinancing or
extension and (y) such indebtedness is not secured by any additional
assets;
(viii) purchase money security interests in or purchase money
mortgages on real or personal property acquired after the date hereof
by the Borrower or such Subsidiary to secure purchase money
indebtedness incurred in connection with the acquisition of such
property or under any Capitalized Lease, which
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security interests or mortgages cover only the real or personal
property so acquired; provided that such purchase money security
interests in or purchase money mortgages do not secure an aggregate
amount of purchase money indebtedness (including purchase money
indebtedness incurred under any Capitalized Lease) in excess often
percent (10%) of Consolidated Total Assets at such time, which such
indebtedness is also permitted hereunder;
(ix) Liens on the Borrower's common stock held in Treasury; and
(x) other Liens not otherwise permitted hereunder, provided that
such Liens do not secure indebtedness in an aggregate amount
outstanding or committed in excess of five percent (5%) of
Consolidated Total Assets at such time, which such indebtedness is
also permitted hereunder.
8.3. RESTRICTIONS ON INVESTMENTS. The Borrower will not, and will not
permit any of its Subsidiaries to, make or permit to exist or to remain
outstanding any Investment except Investments in:
(a) marketable direct or guaranteed obligations of the United States
of America that mature within one (1) year from the date of purchase by the
Borrower;
(b) demand deposits, certificates of deposit, bank acceptances and
time deposits of (i) United States banks or trust companies having total
assets in excess of $1,000,000,000, (ii) any Lender or (iii) a commercial
bank organized under the laws of any other country which is a member of the
Organization for Economic Cooperation and Development (the "OECD"), or a
political subdivision of such country, and having total assets in excess of
$1,000,000,000, provided that such bank is acting through a branch or
agency located in the country in which it is organized or another country
which is a member of the OECD;
(c) securities commonly known as "commercial paper" issued by a
corporation organized and existing under the laws of the United States of
America or any state thereof that at the time of purchase have been rated
and the ratings for which are not less than "P-2" if rated by Moody's, and
not less than "A-2" if rated by S & P;
(d) repurchase agreements with respect to securities described in
clause (a) above entered into with an office of a bank or trust company
meeting the criteria specified in clause (b) above;
(e) money market funds which invest only in securities described in
clauses (a), (b), (c) and (d) above;
(f) Investments existing on the date hereof and listed on the
consolidating balance sheet of the Borrower and its Subsidiaries as of the
Balance Sheet Date;
(g) Investments by the Borrower or any of its Subsidiaries consisting
of a Permitted Acquisition;
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(h) Investments consisting of promissory notes received as proceeds of
asset dispositions permitted by Section 8.5.2;
(i) Investments consisting of loans and advances to employees not to
exceed $5,000,000 in the aggregate at any time outstanding;
(j) sales of inventory among the Borrower and its Subsidiaries in the
ordinary course of business; and
(k) other Investments not otherwise permitted hereunder, provided that
the aggregate amount of all such Investments outstanding at any time shall
not exceed five percent (5%) of Consolidated Total Assets at such time.
8.4. RESTRICTED PAYMENTS. The Borrower will not make any Restricted
Payments except that the Borrower may make Restricted Payments so long as, on
the date that the Borrower declares, commits to or makes (in the case of
payments not previously declared or committed to) any such Restricted Payment,
no Default or Event of Default has occurred and is continuing or would result
therefrom. Notwithstanding anything herein to the contrary, this Section 8.4
shall not restrict the Borrower's ability to retire shares of its common stock
held in Treasury.
8.5. MERGER, CONSOLIDATION AND DISPOSITION OF ASSETS.
8.5.1. MERGERS AND ACQUISITIONS. The Borrower will not, and will not
permit any of its Subsidiaries to, become a party to any merger or
consolidation, or agree to or effect any asset acquisition or stock
acquisition (other than the acquisition of assets in the ordinary course of
business consistent with past practices or the acquisition of shares of
common stock of the Borrower) except:
(a) the merger or consolidation of one or more of the Subsidiaries of
the Borrower with and into the Borrower, or the merger, amalgamation or
consolidation of two or more Subsidiaries of the Borrower; or
(b) the acquisition of stock or other securities of, or any assets of,
any Person, provided that:
(i) no Default or Event of Default has occurred and is continuing
or would result from such acquisition;
(ii) such Person is in the same line of business as the Borrower
and its Subsidiaries or a related business;
(iii) the board of directors and (if required by applicable law)
the shareholders, or the equivalent thereof, of the business to be
acquired has approved such acquisition;
(iv) not less than ten (10) days prior to the consummation of
such acquisition, the Borrower shall have delivered to the
Administrative Agent written
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notice of such acquisition, which notice shall provide the
Administrative Agent with a reasonably detailed description of such
acquisition;
(v) not less than ten (10) days prior to the consummation of the
proposed acquisition, the Borrower shall have delivered to the
Administrative Agent a Compliance Certificate demonstrating compliance
with the financial covenants set forth in Section 9 after giving
effect to such acquisition; and
(vi) in the event that any proposed acquisition involves a merger
or consolidation, the Borrower shall be the continuing or surviving
Person in such merger or consolidation.
8.5.2. DISPOSITION OF ASSETS. The Borrower will not, and will not
permit any of its Subsidiaries to, become a party to or agree to or effect
any disposition of assets, other than (a) (i) the sale of inventory, (ii)
the licensing of intellectual property and (iii) the disposition of assets,
in each case in the ordinary course of business consistent with past
practices, (b) the disposition of shares of common stock of the Borrower,
and (c) Asset Sales (including sale leaseback transactions); provided that
in the case of any such Asset Sale, (i) no Default or Event of Default
shall have occurred and be continuing or would result from such Asset Sale
and (ii) the total net book value of the assets sold or otherwise disposed
of in connection with all Asset Sales, over the term of this Credit
Agreement, shall not exceed an aggregate amount equal to ten percent (10%)
of Consolidated Total Assets as of the end of the Borrower's prior fiscal
year. Notwithstanding anything herein to the contrary, except for Permitted
Factoring Transactions, the Borrower shall not, and shall not permit any of
its Subsidiaries to, sell or otherwise transfer (A) accounts or general
intangibles for money due or to become due, (B) chattel paper, instruments
or documents creating or evidencing a right to payment of money or (C)
other receivables (collectively "receivables"), whether pursuant to a
purchase facility or otherwise, other than in connection with the
disposition of the business operations of such Person relating thereto or a
disposition of defaulted receivables for collection and not as a financing
arrangement.
8.6. DERIVATIVE TRANSACTIONS. The Borrower will not, and will not permit
any of its Subsidiaries to, incur or permit to exist any Derivative Transactions
except in connection with the management of interest rate fluctuation risks and
currency and commodity risks of the Borrower or its Subsidiaries in the ordinary
course of business. Notwithstanding the foregoing, the Borrower or any of its
Subsidiaries may incur or permit to exist Derivative Transactions not otherwise
permitted hereunder so long as the aggregate amount of the obligations of the
Borrower or such Subsidiary under such Derivative Transactions shall not exceed
$10,000,000 at any time. The amount of any obligations at any time of
determination represented under any Derivative Transaction shall be the maximum
amount of any termination or loss payment required to be paid by such Person if
such Derivative Transaction were, at the time of determination, to be terminated
by reason of any event of default or early termination event thereunder, whether
or not such event of default or early termination event has in fact occurred.
8.7. BUSINESS ACTIVITIES. The Borrower will not, and will not permit any of
its Subsidiaries to, engage in any type of business other than the businesses
conducted by them on
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the Closing Date and in related businesses. At no time shall more than fifty
percent (50%) of Consolidated Net Income be derived from royalties on account of
licensing the "Timberland" brand.
8.8. FISCAL YEAR. The Borrower will not, and will not permit any of its
Subsidiaries to, change the date of the end of its fiscal year from December 31
of each year.
8.9. TRANSACTIONS WITH AFFILIATES. The Borrower will not, and will not
permit any of its Subsidiaries to, engage in any transaction with any Affiliate
(other than for services as employees, officers and directors), including any
contract, agreement or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any such Affiliate or, to the
knowledge of the Borrower, any corporation, partnership, trust or other entity
in which any such Affiliate has a substantial interest or is an officer,
director, trustee or partner, on terms more favorable to such Person than would
have been obtainable on an arm's-length basis in the ordinary course of
business.
9. FINANCIAL COVENANTS.
The Borrower covenants and agrees that, so long as any Revolving Credit
Loan, Swing Line Loan, Unpaid Reimbursement Obligation or Letter of Credit is
outstanding or any Lender has any obligation to make any Loans or the Fronting
Bank has any obligation to issue, extend, amend or renew any Letters of Credit:
9.1. FIXED CHARGE COVERAGE RATIO. As of the end of any fiscal quarter, the
Fixed Charge Coverage Ratio for the Reference Period then ended shall not be
less than 3.00:1.00.
9.2. LEVERAGE RATIO. As of the end of any fiscal quarter, the Leverage
Ratio for the Reference Period then ended shall not exceed 2.00:1.00; provided
that the Leverage Ratio shall be calculated on a Pro Forma Basis for the fiscal
quarter in which an acquisition or disposition permitted hereunder occurs and
the three fiscal quarters following such acquisition or disposition.
10. CLOSING CONDITIONS.
The obligations of the Lenders to make the initial Revolving Credit Loans,
the Swing Line Lender to make the initial Swing Line Loans and of the Fronting
Bank to issue, extend, amend or renew any initial Letters of Credit shall be
subject to the satisfaction of the following conditions precedent on or prior to
June 2, 2006:
10.1. LOAN DOCUMENTS. Each of the Loan Documents shall have been duly
executed and delivered by the respective parties thereto, shall be in full force
and effect and shall be in form and substance satisfactory to the Administrative
Agent and each of the Lenders. The Administrative Agent shall have received a
fully executed copy of each such document.
10.2. CERTIFIED COPIES OF GOVERNING DOCUMENTS. The Administrative Agent, on
behalf of each of the Lenders, shall have received from the Borrower a copy,
certified by a duly
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authorized officer of such Person to be true and complete on the Closing Date,
of each of its Governing Documents as in effect on such date of certification.
10.3. CORPORATE OR OTHER ACTION. All corporate (or other) action necessary
for the valid execution, delivery and performance by the Borrower of this Credit
Agreement and the other Loan Documents shall have been duly and effectively
taken, and evidence thereof satisfactory to the Lenders shall have been provided
to the Administrative Agent on behalf of the Lenders.
10.4. INCUMBENCY CERTIFICATE. The Administrative Agent, on behalf of each
of the Lenders, shall have received from the Borrower an incumbency certificate,
dated as of the Closing Date, signed by a duly authorized officer of the
Borrower, and giving the name and bearing a specimen signature of each
individual who shall be authorized: (a) to sign, in the name and on behalf of
such Person, each of the Loan Documents to which such Person is or is to become
a party; (b) to make Loan Requests and Conversion Requests and to apply for
Letters of Credit; and (c) to give notices and to take other action on its
behalf under the Loan Documents.
10.5. COMPLIANCE CERTIFICATE. The Administrative Agent, on behalf of each
of the Lenders, shall have received from the Borrower a duly completed
Compliance Certificate as of the last day of the fiscal quarter of the Borrower
ended on March 31, 2006, signed by a duly authorized officer of the Borrower.
10.6. OPINION OF COUNSEL. The Administrative Agent, on behalf of each of
the Lenders, shall have received a favorable legal opinion addressed to the
Lenders and the Administrative Agent, dated as of the Closing Date, in form and
substance satisfactory to the Lenders and the Administrative Agent, from Ropes &
Gray LLP, counsel to the Borrower and its Subsidiaries.
10.7. TERMINATION OF EXISTING CREDIT AGREEMENT. The Administrative Agent,
on behalf of each of the Lenders, shall have received from the Borrower
evidence, in form and substance satisfactory to the Administrative Agent, that
the Existing Credit Agreement has been or concurrently with the Closing Date is
being terminated and all Liens securing obligations under the Existing Credit
Agreement have been or concurrently with the Closing Date are being released.
10.8. PAYMENT OF FEES. The Borrower shall have paid to the Lenders or the
Administrative Agent, as appropriate, the Fees pursuant to Sections 5.1 and 5.2.
11. CONDITIONS TO ALL BORROWINGS.
The obligations of the Lenders to make any Revolving Credit Loan, the Swing
Line Lender to make any Swing Line Loan and of the Fronting Bank to issue,
extend, amend or renew any Letter of Credit, in each case whether on or after
the Closing Date, shall also be subject to the satisfaction of the following
conditions precedent:
11.1. REPRESENTATIONS TRUE; NO EVENT OF DEFAULT. Each of the
representations and warranties of any of the Borrower and its Subsidiaries
contained in this Credit Agreement, the other Loan Documents or in any document
or instrument delivered pursuant to or in connection
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with this Credit Agreement shall be true as of the date as of which they were
made and shall also be true at and as of the time of the making of such Loan or
the issuance of such Letter of Credit, with the same effect as if made at and as
of that time (except (a) to the extent of changes either (i) resulting from
transactions contemplated or not prohibited by this Credit Agreement and the
other Loan Documents or (ii) changes occurring in the ordinary course of
business that singly or in the aggregate do not constitute a Material Adverse
Effect, and (b) to the extent that such representations and warranties relate
expressly to an earlier date) and no Default or Event of Default shall have
occurred and be continuing or would result from the making of such Loan. The
Administrative Agent shall have received a certificate of the Borrower signed by
an authorized officer of the Borrower to such effect.
11.2. NO LEGAL IMPEDIMENT. No change shall have occurred in any law or
regulations thereunder or interpretations thereof that in the reasonable opinion
of any Lender would make it illegal for such Lender to make such Loan or to
participate in the issuance, amendment, extension or renewal of such Letter of
Credit or in the reasonable opinion of the Fronting Bank would make it illegal
for the Fronting Bank to issue, extend or renew such Letter of Credit.
11.3. PROCEEDINGS AND DOCUMENTS. All proceedings in connection with the
transactions contemplated by this Credit Agreement, the other Loan Documents and
all other documents incident thereto shall be satisfactory in substance and in
form to the Lenders and to the Administrative Agent and the Administrative
Agent's Special Counsel, and the Lenders, the Administrative Agent and such
counsel shall have received all information and such counterpart originals or
certified or other copies of such documents as the Administrative Agent may
reasonably request.
11.4. ALTERNATIVE CURRENCY. In the case of a Letter of Credit Borrowing to
be denominated in an Alternative Currency, there shall not have occurred any
change in national or international financial, political or economic conditions
or currency exchange rates or exchange controls which in the reasonable opinion
of the Administrative Agent or the Fronting Bank would make it impracticable for
such Letter of Credit to be denominated in the relevant Alternative Currency.
12. EVENTS OF DEFAULT; ACCELERATION; ETC.
12.1. EVENTS OF DEFAULT AND ACCELERATION. If any of the following events
("Events of Default") shall occur and be continuing:
(a) the Borrower shall fail to pay any principal of the Loans or any
Reimbursement Obligation when the same shall become due and payable,
whether at the stated date of maturity or any accelerated date of maturity
or at any other date fixed for payment;
(b) the Borrower or any of its Subsidiaries shall fail to pay any
interest on the Loans, any Fees, or other sums due hereunder or under any
of the other Loan Documents, within three (3) Business Days after the same
shall have become due and payable, whether at the stated date of maturity
or any accelerated date of maturity or at any other date fixed for
payment,;
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(c) the Borrower shall fail to comply with any of its covenants
contained in Sections 7.3(a), (b) or (c), the first sentence of 7.5, 7.9,
7.10, 8 or 9;
(d) the Borrower or any of its Subsidiaries shall fail to perform any
term, covenant or agreement contained herein or in any of the other Loan
Documents (other than those specified elsewhere in this Section 12.1) for
thirty (30) days after written notice of such failure has been given to the
Borrower by the Administrative Agent;
(e) any representation or warranty of the Borrower or any of its
Subsidiaries in this Credit Agreement or any of the other Loan Documents or
in any other document or instrument delivered pursuant to or in connection
with this Credit Agreement shall prove to have been false in any material
respect upon the date when made or deemed to have been made or repeated;
(f) the Borrower or any of its Subsidiaries shall fail to pay at
maturity, or within any applicable period of grace, any obligation for
borrowed money or credit received or in respect of any Capitalized Leases
or any Synthetic Leases, individually or in the aggregate which exceeds
$25,000,000 ("Material Debt"), or fail to observe or perform any material
term, covenant or agreement contained in any agreement for Material Debt as
would permit (assuming the giving of appropriate notice if required) the
holder or holders thereof or of any obligations issued thereunder to
accelerate the maturity thereof, or any such holder or holders shall
rescind or shall have a right to rescind the purchase of any such
obligations constituting Material Debt;
(g) the Borrower or any of its Subsidiaries shall make an assignment
for the benefit of creditors, or admit in writing its inability to pay or
generally fail to pay its debts as they mature or become due, or shall
petition or apply for the appointment of a trustee or other custodian,
liquidator or receiver of the Borrower or any of its Subsidiaries or of any
substantial part of the assets of the Borrower or any of its Subsidiaries
or shall commence any case or other proceeding relating to the Borrower or
any of its Subsidiaries under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law
of any jurisdiction, now or hereafter in effect, or shall take any action
to authorize or in furtherance of any of the foregoing, or if any such
petition or application shall be filed or any such case or other proceeding
shall be commenced against the Borrower or any of its Subsidiaries and the
Borrower or any of its Subsidiaries shall indicate its approval thereof,
consent thereto or acquiescence therein or such petition or application
shall not have been dismissed within sixty (60) days following the filing
thereof;
(h) a decree or order is entered appointing any such trustee,
custodian, liquidator or receiver or adjudicating the Borrower or any of
its Subsidiaries bankrupt or insolvent, or approving a petition in any such
case or other proceeding, or a decree or order for relief is entered in
respect of the Borrower or any Subsidiary of the Borrower in an involuntary
case under federal bankruptcy laws as now or hereafter constituted, which
shall not have been dismissed or stayed within sixty (60) days after the
filing thereof;
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(i) there shall remain in force, undischarged, unsatisfied and
unstayed, for more than sixty (60) days, whether or not consecutive, any
final judgment against the Borrower or any of its Subsidiaries that, with
other outstanding final judgments, undischarged, against the Borrower or
any of its Subsidiaries exceeds in the aggregate $15,000,000;
(j) if any of the Loan Documents shall be cancelled, terminated,
revoked or rescinded otherwise than in accordance with the terms thereof or
with the express prior written agreement, consent or approval of the
Lenders required thereby, or any action at law, suit or in equity or other
legal proceeding to cancel, revoke or rescind any of the Loan Documents
shall be commenced by or on behalf of the Borrower or any of its
Subsidiaries party thereto or any of their respective stockholders, or any
court or any other governmental or regulatory authority or agency of
competent jurisdiction shall make a determination that, or issue a
judgment, order, decree or ruling to the effect that, any one or more of
the Loan Documents is illegal, invalid or unenforceable in accordance with
the terms thereof;
(k) (i) the Borrower or any ERISA Affiliate shall fail to pay when due
an amount or amounts aggregating in excess of $15,000,000 which it shall
have become liable to pay under Title IV of ERISA; (ii) notice of intent to
terminate a Material Plan shall be filed under Title IV of ERISA by the
Borrower or any ERISA Affiliate, any plan administrator or any combination
of the foregoing; (iii) the PBGC shall institute proceedings under Title IV
of ERISA to terminate, to impose liability (other than for premiums under
Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed
to administer any Material Plan; (iv) a condition shall exist by reason of
which the PBGC would be entitled to obtain a decree adjudicating that any
Material Plan must be terminated; (v) there shall occur a complete or
partial withdrawal from, or a default, within the meaning of Section
4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which
could cause the Borrower and/or any ERISA Affiliate to incur a current
payment obligation in excess of $15,000,000; or
(l) a Change of Control shall occur;
then, and in any such event, so long as the same may be continuing, the
Administrative Agent may, and upon the request of the Required Lenders shall, by
notice in writing to the Borrower declare all amounts owing with respect to this
Credit Agreement and the other Loan Documents and all Reimbursement Obligations
to be, and they shall thereupon forthwith become, immediately due and payable
without presentment, demand, protest or other notice of any kind, all of which
are hereby expressly waived by the Borrower; provided that in the event of any
Event of Default specified in Sections 12.1 (g) or 12.1(h), all such amounts
shall become immediately due and payable automatically and without any
requirement of notice from the Administrative Agent or any Lender.
12.2. TERMINATION OF COMMITMENTS. If any one or more of the Events of
Default specified in Section 12.1(g) or Section 12.1(h) shall occur, any unused
portion of the credit hereunder shall forthwith terminate and each of the
Lenders shall be relieved of all further obligations to make Loans to the
Borrower and the Fronting Bank shall be relieved of all further obligations to
issue,
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extend, amend or renew Letters of Credit. If any other Event of Default shall
have occurred and be continuing, the Administrative Agent may and, upon the
request of the Required Lenders, shall, by notice to the Borrower, (i) terminate
the unused portion of the credit hereunder, and upon such notice being given
such unused portion of the credit hereunder shall terminate immediately and each
of the Lenders shall be relieved of all further obligations to make Loans and
the Fronting Bank shall be relieved of all further obligations to issue, extend,
amend or renew Letters of Credit and (ii) require the Borrower to Cash
Collateralize the Maximum Drawing Amount of the outstanding Letters of Credit
and the Unpaid Reimbursement Obligations. No termination of the credit hereunder
shall relieve the Borrower or any of its Subsidiaries of any of the Obligations.
12.3. REMEDIES. In case any one or more of the Events of Default shall have
occurred and be continuing, and whether or not the Lenders shall have
accelerated the maturity of the Loans pursuant to Section 12.1, each Lender, if
owed any amount with respect to the Loans or the Reimbursement Obligations, may,
with the consent of the Required Lenders but not otherwise, proceed to protect
and enforce its rights by suit in equity, action at law or other appropriate
proceeding, whether for the specific performance of any covenant or agreement
contained in this Credit Agreement and the other Loan Documents or any
instrument pursuant to which the Obligations to such Lender are evidenced,
including as permitted by applicable law the obtaining of the ex parte
appointment of a receiver, and, if such amount shall have become due, by
declaration or otherwise, proceed to enforce the payment thereof or any other
legal or equitable right of such Lender. No remedy herein conferred upon any
Lender, the Administrative Agent or any Fronting Bank or purchaser of any Letter
of Credit Participation is intended to be exclusive of any other remedy and each
and every remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or any other provision of law.
13. THE ADMINISTRATIVE AGENT.
13.1. APPOINTMENT AND AUTHORITY. Each of the Lenders and the Fronting Bank
hereby irrevocably appoints Bank of America to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and authorizes
the Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Section 13 are solely for the benefit of the
Administrative Agent, the Lenders and the Fronting Bank, and the Borrower shall
not have rights as a third party beneficiary of any of such provisions.
13.2. RIGHTS AS A LENDER. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the
Administrative Agent and the term "Lender" or "Lenders" shall, unless otherwise
expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such
Person and its Affiliates may accept deposits from, lend money to, act as the
financial advisor or in any other advisory capacity for and generally engage in
any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.
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13.3. EXCULPATORY PROVISIONS. The Administrative Agent shall not have any
duties or obligations except those expressly set forth herein and in the other
Loan Documents. Without limiting the generality of the foregoing, the
Administrative Agent:
(a) shall not be subject to any fiduciary or other implied duties,
regardless of whether a Default has occurred and is continuing;
(b) shall not have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby or by the other Loan Documents that the
Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents),
provided that the Administrative Agent shall not be required to take any
action that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document
or applicable law; and
(c) shall not, except as expressly set forth herein and in the other
Loan Documents, have any duty to disclose, and shall not be liable for the
failure to disclose, any information relating to the Borrower or any of its
Affiliates that is communicated to or obtained by the Person serving as the
Administrative Agent or any of its Affiliates in any capacity.
The Administrative Agent shall not be liable for any action taken or not
taken by it (i) with the consent or at the request of the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary, or as the
Administrative Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 12.2, 12.3 and 15.12) or (ii) in the
absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until
notice describing such Default is given to the Administrative Agent by the
Borrower, a Lender or the Fronting Bank.
The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with this Credit Agreement or any other Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Credit Agreement, any other
Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Sections 10 and 11 or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.
13.4. RELIANCE BY ADMINISTRATIVE AGENT. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to have
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been made by the proper Person, and shall not incur any liability for relying
thereon. In determining compliance with any condition hereunder to the making of
a Loan, or the issuance of a Letter of Credit, that by its terms must be
fulfilled to the satisfaction of a Lender or the Fronting Bank, the
Administrative Agent may presume that such condition is satisfactory to such
Lender or the Fronting Bank unless the Administrative Agent shall have received
notice to the contrary from such Lender or the Fronting Bank prior to the making
of such Loan or the issuance of such Letter of Credit. The Administrative Agent
may consult with legal counsel, independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.
13.5. DELEGATION OF DUTIES. The Administrative Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this
Section 13 shall apply to any such sub-agent and to the Related Parties of the
Administrative Agent and any such sub-agent, and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as Administrative Agent.
13.6. PAYMENTS.
13.6.1. PAYMENTS TO ADMINISTRATIVE AGENT. A payment by the Borrower to
the Administrative Agent hereunder or any of the other Loan Documents for
the account of any Lender shall constitute a payment to such Lender. The
Administrative Agent agrees promptly to distribute to each Lender such
Lender's pro rata share of payments received by the Administrative Agent
for the account of the Lenders except as otherwise expressly provided
herein or in any of the other Loan Documents.
13.6.2. DISTRIBUTION BY ADMINISTRATIVE AGENT. If in the reasonable
opinion of the Administrative Agent the distribution of any amount received
by it in such capacity hereunder, under any of the other Loan Documents
might involve it in liability, it may refrain from making distribution
until its right to make distribution shall have been adjudicated by a court
of competent jurisdiction. To the extent that the Administrative Agent
refrains from making any distribution hereunder, it shall make reasonable
efforts to invest any such funds held by it in appropriate short-term
investments for the benefit of the Lenders. If a court of competent
jurisdiction shall adjudge that any amount received and distributed by the
Administrative Agent is to be repaid, each Person to whom any such
distribution shall have been made shall either repay to the Administrative
Agent its proportionate share of the amount so adjudged to be repaid or
shall pay over the same in such manner and to such Persons as shall be
determined by such court.
13.6.3. DELINQUENT LENDERS. Notwithstanding anything to the contrary
contained in this Credit Agreement or any of the other Loan Documents, any
Lender that fails (a) to make available to the Fronting Bank or the
Administrative Agent its pro rata share of any Loan or to purchase any
Letter of Credit Participation or (b) to comply with the provisions of
Section 15.1 with respect to making dispositions and arrangements with the
other Lenders, where such Lender's share of any payment received, whether
by setoff or
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otherwise, is in excess of its pro rata share of such payments due and
payable to all of the Lenders, in each case as, when and to the full extent
required by the provisions of this Credit Agreement, shall be deemed
delinquent (a "Delinquent Lender") and shall be deemed a Delinquent Lender
until such time as such delinquency is satisfied. A Delinquent Lender shall
be deemed to have assigned any and all payments due to it from the
Borrower, whether on account of outstanding Loans, Unpaid Reimbursement
Obligations, interest, fees or otherwise, to the remaining nondelinquent
Lenders for application to, and reduction of, their respective pro rata
shares of all outstanding Loans and Unpaid Reimbursement Obligations. The
Delinquent Lender hereby authorizes the Administrative Agent to distribute
such payments to the nondelinquent Lenders in proportion to their
respective pro rata shares of all outstanding Loans and Unpaid
Reimbursement Obligations. A Delinquent Lender shall be deemed to have
satisfied in full a delinquency when and if, as a result of application of
the assigned payments to all outstanding Loans and Unpaid Reimbursement
Obligations of the nondelinquent Lenders, the Lenders' respective pro rata
shares of all outstanding Loans and Unpaid Reimbursement Obligations have
returned to those in effect immediately prior to such delinquency and
without giving effect to the nonpayment causing such delinquency.
13.7. PURCHASERS OF LETTER OF CREDIT PARTICIPATIONS. The Fronting Bank and
the Administrative Agent may deem and treat the purchaser of any Letter of
Credit Participation as the absolute purchaser thereof for all purposes hereof
until it shall have been furnished in writing with a different name by a
subsequent holder, assignee or transferee.
13.8. INDEMNITY. The Lenders ratably agree hereby to indemnify and hold
harmless the Administrative Agent and its affiliates from and against any and
all claims, actions and suits (whether groundless or otherwise), losses,
damages, costs, expenses (including any reasonable out-of-pocket expenses for
which the Administrative Agent or such affiliate has not been reimbursed by the
Borrower as required by Section 15.2), and liabilities of every nature and
character arising out of or related to this Credit Agreement or any of the other
Loan Documents or the transactions contemplated or evidenced hereby or thereby,
or the Administrative Agent's actions taken hereunder or thereunder, except to
the extent that any of the same shall be directly caused by the Administrative
Agent's bad faith, willful misconduct or gross negligence.
13.9. NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS. Each Lender
and the Fronting Bank acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender or any of their
Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Credit
Agreement. Each Lender and the Fronting Bank also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Credit
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.
13.10. RESIGNATION OF ADMINISTRATIVE AGENT. The Administrative Agent may
resign at any time by giving sixty (60) days prior written notice thereof to the
Lenders, the Fronting Bank and the Borrower. Upon receipt of any such notice of
resignation, the Required Lenders shall
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have the right to appoint a successor Administrative Agent reasonably acceptable
to the Borrower. Such successor shall be a bank with an office in the United
States, or an Affiliate of any such bank with an office in the United States. If
no such successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within thirty (30) days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the Fronting Bank, appoint
a successor Administrative Agent meeting the qualifications set forth above;
provided that if the Administrative Agent shall notify the Borrower and the
Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice
and (1) the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder and under the other Loan Documents (except that in the
case of any collateral security held by the Administrative Agent on behalf of
the Lenders or the Fronting Bank under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such
time as a successor Administrative Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through the
Administrative Agent shall instead be made by or to each Lender and the Fronting
Bank directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section. Upon the acceptance
of a successor's appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring (or retired) Administrative Agent, and the retiring
Administrative Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom
as provided above in this Section). The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such successor.
After the retiring Administrative Agent's resignation hereunder and under the
other Loan Documents, the provisions of this Section 13 and Sections 15.2 and
15.3, shall continue in effect, in accordance with their respective terms, for
the benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.
Any resignation by Bank of America as Administrative Agent pursuant to this
Section shall also constitute its resignation as Fronting Bank and Swing Line
Lender. Upon the acceptance of a successor's appointment as Administrative Agent
hereunder, (a) such successor shall succeed to and become vested with all of the
rights, powers, privileges and duties of the retiring Fronting Bank and Swing
Line Lender, (b) the retiring Fronting Bank and Swing Line Lender shall be
discharged from all of their respective duties and obligations hereunder or
under the other Loan Documents, and (c) the successor Fronting Bank shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to the
retiring Fronting Bank to effectively assume the obligations of the retiring
Fronting Bank with respect to such Letters of Credit.
13.11. ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial,
administrative or like proceeding or any assignment for the benefit of creditors
relative to the Borrower or any of its Subsidiaries, the Administrative Agent
(irrespective of whether the principal of any Loan, Reimbursement Obligation or
Unpaid
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Reimbursement Obligation shall then be due and payable as herein expressed or by
declaration or otherwise and irrespective of whether the Administrative Agent
shall have made any demand on the Borrower) shall be entitled and empowered, by
intervention in such proceeding, under any such assignment or otherwise
(a) to file and prove a claim for the whole amount of the principal
and interest owing and unpaid in respect of the Loans, Reimbursement
Obligations or Unpaid Reimbursement Obligations and all other Obligations
that are owing and unpaid and to file such other documents as may be
necessary or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders and the Administrative
Agent and their respective agents and counsel and all other amounts due the
Lenders and the Administrative Agent under Sections 2.2, 4.6, 5.1, 5.2 and
15.2) allowed in such proceeding or under any such assignment; and
(b) to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding or under any such
assignment is hereby authorized by each Lender and the Fronting Bank to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders and the Fronting Bank, to pay to the Administrative Agent any amount
due for the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.2, 4.6, 5.1, 5.2 and 15.2.
Nothing contained herein shall authorize the Administrative Agent to
authorize or consent to or accept or adopt on behalf of any Lender or the
Fronting Bank any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations owed to such Lender or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender
in any such proceeding or under any such assignment.
13.12. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT. Each Lender hereby
agrees that, upon receiving written notice by the Borrower of the existence of a
Default or an Event of Default, it shall promptly notify the Administrative
Agent thereof. The Administrative Agent hereby agrees that upon receipt of any
notice under this Section 13.12 it shall promptly notify the other Lenders of
the existence of such Default or Event of Default.
13.13. NO OTHER DUTIES, ETC. Anything herein to the contrary
notwithstanding, none of the Book Managers, Arrangers or the Documentation Agent
listed on the cover page hereof shall have any powers, duties or
responsibilities under this Credit Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent, a Lender or
the Fronting Bank hereunder.
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14. ASSIGNMENT AND PARTICIPATION.
14.1. CONDITIONS TO ASSIGNMENT GENERALLY. The provisions of this Credit
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and each
Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an assignee in accordance with the
provisions of Section 14.2, (ii) by way of participation in accordance with the
provisions of Section 14.4, (iii) by way of pledge or assignment of a security
interest subject to the restrictions of Section 14.6, or (iv) to a SPC in
accordance with the provisions of Section 14.8 (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Credit Agreement, expressed or implied, shall be construed to confer upon
any Person (other than the parties hereto, their respective successors and
assigns permitted hereby, Participants to the extent provided in Section 14.4
and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the Fronting Bank and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Credit Agreement.
14.2. ASSIGNMENTS BY LENDERS. Any Lender may at any time assign to one or
more assignees all or a portion of its rights and obligations under this Credit
Agreement (including all or a portion of its Commitment and the Loans (including
for purposes of this Section 14.2, participations in Letter of Credit
Participations and in Swing Line Loans) at the time owing to it); provided that
any such assignment shall be subject to the following conditions:
14.2.1. MINIMUM AMOUNTS.
(a) in the case of an assignment of the entire remaining amount of the
assigning Lender's Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund, no minimum amount need be assigned; and
(b) in any case not described in clause (a) of this subsection, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the
principal outstanding balance of the Loans of the assigning Lender subject
to each such assignment, determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the
Administrative Agent or, if "Trade Date" is specified in the Assignment and
Acceptance, as of the Trade Date, shall not be less than $5,000,000 unless
each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided, however,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single assignee (or to
an assignee and members of its Assignee Group) will be treated as a single
assignment for purposes of determining whether such minimum amount has been
met.
14.2.2. PROPORTIONATE AMOUNTS. Each partial assignment shall be made
as an assignment of a proportionate part of all the assigning Lender's
rights and obligations
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under this Credit Agreement with respect to the Loans or the Commitment
assigned, except that this Section 14.2.2 shall not apply to the Swing Line
Lender's rights and obligations in respect of Swing Line Loans;
14.2.3. REQUIRED CONSENTS. No consent shall be required for any
assignment except to the extent required by Section 14.2.1(b) and, in
addition:
(a) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (i) an Event of Default has
occurred and is continuing at the time of such assignment or (ii) such
assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
(b) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is
to a Person that is not a Lender, an Affiliate of such Person or an
Approved Fund with respect to such Person;
(c) the consent of the Fronting Bank (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under
one or more Letters of Credit (whether or not then outstanding); and
(d) the consent of the Swing Line Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment.
14.2.4. ASSIGNMENT AND ACCEPTANCE. The parties to each assignment
shall execute and deliver to the Administrative Agent an Assignment and
Acceptance, together with a processing and recordation fee (the "Assignment
Fee") in the amount of $2,500 for each assignment, or as otherwise set
forth in Schedule 14.2.4; provided, however, that the Borrower shall not be
responsible for paying the Assignment Fee, and provided further that the
Administrative Agent may, in its sole discretion, elect to waive such
Assignment Fee in the case of any assignment. The assignee, if it is not a
Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.
14.2.5. NO ASSIGNMENT TO BORROWER. No such assignment shall be made to
the Borrower or any of the Borrower's Affiliates or Subsidiaries.
14.2.6. NO ASSIGNMENT TO NATURAL PERSONS. No such assignment shall be
made to a natural person.
Subject to acceptance and recording thereof by the Administrative Agent
pursuant to Section 14.3, from and after the effective date specified in
each Assignment and Acceptance, the assignee thereunder shall be a party to
this Credit Agreement and, to the extent of the interest assigned by such
Assignment and Acceptance, have the rights and obligations of a Lender
under this Credit Agreement, and the assigning Lender thereunder shall, to
the extent of the interest assigned by such Assignment and Acceptance, be
released from its obligations under this Credit Agreement (and, in the case
of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations under this Credit
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Agreement, such Lender shall cease to be a party hereto) but shall continue
to be entitled to the benefits of Sections 5.3.3, 5.7, 5.8 and 15.2 with
respect to facts and circumstances occurring prior to the effective date of
such assignment. Any assignment or transfer by a Lender of rights or
obligations under this Credit Agreement that does not comply with this
subsection shall be treated for purposes of this Credit Agreement as a sale
by such Lender of a participation in such rights and obligations in
accordance with Section 14.4.
14.3. REGISTER. The Administrative Agent, acting solely for this purpose as
an agent of the Borrower, shall maintain at the Administrative Agent's Office a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitments of,
and principal amounts of the Loans and Letter of Credit Participations owing to,
each Lender pursuant to the terms hereof from time to time (the "Register"). The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Administrative Agent and the Lenders may treat each Person
whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Credit Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.
14.4. PARTICIPATIONS. Any Lender may at any time, without the consent of,
or notice to, the Borrower or the Administrative Agent, sell participations to
any Person (other than a natural person or the Borrower or any of the Borrower's
Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such
Lender's rights and/or obligations under this Credit Agreement (including all or
a portion of its Commitment and/or the Loans (including such Lender's
participations in Letter of Credit Participations and/or Swing Line Loans) owing
to it); provided that (i) such Lender's obligations under this Credit Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders and the Fronting Bank shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Credit Agreement.
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Credit Agreement and to approve any amendment, modification or
waiver of any provision of this Credit Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
Section 15.12(a) that affects such Participant. Subject to Section 14.5, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 5.3.3, 5.7 and 5.8 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to Section 14.2. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 15.1 as though it were a Lender, provided such Participant agrees to be
subject to Section 13.6 as though it were a Lender.
14.5. LIMITATIONS UPON PARTICIPANT RIGHTS. A Participant shall not be
entitled to receive any greater payment under Section 5.3.3 or Section 5.7 than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A Lender
shall be permitted to sell participations with voting rights, provided that the
voting rights of a
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Participant shall be limited to approval of those matters pursuant to Section
15.12(a) that directly affect the Participant. A Participant that would be a
Non-U.S. Lender if it were a Lender shall not be entitled to the benefits of
Section 5.3.3 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to
comply with Section 5.3.4 as though it were a Lender.
14.6. CERTAIN PLEDGES. Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Credit
Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.
14.7. ELECTRONIC EXECUTION OF ASSIGNMENTS. The words "execution," "signed,"
"signature," and words of like import in any Assignment and Acceptance shall be
deemed to include electronic signatures or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act,
or any other similar state laws based on the Uniform Electronic Transactions
Act.
14.8. SPECIAL PURPOSE FUNDING VEHICLES. Notwithstanding anything to the
contrary contained herein, any Lender (a "Granting Lender") may grant to a
special purpose funding vehicle (a "SPC") of such Granting Lender, identified as
such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrower, the option to provide to the Borrower all or any part of
any Revolving Credit Loan that such Granting Lender would otherwise be obligated
to make the Borrower pursuant to Sections 2.1 and 3.4.2, provided that (a)
nothing herein shall constitute a commitment to make any Revolving Credit Loan
by any SPC and (b) if a SPC elects not to exercise such option or otherwise
fails to provide all or any part of such Loan, the Granting Lender shall be
obligated to make such Revolving Credit Loan pursuant to the terms hereof. In
the event of any such grant to a SPC by a Granting Lender, such Granting Lender
shall remain responsible for the performance of its obligations hereunder, and
the Borrower and the Administrative Agent shall continue to deal solely and
directly with such Granting Lender in connection with such Granting Lender's
rights and obligations under this Credit Agreement. The making of a Revolving
Credit Loan by a SPC hereunder shall utilize the Commitment of the Granting
Lender to the same extent, and as if, such Revolving Credit Loan were made by
the Granting Lender. Each party hereto hereby agrees that no SPC shall be liable
for any payment under this Credit Agreement for which a Granting Lender would
otherwise be liable. In furtherance of the foregoing, each party hereto hereby
agrees that, prior to the date that is one (1) year and one (1) day after the
later of (i) the payment in full of all outstanding senior indebtedness of any
SPC and (ii) the Final Maturity Date, it will not institute against, or join any
other person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings or similar proceedings under
the laws of the United States of America or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 14.8, any SPC
may (i) with notice to, but without the prior written consent of, the Borrower
or the Administrative Agent, assign all or a portion of its interests in any
Revolving
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Credit Loans to its Granting Lender or to any financial institutions providing
liquidity and/or credit facilities to or for the account of such SPC to fund the
Revolving Credit Loans made by such SPC or to support the securities (if any)
issued by such SPC to fund such Revolving Credit Loans and (ii) disclose on a
confidential basis any non-public information relating to its Revolving Credit
Loans (other than financial statements referred to in Sections 6.3 or 7.3) to
any rating agency, commercial paper dealer or provider of a surety, guarantee or
credit or liquidity enhancement to such SPC. In no event shall the Borrower be
obligated to pay to a SPC that has made a Revolving Credit Loan any greater
amount than the Borrower would have been obligated to pay under this Credit
Agreement if the Granting Lender had made such Revolving Credit Loan.
14.9. RESIGNATION AS FRONTING BANK OR SWING LINE LENDER AFTER ASSIGNMENT.
Notwithstanding anything to the contrary contained herein, if at any time Bank
of America assigns all of its Commitment and Loans pursuant to Section 14.2
above, Bank of America may, (i) upon 30 days' notice to the Borrower and the
Lenders, resign as Fronting Bank and/or (ii) upon 30 days' notice to the
Borrower, resign as Swing Line Lender. In the event of any such resignation as
Fronting Bank or Swing Line Lender, the Borrower shall be entitled to appoint
from among the Lenders a successor Fronting Bank or Swing Line Lender hereunder;
provided, however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of Bank of America as Fronting Bank or Swing Line
Lender, as the case may be. If Bank of America resigns as Fronting Bank, it
shall retain all the rights, powers, privileges and duties of the Fronting Bank
hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as Fronting Bank and all Letter of Credit Participations
with respect thereto (including the right to require the Lenders to make Base
Rate Loans or fund risk participations in the Unpaid Reimbursement Obligations
pursuant to Section 4.2). If Bank of America resigns as Swing Line Lender, it
shall retain all the rights of the Swing Line Lender provided for hereunder with
respect to Swing Line Loans made by it and outstanding as of the effective date
of such resignation, including the right to require the Lenders to make Base
Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant
to Section 3.4. Upon the appointment of a successor Fronting Bank and/or Swing
Line Lender, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring Fronting Bank or Swing
Line Lender, as the case may be, and (b) the successor Fronting Bank shall issue
letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to Bank
of America to effectively assume the obligations of Bank of America with respect
to such Letters of Credit.
15. PROVISIONS OF GENERAL APPLICATIONS.
15.1. SETOFF. Regardless of the adequacy of any collateral, if any of the
Obligations are due and payable and have not been paid or any Event of Default
shall have occurred, any deposits or other sums credited by or due from any of
the Lenders to the Borrower and any securities or other property of the Borrower
in the possession of such Lender may be applied to or set off by such Lender
without further notice to the Borrower against the payment of Obligations
whether direct, or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, of the Borrower to such Lender; provided however
that such Lender shall advise the Borrower and the Administrative Agent promptly
after making any set off.. ANY AND ALL RIGHTS TO REQUIRE ANY LENDER TO EXERCISE
ITS RIGHTS
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OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS,
PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS
OR OTHER PROPERTY OF THE BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED. Each of the Lenders agrees with each other Lender that if
any Lender shall receive from the Borrower, whether by voluntary payment,
exercise of the right of setoff, counterclaim, cross action, enforcement of the
claim constituting the Obligations owed to such Lender by proceedings against
the Borrower at law or in equity or by proof thereof in bankruptcy,
reorganization, liquidation, receivership or similar proceedings, or otherwise,
and shall retain and apply such amount to the payment of the Obligations owed to
such Lender in excess of its ratable portion of the payments received by all of
the Lenders with respect to the Obligations owed to all of the Lenders, such
Lender will make such disposition and arrangements with the other Lenders with
respect to such excess, either by way of distribution, pro tanto assignment of
claims, subrogation or otherwise as shall result in each Lender receiving in
respect of the Obligations owed it, its proportionate payment as contemplated by
this Credit Agreement; provided that if all or any part of such excess payment
is thereafter recovered from such Lender, such disposition and arrangements
shall be rescinded and the amount restored to the extent of such recovery, but
without interest.
15.2. EXPENSES. The Borrower agrees to pay (a) the reasonable costs of
producing and reproducing this Credit Agreement, the other Loan Documents and
the other agreements and instruments mentioned herein (but in any event not
including any indirect charges such as overhead charges), (b) any taxes
(including any interest and penalties in respect thereto) payable by the
Administrative Agent, any Fronting Bank or any of the Lenders (other than taxes
based upon the Administrative Agent's, any Fronting Bank's or any Lender's net
income) on or with respect to the transactions contemplated by this Credit
Agreement (the Borrower hereby agreeing to indemnify the Administrative Agent,
each Fronting Bank and each Lender with respect thereto), (c) the reasonable
fees, expenses and disbursements of the Administrative Agent's Special Counsel
incurred in connection with the preparation, syndication, administration or
interpretation of the Loan Documents and other instruments mentioned herein,
each closing hereunder, any amendments, modifications, approvals, consents or
waivers hereto or hereunder, or the cancellation of any Loan Document upon
payment in full in cash of all of the Obligations or pursuant to any terms of
such Loan Document for providing for such cancellation, (d) the fees, reasonable
out-of-pocket expenses and disbursements of the Administrative Agent and the
Lead Arranger or any of their affiliates incurred by the Administrative Agent,
the Lead Arranger or such affiliate in connection with the preparation,
syndication, administration or interpretation of the Loan Documents and other
instruments mentioned herein (but in any event not including any indirect
charges such as overhead charges), (e) all reasonable out-of-pocket expenses
(including without limitation reasonable attorneys' fees and costs, which
attorneys may not be employees of any Lender, any Fronting Bank or the
Administrative Agent, such fees and costs being limited to the fees and costs of
one firm of outside legal counsel for the Administrative Agent, one firm of
outside legal counsel for the Lenders and such local counsel for the
Administrative Agent as may be necessary under the circumstances (except that
such limitation on the number of firms shall not apply in the event of a
material conflict of interest), and reasonable consulting, accounting,
appraisal, investment bankruptcy and similar professional fees and charges but
in any event not including any indirect charges such as overhead charges)
incurred by any Lender, any Fronting Bank or the Administrative Agent in
connection with (i) the enforcement of or preservation of
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rights under any of the Loan Documents against the Borrower or any of its
Subsidiaries or the administration thereof after the occurrence of a Default or
Event of Default and (ii) any litigation, proceeding or dispute whether arising
hereunder or otherwise, in any way related to any Lender's, any Fronting Bank's
or the Administrative Agent's relationship with the Borrower or any of its
Subsidiaries and (f) all reasonable fees, expenses and disbursements of any
Lender or the Administrative Agent incurred in connection with UCC searches made
on or prior to the Closing Date and after the occurrence and during the
continuance of any Event of Default (but in any event not including any indirect
charges such as overhead charges). The covenants contained in this Section 15.2
shall survive payment or satisfaction in full of all other Obligations.
15.3. INDEMNIFICATION. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), each Lender and the Fronting Bank, and each
Related Party of any of the foregoing Persons (each such Person being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses (including the
reasonable fees, charges and disbursements of one firm of outside legal counsel
for the Administrative Agent, one firm of outside legal counsel for the Lenders
and such local counsel for the Administrative Agent as may be necessary under
the circumstances, except that such limitation on the number of firms shall not
apply in the event of a material conflict of interest) incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower arising out of, in connection with, or as a result of (i) the execution
or delivery of this Credit Agreement, any other Loan Document or any agreement
or instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder, the consummation
of the transactions contemplated hereby or thereby, or, in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only,
the administration of this Credit Agreement and the other Loan Documents, (ii)
any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Fronting Bank to honor a demand for
payment under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Substances on or
from any property owned or operated by the Borrower or any of its Subsidiaries,
or any Environmental Liability, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third
party or by the Borrower, and regardless of whether any Indemnitee is a party
thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the
Borrower against an Indemnitee for (i) breach in bad faith of such Indemnitee's
obligations hereunder or under any other Loan Document or (ii) gross negligence
or willful misconduct by such Indemnitee, in each case, if the Borrower has
obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.
15.4. TREATMENT OF CERTAIN INFORMATION; CONFIDENTIALITY. Each of the
Administrative Agent, the Lenders and the Fronting Bank agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its and its Affiliates' respective
partners, directors, officers, employees, agents, advisors and representatives
(it being understood that the Persons to whom such disclosure is
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made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority purporting to have jurisdiction over it (including
any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) to the extent required by applicable laws or regulations or
by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan
Document or any action or proceeding relating to this Credit Agreement or any
other Loan Document or the enforcement of rights hereunder or thereunder, to the
extent required for such purposes, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any assignee
of or Participant in, or any prospective assignee of or Participant in, any of
its rights or obligations under this Credit Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction
relating to the Borrower and its obligations, (g) with the consent of the
Borrower or (h) to the extent such Information (x) becomes publicly available
other than as a result of a breach of this Section or (y) becomes available to
the Administrative Agent, any Lender, the Fronting Bank or any of their
respective Affiliates on a non-confidential basis from a source other than the
Borrower.
For purposes of this Section, "Information" means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the Fronting Bank on a
non-confidential basis prior to disclosure by the Borrower or any Subsidiary,
provided that, in the case of information received from the Borrower or any
Subsidiary after the date hereof (other than Borrower Materials, which shall be
addressed as provided in Section 7.3), such information is clearly identified at
the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall exercise the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.
Each of the Administrative Agent, the Lenders and the Fronting Bank
acknowledges that (a) the Information may include material non-public
information concerning the Borrower or a Subsidiary, as the case may be, (b) it
has developed compliance procedures regarding the use of material non-public
information and (c) it will handle such material non-public information in
accordance with applicable Law, including Federal and state securities Laws.
15.5. SURVIVAL OF COVENANTS, ETC. All covenants, agreements,
representations and warranties made herein, in any of the other Loan Documents
or in any documents or other papers delivered by or on behalf of the Borrower or
any of its Subsidiaries pursuant hereto shall be deemed to have been relied upon
by the Lenders, the Fronting Bank(s) and the Administrative Agent,
notwithstanding any investigation heretofore or hereafter made by any of them,
and shall survive the making by the Lenders of any of the Loans and the
issuance, extension, amendment or renewal of any Letters of Credit, as herein
contemplated, and shall continue in full force and effect so long as any Letter
of Credit or any amount due under this Credit Agreement or any of the other Loan
Documents remains outstanding or any Lender has any obligation to make any Loans
or the Fronting Bank has any obligation to issue, extend, amend or renew any
Letter of Credit, and for such further time as may be otherwise expressly
specified in this Credit Agreement.
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15.6. NOTICES.
15.6.1. NOTICES GENERALLY. Except as otherwise expressly provided in
this Credit Agreement (and except as provided in Section 15.6.2 below), all
notices and other communications made or required to be given pursuant to
this Credit Agreement or any Letter of Credit Applications shall be in
writing and shall be delivered in hand, mailed by United States registered
or certified first class mail, postage prepaid, sent by overnight courier,
or sent by telecopy or facsimile and confirmed by delivery via courier or
postal service, addressed as follows:
(a) if to the Borrower, at 200 Domain Drive, Stratham, New Hampshire
03885, Attention: Gregory Saltzberg, Vice President and Treasurer, or at
such other address for notice as the Borrower shall last have furnished in
writing to the Person giving the notice, with a copy to (i) General
Counsel, The Timberland Company, 200 Domain Drive, Stratham, New Hampshire
and (ii) Ropes & Gray LLP, One International Place, Boston, Massachusetts
02110-2624, Attention: Jane Goldstein;
(b) if to the Administrative Agent, at the address specified on
Schedule 15.6, or such other address for notice as the Administrative Agent
shall last have furnished in writing to the Person giving the notice, with
a copy to Amy Kyle, Bingham McCutchen LLP, 150 Federal Street, Boston,
Massachusetts 02110;
(c) if to any Fronting Bank, at such Fronting Bank's address set forth
on Schedule 1 hereto, or such other address for notice as such Fronting
Bank shall have last furnished in writing to the Person giving the notice;
and
(d) if to any Lender, at such Lender's address set forth on Schedule 1
hereto, or such other address for notice as such Lender shall have last
furnished in writing to the Person giving the notice.
Any such notice or demand shall be deemed to have been duly given or made
and to have become effective (i) if delivered by hand, overnight courier or
facsimile to a responsible officer of the party to which it is directed, at
the time of the receipt thereof by such officer or the sending of such
facsimile and (ii) if sent by registered or certified first-class mail,
postage prepaid, on the third Business Day following the mailing thereof.
15.6.2. ELECTRONIC COMMUNICATIONS. Any notice or other communication
to be made hereunder or under any Letter of Credit Applications, even if
otherwise required to be in writing under other provisions of this Credit
Agreement, may alternatively be made in an electronic record transmitted
electronically under such authentication and other procedures as the
parties hereto may from time to time agree in writing (but not an
electronic record), and such electronic transmission shall be effective at
the time set forth in such procedures. Unless otherwise expressly provided
in such procedures, such an electronic record shall be equivalent to a
writing under the other provisions of this Credit Agreement or any Letter
of Credit Applications, and such authentication, if made in compliance with
the procedures so agreed by the parties hereto in writing (but not an
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electronic record), shall be equivalent to a signature under the other
provisions of this Credit Agreement or any Letter of Credit Applications.
Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the
sender's receipt of an acknowledgement from the intended recipient (such as
by the "return receipt requested" function, as available, return e-mail or
other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the
recipient, such notice or communication shall be deemed to have been sent
at the opening of business on the next business day for the recipient, and
(ii) notices or communications posted to an Internet or intranet website
shall be deemed received by any Lender upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available
and identifying the website address therefor.
15.6.3. THE PLATFORM. THE PLATFORM IS PROVIDED "AS IS" AND "AS
AVAILABLE." THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM
THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM
VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the
Administrative Agent or any of its Related Parties (collectively, the
"Agent Parties") have any liability to the Borrower, any Lender, the
Fronting Bank or any other Person for losses, claims, damages, liabilities
or expenses of any kind (whether in tort, contract or otherwise) arising
out of the Borrower's or the Administrative Agent's transmission of
Borrower Materials through the Internet, except to the extent that such
losses, claims, damages, liabilities or expenses are determined by a court
of competent jurisdiction by a final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Agent
Party; provided, however, that in no event shall any Agent Party have any
liability to the Borrower, any Lender, the Fronting Bank or any other
Person for indirect, special, incidental, consequential or punitive damages
(as opposed to direct or actual damages).
15.6.4. RELIANCE BY ADMINISTRATIVE AGENT, FRONTING BANK AND LENDERS.
The Administrative Agent, the Fronting Bank and the Lenders shall be
entitled to rely and act upon any notices which the Administrative Agent,
the Fronting Bank and/or the Lenders, as applicable, believe in good faith
to have been given by or on behalf of the Borrower even if (i) such notices
were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii)
the terms thereof, as understood by the recipient, varied from any
confirmation thereof. The Borrower shall indemnify the Administrative
Agent, the Fronting Bank, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities
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resulting from the reliance by such Person on each notice purportedly given
by or on behalf of the Borrower. All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by
the Administrative Agent, and each of the parties hereto hereby consents to
such recording.
15.7. GOVERNING LAW. THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE
SPECIFICALLY PROVIDED THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS
UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL, PURSUANT TO NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5-1401, BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF SAID STATE OF NEW YORK (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS
OR CHOICE OF LAW). THE BORROWER AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS
CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO
THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH
SUIT BEING MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN SECTION
15.6. THE BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN
AN INCONVENIENT COURT.
15.8. HEADINGS. The captions in this Credit Agreement are for convenience
of reference only and shall not define or limit the provisions hereof.
15.9. COUNTERPARTS. This Credit Agreement and any amendment hereof may be
executed in several counterparts and by each party on a separate counterpart,
each of which when executed and delivered shall be an original, and all of which
together shall constitute one instrument. Delivery by facsimile by any of the
parties hereto of an executed counterpart hereof or of any amendment or waiver
hereto shall be as effective as an original executed counterpart hereof or of
such amendment or waiver and shall be considered a representation that an
original executed counterpart hereof or such amendment or waiver, as the case
may be, will be delivered.
15.10. ENTIRE AGREEMENT, ETC. The Loan Documents and any other documents
executed in connection herewith or therewith express the entire understanding of
the parties with respect to the transactions contemplated hereby. Neither this
Credit Agreement nor any term hereof may be changed, waived, discharged or
terminated, except as provided in Section 15.12.
15.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
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THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE WAIVERS IN THIS SECTION 15.11 AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS CREDIT AGREEMENT AND THE
OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. Except as prohibited by law, the Borrower hereby
waives any right it may have to claim or recover in any litigation referred to
in this Section 15.11 any (a) consequential damages or any damages other than,
or in addition to, actual damages (other than as a result of the Administrative
Agent's, any Fronting Bank's or any Lender's bad faith, gross negligence or
willful misconduct) and (b) special, exemplary or punitive damages.
15.12. CONSENTS, AMENDMENTS, WAIVERS, ETC. Any consent or approval required
or permitted by this Credit Agreement to be given by the Lenders may be given,
and any term of this Credit Agreement, the other Loan Documents or any other
instrument related hereto or mentioned herein may be amended, and the
performance or observance by the Borrower or any of its Subsidiaries of any
terms of this Credit Agreement, the other Loan Documents or such other
instrument or the continuance of any Default or Event of Default may be waived
(either generally or in a particular instance and either retroactively or
prospectively) with, but only with, the written consent of the Borrower and the
written consent of the Required Lenders. Notwithstanding the foregoing, no
amendment, modification or waiver shall:
(a) without the written consent of the Borrower and each Lender
directly affected thereby:
(i) reduce or forgive the principal amount of any Revolving
Credit Loans or Reimbursement Obligations, or reduce the rate of
interest on the Revolving Credit Loans or the amount of the Facility
Fee, Letter of Credit Fees, or the Utilization Fee (other than
interest accruing pursuant to Section 5.9.2 following the effective
date of any waiver by the Required Lenders of the Default or Event of
Default relating thereto);
(ii) increase the amount of such Lender's Commitment or extend
the expiration date of such Lender's Commitment; and
(iii) postpone or extend the Final Maturity Date or any other
regularly scheduled dates for payments of principal of, or interest
on, the Revolving Credit Loans or Reimbursement Obligations or any
Fees or other amounts payable to such Lender (it being understood that
(A) a waiver of the application of the default rate of interest
pursuant to Section 5.9.2, and (B) any vote to rescind any
acceleration made pursuant to Section 12.1 of amounts owing with
respect to the Revolving Credit Loans and other Obligations shall
require only the approval of the Required Lenders);
(b) without the written consent of all of the Lenders, amend or waive
(i) provisions of this Section 15.12 which require the consent of all of
the Lenders or (ii) the definition of "Required Lenders";
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(c) without the written consent of the Swing Line Lender, amend or
waive Section 3, the amount or time of payment of the Swing Line Loans or
any other provision adversely affecting the obligations of the Swing Line
Lender with respect to Swing Line Loans;
(d) without the written consent of the Administrative Agent, amend or
waive Section 13, the amount or time of payment of the Administrative
Agency Fee payable for the Administrative Agent's account or any other
provision adversely affecting the rights or obligations of the
Administrative Agent;
(e) without the written consent of the Fronting Bank, amend or waive
any Letter of Credit Fees payable for the Fronting Bank's account or any
provision adversely affecting the obligations of the Fronting Bank with
respect to Letters of Credit; or
(f) without the written consent of each Lender, amend Section 1.3 or
the definition of "Alternative Currency".
No waiver shall extend to or affect any obligation not expressly waived or
impair any right consequent thereon. No course of dealing or delay or omission
on the part of the Administrative Agent, any Fronting Bank or any Lender in
exercising any right shall operate as a waiver thereof or otherwise be
prejudicial thereto. No notice to or demand upon the Borrower shall entitle the
Borrower to other or further notice or demand in similar or other circumstances.
15.13. NO ADVISORY OR FIDUCIARY RESPONSIBILITY. In connection with all
aspects of each transaction contemplated hereby, the Borrower acknowledges and
agrees, and acknowledges its Affiliates' understanding, that: (i) the credit
facility provided for hereunder and any related arranging or other services in
connection therewith (including in connection with any amendment, waiver or
other modification hereof or of any other Loan Document) are an arm's-length
commercial transaction between the Borrower and its Affiliates, on the one hand,
and the Administrative Agent and the Lead Arranger, on the other hand, and the
Borrower is capable of evaluating and understanding and understands and accepts
the terms, risks and conditions of the transactions contemplated hereby and by
the other Loan Documents (including any amendment, waiver or other modification
hereof or thereof); (ii) in connection with the process leading to such
transaction, the Administrative Agent and Lead Arranger each is and has been
acting solely as a principal and is not the financial advisor, agent or
fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or
employees or any other Person; (iii) neither the Administrative Agent nor the
Lead Arranger has assumed or will assume an advisory, agency or fiduciary
responsibility in favor of the Borrower with respect to any of the transactions
contemplated hereby or the process leading thereto, including with respect to
any amendment, waiver or other modification hereof or of any other Loan Document
(irrespective of whether the Administrative Agent or the Lead Arranger has
advised or are currently advising the Borrower or any of its Affiliates on other
matters) and neither the Administrative Agent nor the Lead Arranger has any
obligation to the Borrower or any of its Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth
herein and in the other Loan Documents; (iv) the Administrative Agent and the
Lead Arranger and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrower and
its Affiliates, and neither the Administrative Agent nor the Lead Arranger has
any obligation to disclose any of such interests by virtue of any advisory,
agency or
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fiduciary relationship; and (v) the Administrative Agent and the Lead Arranger
have not provided and will not provide any legal, accounting, regulatory or tax
advice with respect to any of the transactions contemplated hereby (including
any amendment, waiver or other modification hereof or of any other Loan
Document) and the Borrower has consulted its own legal, accounting, regulatory
and tax advisors to the extent it has deemed appropriate. The Borrower hereby
waives and releases, to the fullest extent permitted by law, any claims that it
may have against the Administrative Agent and the Lead Arranger with respect to
any breach or alleged breach of agency or fiduciary duty.
15.14. USA PATRIOT ACT NOTICE. Each Lender that is subject to the Patriot
Act (as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the "Patriot Act"), it is required to obtain, verify and
record information that identifies the Borrower, which information includes the
name and address of the Borrower and other information that will allow such
Lender or the Administrative Agent, as applicable, to identify the Borrower in
accordance with the Patriot Act.
15.15. SEVERABILITY. The provisions of this Credit Agreement are severable
and if any one clause or provision hereof shall be held invalid or unenforceable
in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this Credit
Agreement in any jurisdiction.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
IN WITNESS WHEREOF, the undersigned have duly executed this Credit
Agreement as of the date first set forth above.
THE TIMBERLAND COMPANY
By: /s/ Gregory M. Saltzberg
------------------------------------
Name: Gregory M. Saltzberg
Title: Treasurer
Signature Page to Credit Agreement
BANK OF AMERICA, N.A., as Administrative
Agent
By: /s/ Mollie S. Canup
------------------------------------
Name: Mollie S. Canup
Title: Vice President
BANK OF AMERICA, N.A., as a Lender
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Signature Page to Credit Agreement
BANK OF AMERICA, N.A., as Administrative
Agent
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
BANK OF AMERICA, N.A., as a Lender
By: /s/ Sharon Burks Haros
------------------------------------
Name: Sharon Burks Haros
Title: Vice President
Signature Page to Credit Agreement
WACHOVIA BANK, NATIONAL ASSOCIATION
By: /s/ Martha M. Winters
------------------------------------
Name: Martha M. Winters
Title: Director
JPMORGAN CHASE BANK, N.A.
By: /s/ Jules Panno
------------------------------------
Name: Jules Panno
Title: Vice President
Signature Page to Credit Agreement
THE NORTHERN TRUST COMPANY
By: /s/ Ashish S. Bhagwat
------------------------------------
Name: ASHISH S. BHAGWAT
Title: VICE PRESIDENT
SANPAOLO IMI S.P.A.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Signature Page to Credit Agreement
THE NORTHERN TRUST COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
SANPAOLO IMI S.P.A.
By: /s/ Remato Carducci
------------------------------------
Name: Remato Carducci
Title: General Manager
By: /s/ Luca Sacchi
------------------------------------
Name: Luca Sacchi
Title: Vice President
Signature Page to Credit Agreement
HSBC BANK USA, N.A.
By: /s/ Dan Lobdell
------------------------------------
Name: DAN LOBDELL
Title: VICE PRESIDENT
THE BANK OF NEW YORK
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
U.S. BANK NATIONAL ASSOCIATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
CITIZENS BANK NEW HAMPSHIRE
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Signature Page to Credit Agreement
HSBC BANK USA, N.A.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
THE BANK OF NEW YORK
By: /s/ Scott Detraglia
------------------------------------
Name: SCOTT DETRAGLIA
Title: VICE PRESIDENT
U.S. BANK NATIONAL ASSOCIATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
CITIZENS BANK NEW HAMPSHIRE
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Signature Page to Credit Agreement
HSBC BANK USA, N.A.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
THE BANK OF NEW YORK
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
U.S. BANK NATIONAL ASSOCIATION
By: /s/ Heather Hinkelman
------------------------------------
Name: Heather Hinkelman
Title: Banking Officer
CITIZENS BANK NEW HAMPSHIRE
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Signature Page to Credit Agreement
HSBC BANK USA, N.A.
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
THE BANK OF NEW YORK
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
U.S. BANK NATIONAL ASSOCIATION
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
CITIZENS BANK NEW HAMPSHIRE
By: /s/ Jeanne Hulit
------------------------------------
Name: JEANNE HULIT
Title: Vice President
Signature Page to Credit Agreement
SCHEDULE 1
LENDERS AND COMMITMENTS
COMMITMENT
LENDERS COMMITMENT PERCENTAGE
------- ------------ ----------
BANK OF AMERICA, N.A. $ 32,500,000 16.25%
Domestic Lending Office:
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520
Tel: (925) 675-8062
Fax: (888) 969-9237
Attention: Petra G. Rubio
Eurodollar Lending Office: Same as above.
WACHOVIA BANK NATIONAL ASSOCIATION $ 32,500,000 16.25%
Domestic Lending Office:
201 S. College Street
Charlotte, NC 28244-0002
Eurodollar Lending Office: Same as above.
JPMORGAN CHASE BANK, N.A. $ 24,000,000 12.00%
Domestic Lending Office:
277 Park Ave., 14th Floor
New York, NY 10172
Attention: Jules Panno, Senior Underwriter
Eurodollar Lending Office: Same as above.
CITIZENS BANK NEW HAMPSHIRE $ 18,500,000 9.25%
Domestic Lending Office:
875 Elm Street
Manchester, NH 03101
Attention: Jeanne Hulit, Vice President
Eurodollar Lending Office: Same as above.
THE NORTHERN TRUST COMPANY $ 18,500,000 9.25%
Domestic Lending Office:
50 South LaSalle Street
Chicago, IL 60675
Attention: Chris McKean, Vice President
Eurodollar Lending Office: Same as above.
-2-
COMMITMENT
LENDERS COMMITMENT PERCENTAGE
------- ------------ ----------
SANPAOLO IMI S.P.A. $ 18,500,000 9.25%
Domestic Lending Office:
245 Park Avenue, 35th Floor
New York, NY 10167
Attention: Luca Sacchi, Vice President
Eurodollar Lending Office: Same as above.
HSBC BANK USA, N.A. $ 18,500,000 9.25%
Domestic Lending Office:
125 High Street
Oliver Street Tower, 16th Floor
Boston, MA 02110
Attention: Dan Lobdell, Vice President
Eurodollar Lending Office: Same as above.
THE BANK OF NEW YORK $ 18,500,000 9.25%
Domestic Lending Office:
One Wall Street, 8th Floor
New York, NY 10286
Attention: Johna Fidanza, Vice President
Eurodollar Lending Office: Same as above.
U.S. BANK NATIONAL ASSOCIATION $ 18,500,000 9.25%
Domestic Lending Office:
One U.S. Bank Plaza
Mail Code: SL-MO-T12M
St. Louis, MO 63101
Attention: Gregory L. Dryden, Senior Vice
President
Eurodollar Lending Office: Same as above.
------------ -----
TOTAL $200,000,000 100%
============ =====
SCHEDULE 1-A
EXISTING LETTERS OF CREDIT
1. Letter of Credit No. 1288367 with a current face amount of $350,000.00; and
2. Letter of Credit No. 50087297 with a current face amount of $900,000.00.
SCHEDULE 6.6
LITIGATION
None.
SCHEDULE 6.13
EXISTING SUBSIDIARIES
The following are the subsidiaries of The Timberland Company as of the Closing
Date:
The Outdoor Footwear Company
The Recreational Footwear Company
The Timberland World Trading GmbH
The Timberland Finance Company
Timberland Footwear & Clothing, Inc.
Timberland SAS
Timberland (U.K.) Limited
Timberland Europe, Inc.
Timberland Espana, S.L.
Timberland GmbH
Timberland Direct Sales, Inc.
Timberland Retail, Inc.
Timberland Manufacturing Company
Timberland Netherlands, Inc.
Timberland International, Inc.
Timberland Aviation, Inc.
Timberland Netherlands Holding B.V.
Timberland Asia LLC
Timberland Taiwan LLC
Timberland Hong Kong Ltd.
Timberland Japan Inc.
Timberland Lifestyle Brand Malaysia Sdn Bhd
The Timberland Company (Asia-Pacific) Pte Ltd.
Timberland Canada Co.
Timberland Spain LLC
Timberland IDC Ltd.
Timberland HK Trading Limited
Timberland Switzerland GmbH
Timberland (Gibraltar) Holding Limited
Timberland Europe B.V.
Timberland Italy S.r.l.
Timberland Taiwan Limited
Timberland Luxembourg Finance S.ar.l.
Timberland Luxembourg Holding Europe S.ar.l.
Timberland Luxembourg Holding Asia S.ar.l.
Timberland Trading Switzerland GmbH
Smartwool Corporation
The Recreational Footwear Company (Dominicana), S.A.
Component Footwear Dominicana, S.A.
SCHEDULE 8.2
EXISTING LIENS
Liens on photocopiers to IOS Capital, LLC
Liens on mechanical sweeper, lift truck, batteries, charger and BHA Magnet
Extractor to Crown Credit Company
Liens on computer equipment to IBM
Liens on water purifying equipment to Norwest Financial Leasing, Inc.
Liens on copiers to Minolta Business Systems
SCHEDULE 14.2.4
ASSIGNMENT FEE
The Administrative Agent will charge an Assignment Fee in the amount of $2,500
for each assignment; provided, however, that in the event of two or more
concurrent assignments to members of the same Assignee Group (which may be
effected by a suballocation of an assigned amount among members of such Assignee
Group) or two or more concurrent assignments by members of the same Assignee
Group to a single Eligible Assignee (or to an Eligible Assignee and members of
its Assignee Group), the Assignment Fee will be $2,500 plus the amount set forth
below:
TRANSACTION: ASSIGNMENT FEE:
------------ ---------------
First four concurrent assignments or suballocations to members
of an Assignee Group (or from members of an Assignee Group,
as applicable) -0-
Each additional concurrent assignment or suballocation to a
member of such Assignee Group (or from a member of such
Assignee Group, as applicable) $500
SCHEDULE 15.6
ADMINISTRATIVE AGENT'S OFFICE
CREDIT SERVICES (BORROWING NOTICES):
PRIMARY Petra G. Rubio
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520
Phone: 925-675-8062
Fax: 888-969-9237
Email: petra.rubio@bankofamerica.com
AGENCY MANAGEMENT (OTHER NOTICES AS ADMINISTRATIVE AGENT):
PRIMARY Kimberly crane
Bank of America, N.A.
Agency Management
101 North Tryon Street, 15th Floor
NC1-001-15-14
Charlotte, NC 28255
Phone:704-387-5451
Fax: 704-409-0901
Email: kimberly.crane@bankofamerica.com
EXHIBIT A
FORM OF LOAN REQUEST
[INSERT DATE]
Bank of America, N.A., as Administrative Agent
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520
Attention: Petra G. Rubio
Re: Loan Request
Ladies and Gentlemen:
Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.
Pursuant to Section 2.6 of the Credit Agreement, we hereby request that a
Revolving Credit Loan consisting of [a Base Rate Loan in the principal amount of
$_____________________________(1/)] [a Eurodollar Rate Loan in the principal
amount of $________________________(2/) with an Interest Period of [fourteen
(14) days] [one (1) month] [two (2) months] [three (3) months] [six (6) months]
be made on ___________________, 20__. We understand that this request is
irrevocable and binding on us and obligates us to accept the requested Revolving
Credit Loan on such date.
We hereby certify (a) that we will use the proceeds of the requested
Revolving Credit Loan in accordance with the provisions of the Credit Agreement,
(b) that each of the representations and warranties contained in the Credit
Agreement, the other Loan Documents or
- ----------
(1/) Principal amount of Base Rate Loan requested must be a minimum of $500,000
or an integral multiple of $100,000 in excess thereof.
(2/) Principal amount of Eurodollar Rate Loan requested must be a minimum of
$1,000,000 or an integral multiple of $500,000 in excess thereof.
Bank of America, N.A., as Administrative Agent
________________, ____
Page 2
in any document or instrument delivered pursuant to or in connection with the
Credit Agreement was true as of the date that it was made and is true at and as
of the date hereof (except (i) to the extent of changes either (A) resulting
from transactions contemplated or not prohibited by the Credit Agreement or the
other Loan Documents or (B) changes occurring in the ordinary course of business
that singly or in the aggregate do not constitute a Material Adverse Effect, and
(ii) to the extent that such representations and warranties relate expressly to
an earlier date) and (c) that no Default or Event of Default has occurred and is
continuing.
Very truly yours,
THE TIMBERLAND COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
EXHIBIT B
FORM OF SWING LINE LOAN REQUEST
[INSERT DATE]
Bank of America, N.A., as Administrative Agent
2001 Clayton Road, 2nd Floor
CA4-702-02-05
Concord, CA 94520
Attention: Petra G. Rubio
Re: Swing Line Loan Request
Ladies and Gentlemen:
Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.
Pursuant to Section 3.2 of the Credit Agreement, we hereby request that a
Swing Line Loan be made to the Borrower in the principal amount of $___________*
on ___________, 20__ with a maturity date of ___________, 20__** at an interest
rate of ________%***. We understand that this request is irrevocable and binding
on us and obligates us to accept the requested Swing Line Loan on such date.
Very truly yours,
THE TIMBERLAND COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
* Principal amount requested must be in a minimum amount of $500,000 or in
integral multiple of $100,000 in excess thereof.
** Swing Line Loan Maturity Date not to be later than the earliest of (i) the
date which is ten (10) days following the requested Drawdown Date of such
Swing Line Loan, (ii) the occurrence of a Default or Event of Default, and
(iii) the Final Maturity Date.
*** Interest rate not to exceed Base Rate in effect on the date of quotation.
EXHIBIT C
FORM OF
COMPLIANCE CERTIFICATE
________________, 20__
Bank of America, N.A., as Administrative Agent
101 North Tryon Street, 15th Floor
NC1-001-15-14
Charlotte, NC 28255
Attention: Kimberly Crane, Agency Management
Ladies and Gentlemen:
Reference is hereby made to that certain Second Amended and Restated
Revolving Credit Agreement, dated as of June 2, 2006 (as amended, modified,
supplemented or restated and in effect from time to time, the "Credit
Agreement"), by and among THE TIMBERLAND COMPANY, a Delaware corporation (the
"Borrower"), BANK OF AMERICA, N.A. and the other lending institutions which are
or may become parties thereto from time to time (collectively, the "Lenders")
and Bank of America, N.A., as administrative agent (the "Agent"). Capitalized
terms used herein without definition and which are defined in the Credit
Agreement shall have the same meanings herein as in the Credit Agreement.
Pursuant to Section 7.3(c) of the Credit Agreement, the undersigned [Chief
Financial Officer/Chief Accounting Officer/Treasurer] on behalf of the Borrower
hereby certifies to you as follows: (a) the computations attached hereto set
forth in reasonable detail compliance with the covenants contained in Section 9
of the Credit Agreement as of the last day of the fiscal [year/quarter] ended
______________, 20__; (b) as of the date of this Compliance Certificate, no
Default or Event of Default has occurred and is continuing; and (c) the
financial statements delivered herewith were prepared in accordance with GAAP
and in the case of unaudited quarterly financial statements, fairly represent
the financial position of the Borrower and its Subsidiaries as of the date
hereof (subject to year end adjustments and addition of footnotes).
IN WITNESS WHEREOF, the undersigned officer has duly executed this
Compliance Certificate as of the date first written above.
THE TIMBERLAND COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
THE TIMBERLAND COMPANY
COMPLIANCE CERTIFICATE WORKSHEET
9.1 FIXED CHARGE COVERAGE RATIO
(for the Reference Period ended __________, 20__)
A. Consolidated EBITDA:
(i) consolidated earnings (or losses) from the
operations of the Borrower and its
Subsidiaries, after all operating expenses
and other proper charges but before payment
or provision for any income taxes or
interest expenses: $____________
(ii) in each case to the extent deducted in the
calculation of consolidated earnings (or
loss) from the operations of the Borrower
and its Subsidiaries and without
duplication,
(x) depreciation and amortization,
$___________,
(y) expenses, not to exceed
$15,000,000 in the aggregate,
resulting from the issuance of
Capital Stock, provided that such
expenses are and will be non-cash
items:
$____________, and
(z) non-cash writedowns of goodwill,
such writedowns not to exceed
$30,000,000 in the aggregate:
$___________
$____________
(iii) Sum of Items A(i) and A(ii): $____________
B. Consolidated Rental Expense for such period: $____________
C. Consolidated Total Interest Expense for such period: $____________
D. Item A(iii) plus Item B: $____________
E. Item B plus Item C: $____________
F. Ratio of Item D to Item E: ______:______
G. Minimum required ratio: 3.00 : 1.00
Compliance ______ yes/no
-3-
9.2 LEVERAGE RATIO
(for the Reference Period ended __________, 20__)
A. Consolidated Total Funded Debt outstanding on the last
day of such period: $____________
B. Consolidated EBITDA for such period (as set forth in
Item 9.1(A)(iii) above): $____________
C. Leverage Ratio (ratio of Item A to Item B): ______:______
D. Maximum permitted ratio: 2.00 : 1.00
Compliance ______ yes/no
EXHIBIT D
FORM ASSIGNMENT AND ACCEPTANCE
This ASSIGNMENT AND ACCEPTANCE (the "Assignment and Acceptance") is dated
as of the Effective Date set forth below and is entered into by and between
[ASSIGNOR] (the "Assignor") and [ASSIGNEE] (the "Assignee"). Capitalized terms
used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, modified, supplemented or restated and
in effect from time to time, the "Credit Agreement"), receipt of a copy of which
is hereby acknowledged by the Assignee. The Standard Terms and Conditions set
forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Acceptance as if set forth
herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
accepts from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (i) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including without limitation any letters of credit,
guarantees and swing line loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to
clause (i) above (the rights and obligations sold and assigned pursuant to
clauses (i) and (ii) above being referred to herein collectively as, the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Acceptance,
without representation or warranty by the Assignor.
1. Assignor: __________________________________________
2. Assignee: __________________________________________ [and is
an Affiliate/Approved Fund of [identify Lender]]
3. Borrower: The Timberland Company
4. Administrative Agent: Bank of America, N.A., as the administrative agent
under the Credit Agreement
5. Credit Agreement: Second Amended and Restated Revolving Credit
Agreement dated as of June 2, 2006 by and among the
Borrower, the Lenders parties thereto and the
Administrative Agent.
6. Assigned Interest:
Percentage
Aggregate Amount of Amount of Assigned of
Facilities Commitment/Loan for Commitment/Loan Commitment/ CUSIP
Assigned all Lenders* Assigned* Loan(1) Number
- ------------- ------------------- --------------- ----------- ------
Revolving
Credit
Commitment $_________ $_________ ___%
[7. Trade Date: ______________________](2)
Effective Date: ________________ __, 20__ [TO BE INSERTED BY THE ADMINISTRATIVE
AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.]
- ----------
* Amount to be adjusted by the counterparties to take into account any
payments or prepayments made between the Trade Date and the Effective Date.
(1) Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
of all Lenders thereunder.
(2) To be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.
The terms set forth in this Assignment and Acceptance are hereby agreed to:
[ASSIGNOR]
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
[ASSIGNEE]
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
Consented to and Accepted:
BANK OF AMERICA, N.A., as
Administrative Agent
By
----------------------------------
Title:
------------------------------
[Consented to:
THE TIMBERLAND COMPANY
By
----------------------------------
Name:
-------------------------------
Title: ](3)
------------------------------
- ----------
(3) To be added as required under Section 14 of the Credit Agreement.
ANNEX 1
STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ACCEPTANCE
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that (i) it is
the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and
(iii) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Acceptance and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect
to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Loan Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the
Loan Documents or any collateral thereunder, (iii) the financial condition of
the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance
by the Borrower, any of its Subsidiaries or Affiliates or any other Person of
any of their respective obligations under any Loan Document.
1.2. Assignee. The Assignee (a) represents and warrants that (i) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and Acceptance and to consummate the transactions
contemplated hereby and to become a Lender under the Credit Agreement, (ii) it
meets all requirements of an Eligible Assignee under the Credit Agreement
(subject to receipt of such consents as may be required under the Credit
Agreement), (iii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv)
it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 7.3 thereof, as
applicable, 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 and to purchase the Assigned Interest on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender, and (v) if it is a Non-U.S.
Lender, attached to the Assignment and Acceptance is any documentation required
to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, 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 Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.
2
2. Payments. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment and Acceptance shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Acceptance may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Acceptance
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Acceptance. This Assignment and Acceptance shall be governed
by, and construed in accordance with, the law of the State of New York
(excluding the laws applicable to conflicts or choice of law).
EXHIBIT E
FORM OF NOTE
FOR VALUE RECEIVED, the undersigned (the "Borrower") hereby promises to pay
to _____________ or registered assigns (the "Lender"), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of
each Loan from time to time made by the Lender to the Borrower under that
certain Second Amended and Restated Revolving Credit Agreement, dated as of June
2, 2006 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the "Agreement;" the terms defined therein being used
herein as therein defined), among the Borrower, the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, Fronting Bank
and Swing Line Lender.
The Borrower promises to pay interest on the unpaid principal amount of
each Loan from the date of such Loan until such principal amount is paid in
full, at such interest rates and at such times as provided in the Agreement. All
payments of principal and interest shall be made to the Administrative Agent for
the account of the Lender in Dollars in immediately available funds at the
Administrative Agent's Office. If any amount is not paid in full when due
hereunder, such unpaid amount shall bear interest, to be paid upon demand, from
the due date thereof until the date of actual payment (and before as well as
after judgment) computed at the per annum rate set forth in the Agreement.
This Note is one of the Notes referred to in the Agreement, is entitled to
the benefits thereof and may be prepaid in whole or in part subject to the terms
and conditions provided therein. Upon the occurrence and continuation of one or
more of the Events of Default specified in the Agreement, all amounts then
remaining unpaid on this Note shall become, or may be declared to be,
immediately due and payable all as provided in the Agreement. Loans made by the
Lender shall be evidenced by one or more loan accounts or records maintained by
the Lender in the ordinary course of business. The Lender may also attach
schedules to this Note and endorse thereon the date, amount and maturity of its
Loans and payments with respect thereto.
The Borrower, for itself, its successors and assigns, hereby waives
diligence, presentment, protest and demand and notice of protest, demand,
dishonor and non-payment of this Note.
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK.
THE TIMBERLAND COMPANY
By:
------------------------------------
Name:
----------------------------------
Title:
---------------------------------
LOANS AND PAYMENTS WITH RESPECT THERETO
AMOUNT OF
PRINCIPAL OR OUTSTANDING
END OF INTEREST PRINCIPAL
TYPE OF AMOUNT OF INTEREST PAID THIS BALANCE NOTATION
DATE LOAN MADE LOAN MADE PERIOD DATE THIS DATE MADE BY
- ---------- --------- --------- -------- ------------ ----------- --------