CONFORMED COPY
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HEXCEL CORPORATION
AND
CERTAIN OF ITS SUBSIDIARIES
_________________________
$900,000,000 SYNDICATED CREDIT FACILITIES
$10,000,000 EUROPEAN OVERDRAFT FACILITY
_________________________
SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
DATED AS OF SEPTEMBER 15, 1998
_________________________
CREDIT SUISSE FIRST BOSTON,
as Administrative Agent and Lead Arranger
CITIBANK, N.A.,
as Documentation Agent
CREDIT | FIRST
SUISSE | BOSTON [LOGO]
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TABLE OF CONTENTS
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SECTION 1. DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 Defined Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 Other Definitional Provisions. . . . . . . . . . . . . . . . . . . . 30
SECTION 2. AMOUNT AND TERMS OF TRANCHE A LOAN COMMITMENTS . . . . . . . . . . . 30
2.1 Tranche A Term Loans . . . . . . . . . . . . . . . . . . . . . . . . 30
2.2 Procedure for Tranche A Loan Borrowing . . . . . . . . . . . . . . . 31
2.3 Amortization of Tranche A Loans. . . . . . . . . . . . . . . . . . . 31
2.4 Use of Proceeds of Tranche A Loans . . . . . . . . . . . . . . . . . 31
SECTION 3. AMOUNT AND TERMS OF TRANCHE B LOAN COMMITMENTS . . . . . . . . . . . 31
3.1 Tranche B Term Loans . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2 Procedure for Tranche B Loan Borrowing . . . . . . . . . . . . . . . 32
3.3 Amortization of Tranche B Loans. . . . . . . . . . . . . . . . . . . 32
3.4 Use of Proceeds of Tranche B Loans . . . . . . . . . . . . . . . . . 32
SECTION 4. AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENTS . . . . . . . . . . 32
4.1 Revolving Credit Commitments . . . . . . . . . . . . . . . . . . . . 32
4.2 Procedure for Revolving Credit Borrowing . . . . . . . . . . . . . . 33
4.3 Use of Proceeds of Revolving Credit Loans. . . . . . . . . . . . . . 33
SECTION 5. AMOUNT AND TERMS OF DOMESTIC LETTER OF CREDIT SUB-FACILITY . . . . . 34
5.1 L/C Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
5.2 Procedure for Issuance of Domestic Letters of Credit . . . . . . . . 35
5.3 Fees, Commissions and Other Charges. . . . . . . . . . . . . . . . . 35
5.4 L/C Participations . . . . . . . . . . . . . . . . . . . . . . . . . 36
5.5 Reimbursement Obligation of the Company. . . . . . . . . . . . . . . 37
5.6 Obligations Absolute . . . . . . . . . . . . . . . . . . . . . . . . 37
5.7 Domestic Letter of Credit Payments . . . . . . . . . . . . . . . . . 38
5.8 Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
5.9 Issuing Lender Reporting Requirements. . . . . . . . . . . . . . . . 38
5.10 Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 6. AMOUNT AND TERMS OF SWING LINE SUB-FACILITY. . . . . . . . . . . . . 39
6.1 Swing Line Commitments . . . . . . . . . . . . . . . . . . . . . . . 39
6.2 Procedure for Swing Line Loan Borrowing. . . . . . . . . . . . . . . 39
6.3 Refunding of Swing Line Loans. . . . . . . . . . . . . . . . . . . . 40
6.4 Unconditional Obligation to Refund Swing Line Loans. . . . . . . . . 41
6.5 Use of Proceeds of Swing Line Loans. . . . . . . . . . . . . . . . . 41
SECTION 7. AMOUNTS AND TERMS OF EUROPEAN FACILITY . . . . . . . . . . . . . . . 41
7.1 European Revolving Credit Facility . . . . . . . . . . . . . . . . . 41
7.2 Procedure for Borrowing Syndicated European Loans. . . . . . . . . . 42
7.3 Procedure for Borrowing Local European Loans . . . . . . . . . . . . 43
7.4 Contingent Currency Conversion . . . . . . . . . . . . . . . . . . . 43
7.5 Matters Relating to Local European Loans . . . . . . . . . . . . . . 44
7.6 Use of Proceeds of European Revolving Loans. . . . . . . . . . . . . 46
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7.7 Termination of Foreign Borrower Status . . . . . . . . . . . . . . . 46
7.8 Resignation of Local Lender. . . . . . . . . . . . . . . . . . . . . 46
7.9 Designation of Additional Foreign Borrowers. . . . . . . . . . . . . 47
7.10 Reporting by Local Lenders . . . . . . . . . . . . . . . . . . . . . 48
7.11 Adjustment of European Loan Commitment . . . . . . . . . . . . . . . 48
SECTION 8. AMOUNT AND TERMS OF EUROPEAN LETTER OF CREDIT SUB-FACILITY . . . . . 49
8.1 European L/C Commitment. . . . . . . . . . . . . . . . . . . . . . . 49
8.2 Procedure for Issuance of European Letters of Credit . . . . . . . . 50
8.3 Fees, Commissions and Other Charges. . . . . . . . . . . . . . . . . 50
8.4 L/C Participations . . . . . . . . . . . . . . . . . . . . . . . . . 51
8.5 Reimbursement Obligation of the Borrowers. . . . . . . . . . . . . . 52
8.6 Obligations Absolute . . . . . . . . . . . . . . . . . . . . . . . . 52
8.7 European Letter of Credit Payments . . . . . . . . . . . . . . . . . 53
8.8 Application. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
8.9 Issuing Lender Reporting Requirements. . . . . . . . . . . . . . . . 53
8.10 Transitional Provisions. . . . . . . . . . . . . . . . . . . . . . . 54
SECTION 9. AMOUNTS AND TERMS OF EUROPEAN OVERDRAFT FACILITY . . . . . . . . . . 54
9.1 European Overdraft Facility. . . . . . . . . . . . . . . . . . . . . 54
9.2 Making of European Overdraft Loans . . . . . . . . . . . . . . . . . 54
9.3 Repayment of European Overdraft Loans. . . . . . . . . . . . . . . . 55
9.4 Use of Proceeds of European Overdraft Loans. . . . . . . . . . . . . 55
9.5 Adjustment of European Overdraft Commitment. . . . . . . . . . . . . 55
SECTION 10. PROVISIONS RELATING TO THE EXTENSIONS OF CREDIT; FEES AND PAYMENTS . 55
10.1 Repayment of Loans; Evidence of Debt . . . . . . . . . . . . . . . . 55
10.2 Facility Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
10.3 Optional Prepayments . . . . . . . . . . . . . . . . . . . . . . . . 57
10.4 Optional Termination or Reduction of Commitment. . . . . . . . . . . 58
10.5 Mandatory Reduction of Commitments and Prepayments . . . . . . . . . 58
10.6 Conversion and Continuation Options. . . . . . . . . . . . . . . . . 61
10.7 Minimum Amounts and Maximum Number of Tranches . . . . . . . . . . . 62
10.8 Interest Rates and Payment Dates . . . . . . . . . . . . . . . . . . 62
10.9 Computation of Interest and Fees . . . . . . . . . . . . . . . . . . 63
10.10 Inability to Determine Interest Rate . . . . . . . . . . . . . . . . 64
10.11 Pro Rata Treatment and Payments. . . . . . . . . . . . . . . . . . . 64
10.12 Illegality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
10.13 Requirements of Law. . . . . . . . . . . . . . . . . . . . . . . . . 66
10.14 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
10.15 Indemnity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
10.16 Certain Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
10.17 Change of Lending Office . . . . . . . . . . . . . . . . . . . . . . 70
10.18 Overall Interest Rate for French Law . . . . . . . . . . . . . . . . 71
10.19 Additional Action in Certain Events. . . . . . . . . . . . . . . . . 71
10.20 European Monetary Union. . . . . . . . . . . . . . . . . . . . . . . 72
SECTION 11. REPRESENTATIONS AND WARRANTIES . . . . . . . . . . . . . . . . . . . 72
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11.1 Financial Condition. . . . . . . . . . . . . . . . . . . . . . . . . 73
11.2 No Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
11.3 Pro Forma Balance Sheet. . . . . . . . . . . . . . . . . . . . . . . 74
11.4 Corporate Existence; Compliance with Law . . . . . . . . . . . . . . 74
11.5 Corporate Power; Authorization; Enforceable Obligations. . . . . . . 75
11.6 No Legal Bar . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
11.7 No Material Litigation . . . . . . . . . . . . . . . . . . . . . . . 75
11.8 No Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
11.9 Ownership of Property; Liens . . . . . . . . . . . . . . . . . . . . 76
11.10 Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . 76
11.11 Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
11.12 Federal Regulations. . . . . . . . . . . . . . . . . . . . . . . . . 76
11.13 Employee Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . 76
11.14 Investment Company Act; Other Regulations. . . . . . . . . . . . . . 77
11.15 Subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
11.16 Environmental Matters. . . . . . . . . . . . . . . . . . . . . . . . 77
11.17 Collateral Documents . . . . . . . . . . . . . . . . . . . . . . . . 79
11.18 Accuracy and Completeness of Information . . . . . . . . . . . . . . 79
11.19 Projections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
11.20 Solvency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
11.21 Government Contracts . . . . . . . . . . . . . . . . . . . . . . . . 80
11.22 Year 2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
SECTION 12. CONDITIONS PRECEDENT . . . . . . . . . . . . . . . . . . . . . . . . 81
12.1 Conditions to Initial Loans. . . . . . . . . . . . . . . . . . . . . 81
12.2 Conditions to Each Loan. . . . . . . . . . . . . . . . . . . . . . . 84
SECTION 13. AFFIRMATIVE COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . 84
13.1 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . 85
13.2 Certificates; Other Information. . . . . . . . . . . . . . . . . . . 85
13.3 Payment of Obligations . . . . . . . . . . . . . . . . . . . . . . . 86
13.4 Conduct of Business and Maintenance of Existence . . . . . . . . . . 86
13.5 Maintenance of Property; Insurance . . . . . . . . . . . . . . . . . 87
13.6 Inspection of Property; Books and Records; Discussions . . . . . . . 87
13.7 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
13.8 Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . 88
13.9 Additional Collateral. . . . . . . . . . . . . . . . . . . . . . . . 88
SECTION 14. NEGATIVE COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . 89
14.1 Financial Condition Covenants. . . . . . . . . . . . . . . . . . . . 89
14.2 Limitation on Indebtedness . . . . . . . . . . . . . . . . . . . . . 90
14.3 Limitation on Liens. . . . . . . . . . . . . . . . . . . . . . . . . 92
14.4 Limitation on Guarantee Obligations. . . . . . . . . . . . . . . . . 94
14.5 Limitation on Fundamental Changes. . . . . . . . . . . . . . . . . . 95
14.6 Limitation on Sale of Assets . . . . . . . . . . . . . . . . . . . . 95
14.7 Limitation on Restricted Payments. . . . . . . . . . . . . . . . . . 97
14.8 Limitation on Investments. . . . . . . . . . . . . . . . . . . . . . 97
14.9 Limitation on Transactions with Affiliates . . . . . . . . . . . . . 98
14.10 Limitation on Sales and Leasebacks . . . . . . . . . . . . . . . . . 99
14.11 Limitation on Changes in Fiscal Year or Accounting Treatment . . . . 99
14.12 Limitation on Negative Pledge Clauses. . . . . . . . . . . . . . . . 99
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14.13 Limitation on Lines of Business. . . . . . . . . . . . . . . . . . . 99
14.14 Limitation on Modification of Agreements and Payments on Account of
Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
14.15 No New Restrictions on Subsidiary Dividends. . . . . . . . . . . . . 100
SECTION 15. EVENTS OF DEFAULT. . . . . . . . . . . . . . . . . . . . . . . . . . 101
SECTION 16. THE ADMINISTRATIVE AGENT AND THE DOCUMENTATION AGENT . . . . . . . . 104
16.1 Appointment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
16.2 Delegation of Duties . . . . . . . . . . . . . . . . . . . . . . . . 105
16.3 Exculpatory Provisions . . . . . . . . . . . . . . . . . . . . . . . 105
16.4 Reliance by Administrative Agent and Documentation Agent . . . . . . 105
16.5 Notice of Default. . . . . . . . . . . . . . . . . . . . . . . . . . 106
16.6 Non-Reliance on Administrative Agent, Documentation Agent and Other
Lenders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
16.7 Indemnification. . . . . . . . . . . . . . . . . . . . . . . . . . . 107
16.8 Agents in their Individual Capacities. . . . . . . . . . . . . . . . 107
16.9 Successor Agents . . . . . . . . . . . . . . . . . . . . . . . . . . 107
SECTION 17. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
17.1 Amendments and Waivers . . . . . . . . . . . . . . . . . . . . . . . 108
17.2 Release of Collateral. . . . . . . . . . . . . . . . . . . . . . . . 109
17.3 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
17.4 No Waiver; Cumulative Remedies . . . . . . . . . . . . . . . . . . . 111
17.5 Survival of Representations and Warranties . . . . . . . . . . . . . 111
17.6 Payment of Expenses and Taxes. . . . . . . . . . . . . . . . . . . . 111
17.7 Successors and Assigns; Participations and Assignments . . . . . . . 112
17.8 Adjustments; Set-off . . . . . . . . . . . . . . . . . . . . . . . . 115
17.9 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
17.10 Certain Waivers. . . . . . . . . . . . . . . . . . . . . . . . . . . 116
17.11 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
17.12 Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
17.13 GOVERNING LAW. . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
17.14 Submission To Jurisdiction; Waivers. . . . . . . . . . . . . . . . . 117
17.15 Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . . . . 118
17.16 WAIVERS OF JURY TRIAL. . . . . . . . . . . . . . . . . . . . . . . . 119
17.17 Confidentiality. . . . . . . . . . . . . . . . . . . . . . . . . . . 119
17.18 Judgment Currency. . . . . . . . . . . . . . . . . . . . . . . . . . 119
17.19 Delayed Funding of European Revolving Loans. . . . . . . . . . . . . 120
SCHEDULES
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Schedule I Lenders; Commitments
Schedule II Addresses for Notices
Schedule 5.10 Existing Domestic Letters of Credit
Schedule 8.10 Existing European Letters of Credit
Schedule 10.5 Permitted Property Sales and Estimated Net Proceeds
Schedule 11.5 Approvals
Schedule 11.7 Existing Litigation
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Schedule 11.15 Subsidiaries
Schedule 11.16 Environmental Matters
Schedule 12.1 International Counsel
Schedule 14.2 Indebtedness
Schedule 14.3 Liens
Schedule 14.4 Guarantee Obligations
Schedule 14.9 Permitted Transactions with Affiliates
Schedule 14.14 Permitted Payments of Indebtedness
EXHIBITS
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Exhibit A-1 Form of Tranche A Note
Exhibit A-2 Form of Tranche B Note
Exhibit A-3 Form of Revolving Credit Note
Exhibit A-4 Form of Swing Line Note
Exhibit B Form of Collateral Agreement
Exhibit C Form of Opinion of Skadden, Arps, Slate, Meagher & Flom
LLP
Exhibit D-1 Form of Notice of Borrowing (Drawings)
Exhibit D-2 Form of Notice of Borrowing (Conversions)
Exhibit D-3 Form of Notice of Borrowing (Continuations)
Exhibit E Form of Assignment and Acceptance
Exhibit F Form of Compliance Certificate
Exhibit G Form of Additional Borrower Joinder Agreement
Exhibit H Form of Local Lender Joinder Agreement
Exhibit I Form of Exemption Certificate
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SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of September
15, 1998, among:
(a) HEXCEL CORPORATION, a Delaware corporation (with its successors and
permitted assigns, the "COMPANY");
(b) the FOREIGN BORROWERS from time to time parties hereto (together with the
Company, the "BORROWERS");
(c) the LENDERS from time to time parties hereto;
(d) CITIBANK, N.A., a national banking association, as documentation agent (the
"DOCUMENTATION AGENT"); and
(e) CREDIT SUISSE FIRST BOSTON, a Swiss banking association ("CSFB"), as lead
arranger (in such capacity, the "ARRANGER") and as administrative agent (in
such capacity, the "ADMINISTRATIVE AGENT") for the Lenders.
W I T N E S S E T H:
WHEREAS, the Company was a party to the Credit Agreement, dated as
of June 27, 1996 (as amended, supplemented or otherwise modified from time to
time, the "FIRST AGREEMENT"), with the Foreign Borrowers from time to time
parties thereto, the banks and other financial institutions from time to time
parties thereto, Citibank, N.A., as collateral agent, and CSFB, as
administrative agent;
WHEREAS, the First Agreement was superseded by the Amended and
Restated Credit Agreement, dated as of March 5, 1998 (as amended,
supplemented or otherwise modified from time to time, the "EXISTING
AGREEMENT"), among the Company, the Foreign Borrowers from time to time
parties thereto, the banks and other financial institutions from time to time
parties thereto, Citibank, N.A., as collateral agent, Citicorp Securities,
Inc., as syndication agent, CSFB, as documentation agent and CSFB, as
administrative agent;
WHEREAS, the Company has requested that the Existing Agreement be
amended as more fully described herein;
WHEREAS, each of the parties to the Existing Agreement is agreeable
to the requested amendments, but only upon the terms and subject to the
conditions set forth herein, and each of the parties to the Existing
Agreement, for convenience of reference, has agreed to restate the Existing
Agreement as so amended;
WHEREAS, each of the Lenders and the other parties hereto are
agreeable to the terms and provisions of the Existing Agreement as amended
and restated hereby;
NOW, THEREFORE, in consideration of the premises and mutual
covenants herein contained, the parties to the Existing Agreement agree that
the Existing Agreement shall be and hereby is amended and restated in its
entirety and the parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
2
1.1 DEFINED TERMS. As used in this Agreement, the following terms
shall have the following meanings:
"ABR": for any day, a rate PER ANNUM equal to the greater of (i) the
Prime Rate in effect on such day and (ii) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. Any change in the ABR due to a
change in the Prime Rate or the Federal Funds Effective Rate shall be
effective as of the opening of business on the effective day of such change
in the Prime Rate or the Federal Funds Effective Rate, respectively.
"ABR LOANS": Loans (including, without limitation, Swing Line Loans)
the rate of interest applicable to which is based upon the ABR.
"ACQUIRED BUSINESSES": the assets acquired pursuant to the
Acquisition.
"ACQUISITION": the acquisition by AcquisitionCo and its Subsidiaries
of substantially all of the assets (other than certain fixed assets,
equipment and real property) of Clark-Schwebel Holdings, Inc. and its
Subsidiaries pursuant to the CS Asset Purchase Agreement.
"ACQUISITIONCO": Clark-Schwebel Holding Corp., a Delaware corporation
and a Wholly-owned Subsidiary of the Company, and any successors thereto.
"ADDITIONAL BORROWER": as defined in subsection 7.9(a).
"ADDITIONAL BORROWER JOINDER AGREEMENT": an Additional Borrower
Joinder Agreement, substantially in the form of Exhibit G, delivered
pursuant to subsection 7.9(b).
"ADMINISTRATIVE AGENT": as defined in the preamble hereto.
"AFFILIATE": as to any Person, any other Person (other than a
Subsidiary) which, directly or indirectly, is in control of, is controlled
by, or is under common control with, such Person. For purposes of this
definition, "control" of a Person means the power, directly or indirectly,
either to (a) vote 5% or more of the securities having ordinary voting
power for the election of directors of such Person or (b) direct or cause
the direction of the management and policies of such Person, whether by
contract or otherwise; PROVIDED that Hexcel Foundation shall be deemed not
to be an "Affiliate" of the Company or any of its Subsidiaries during such
time as Hexcel Foundation maintains its status as a not-for-profit
corporation for purposes of California law.
"AGGREGATE COMMITMENT": the collective reference to the Aggregate
Tranche A Loan Commitment (or, after the Closing Date, the aggregate
principal amount of Tranche A Loans then outstanding and any availability
for the borrowing of Subsequent Tranche A Loans), the Aggregate Tranche B
Loan Commitment (or, after the Closing Date, the aggregate principal amount
of Tranche B Loans then outstanding), the Aggregate Revolving Credit
Commitment and the Aggregate European Loan Commitment.
"AGGREGATE EUROPEAN LOAN COMMITMENT": $100,000,000, as such amount
may be adjusted from time to time pursuant to this Agreement.
"AGGREGATE OUTSTANDING EUROPEAN EXTENSIONS OF CREDIT": as to any
European Lender at any time, an amount equal to the sum of (a) the
aggregate outstanding principal amount of all Syndicated European Loans
made by such European Lender and (b) such European Lender's
3
European Commitment Percentage of the European L/C Obligations and Local
European Loans then outstanding.
"AGGREGATE OUTSTANDING RC EXTENSIONS OF CREDIT": as to any Revolving
Credit Lender at any time, an amount equal to the sum of (a) the aggregate
outstanding principal amount of all Revolving Credit Loans made by such
Revolving Credit Lender and (b) such Revolving Credit Lender's Revolving
Credit Commitment Percentage of the Domestic L/C Obligations and Swing Line
Loans then outstanding.
"AGGREGATE REVOLVING CREDIT COMMITMENT": $250,000,000, as such amount
may be adjusted from time to time pursuant to this Agreement.
"AGGREGATE TRANCHE A LOAN COMMITMENT": $275,000,000, as such amount
may be reduced from time to time pursuant to this Agreement.
"AGGREGATE TRANCHE B LOAN COMMITMENT": $275,000,000, as such amount
may be reduced from time to time pursuant to this Agreement.
"AGREEMENT": this Credit Agreement, as amended, supplemented or
otherwise modified from time to time.
"APPLICABLE FACILITY FEE RATE": for each day, the rate per annum set
forth below opposite the Leverage Ratio then in effect:
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Leverage Ratio Facility Fee
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Greater than or equal to 4.5 to 1.0 50.0 b.p.
Greater than or equal to 4.0 to 1.0, but less than 37.5 b.p.
4.5 to 1.0
Greater than or equal to 3.5 to 1.0, but less than 35.0 b.p.
4.0 to 1.0
Greater than or equal to 3.0 to 1.0, but less than 30.0 b.p.
3.5 to 1.0
Greater than or equal to 2.5 to 1.0, but less than 25.0 b.p.
3.0 to 1.0
Less than 2.5 to 1.0 22.5 b.p.
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; PROVIDED that, until the date which is the last day of the second
complete fiscal quarter to end after the Closing Date, the Leverage Ratio
shall (for purposes of this definition only) be deemed to be greater than
4.0 to 1.0, but less than 4.5 to 1.0.
"APPLICABLE MARGIN": for each day, the rate per annum set forth under
the relevant column heading below opposite the Leverage Ratio then in
effect:
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Applicable Margin
----------------------------------------------------------------------------
4
----------------------------------------------------------------------------
Tranche A Loans
Revolving Credit Loans
Swing Line Loans
European Revolving Loans Tranche B Loans
--------------------------------- -------------------------------
Leverage Ratio Eurocurrency Loans ABR Loans Eurocurrency Loans ABR Loans
- ---------------------------------------------- ------------------ --------- ------------------ ---------
Greater than or equal to 4.5 to 1.0 175 b.p. 75 b.p. 225 b.p. 125 b.p.
Greater than or equal to 4.0 to 1.0, but less 150 b.p. 50 b.p. 200 b.p. 100 b.p.
than 4.5 to 1.0
Greater than or equal to 3.5 to 1.0, but less 125 b.p. 25 b.p. 200 b.p. 100 b.p.
than 4.0 to 1.0
Greater than or equal to 3.0 to 1.0, but less 100 b.p. 0 b.p. 175 b.p. 75 b.p.
than 3.5 to 1.0
Greater than or equal to 2.5 to 1.0, but less 87.5 b.p. 0 b.p. 175 b.p. 75 b.p.
than 3.0 to 1.0
Less than 2.5 to 1.0 75 b.p. 0 b.p. 175 b.p. 75 b.p.
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Notwithstanding the foregoing:
(a) until the date which is the last day of the second complete
fiscal quarter to end after the Closing Date, the Leverage Ratio
shall (for purposes of this definition only) be deemed to be
greater than 4.0 to 1.0, but less than 4.5 to 1.0;
(b) the "Applicable Margin" from time to time for Swing Line Loans
shall be the same as the "Applicable Margin" then in effect for
ABR Loans;
(c) the "Applicable Margin" from time to time for Eurocurrency Loans
denominated in Optional Currencies shall be increased by any
additional "associated reserve costs" (or analogous costs) not
otherwise included in the Eurocurrency Rate;
(d) the margins set forth above for Revolving Credit Loans, European
Revolving Loans, Swing Line Loans, European Overdraft Loans and
for purposes of calculating fees on Letters of Credit shall be
reduced by the Applicable Facility Fee Rate then in effect;
PROVIDED that the margin for ABR Loans shall not be less than
zero;
(e) for periods prior to the completion of four complete fiscal
quarters following the Closing Date, the Leverage Ratio will be
determined based upon PRO FORMA, combined EBITDA and indebtedness
of the Company
5
and its Subsidiaries (including, without limitation, those
acquired pursuant to the Acquisition).
"APPLICATION": an application, in such form as the relevant Issuing
Lender may specify from time to time, requesting such Issuing Lender to
open a Letter of Credit.
"APPROVED FUND": with respect to any Lender that is a fund that
invests in commercial loans, any other fund that invests in commercial
loans and is managed or advised by the same investment advisor as such
Lender or by an Affiliate which is under common institutional control with
such investment advisor.
"ASSIGNEE": as defined in subsection 17.7(c).
"ASSIGNMENT AGREEMENT": the Assignment and Agreement, dated as of
September 15, 1998, made by the signatories thereto in favor of the
Administrative Agent, as the same may be amended, supplemented or otherwise
modified from time to time.
"AVAILABLE EUROPEAN LOAN COMMITMENT": as to any European Lender, at
any time, an amount equal to the excess, if any, of (a) such European
Lender's European Loan Commitment over (b) the sum of (i) such European
Lender's Aggregate Outstanding European Extensions of Credit, (ii) such
European Lender's European Commitment Percentage of the amount equal to 29%
of the Reserved Proceeds then outstanding and (iii) the aggregate principal
amount of Indebtedness outstanding in reliance upon the provisions of
subsection 14.2(g).
"AVAILABLE REVOLVING CREDIT COMMITMENT": as to any Revolving Credit
Lender, at any time, an amount equal to the excess, if any, of (a) such
Revolving Credit Lender's Revolving Credit Commitment over (b) the sum of
(i) such Revolving Credit Lender's Aggregate Outstanding RC Extensions of
Credit and (ii) such Revolving Credit Lender's Revolving Credit Commitment
Percentage of the amount equal to 71% of the Reserved Proceeds then
outstanding.
"BANKRUPTCY EVENT": any event described in Section 15(f)(i) or (ii).
"BORROWERS": as defined in the preamble hereto.
"BORROWING DATE": any Business Day specified in a Notice of Borrowing
pursuant to subsection 2.2, 3.2, 4.2, 5.2, 6.2, 7.2, 7.3, 8.2 or 9.2 as a
date on which the relevant Borrower requests one or more of the Lenders to
make Loans hereunder.
"BUSINESS DAY": a day other than a Saturday, Sunday or other day on
which commercial banks are authorized or required by law to close in New
York, New York and:
6
(a) in the case of Eurocurrency Loans, in London, England and in the case
of Loans denominated in (i) Austrian shillings, in Vienna, Austria,
(ii) Belgian francs, in Brussels, Belgium, (iii) Dutch guilders, in
Amsterdam, The Netherlands, (iv) French francs, in Lyon, France, (v)
German marks, in Frankfurt-am-Main, Germany, (vi) Italian lire, in
Milan, Italy, (vii) Spanish pesetas, in Madrid, Spain, and (viii) any
other currency (including, without limitation, the Euro), the
principal financial center of the jurisdiction in which such Loan is
being made;
(b) in the case of any Local European Loan, in the jurisdiction of the
relevant Local Lender; and
(c) in the case of Letter of Credit transactions for a particular Issuing
Lender, in the place where its office for issuance or administration
of the pertinent Letter of Credit is located.
"CAPITAL EXPENDITURE": an expenditure in respect of the purchase or
other acquisition of fixed or capital assets (excluding any such asset
acquired in connection with normal replacement and maintenance programs
properly charged to current operations); PROVIDED, that (i) Capital
Expenditures shall include (A) that portion of Financing Leases (other than
the Lease Agreement and any Financing Leases of Interglas which are in
existence on the date that Interglas becomes a Subsidiary of the Company)
which is incurred and capitalized on the balance sheet of the Company and
its Subsidiaries and (B) expenditures for equipment that is purchased
simultaneously with the trade-in or disposal of existing equipment owned by
the Company or any of its Subsidiaries, to the extent the gross purchase
price of the purchased equipment exceeds the actual value attributed to
such equipment at the time of such trade-in or disposal; and (ii) Capital
Expenditures shall exclude expenditures made in connection with the
replacement or restoration of Property, to the extent reimbursed or
financed from insurance or condemnation proceeds.
"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 or options to purchase any of the
foregoing.
"CASH EQUIVALENTS": (a) securities with maturities of one year or
less from the date of acquisition issued or fully guaranteed or insured by
the United States Government or any agency thereof, (b) certificates of
deposit and eurodollar time deposits with maturities of one year or less
from the date of acquisition and overnight bank deposits of any Lender or
of any commercial bank having capital and surplus in excess of
$250,000,000, (c) repurchase obligations of any Lender or of any commercial
bank satisfying the requirements of clause (b) of this definition, having a
term of not more than 30 days with respect to securities issued or fully
guaranteed or insured by the United States Government, (d) commercial paper
of a domestic issuer rated at least A-2 by S&P or P-2 by Moody's, (e)
securities with maturities of one year or less from the date of
7
acquisition issued or fully guaranteed by any state, commonwealth or
territory of the United States, by any political subdivision or taxing
authority of any such state, commonwealth or territory or by any foreign
government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are
rated at least A by S&P or A by Moody's, (f) securities with maturities of
one year or less from the date of acquisition backed by standby letters of
credit issued by any Lender or any commercial bank satisfying the
requirements of clause (b) of this definition or (g) shares of money market
mutual or similar funds which invest exclusively in assets satisfying the
requirements of clauses (a) through (f) of this definition.
"CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, 42 U.S.C. Sections 9601 ET SEQ., as amended, any
successor statutes, and any regulations or legally enforceable guidelines
promulgated thereunder.
"CERCLIS" is defined in subsection 11.16(f).
"CHANGE OF CONTROL" means the occurrence of any of the following events:
(i) (A) any "person" (as such term is used in Section 13(d) and 14(d)
of the Exchange Act, but other than Specialty Chemicals and its Affiliates)
beneficially owns, directly or indirectly, more than 25% of the total voting
power of the voting stock of the Company and (B) the total voting power of
the voting stock of the Company beneficially owned by such "person" exceeds
that which is beneficially owned by the Specialty Chemicals and its
Affiliates; or
(ii) at any time, individuals who constitute the Board of Directors of
the Company on the date hereof (together with any new directors whose
election by such Board of Directors or whose nomination for election by the
shareholders of the Company was approved pursuant to the Governance Agreement
or by a vote of 66-2/3% of the directors of the Company then still in office
who were either directors at the beginning of such period or whose election
or nomination for election was previously so approved) cease for any reason
to constitute a majority of the Board of Directors then in office.
"CHEMICAL HOLDINGS" means Ciba Specialty Chemical Holding Inc., a Swiss
corporation, and its successors.
"CLOSING DATE": the date on which the conditions precedent set forth in
subsection 12.1 shall be satisfied.
"CODE": the Internal Revenue Code of 1986, as amended from time to time.
"COLLATERAL": all assets of the Credit Parties, now owned or
hereinafter acquired, upon which a Lien is purported to be created by any
Security Document (it being
8
understood that, on the Closing Date, the only such assets constituting
"Collateral" shall be Capital Stock).
"COLLATERAL AGREEMENT": the Collateral Agreement to be executed and
delivered by the Company and each Subsidiary Guarantor, substantially in the
form of Exhibit B, as the same may be amended, supplemented or otherwise
modified from time to time.
"COMMERCIAL DOMESTIC LETTER OF CREDIT": as defined in subsection 5.1(b).
"COMMERCIAL EUROPEAN LETTER OF CREDIT": as defined in subsection 8.1(b).
"COMMERCIAL LETTER OF CREDIT": a Commercial Domestic Letter of Credit
or a Commercial European Letter of Credit, as the context shall require.
"COMMITMENT": as to any Lender, its Tranche A Loan Commitment, its
Tranche B Loan Commitment, its Revolving Credit Commitment or its European
Loan Commitment, as the context shall require.
"COMMITMENT PERCENTAGE": as to any Lender, its Tranche A Loan
Commitment Percentage, its Tranche B Commitment Percentage, its Revolving
Credit Commitment Percentage or its European Commitment Percentage, as the
context shall require.
"COMMITMENT PERIOD": the period from and including the date hereof to
but not including the Termination Date or such earlier date on which both the
Aggregate Revolving Credit Commitment and the Aggregate European Loan
Commitment shall terminate as provided herein.
"COMMONLY CONTROLLED ENTITY": an entity, whether or not incorporated,
which is under common control with the Company within the meaning of Section
4001 of ERISA or is part of a group which includes the Company and which is
treated as a single employer under Section 414 of the Code.
"COMPANY": as defined in the preamble.
"CONTAMINANT" means any pollutant, hazardous substance, radioactive
substance, toxic substance, hazardous waste, radioactive waste, special
waste, petroleum or petroleum-derived substance or waste, asbestos in any
form or condition, polychlorinated biphenyls (PCBs), or any hazardous or
toxic constituent thereof and includes, but is not limited to, these terms as
defined under Environmental, Health or Safety Requirements of Law.
"CONTRACTUAL OBLIGATION": as to any Person, any provision of any
security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.
9
"CREDIT DOCUMENTS": this Agreement, the Notes, the Applications and the
Security Documents.
"CREDIT PARTIES": the Company and each of its Subsidiaries (including,
without limitation, each Foreign Borrower) which is a party to a Credit
Document.
"CS ASSET PURCHASE AGREEMENT": the Asset Purchase Agreement, dated as
of July 25, 1998, among Stamford CS Acquisition Corp., Clark-Schwebel
Holdings, Inc., Clark-Schwebel, Inc. and the Company, as the same may be
amended, supplemented or otherwise modified from time to time in accordance
with the provisions of subsections 12.1(c) and 14.14.
"CSFB": as defined in the preamble.
"CURRENCY CONVERSION NOTICE": as defined in subsection 7.4(a).
"DEFAULT": any of the events specified in Section 15, whether or not
any requirement for the giving of notice, the lapse of time, or both, or any
other condition, has been satisfied.
"DIC": the joint venture entered into between the Company and Dainippon
Ink & Chemicals, Inc., pursuant to that certain Parent Company Agreement
dated as of April 17, 1990 (as amended) under which the Company and Dainippon
caused Hexcel Technologies, Inc. and DIC Technologies, Inc. (Wholly-owned
Subsidiaries of the Company and Dainippon Ink & Chemicals, Inc.,
respectively) to enter into that certain Participants Agreement dated as of
September 14, 1990 (as amended) pursuant to which Hexcel Technologies, Inc.
and DIC Technologies, Inc. formed Hexcel-DIC Partnership ("HDP") and pursuant
to which Hexcel Technologies, Inc. and DIC Technologies Inc., caused HDP to
form DIC-Hexcel, Ltd. as a Wholly-owned Subsidiary of HDP.
"DOCUMENTATION AGENT": as defined in the preamble hereto.
"DOLLAR EQUIVALENT" means, with respect to any Optional Currency at the
time of determination thereof, the equivalent of such currency in Dollars
determined at the rate of exchange quoted by the Administrative Agent in New
York, New York at 12:00 noon (New York time) on the last Business Day of the
most recently completed calendar quarter (or, if the Administrative Agent so
elects or any European Lender so requests, on the date of determination), to
prime banks in New York City for the spot purchase in the New York foreign
exchange market of such amount of Dollars with such Optional Currency.
"DOLLARS" and "$": dollars in lawful currency of the United States of
America.
"DOMESTIC L/C COMMITMENT": $10,000,000.
10
"DOMESTIC L/C OBLIGATIONS": at any time, an amount equal to the sum of
(a) the aggregate then undrawn and unexpired amount of the then outstanding
Domestic Letters of Credit and (b) the aggregate amount of drawings under the
Domestic Letters of Credit which have not then been reimbursed pursuant to
subsection 5.5.
"DOMESTIC LETTER OF CREDIT": as defined in subsection 5.1(a).
"DOMESTIC SUBSIDIARY": any Subsidiary of the Company organized under
the laws of any jurisdiction within the United States.
"EBITDA": for any period on a combined basis for any Person, (i) the
sum of the amounts for such period for such Person of (A) Net Income, (B)
depreciation and amortization expense, (C) total Interest Expense, (D)
charges for federal, state, local and foreign income taxes and (E)
extraordinary losses (including restructuring charges and business
acquisition and consolidation expenses) and other nonoperating expenses that
have been deducted in the determination of such Net Income, MINUS (ii) the
sum of (A) extraordinary gains not already excluded from the determination of
such Net Income (including, without limitation, gains in connection with the
sale of Property and gains based upon market valuation, GAAP valuation or
sale of securities) and (B) interest and other nonoperating income.
"ELIGIBLE ASSIGNEE" means (i) a commercial bank organized under the laws
of the United States, or any State thereof, and, if such Eligible Assignee is
to be a Revolving Credit Lender, European Lender or, during such time as the
Subsequent Tranche A Loan remains available, a Tranche A Lender, having total
assets in excess of $5,000,000,000; (ii) a finance company, insurance
company, other financial institution or fund, reasonably acceptable to the
Administrative Agent, that is regularly engaged in making, purchasing or
investing in loans and, if such Eligible Assignee is to be a Revolving Credit
Lender, European Lender or, during such time as the Subsequent Tranche A Loan
remains available, a Tranche A Lender, having total assets in excess of
$5,000,000,000; (iii) a savings and loan association or savings bank
organized under the laws of the United States or any State thereof that has a
net worth, determined in accordance with GAAP, in excess of $500,000,000;
(iv) a commercial bank organized under the laws of any other country that is
a member of the Organization for Economic Cooperation and Development (the
"OECD"), or a political subdivision of any such country, and having total
assets in excess of $5,000,000,000, as long as such bank is acting through a
branch or agency located in the country in which it is organized, in the
Cayman Islands or in another country that is also a member of the OECD; or
(v) the central bank of any country that is a member of the OECD; and, in
each case, is capable of making Loans in accordance with the terms hereof
both in the United States and (if such Eligible Assignee is to be a European
Lender) in each country in which an Optional Currency is the national
currency.
"ENVIRONMENTAL, HEALTH OR SAFETY REQUIREMENTS OF LAW" means all
Requirements of Law derived from or relating to foreign, European Union,
United States federal, state
11
and local laws or regulations relating to or addressing the environment,
health or safety, including but not limited to any law, regulation, or order
relating to the use, handling, or disposal of any Contaminant, any law,
regulation, or order relating to Remedial Action and any law, regulation, or
order relating to workplace or worker safety and health, and such
Requirements of Law as are promulgated by the specifically authorized
Governmental Authority responsible for administering such Requirements of
Law, each as from time to time hereafter in effect.
"ENVIRONMENTAL LIEN" means a Lien in favor of any Governmental Authority
for any (i) liabilities under any Environmental, Health or Safety
Requirements of Law, or (ii) damages arising from, or costs incurred by such
Governmental Authority in response to, a Release or threatened Release of a
Contaminant into the environment.
"ENVIRONMENTAL PROPERTY TRANSFER ACTS" means any applicable Requirement
of Law that, for environmental reasons, conditions, restricts, prohibits or
requires any notification, Remedial Action or disclosure triggered by the
closure of any Property, the transfer, sale or lease of any Property or deed
or title for any Property or any change in the direct or indirect ownership
or control of any Property, including, but not limited to, any so-called
"Industrial Site Recovery Acts" or "Responsible Transfer Acts".
"ERISA": the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"EURO": the single currency of participating member states of the
European Union.
"EUROCURRENCY BASE RATE": the rate per annum determined by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date
which is two Business Days prior to the beginning of the relevant Interest
Period (as specified in the applicable Notice of Borrowing) by reference to
the "British Bankers' Association Interest Settlement Rates" for deposits in
Dollars or the relevant Optional Currency (as set forth by any service
selected by the Administrative Agent which has been nominated by the British
Bankers' Association as an authorized information vendor for the purpose of
displaying such rates) for a period equal to such Interest Period (rounded,
if necessary, upward to the nearest whole multiple of 1/16th of 1%); PROVIDED
that (x) with respect to any European Overdraft Loans or any other
Eurocurrency Loan having an Interest Period of seven (7) days or (y) to the
extent that an interest rate is not ascertainable pursuant to the foregoing
provisions of this definition, the "Eurocurrency Base Rate" shall be the
interest rate per annum determined by the Administrative Agent (or, in the
case of the European Overdraft Loans, by the European Overdraft Lender) to be
the average (rounded upward to the nearest whole multiple of one-sixteenth of
one percent (0.0625%) per annum, if such average is not such a multiple) of
the rates per annum at which deposits in Dollars or the relevant Optional
Currency are offered to major banks in the London interbank market in London,
England by CSFB at approximately 11:00 a.m.
12
(London time) on the date which is two Business Days prior to the beginning
of such Interest Period.
"EUROCURRENCY LOANS": Loans the rate of interest applicable to which is
based upon the Eurocurrency Rate.
"EUROCURRENCY RATE": with respect to each day during each Interest
Period pertaining to a Eurocurrency Loan, a rate per annum determined for
such day in accordance with the following formula (rounded upward to the
nearest 1/100th of 1%, if the Eurocurrency Reserve Requirements are greater
than zero):
Eurocurrency Base Rate
----------------------------------------
1.00 - Eurocurrency Reserve Requirements
"EUROCURRENCY RESERVE REQUIREMENTS" means, for any day, that percentage
which is in effect on such day, as prescribed by the Federal Reserve Board
for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve
requirement) for a member bank of the Federal Reserve System in New York, New
York with deposits exceeding five billion Dollars in respect of Eurocurrency
Liabilities (or in respect of any other category of liabilities which
includes deposits by reference to which the interest rate on Eurocurrency
Rate Loans is determined or any category of extensions of credit or other
assets which includes loans by a non-United States office of any bank to
United States residents).
"EUROPEAN COMMITMENT PERCENTAGE": as to any European Lender at any
time, the percentage which such European Lender's European Loan Commitment
then constitutes of the Aggregate European Loan Commitment (or, at any time
after the Aggregate European Loan Commitment shall have expired or
terminated, the European Commitment Percentage of such European Lender
immediately prior to such expiry or termination).
"EUROPEAN L/C COMMITMENT": $20,000,000 (or the Local Equivalent
thereof).
"EUROPEAN L/C OBLIGATIONS": at any time, an amount equal to the sum of
(a) the aggregate then undrawn and unexpired amount of the then outstanding
European Letters of Credit and (b) the aggregate amount of drawings under the
European Letters of Credit which have not then been reimbursed pursuant to
subsection 8.5.
"EUROPEAN LENDER": each bank or other financial institution holding a
European Loan Commitment hereunder (or, after the last day of the Commitment
Period, having any Aggregate Outstanding European Extensions of Credit
hereunder); collectively, the "EUROPEAN LENDERS".
"EUROPEAN LETTER OF CREDIT": as defined in subsection 8.1(a).
13
"EUROPEAN LOAN COMMITMENT": as to any European Lender, its obligation
to make Syndicated European Loans to and/or issue or participate in Local
European Loans and/or European Letters of Credit issued on behalf of the
Borrowers hereunder in an aggregate principal and/or face amount at any one
time outstanding not to exceed the amount set forth opposite such European
Lender's name on Schedule I under the heading "European Loan Commitment".
"EUROPEAN OVERDRAFT LENDER": Citibank, N.A. (and its successors and
permitted assigns), in its capacity as the lender of the European Overdraft
Loans.
"EUROPEAN OVERDRAFT COMMITMENT": $10,000,000 (or the Local Equivalent
thereof), as such amount may be adjusted from time to time in accordance with
the provisions of subsection 9.5.
"EUROPEAN OVERDRAFT LOANS": as defined in subsection 9.1.
"EUROPEAN REVOLVING LOANS": as defined in subsection 7.1(a).
"EVENT OF DEFAULT": any of the events specified in Section 15, PROVIDED
that any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.
"EXCHANGE ACT": the Securities Exchange Act of 1934 (as amended from
time to time) and any successor statute.
"EXISTING AGREEMENT": as defined in the recitals.
"EXISTING TRANSACTION DOCUMENTS" means, collectively:
(a) the Strategic Alliance Agreement, the Subordinated Ciba Notes, the
Subordinated Ciba Notes Indenture, the Governance Agreement and all other
agreements contemplated by, or entered into by the Company and its
Subsidiaries pursuant to or in connection with, the Strategic Alliance
Agreement;
(b) the Asset Purchase Agreement relating to the acquisition by the
Company of the assets constituting the composite products division of
Hercules Incorporated and any other documents or agreements delivered
thereunder or in connection therewith;
(c) the Asset Purchase Agreement relating to the acquisition by the
Company of the satellite division and certain other assets of Fiberite
Holdings Inc. and any other documents or agreements delivered thereunder or
in connection therewith; and
(d) the CS Asset Purchase Agreement, the Lease Agreement and any other
documents or agreements delivered thereunder or in connection therewith.
14
"FACILITY": each of (a) the Tranche A Loan Commitments and the Tranche
A Loans made thereunder (the "TRANCHE A LOAN FACILITY"), (b) the Tranche B
Loan Commitments and the Tranche B Loans made thereunder (the "TRANCHE B LOAN
FACILITY"), (c) the Revolving Credit Commitments and the extensions of credit
made thereunder (the "REVOLVING CREDIT FACILITY") and (d) the European Loan
Commitments and the extensions of credit made thereunder (the "EUROPEAN LOAN
FACILITY").
"FEDERAL FUNDS EFFECTIVE RATE": for any day, the weighted average of
the rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day which is a Business Day, the average of
the quotations for the day of such transactions received by the
Administrative Agent from three federal funds brokers of recognized standing
selected by it.
"FINANCING LEASE": any lease of property, real or personal, the
obligations of the lessee in respect of which are required in accordance with
GAAP to be capitalized on a balance sheet of the lessee.
"FIXED CHARGES" means, for any period for any Person, the sum, without
duplication, of the amounts for such period of (i) Interest Expense of such
Person, (ii) the scheduled payments of principal on Indebtedness for borrowed
money required to be paid during such period by such Person, including,
without limitation, the principal component of Financing Lease obligations
and (iii) cash dividends paid in respect of Capital Stock by such Person.
"FIXED CHARGE COVERAGE RATIO" means the ratio of (i) EBITDA of the
Company and its Subsidiaries for the most recently completed period of four
consecutive fiscal quarters, MINUS Capital Expenditures paid by the Company
and its Subsidiaries during such period, PLUS Net Proceeds of asset sales
received during such period to the extent not included in the calculation of
EBITDA for such period to (ii) Fixed Charges of the Company and its
Subsidiaries for such period.
"FOREIGN BORROWERS": subject to the provisions of subsection 7.7, the
collective reference to each of:
(i) Hexcel (U.K.) Limited, a corporation organized and existing under
the laws of England and Wales ("HEXCEL-U.K.");
(ii) Hexcel Composites Limited, a corporation organized and existing
under the laws of the United Kingdom ("COMPOSITES-UK");
(iii) Hexcel S.A., a French societe anonyme ("HEXCEL-FRANCE");
(iv) Hexcel Fabrics S.A., a French societe anonyme ("FABRICS-FRANCE");
15
(v) Hexcel Composites S.A., a French societe anonyme ("COMPOSITES-FRANCE");
(vi) Hexcel Composites S.A., a company organized and existing under the
laws of Belgium ("HEXCEL-BELGIUM");
(vii) Salver S.r.l., a limited liability company organized and existing
under the laws of Italy ("SALVER");
(viii) Hexcel Composites GmbH, a company organized and existing under the
laws of Austria ("COMPOSITES-AUSTRIA");
(ix) Hexcel Composites S.A., a corporation organized and existing under
the laws of Spain ("HEXCEL-SPAIN");
(x) Hexcel Composites GmbH, a corporation organized and existing under
the laws of Germany ("HEXCEL-GERMANY"); and
(xi) each other Foreign Borrower from time to time designated in
accordance with the provisions of subsection 7.9.
"FOREIGN BORROWER SUBLIMIT" means, with respect to (a)
Composites-Austria, $2,000,000, (b) Salver, $4,000,000 and (c) each other
Foreign Borrower, $35,000,000 (or, in each case, the Local Equivalent
thereof), as any such amount may be modified from time to time for the
relevant Foreign Borrower by the Company with the prior consent of the
Administrative Agent and any affected Local Lender.
"FOREIGN EMPLOYEE BENEFIT PLAN" means any employee benefit plan as
defined in Section 3(3) of ERISA that is maintained or contributed to for the
benefit of the employees of the Company or any Commonly Controlled Entity or
any of the Company's Subsidiaries, but which is not covered by ERISA pursuant
to ERISA Section 4(b)(4).
"FOREIGN PENSION PLAN" means any Foreign Employee Benefit Plan that,
under applicable local law, is required to be funded through a trust or other
funding vehicle other than a trust or funding vehicle maintained by a
Governmental Authority.
"FOREIGN PLEDGE AGREEMENT": each pledge agreement (or analogous
agreement) by and between the Company or a Domestic Subsidiary, as
applicable, and the Documentation Agent pledging 65% of the ownership
interest (other than shares required by applicable law to be owned by another
Person for the qualification of directors or to satisfy minimum shareholder
requirements) held directly by the Company or such Domestic Subsidiary (as
the case may be) in each Material Subsidiary thereof that is a Foreign
Subsidiary (other than Hexcel Chemical Products (U.K.) Limited, Hexcel
Foreign Sales Corp. and Hexcel do Brasil Servicos S/C Ltda.), as each such
pledge agreement may be amended, supplemented or otherwise modified from time
to time.
16
"FOREIGN SUBSIDIARY": any Subsidiary of the Company organized under the
laws of any jurisdiction outside the United States of America.
"GAAP": generally accepted accounting principles in the United States
of America as in effect from time to time; PROVIDED that, for purposes of
determining compliance with the provisions of subsection 14.1, "GAAP" shall
mean generally accepted account principles in the United States of America as
in effect on December 31, 1997.
"GOVERNANCE AGREEMENT" means the Governance Agreement dated as of
February 29, 1996 by and between Chemical Holdings (as successor to
Ciba-Geigy Limited) and the Company, as the same may be amended, supplemented
or otherwise modified from time to time.
"GOVERNMENTAL AUTHORITY": any nation or government, any state or other
political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"GUARANTEE OBLIGATION": as to any Person (the "GUARANTEEING PERSON"),
any obligation of (a) the guaranteeing person or (b) another Person
(including, without limitation, any bank under any letter of credit) to
induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case
guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or
other similar obligations (the "PRIMARY OBLIGATIONS") of any other third
Person (the "PRIMARY OBLIGOR") in any manner, whether directly or indirectly,
including, without limitation, any obligation of the guaranteeing person,
whether or not contingent, (i) to purchase any such primary obligation or any
property constituting direct or indirect security therefor, (ii) to advance
or supply funds (1) for the purchase or payment of any such primary
obligation or (2) to maintain working capital or equity capital of the
primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation or
(iv) otherwise to assure or hold harmless the owner of any such primary
obligation against loss in respect thereof; PROVIDED, HOWEVER, that the term
Guarantee Obligation shall not include endorsements of instruments for
deposit or collection in the ordinary course of business. The amount of any
Guarantee Obligation of any guaranteeing person shall be deemed to be the
lower of (a) an amount equal to the stated or determinable amount of the
primary obligation in respect of which such Guarantee Obligation is made and
(b) the maximum amount for which such guaranteeing person may be liable
pursuant to the terms of the instrument embodying such Guarantee Obligation,
unless such primary obligation and the maximum amount for which such
guaranteeing person may be liable are not stated or determinable, in which
case the amount of such Guarantee Obligation shall be such guaranteeing
person's maximum reasonably anticipated liability in respect thereof as
determined by the Company in good faith.
17
"INDEBTEDNESS": of any Person at any date (and without duplication),
(a) all indebtedness of such Person for borrowed money or for the deferred
purchase price of property or services (other than current trade
liabilities incurred in the ordinary course of business and payable in
accordance with customary practices), (b) any other indebtedness of such
Person which is evidenced by a note, bond, debenture or similar instrument,
(c) all obligations of such Person under Financing Leases, (d) all
obligations of such Person in respect of acceptances issued or created for
the account of such Person and (e) all liabilities secured by any Lien on
any property owned by such Person even though such Person has not assumed
or otherwise become liable for the payment thereof; PROVIDED, HOWEVER, that
(i) for purposes of calculating compliance with the financial covenants
contained in subsection 14.1 only, the term "Indebtedness" shall include
only such obligations which would be reflected in a consolidated balance
sheet of the Company and its Subsidiaries prepared in accordance with GAAP
and (ii) for purposes of Section 15(e) only, the term "Indebtedness" shall
also include obligations under Interest Rate Agreements and obligations on
account of currency hedging arrangements.
"INITIAL INTERGLAS TRANSACTION": the acquisition by AcquisitionCo or
any of its Subsidiaries of approximately 43.6% of the issued and
outstanding Capital Stock of Interglas pursuant to the CS Asset Purchase
Agreement.
"INSOLVENCY": with respect to any Multiemployer Plan, the condition
that such Plan is insolvent within the meaning of Section 4245 of ERISA.
"INSOLVENT": pertaining to a condition of Insolvency.
"INTEREST COVERAGE RATIO": for any period of four consecutive fiscal
quarters, the ratio of (a) EBITDA of the Company and its Subsidiaries for
such period to (b) total Interest Expense of the Company and its
Subsidiaries for such period.
"INTEREST EXPENSE": for any period on a combined basis for any
Person, all of the following as determined in conformity with GAAP: (i)
total interest expense, whether paid or accrued (without duplication)
(including the interest component of Financing Lease obligations for such
period), including, without limitation, all commissions, discounts and
other fees and charges owed with respect to letters of credit and net costs
under Interest Rate Agreements, but excluding, however, (w) amortization of
discount, (x) capitalized debt issuance costs, (y) interest paid in
property other than cash and (z) any other interest expense not payable in
cash, MINUS (ii) any net payments received during such period under
Interest Rate Agreements.
"INTEREST PAYMENT DATE": (a) as to any ABR Loan, the third Business
Day of each January, April, July and October for the period ending on (and
including) the last day of the immediately preceding December, March, June
or September, respectively, (b) as to any Eurocurrency Loan (including, in
any event, any European Overdraft Loan) having an Interest Period of three
months or less, the last day of such Interest Period and (c) as to any
Eurocurrency Loan (including, in any event, any European Overdraft Loan)
having
18
an Interest Period longer than three months, each day which is three
months, or a whole multiple thereof, after the first day of such Interest
Period (or, if such day is not a Business Day, the next succeeding Business
Day) and the last day of such Interest Period; PROVIDED that interest
payable on account of European Overdraft Loans shall be paid quarterly, on
the last Business Day of each March, June, September and December.
"INTEREST PERIOD": with respect to any Eurocurrency Loan:
(a) initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such
Eurocurrency Loan and ending one, two, three or six months
thereafter (or, unless any affected Lender shall object thereto,
nine months or seven days thereafter), as selected by the relevant
Borrower in its Notice of Borrowing given with respect thereto; and
(b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Eurocurrency Loan and
ending one, two, three or six months thereafter (or, unless any
affected Lender shall object thereto, nine months or seven days
thereafter), as selected by the relevant Borrower by irrevocable
notice to the Administrative Agent delivered by 11:00 a.m. (New York
City time or, with respect to continuations of Loans denominated in
Optional Currencies, London, England time) not less than three
Business Days prior to the last day of the then current Interest
Period with respect thereto;
PROVIDED that, all of the foregoing provisions relating to Interest Periods
are subject to the following:
(1) if any Interest Period would otherwise end on a day that is
not a Business Day, such Interest Period shall be extended to the next
succeeding 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
Business Day;
(2) any Interest Period that would otherwise extend beyond the
Termination Date shall end on the Termination Date;
(3) any Interest Period that begins on the last 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 Business Day of a calendar month; and
(4) the relevant Borrower shall select Interest Periods so as not
to require a payment or prepayment of any Eurocurrency Loan during an
Interest Period for such Loan;
PROVIDED, FURTHER, that European Overdraft Loans shall have an Interest
Period of one day.
19
"INTEREST RATE AGREEMENT": any interest rate swap, option, cap,
collar or insurance or any other agreement or arrangement with any Lender
(or any Affiliate or Subsidiary thereof) which is designed to provide
protection against fluctuations in interest rates, and any renewals thereof
or substitutions therefor.
"INTERGLAS": CS Interglas AG, a German Aktiengesellschaft.
"INTERGLAS TRANSACTION": the collective reference to the Initial
Interglas Transaction and the Subsequent Interglas Transaction.
"INVESTMENT": any (a) advance, loan, extension of credit or capital
contribution to, (b) purchase of any stock, bonds, notes, debentures or
other securities of or any assets constituting a business unit of, or
similar investment in, or (c) for purposes of subsection 14.8(j) only,
incurrence of any Guarantee Obligation with respect to obligations of, any
Person.
"ISSUING LENDER": with respect to any (a) Domestic Letter of Credit,
CSFB or any other Revolving Credit Lender appointed by the Company
(PROVIDED that such other Revolving Credit Lender is reasonably acceptable
to the Administrative Agent and agrees to serve in the capacity of Issuing
Lender), in its capacity as issuer thereof and (b) European Letter of
Credit, CSFB or any other European Lender appointed by the Company
(PROVIDED that such other European Lender is reasonably acceptable to the
Administrative Agent and agrees to serve in the capacity of Issuing
Lender), in its capacity as issuer thereof.
"L/C FEE PAYMENT DATE": the last Business Day of each March, June,
September, and December.
"L/C OBLIGATIONS": at any time, the Domestic L/C Obligations or the
European L/C Obligations, as the context may require.
"L/C PARTICIPANTS": with respect to (a) any Domestic Letter of
Credit, the collective reference to all the Revolving Credit Lenders, other
than the Issuing Lender with respect thereto and (b) any European Letter of
Credit, the collective reference to all the European Lenders, other than
the Issuing Lender with respect thereto.
"LEASE AGREEMENT": the Lease Agreement, dated as of a date on or
about the Closing Date, between CSI Leasing Trust and Hexcel CS Corporation
(to be renamed Clark-Schwebel Corporation on or about the Closing Date) as
the same may be amended, supplemented or otherwise modified from time to
time.
"LENDERS": the collective reference to the Tranche A Lenders, the
Tranche B Lenders, the Revolving Credit Lenders, the Swing Line Lender, the
European Lenders, each Local Lender, the European Overdraft Lender and each
Issuing Lender.
20
"LETTER OF CREDIT": a Domestic Letter of Credit or a European Letter
of Credit, as the context shall require.
"LEVERAGE RATIO": for any period of four consecutive fiscal quarters,
the ratio of Indebtedness of the Company and its Subsidiaries on a
consolidated basis as of the last day of such period to EBITDA of the
Company and its Subsidiaries for such period.
"LIABILITIES AND COSTS" means all liabilities, obligations,
responsibilities, losses and damages with respect to or arising out of any
of the following: personal injury, death, punitive damages, economic
damages, consequential damages, treble damages, intentional, willful or
wanton injury, damage or threat to the environment or public health or
welfare, costs and expenses (including, without limitation, attorney,
expert and consulting fees and costs of investigation, feasibility or
Remedial Action studies), fines, penalties and monetary sanctions,
voluntary disclosures made to, or settlements with, the United States
Government, interest, direct or indirect, known or unknown, absolute or
contingent, past, present or future, including interest, if any, thereon.
"LIEN": any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other
security interest or any preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever (including,
without limitation, any conditional sale or other title retention agreement
and any Financing Lease having substantially the same economic effect as
any of the foregoing).
"LOAN": any Tranche A Loan, Tranche B Loan, Revolving Credit Loan,
Swing Line Loan, European Revolving Loan or European Overdraft Loan, as the
context shall require.
"LOCAL EQUIVALENT" means, with respect to any amount of Dollars at the
time of determination thereof, the equivalent of such currency in the
relevant Optional Currency determined at the rate of exchange quoted by the
Administrative Agent in New York, New York at 11:00 a.m. (local time) on
the date of determination, to prime banks in the jurisdiction of the
principal market for the trading of the relevant Optional Currency for the
spot purchase in such foreign exchange market of such amount of such
Optional Currency with such amount of Dollars.
"LOCAL EUROPEAN LOAN": as defined in subsection 7.1(a)(ii).
"LOCAL LENDER" means, with respect to Local European Loans borrowed by
(a) Hexcel-Belgium, Credit Suisse First Boston, (b) Salver, Credit Suisse
First Boston, (c) Composites-Austria, Credit Suisse First Boston, (d)
Hexcel-Spain, Credit Suisse First Boston Aktiengesellschaft and (e) any
Additional Borrower, the Lender (or Affiliate or Subsidiary thereof) which
has delivered a Local Lender Joinder Agreement with respect to such
Additional Lender, in each case in such Local Lender's capacity as the
lender of such Local European Loans.
21
"LOCAL LENDER JOINDER AGREEMENT": a Local Lender Joinder Agreement,
substantially in the form of Exhibit H, delivered pursuant to subsection
7.8(b) or 7.9(b).
"LOCAL LOAN BORROWER": each Foreign Borrower as to which a Local
Lender has agreed to make Local European Loans (which, initially, shall be
Hexcel-Belgium, Salver, Composites-Austria and Hexcel-Spain).
"MAJORITY FACILITY LENDERS": with respect to any Facility, the
holders of more than 50% of the aggregate unpaid principal amount of the
Term Loans or the Aggregate Outstanding RC Extensions of Credit or
Aggregate Outstanding European Extensions of Credit, as the case may be,
outstanding under such Facility (or, (i) in the case of the Revolving
Credit Facility, prior to any termination of the Revolving Credit
Commitments, the holders of more than 50% of the Aggregate Revolving Credit
Commitments and (ii) in the case of the European Loan Facility, prior to
any termination of the European Loan Commitments, the holders of more than
50% of the Aggregate European Loan Commitments).
"MAJORITY LENDERS": at any time, the Revolving Credit Lenders,
Tranche A Lenders, Tranche B Lenders and European Lenders (voting as a
single class) having Commitments and (after the Closing Date) Tranche A
Loans (and any availability for the borrowing of Subsequent Tranche A
Loans) and Tranche B Loans which aggregate more than 50% of the Aggregate
Commitment then in effect; PROVIDED that, in the event that the Aggregate
Revolving Credit Commitment or the Aggregate European Loan Commitment shall
have terminated, then the "Majority Lenders" shall be determined by
reference to the Aggregate Outstanding RC Extensions of Credit of the
Revolving Credit Lenders (rather than their Commitments) or the Aggregate
Outstanding European Extensions of Credit of the European Lenders (rather
than their Commitments), as the case may be.
"MATERIAL ADVERSE EFFECT": a material adverse effect on (i) the
business, condition (financial or otherwise), operations, performance,
properties or prospects of the Company and its Subsidiaries, taken as a
whole, (ii) the ability of the Borrowers or of the Subsidiary Guarantors,
taken as a whole, to perform their obligations under the Credit Documents
or (iii) the ability of the Lenders, the Documentation Agent or the
Administrative Agent to enforce any material provision of the Credit
Documents.
"MATERIAL SUBSIDIARY": each Foreign Borrower and each other
Subsidiary of the Company that has assets or annual revenues in excess of
$2,500,000.
"MOODY'S": Moody's Investors Service or any successor thereto.
"MULTIEMPLOYER PLAN": a Plan which is a multiemployer plan as defined
in Section 4001(a)(3) of ERISA.
22
"NET INCOME" means, for any period for any Person, the net income (or
loss) after taxes for such period taken as a single accounting period,
determined in conformity with GAAP.
"NET PROCEEDS": with respect to any Net Proceeds Event or series of
related Net Proceeds Events in which the aggregate proceeds is in excess of
$1,000,000 (or the Local Equivalent thereof), (a) the gross cash
consideration, and all cash proceeds (as and when received) of non-cash
consideration (including, without limitation, any such cash proceeds in the
nature of principal and interest payments on account of promissory notes or
similar obligations), received by the Company and its Subsidiaries in
connection with such Net Proceeds Event (other than any such proceeds of
property which is subject to the Lease Agreement, to the extent that the
Lease Agreement requires that such proceeds be applied in a manner other
than that described in subsection 10.5 of this Agreement), MINUS (b) the
sum, without duplication, of (i) any taxes which are paid or actually
payable to any federal, state, local or foreign taxing authority by the
Company and its Subsidiaries and are directly attributable to the receipt
of such Net Proceeds, (ii) the amount of fees and commissions (including
reasonable investment banking fees payable to Persons other than Affiliates
of the Company) legal, accounting, consulting, survey, title and recording
tax expenses and other costs and expenses directly incident to such Net
Proceeds Event which are paid or payable by the Company and its
Subsidiaries, (iii) the amount of such net cash proceeds which are
attributable to (and payable to) minority interests, (iv) the amount of any
reserve reasonably maintained by the Company and its Subsidiaries with
respect to indemnification obligations owing pursuant to the definitive
documentation pursuant to which the Net Proceeds Event is consummated (with
any unused portion of such reserve to constitute Net Proceeds on the date
upon which the indemnification obligations terminate) and (v) except with
respect to a Net Proceeds Event of the type described in clause (c) of the
definition of such term, the amount of Indebtedness (other than
intercompany Indebtedness), if any, which is required to be repaid at the
time or as a result of such Net Proceeds Event out of the proceeds thereof.
"NET PROCEEDS EVENT": (a) the sale, transfer or other disposition by
the Company or any of its Subsidiaries of any real or personal, tangible or
intangible, property (including, without limitation, the sale or issuance
of any Capital Stock, but other than inventory and obsolete or worn-out
property which is sold, transferred or otherwise disposed of in the
ordinary course of business and other than securities issued or sold in
connection with director or employee stock option, stock purchase and
incentive plans) of the Company or such Subsidiary to any Person (other
than to the Company or any of its Subsidiaries), (b) the recovery by the
Company and its Subsidiaries of amounts owing to them under property
insurance policies and (c) the incurrence of any Indebtedness (other than
Indebtedness incurred in reliance upon the provisions of clauses (a)
through (j) or (l) of subsection 14.2) by the Company or any of its
Subsidiaries.
"NON-EXCLUDED TAXES": as defined in subsection 10.14(a).
23
"NOTE": a Tranche A Note, a Tranche B Note, a Revolving Credit Note
or a Swing Line Note, as the context shall require; collectively, the
"NOTES."
"NOTICE OF BORROWING": with respect to (a) any borrowing of Loans, a
Notice of Borrowing (Drawings), substantially in the form of Exhibit D-1,
(b) any conversion of Loans, a Notice of Borrowing (Conversions),
substantially in the form of Exhibit D-2 and (c) any continuation of
Eurocurrency Loans, a Notice of Borrowing (Continuations), substantially in
the form of Exhibit D-3 hereto.
"NPL": as defined in subsection 11.16(f).
"OBLIGATIONS" means, to the extent arising hereunder, under the Notes,
under any other Credit Document or under interest rate or currency hedging
agreements, all Loans, advances, debts, liabilities and obligations owing
by (as applicable) the Borrowers or any Domestic Subsidiary that has
executed the Collateral Agreement to the Administrative Agent, any Lender,
any Affiliate or Subsidiary of the Documentation Agent or any Lender or any
Person entitled to indemnification pursuant to subsection 17.6, of any kind
or nature, present or future, whether or not evidenced by any note,
guaranty or other instrument, whether or not for the payment of money,
whether arising (i) under or in connection with any cash management
services provided by the Administrative Agent or any Affiliate or
Subsidiary of the Administrative Agent, or (ii) by reason of (A) an
extension of credit, (B) opening or amendment of a Letter of Credit or
payment of any draft drawn thereunder, (C) loan, (D) guaranty or (E)
indemnification or (iii) in any other manner, whether direct or indirect
(including those acquired by assignment), absolute or contingent, due or to
become due, now existing or hereafter arising and however acquired. The
term includes, without limitation, all interest, charges, expenses, fees,
reasonable attorneys' fees and disbursements and any other sum chargeable
to the Borrowers hereunder or under any other Credit Document.
"OPTIONAL CURRENCY": the lawful currency of (i) in the case of
Foreign Borrowers other than Local Loan Borrowers: France (French francs),
Germany (Deutschemarks), the United Kingdom (British pounds sterling ("Euro
sterling")); and (ii) in the case of Local Loan Borrowers, in addition to
the currencies listed under (i) above, the lawful currency of Austria
(Austrian shillings), Belgium (Belgian francs), The Netherlands (Dutch
guilders), Italy (Italian lire), Spain (Spanish pesetas) or any other
jurisdiction which the Company has requested in writing to have designated
as an "Optional Currency" and as to which each affected Revolving Credit
Lender or Local Lender (or the European Overdraft Lender, in the case of
European Overdraft Loans to be made in such currency) has agreed in writing
to such designation. For purposes hereof, the term "Optional Currency"
shall include (to the extent not otherwise included herein) the Euro.
"PARTICIPANT": as defined in subsection 17.7(b).
"PBGC": the Pension Benefit Guaranty Corporation established pursuant
to Subtitle A of Title IV of ERISA.
24
"PERMITTED BELGIAN CAPITAL": Investments made by the Company and its
Subsidiaries in Hexcel-Belgium and acquisitions by the Company and its
Subsidiaries of assets of Hexcel-Belgium in order to provide capital to
Hexcel-Belgium; PROVIDED that (a) the aggregate principal amount of such
Investments (other than Investments taking the form of intercompany loans)
and acquisitions shall not exceed $20,000,000 (or the Local Equivalent
thereof) and (b) the aggregate principal amount of such Investments which
take the form of intercompany loans shall not at any one time exceed the
amount equal to $20,000,000 (or the Local Equivalent thereof).
"PERMITTED LEASE INDEBTEDNESS": obligations under Financing Leases
and purchase money Indebtedness in an aggregate amount not to exceed
$90,000,000 incurred, acquired or assumed (or, in the case of Interglas, in
existence on the date Interglas becomes a Subsidiary of the Company) by
AcquisitionCo or its Subsidiaries in connection with the Acquisition or the
Interglas Transaction (PROVIDED that, except with respect to the Financing
Lease existing pursuant to the Lease Agreement, such Financing Leases and
purchase money Indebtedness existed at the time of the Acquisition (or, in
the case of Interglas, at the time of the Interglas Transaction) and were
not created in anticipation thereof) and any refinancings, refundings,
renewals or extensions thereof; PROVIDED that (x) the aggregate principal
amount of replacement Indebtedness or Financing Leases is not greater than
the principal amount of the Indebtedness or Financing Leases being so
replaced and (y) the terms of such replacement Indebtedness or Financing
Leases, as applicable, are, in the aggregate, no less favorable to the
Company than the terms of the Indebtedness or Financing Leases, as
applicable, being so replaced.
"PERMITTED SUBORDINATED INDEBTEDNESS": the collective reference to
(a) the Subordinated Debentures, (b) the Subordinated Convertible Notes and
(c) the Subordinated Ciba Notes.
"PERSON": an individual, partnership, corporation, business trust,
joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.
"PLAN": at a particular time, any employee benefit plan which is
covered by ERISA and in respect of which the Company or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would
under Section 4069 of ERISA be deemed to be) an "employer" as defined in
Section 3(5) of ERISA.
"PRIME RATE": the rate of interest per annum publicly announced from
time to time by the Administrative Agent as its prime rate in effect at its
principal office in New York City.
"PROPERTY" means any real or personal property, including plant,
building, facility, structure, underground storage tank or unit, equipment,
inventory, general intangible, receivable, or other asset owned, leased or
operated by the Company or any of its
25
Subsidiaries, as applicable (including any surface water thereon or
adjacent thereto, and soil and groundwater thereunder).
"REFUNDED SWING LINE LOANS": as defined in subsection 6.3(a).
"REGISTER": as defined in subsection 17.7(d).
"REGULATION U": Regulation U of the Board of Governors of the Federal
Reserve System as in effect from time to time.
"REIMBURSEMENT OBLIGATION": the obligation of the Company to
reimburse the Issuing Lender pursuant to subsection 5.5 for amounts drawn
under Domestic Letters of Credit issued by it or subsection 8.5 for amounts
drawn under European Letters of Credit issued by it, as the case may be.
"RELEASE" means release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, leaching or migration into the
indoor or outdoor environment or into or out of any Property, including the
movement of Contaminants through or in the air, soil, surface water,
groundwater or Property.
"REMEDIAL ACTION" means actions required to (i) clean up, remove,
treat or in any other way address Contaminants in the indoor or outdoor
environment; (ii) prevent the Release or threat of Release or minimize the
further Release of Contaminants; or (iii) investigate and determine if a
remedial response is needed and to design such a response and post-remedial
investigation, monitoring, operation and maintenance and care.
"REORGANIZATION": with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section
4241 of ERISA.
"REPORTABLE EVENT": any of the events set forth in Section 4043(b) of
ERISA, other than those events as to which the thirty day notice period is
waived under subsections .13, .14, .16, .18, .19 or .20 of PBGC Reg.
Section 2615.
"REQUIRED LENDERS": at any time, the Revolving Credit Lenders,
Tranche A Lenders, Tranche B Lenders and European Lenders (voting as a
single class) having Commitments and (after the Closing Date) Tranche A
Loans (and any availability for the borrowing of Subsequent Tranche A
Loans) and Tranche B Loans which aggregate more than 66-2/3% of the
Aggregate Commitment then in effect; PROVIDED that, in the event that the
Aggregate Revolving Credit Commitment or the Aggregate European Loan
Commitment shall have terminated, then the "Required Lenders" shall be
determined by reference to the Aggregate Outstanding RC Extensions of
Credit of the Revolving Credit Lenders (rather than their Commitments) or
the Aggregate Outstanding European Extensions of Credit of the European
Lenders (rather than their Commitments), as the case may be.
26
"REQUIREMENT OF LAW": as to any Person, the Certificate of
Incorporation and By-Laws or other organizational or governing documents of
such Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.
"RESERVED PROCEEDS": at any date, the aggregate amount of Net
Proceeds received by the Company and its Subsidiaries on account of any Net
Proceeds Event described in clause (a) or (b) of the definition of such
term which was consummated or recovered (as the case may be) within the
immediately preceding 365 days, other than any such Net Proceeds which (x)
have been reinvested in assets similar to those from which such Net
Proceeds were derived during such 365-day period or (y) have been applied
in accordance with the terms of subsection 10.5(g) (it being understood
that amounts not so applied pursuant to the provisions of clause (i) or
(ii) of the proviso to subsection 10.5(g) shall be deemed not to constitute
"Reserved Proceeds").
"RESPONSIBLE OFFICER": with respect to:
(a) any Borrower, the chief executive officer, chief operating
officer or chief financial officer of the Company or, with respect to
financial matters, chief financial officer, treasurer or controller of such
Borrower; and
(b) any Borrower (other than the Company) which does not have any of
the relevant officers described in clause (a) above, the senior manager,
financial manager or equivalent position (as applicable) of such Borrower.
"REVOLVING CREDIT COMMITMENT": as to any Revolving Credit Lender, its
obligation to make Revolving Credit Loans to and/or issue or participate in
Swing Line Loans and/or Domestic Letters of Credit issued on behalf of the
Borrowers hereunder in an aggregate principal and/or face amount at any one
time outstanding not to exceed the amount set forth opposite such Revolving
Credit Lender's name on Schedule I under the heading "Revolving Credit
Commitment".
"REVOLVING CREDIT COMMITMENT PERCENTAGE": as to any Revolving Credit
Lender at any time, the percentage which such Revolving Credit Lender's
Revolving Credit Commitment then constitutes of the Aggregate Revolving
Credit Commitment (or, at any time after the Aggregate Revolving Credit
Commitment shall have expired or terminated, the Revolving Credit
Commitment Percentage of such Revolving Credit Lender immediately prior to
such expiry or termination).
"REVOLVING CREDIT LENDER": each bank or other financial institution
holding a Revolving Credit Commitment hereunder (or, after the last day of
the Commitment Period, having any Aggregate Outstanding RC Extensions of
Credit hereunder); collectively, the "REVOLVING CREDIT LENDERS".
27
"REVOLVING CREDIT LOANS": as defined in subsection 4.1.
"REVOLVING CREDIT NOTE": as defined in subsection 10.1(e).
"SECURITY DOCUMENTS": the collective reference to the Collateral
Agreement, the Foreign Pledge Agreements and all other security documents
hereafter delivered to the Administrative Agent or the Documentation Agent
granting a Lien on any asset or assets of any Person to secure the Loans
and other obligations and liabilities of any Borrower hereunder and under
any of the other Credit Documents or to secure any guarantee thereof.
"SINGLE EMPLOYER PLAN": any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan.
"SOLVENT", when used with respect to any Person, means that at the
time of determination, (A) (i) the fair market value of its assets is in
excess of the total amount of its liabilities (including, without
limitation, contingent liabilities), and (ii) the present fair saleable
value of its assets is greater than its probable liability on its existing
debts as such debts become absolute and matured, and (iii) it is then able
and expects to be able to pay its debts (including, without limitation,
contingent debts and other commitments) as they mature, and (iv) it has
capital sufficient to carry on its business as conducted and as proposed to
be conducted; and (B) with respect to Hexcel-U.K. and Composites-UK only,
such Person is not unable to pay its debts within the meaning of Section
123 of the Insolvency Act of 1986, and will not become unable to pay its
debts within the meaning of that Section in consequence of its entry into
the Credit Agreement, any other Credit Document or any other agreement or
instrument executed and delivered or to be executed and delivered pursuant
hereto or thereto or in connection herewith or therewith or any of the
transactions contemplated hereby or thereby.
"SPECIALTY CHEMICALS": the collective reference to Chemical Holdings
and Ciba Specialty Chemicals Corporation, a Delaware corporation, and their
successors.
"S&P": Standard & Poor's Rating Services or any successor thereto.
"STANDBY DOMESTIC LETTER OF CREDIT": as defined in subsection 5.1(b).
"STANDBY EUROPEAN LETTER OF CREDIT": as defined in subsection 8.1(b).
"STANDBY LETTER OF CREDIT": a Standby Domestic Letter of Credit or a
Standby European Letter of Credit, as the context shall require.
"STRATEGIC ALLIANCE AGREEMENT" means the Strategic Alliance Agreement
dated as of September 29, 1995 and amended as of December 12, 1995 and as
of February 28, 1996, among the Company and Specialty Chemicals (as
successor to Ciba-Geigy Limited
28
and Ciba-Geigy Corporation), as such agreement may be amended, supplemented
or otherwise modified from time to time in accordance with subsection
14.14.
"SUBORDINATED CIBA NOTES": the Increasing Rate Senior
Subordinated Notes, due 2003, issued or to be issued by the Company in
an aggregate principal amount not to exceed $43,000,000 (as such amount
may be adjusted in accordance with the Strategic Alliance Agreement)
and governed by the terms of the Subordinated Ciba Notes Indenture.
"SUBORDINATED CIBA NOTES INDENTURE": the Indenture, dated as of
February 29, 1996, between the Company and First Trust of California,
N.A., as trustee, as such agreement has been amended pursuant to (a)
the First Supplemental Indenture, dated as of June 27, 1996, thereto,
(b) the Second Supplemental Indenture, dated as of March 3, 1998,
thereto, and (c) the Third Supplemental Indenture, dated as of the
Closing Date, thereto, and as such agreement may be further amended,
supplemented or otherwise modified from time to time in accordance with
the terms of this Agreement.
"SUBORDINATED CONVERTIBLE NOTES": the 7% Convertible Subordinated
Notes, due 2003, issued by the Company in the aggregate original
principal amount of up to $115,000,000 and governed by the terms of the
Subordinated Convertible Notes Indenture.
"SUBORDINATED CONVERTIBLE NOTES INDENTURE": the Indenture, dated
as of July 24, 1996, between the Company and First Trust of California,
National Association, as trustee, as such agreement may be amended,
supplemented or otherwise modified from time to time in accordance with
the terms of this Agreement.
"SUBORDINATED DEBENTURES": the 7% Convertible Subordinated
Debentures, due 2011, issued by the Company in the aggregate original
principal amount of up to $35,000,000 and governed by the terms of the
Subordinated Debenture Indenture.
"SUBORDINATED DEBENTURE INDENTURE": the Indenture, dated as of
August 1, 1986, between the Company and The Bank of California, N.A.,
as trustee, as such agreement may be amended, supplemented or otherwise
modified from time to time in accordance with the terms of this
Agreement.
"SUBSEQUENT INTERGLAS TRANSACTION": the collective reference to
(a) the exercise by the Company or any of its Subsidiaries of the
options presently held by the Company to acquire all or any part of
approximately 40.2% of the Capital Stock of Interglas which is not
presently owned by the Acquired Businesses for consideration (assuming
the acquisition of the entire 40.2%) of up to 75,300,000 deutsche marks
which is approximately $42,300,000 at today's exchange rate, (b) the
refinancing of approximately 100,400,000 deutsche marks which is
approximately $56,300,000 at today's exchange rate of outstanding
Indebtedness and profit participation capital of Interglas and (c) the
29
purchase, redemption or other acquisition of up to $25,000,000 of
publicly held Capital Stock of Interglas.
"SUBSIDIARY": as to any Person, a corporation, partnership or
other entity of which shares of stock or other ownership interests
having ordinary voting power (other than stock or such other ownership
interests having such power only by reason of the happening of a
contingency) to elect a majority of the board of directors or other
managers of such corporation, partnership or other entity are at the
time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries, or both, by
such Person; PROVIDED, that Hexcel Foundation shall not be deemed a
Subsidiary of the Company for as long as it maintains its status as a
not-for-profit corporation for purposes of California law. Unless
otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Company.
"SUBSIDIARY GUARANTOR": each Subsidiary of the Company which is
party to the Collateral Agreement.
"SWING LINE COMMITMENT": at any date, the obligation of the Swing
Line Lender to make Swing Line Loans pursuant to subsection 6.1 in the
amount referred to therein.
"SWING LINE LENDER": CSFB.
"SWING LINE LOANS": as defined in subsection 6.1.
"SWING LINE NOTE": as defined in subsection 10.1(e).
"SYNDICATED EUROPEAN LOAN": as defined in subsection 7.1(a)(i).
"TERMINATION DATE": (a) with respect to the Aggregate Tranche A
Loan Commitment, the Aggregate Revolving Credit Commitment, the
Aggregate European Loan Commitment, the European Overdraft Commitment
and (in each such case) any Loans and Letters of Credit thereunder,
September 14, 2004, and (b) with respect to the Aggregate Tranche B
Loan Commitment and any Loans thereunder, September 14, 2005.
"TERM LOAN REPAYMENT DATE": the first date after the Closing Date
upon which the Tranche A Loans and the Tranche B Loans have been paid
in full.
"TRANCHE": the collective reference to Eurocurrency Loans having
then current Interest Periods which begin on the same date and end on
the same later date (whether or not such Loans shall originally have
been made on the same day); Tranches may be identified as
"EUROCURRENCY TRANCHES".
"TRANCHE A COMMITMENT PERCENTAGE": as to any Tranche A Lender (a)
at any time prior to or on the Closing Date, the percentage which the
Tranche A Loan
30
Commitment of such Tranche A Lender then constitutes of the Aggregate
Tranche A Loan Commitment or (b) at any time after the Closing Date,
the percentage which the sum of (i) the outstanding Tranche A Loan of
such Tranche A Lender and (ii) the portion (if any) of the Tranche A
Loan Commitment of such Tranche A Lender available for the borrowing of
Subsequent Tranche A Loans, then constitutes of the aggregate principal
amount of Tranche A Loans then outstanding.
"TRANCHE A LENDER": at any date, each bank or other financial
institution which holds (prior to the Closing Date) a Tranche A Loan
Commitment or (from and after the Closing Date) a Tranche A Loan
Commitment (if any) or a Tranche A Loan hereunder; collectively, the
"TRANCHE A LENDERS".
"TRANCHE A LOAN": as defined in subsection 2.1.
"TRANCHE A LOAN COMMITMENT": as to any Tranche A Lender, its
obligation to make Tranche A Loans to the Company hereunder in an
aggregate principal amount not to exceed the amount set forth opposite
such Tranche A Lender's name on Schedule I under the heading "Tranche A
Loan Commitment".
"TRANCHE A NOTE": as defined in subsection 10.1(e).
"TRANCHE B COMMITMENT PERCENTAGE": as to any Tranche B Lender (a)
at any time prior to or on the Closing Date, the percentage which the
Tranche B Loan Commitment of such Tranche B Lender then constitutes of
the Aggregate Tranche B Loan Commitment or (b) at any time after the
Closing Date, the percentage which the Tranche B Loan of such Tranche B
Lender then constitutes of the aggregate principal amount of Tranche B
Loans then outstanding.
"TRANCHE B LENDER": at any date, each bank or other financial
institution which holds (prior to the Closing Date) a Tranche B Loan
Commitment or (from and after the Closing Date) a Tranche B Loan
hereunder; collectively, the "TRANCHE B LENDERS".
"TRANCHE B LOAN": as defined in subsection 3.1.
"TRANCHE B LOAN COMMITMENT": as to any Tranche B Lender, its
obligation to make Tranche B Loans to the Company hereunder in an
aggregate principal amount not to exceed the amount set forth opposite
such Tranche B Lender's name on Schedule I under the heading "Tranche B
Loan Commitment".
"TRANCHE B NOTE": as defined in subsection 10.1(e).
"TRANSFEREE": as defined in subsection 17.7(f).
"TYPE": as to any Loan, its nature as an ABR Loan or a
Eurocurrency Loan.
31
"UNIFORM CUSTOMS": the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, as the same may be amended from time to time.
"WHOLLY-OWNED SUBSIDIARY": with respect to any Person, a
corporation, company having limited liability or societe anonyme, 100%
(or in the case of any entity which is organized under the laws of a
jurisdiction outside of the United States of America, 98%) of the
Capital Stock of which is owned, directly or indirectly, by such Person
(other than shares required by applicable law to be owned by another
Person for the qualification of directors or to satisfy minimum
shareholder requirements).
1.2 OTHER DEFINITIONAL PROVISIONS. (a) Unless otherwise specified
therein, all terms defined in this Agreement shall have the defined meanings
when used in any Notes or any certificate or other document made or delivered
pursuant hereto.
(b) As used herein and in any Notes, and any certificate or other
document made or delivered pursuant hereto, accounting terms relating to the
Company and its Subsidiaries not defined in subsection 1.1 and accounting terms
partly defined in subsection 1.1, to the extent not defined, shall have the
respective meanings given to them under GAAP.
(c) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, subsection,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.
(d) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.
SECTION 2. AMOUNT AND TERMS OF TRANCHE A LOAN COMMITMENTS
2.1 TRANCHE A TERM LOANS. Subject to the terms and conditions
hereof, each Tranche A Lender severally agrees to make up to two term loans
to the Company, with (x) the first such term loan (the "INITIAL TRANCHE A
LOAN") to be made on the Closing Date and (y) the second such term loan (the
"SUBSEQUENT TRANCHE A LOAN"; together with the Initial Tranche A Loan, the
"TRANCHE A LOANS") to be made on any Business Day prior to January 31, 1999;
PROVIDED that (i) the aggregate principal amount of Tranche A Loans made by
any Tranche A Lender shall not exceed the Tranche A Loan Commitment of such
Tranche A Lender, (ii) the aggregate principal amount of Subsequent Tranche A
Loans to be made by all Tranche A Lenders shall not exceed $30,000,000 and
(iii) the Subsequent Tranche A Loans may be utilized by the Company to pay
consideration for the Acquisition and the Subsequent Interglas Transaction as
well as any costs, fees and expenses related thereto. The Tranche A Loans
may from time to time be (a) Eurocurrency Loans, (b) ABR Loans or (c) a
combination thereof, as determined by the Company and notified to the
Administrative Agent in accordance with subsections 2.2 and 10.6; PROVIDED
that the Tranche A Loans to be made on the Closing Date
32
initially shall be made as ABR Loans and, until the date which is 30 days
following the Closing Date, shall be maintained as either (i) Eurocurrency
Loans having an Interest Period of not longer than one month or (ii) ABR
Loans.
2.2 PROCEDURE FOR TRANCHE A LOAN BORROWING. The Company shall give
the Administrative Agent its irrevocable Notice of Borrowing (which notice
must be received by the Administrative Agent prior to 10:00 A.M., New York
City time, one Business Day prior to the Closing Date) requesting that the
Tranche A Lenders make the Tranche A Loans on the Closing Date and specifying
the amount to be borrowed. Upon receipt of such Notice of Borrowing, the
Administrative Agent shall promptly notify each Tranche A Lender thereof.
Each Tranche A Lender will make the amount of its Tranche A Commitment
Percentage of such borrowing available to the Administrative Agent for the
account of the Company at the office of the Administrative Agent specified in
subsection 17.3 prior to 1:00 P.M., New York City time, on the Closing Date
in funds immediately available to the Administrative Agent. Such Tranche A
Loans will then be made available to the Company by the Administrative Agent
crediting the account of the Company on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the
Tranche A Lenders and in like funds as received by the Administrative Agent.
2.3 AMORTIZATION OF TRANCHE A LOANS. (a) The Borrower shall repay
the Tranche A Loans on the last Business Day of each fiscal quarter occurring
during a period set forth below by the amount set forth below opposite such
period:
---------------------------------------------------------------------
---------------------------------------------------------------------
Total for
Period Amount Period
----------------------------------- ----------- -----------
December 31, 1999 $10,000,000 $
January 1, 2000 - December 31, 2000 0 10,000,000
January 1, 2001 - December 31, 2001 7,500,000 30,000,000
January 1, 2002 - December 31, 2002 8,750,000 35,000,000
January 1, 2003 - December 31, 2003 15,000,000 60,000,000
January 1, 2004 - June 30, 2004 16,250,000 65,000,000
25,000,000 50,000,000
---------------------------------------------------------------------
---------------------------------------------------------------------
(b) The Borrower shall repay any then-outstanding Tranche A Loans
on the Termination Date.
2.4 USE OF PROCEEDS OF TRANCHE A LOANS. Subject to the provisions
of subsection 2.1, the proceeds of the Tranche A Loans shall be utilized by
the Company only to (a) finance a portion of the consideration paid by the
Company and its Subsidiaries on account of the Acquisition, (b) pay any fees
and expenses relating thereto and (c) refinance certain existing Indebtedness
of the Company and its Subsidiaries.
33
SECTION 3. AMOUNT AND TERMS OF TRANCHE B LOAN COMMITMENTS
3.1 TRANCHE B TERM LOANS. Subject to the terms and conditions
hereof, each Tranche B Lender severally agrees to make a term loan (a
"TRANCHE B LOAN") to the Company on the Closing Date in an amount not to
exceed the amount of the Tranche B Loan Commitment of such Tranche B Lender
then in effect. The Tranche B Loans may from time to time be (a)
Eurocurrency Loans, (b) ABR Loans or (c) a combination thereof, as determined
by the Company and notified to the Administrative Agent in accordance with
subsections 3.2 and 10.6; PROVIDED that the Tranche B Loans to be made on the
Closing Date initially shall be made as ABR Loans and, until the date which
is 30 days following the Closing Date, shall be maintained as either (i)
Eurocurrency Loans having an Interest Period of not longer than one month or
(ii) ABR Loans.
3.2 PROCEDURE FOR TRANCHE B LOAN BORROWING. The Company shall give
the Administrative Agent its irrevocable Notice of Borrowing (which notice
must be received by the Administrative Agent prior to 10:00 A.M., New York
City time, one Business Day prior to the Closing Date) requesting that the
Tranche B Lenders make the Tranche B Loans on the Closing Date and specifying
the amount to be borrowed. Upon receipt of such Notice of Borrowing, the
Administrative Agent shall promptly notify each Tranche B Lender thereof.
Each Tranche B Lender will make the amount of its Tranche B Commitment
Percentage of such borrowing available to the Administrative Agent for the
account of the Company at the office of the Administrative Agent specified in
subsection 17.3 prior to 1:00 P.M., New York City time, on the Closing Date
in funds immediately available to the Administrative Agent. Such Tranche B
Loans will then be made available to the Company by the Administrative Agent
crediting the account of the Company on the books of such office with the
aggregate of the amounts made available to the Administrative Agent by the
Tranche B Lenders and in like funds as received by the Administrative Agent.
3.3 AMORTIZATION OF TRANCHE B LOANS. (a) The Borrower shall repay
the Tranche B Loans on the last Business Day of each fiscal quarter occurring
during a period set forth below by the amount set forth below opposite such
period:
---------------------------------------------------------------------
---------------------------------------------------------------------
Total for
Period Amount Period
----------------------------------- ----------- ------------
December 31, 1999 - June 30, 2004 $ 250,000 $ 4,750,000
July 1, 2004 - June 30, 2005 50,000,000 200,000,000
---------------------------------------------------------------------
---------------------------------------------------------------------
(b) The Borrower shall repay any then-outstanding Tranche B Loans
on the Termination Date.
3.4 USE OF PROCEEDS OF TRANCHE B LOANS. The proceeds of the
Tranche B Loans shall be utilized by the Company only to (a) finance a
portion of the consideration paid by the Company and its Subsidiaries on
account of the Acquisition, (b) pay any fees and expenses
34
relating thereto and (c) refinance certain existing Indebtedness of the
Company and its Subsidiaries.
SECTION 4. AMOUNT AND TERMS OF REVOLVING CREDIT COMMITMENTS
4.1 REVOLVING CREDIT COMMITMENTS. (a) Subject to the terms and
conditions hereof, each Revolving Credit Lender severally agrees to make
revolving credit loans ("REVOLVING CREDIT LOANS") to the Company from time to
time during the Commitment Period; PROVIDED that, after giving effect to the
making of such Revolving Credit Loan and the use of proceeds thereof, (i) the
Aggregate Outstanding RC Extensions of Credit of all Revolving Credit Lenders
shall not exceed the Aggregate Revolving Credit Commitment then in effect and
(ii) the Available Revolving Credit Commitment of such Revolving Credit
Lender shall not be less than zero. During the Commitment Period the Company
may use the Aggregate Revolving Credit Commitment by borrowing, prepaying the
Revolving Credit Loans in whole or in part, and reborrowing, all in
accordance with the terms and conditions hereof.
(b) The Revolving Credit Loans may from time to time be (i)
Eurocurrency Loans, (ii) ABR Loans or (iii) a combination thereof, as
determined by the Company and notified to the Administrative Agent in
accordance with subsections 4.2 and 10.6, PROVIDED that (x) no Revolving
Credit Loan shall be made as a Eurocurrency Loan after the day that is one
month prior to the Termination Date and (y) any Revolving Credit Loans to be
made on the Closing Date initially shall be made as ABR Loans and, until the
date which is 30 days following the Closing Date, shall be maintained as
either (i) Eurocurrency Loans having an Interest Period of not more than one
month or (ii) ABR Loans.
4.2 PROCEDURE FOR REVOLVING CREDIT BORROWING. The Company may
borrow Revolving Credit Loans under the Aggregate Revolving Credit Commitment
during the Commitment Period on any Business Day, PROVIDED that the Company
shall give the Administrative Agent irrevocable notice (which notice must be
received by the Administrative Agent prior to 11:00 A.M., New York City time,
(a) three Business Days prior to the requested Borrowing Date, if all or any
part of the requested Revolving Credit Loans are to be initially Eurocurrency
Loans or (b) one Business Day prior to the requested Borrowing Date,
otherwise), specifying (i) the amount to be borrowed, (ii) the requested
Borrowing Date, (iii) whether the borrowing is to be of Eurocurrency Loans,
ABR Loans or a combination thereof and (iv) if the borrowing is to be
entirely or partly of Eurocurrency Loans, the amount of such Type of Loan and
the length of the initial Interest Period therefor. Each borrowing under the
Aggregate Revolving Credit Commitment (other than any borrowing of Swing Line
Loans or of Revolving Credit Loans the proceeds of which are used to refund
Swing Line Loans) shall be in an amount equal to (x) in the case of ABR
Loans, $2,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if
the then Available Revolving Credit Commitments are less than $2,000,000,
such lesser amount) and (y) in the case of Eurocurrency Loans, $2,000,000 or
a whole multiple of $1,000,000 in excess thereof. Upon receipt of any such
notice from the Company, the Administrative Agent shall promptly notify each
Revolving Credit Lender thereof. Each Revolving Credit Lender will make the
amount of its Revolving Credit Commitment Percentage
35
of each borrowing available to the Administrative Agent for the account of
the Company at the office of the Administrative Agent specified in subsection
17.3 prior to 1:00 P.M., New York City time, on the Borrowing Date requested
by the Company in funds immediately available to the Administrative Agent.
Such borrowing will then be made available to the Company by the
Administrative Agent crediting the account of the Company on the books of
such office with the aggregate of the amounts made available to the
Administrative Agent by the Revolving Credit Lenders and in like funds as
received by the Administrative Agent.
4.3 USE OF PROCEEDS OF REVOLVING CREDIT LOANS. The proceeds of the
Revolving Credit Loans shall be utilized by the Company for general corporate
purposes of the Company and its Subsidiaries, including, without limitation,
to finance a portion of the consideration paid by the Company and its
Subsidiaries on account of the Acquisition and the Subsequent Interglas
Transaction.
SECTION 5. AMOUNT AND TERMS OF DOMESTIC LETTER OF CREDIT SUB-FACILITY
5.1 L/C COMMITMENT. (a) Subject to the terms and conditions
hereof, each Issuing Lender, in reliance on the agreements of the other
Revolving Credit Lenders set forth in subsection 5.4(a), agrees to issue
letters of credit ("DOMESTIC LETTERS OF CREDIT") for the account of the
Company on any Business Day during the Commitment Period in such form as may
be approved from time to time by such Issuing Lender; PROVIDED that such
Issuing Lender shall have no obligation to issue any Domestic Letter of
Credit if, after giving effect to such issuance,(i) the Domestic L/C
Obligations would exceed the Domestic L/C Commitment,(ii) the Available
Revolving Credit Commitment of any Revolving Credit Lender would be less than
zero or (iii) the Aggregate Outstanding RC Extensions of Credit of all
Revolving Credit Lenders would exceed the Aggregate Revolving Credit
Commitment then in effect.
(b) Each Domestic Letter of Credit shall (i) be denominated in
Dollars, (ii) be (x) a standby letter of credit (a "STANDBY DOMESTIC LETTER
OF CREDIT") issued to support obligations of the Company or any of its
Subsidiaries, contingent or otherwise, or to finance the working capital and
business needs of the Company or any of its Subsidiaries in the ordinary
course of business (including, without limitation, to secure or support lines
of credit obtained by Foreign Subsidiaries in accordance with the terms
hereof) or (y) a commercial letter of credit (a "COMMERCIAL DOMESTIC LETTER
OF CREDIT") issued in respect of the purchase of goods or services by the
Company and its Subsidiaries in the ordinary course of business and (iii)
expire no later than the earlier of (x) the date that is 12 months after the
date of its issuance and (y) five Business Days prior to the Termination
Date; PROVIDED that any Domestic Letter of Credit with an expiration date
occurring up to twelve months after such Domestic Letter of Credit's date of
issuance may be automatically renewable for subsequent 12-month periods (but
in no event to a date which is later than five Business Days prior to the
Termination Date) unless the Issuing Lender with respect to such Domestic
Letter of Credit shall have given 60 days' prior written notice to the
Company and the beneficiary of such Domestic Letter of Credit that it will
not be renewed. Notwithstanding the foregoing, at the request of the Company
and with the consent of
36
the Administrative Agent, any Domestic Letter of Credit issued for the
account of the Company may have an expiration date which is later than the
date set forth in clause (iii)(x) and (y) above, PROVIDED that (x) the
Company agrees that, from and after the Termination Date, it shall provide to
the Administrative Agent, as collateral security for the Domestic L/C
Obligations on account of such Domestic Letter of Credit, an amount of cash
which is equal to at least 105% of the face amount thereof and (y) no
Domestic Letter of Credit shall terminate more than one year after the
Termination Date.
(c) Each Domestic Letter of Credit shall be subject to the Uniform
Customs and, to the extent not inconsistent therewith, the laws of the State
of New York.
(d) No Issuing Lender shall at any time be obligated to issue any
Domestic Letter of Credit hereunder if such issuance would conflict with, or
cause such Issuing Lender or any L/C Participant to exceed any limits imposed
by, any applicable Requirement of Law.
5.2 PROCEDURE FOR ISSUANCE OF DOMESTIC LETTERS OF CREDIT. The
Company may request that an Issuing Lender issue a Domestic Letter of Credit
at any time during the Commitment Period by delivering to such Issuing Lender
(with a copy to the Administrative Agent) at its address for notices
specified herein an Application therefor, completed to the satisfaction of
the Issuing Lender, and such other certificates, documents and other papers
and information as the Issuing Lender may reasonably request. Upon receipt
of any Application, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the Domestic Letter of Credit requested thereby (but in no
event shall the Issuing Lender be required to issue any Domestic Letter of
Credit earlier than three Business Days after its receipt of the Application
therefor and all such other certificates, documents and other papers and
information relating thereto) by issuing the original of such Domestic Letter
of Credit to the beneficiary thereof or as otherwise may be agreed by such
Issuing Lender and the Company. Each Issuing Lender shall furnish to the
Company and the Administrative Agent a copy of each Domestic Letter of Credit
issued by such Issuing Lender, promptly following the issuance thereof.
5.3 FEES, COMMISSIONS AND OTHER CHARGES. (a) The Company shall pay
to the Administrative Agent, for the ratable account of the relevant Issuing
Lender and the L/C Participants, a letter of credit fee with respect to each
Standby Domestic Letter of Credit, computed for the period from and including
the date of issuance of such Domestic Letter of Credit to the expiration date
of such Standby Domestic Letter of Credit, at a rate per annum equal to the
Applicable Margin then in effect for Revolving Credit Loans which are
Eurocurrency Loans (calculated on the basis of the actual number of days
elapsed over a 360-day year) of the aggregate face amount of Standby Domestic
Letters of Credit outstanding (of which 1/4 of 1% of such aggregate face
amount shall be for the account of the Issuing Lender with respect thereto
and the remainder of such amount shall be for the ratable account of such
Issuing Lender and the L/C Participants). Such fee shall be payable to the
Administrative Agent, for the ratable account of the Revolving Credit
Lenders, in arrears, on each L/C Fee Payment Date (commencing on
37
December 31, 1998) to occur following the issuance of such Standby Domestic
Letter of Credit for the period since the last payment was made.
(b) The Company shall pay to the Administrative Agent, for the
ratable account of the relevant Issuing Lender and the L/C Participants, a
letter of credit fee with respect to each Commercial Domestic Letter of
Credit at a flat rate equal to 50% of the Applicable Margin then in effect
for Revolving Credit Loans which are Eurocurrency Loans (calculated on the
basis of the actual number of days elapsed over a 360-day year) of the
aggregate face amount of such Commercial Domestic Letter of Credit
outstanding (of which 1/4 of 1% of such aggregate face amount shall be for
the account of the Issuing Lender with respect thereto and the remainder of
such amount shall be for the ratable account of such Issuing Lender and the
L/C Participants). Such fee shall be payable to the Administrative Agent,
for the ratable account of the Revolving Credit Lenders, in arrears, on each
L/C Fee Payment Date (commencing on December 31, 1998) to occur following the
issuance of such Commercial Domestic Letter of Credit for the period since
the last payment was made.
(c) In addition to the foregoing fees and commissions, the Company
shall pay or reimburse the Issuing Lender for such normal and customary costs
and expenses as are incurred or charged by such Issuing Lender in issuing,
effecting payment under, amending or otherwise administering any Domestic
Letter of Credit issued by it.
(d) The Administrative Agent shall, promptly following its receipt
thereof, distribute to the relevant Issuing Lender and the L/C Participants
all fees and commissions received by the Administrative Agent for their
respective accounts pursuant to this subsection.
5.4 L/C PARTICIPATIONS. (a) Each Issuing Lender irrevocably agrees
to grant and hereby grants to each L/C Participant, and, to induce such
Issuing Lender to issue Domestic Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions hereinafter
stated, for such L/C Participant's own account and risk an undivided interest
equal to such L/C Participant's Revolving Credit Commitment Percentage from
time to time in effect in such Issuing Lender's obligations and rights under
each Domestic Letter of Credit issued by such Issuing Lender hereunder and
the amount of each draft paid by such Issuing Lender thereunder. Each L/C
Participant unconditionally and irrevocably agrees with such Issuing Lender
that, if a draft is paid under any Domestic Letter of Credit issued by such
Issuing Lender for which such Issuing Lender is not reimbursed in full by the
Company in accordance with the terms of this Agreement, such L/C Participant
shall pay to such Issuing Lender upon demand at such Issuing Lender's address
for notices specified herein an amount equal to such L/C Participant's then
Revolving Credit Commitment Percentage of the amount of such draft, or any
part thereof, which is not so reimbursed; PROVIDED that, if such demand is
made prior to 12:00 Noon, New York City time, on a Business Day, such L/C
Participant shall make such payment to such Issuing Lender prior to the end
of such Business Day and otherwise such L/C Participant shall make such
payment on the next succeeding Business Day.
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(b) If any amount required to be paid by any L/C Participant to an
Issuing Lender pursuant to paragraph 5.4(a) in respect of any unreimbursed
portion of any payment made by such Issuing Lender under any Domestic Letter
of Credit is paid to such Issuing Lender within three Business Days after the
date such payment is due, such L/C Participant shall pay to such Issuing
Lender on demand an amount equal to the product of (i) such amount, times
(ii) the daily average Federal funds rate, as quoted by such Issuing Lender,
during the period from and including the date such payment is required to the
date on which such payment is immediately available to such Issuing Lender,
times (iii) a fraction the numerator of which is the number of days that
elapse during such period and the denominator of which is 360. If any such
amount required to be paid by any L/C Participant pursuant to paragraph
5.4(a) is not in fact made available to such Issuing Lender by such L/C
Participant within three Business Days after the date such payment is due,
such Issuing Lender shall be entitled to recover from such L/C Participant,
on demand, such amount with interest thereon calculated from such due date at
the rate per annum applicable to ABR Loans hereunder. A certificate of an
Issuing Lender submitted to any L/C Participant with respect to any amounts
owing to such Issuing Lender under this subsection shall be conclusive in the
absence of manifest error.
(c) Whenever, at any time after an Issuing Lender has made payment
under any Domestic Letter of Credit issued by it and has received from any
L/C Participant its Revolving Credit Commitment Percentage of such payment in
accordance with subsection 5.4(a), such Issuing Lender receives any payment
related to such Domestic Letter of Credit (whether directly from the Company
or otherwise, including proceeds of collateral applied thereto by such
Issuing Lender), or any payment of interest on account thereof, such Issuing
Lender will promptly distribute to such L/C Participant its Revolving Credit
Commitment Percentage thereof; PROVIDED, HOWEVER, that in the event that any
such payment received by such Issuing Lender and distributed to the L/C
Participants shall be required to be returned by such Issuing Lender, each
such L/C Participant shall return to such Issuing Lender the portion thereof
previously distributed by such Issuing Lender to it.
(d) Notwithstanding anything to the contrary contained in this
subsection 5.4, no Revolving Credit Lender shall be required to acquire a
participating interest in a Domestic Letter of Credit if an Event of Default
shall have occurred and be continuing at the time such Domestic Letter of
Credit was issued and such Revolving Credit Lender shall have notified the
Administrative Agent in writing, at least one Business Day prior to the
issuance date with respect to such Domestic Letter of Credit, that such Event
of Default has occurred and that such Revolving Credit Lender will not
acquire participations in Domestic Letters of Credit issued while such Event
of Default is continuing.
5.5 REIMBURSEMENT OBLIGATION OF THE COMPANY. (a) The Company agrees
to reimburse the relevant Issuing Lender on the same Business Day on which a
draft is presented under any Domestic Letter of Credit issued by such Issuing
Lender for the account of the Company and paid by such Issuing Lender,
PROVIDED that such Issuing Lender provides notice to the Company prior to
12:00 Noon, New York City time, on such Business Day and otherwise the
Company will reimburse the Issuing Lender on the next succeeding Business
Day; PROVIDED, FURTHER, that the failure to provide such notice shall not
affect the absolute and unconditional
39
obligation of the Company to reimburse the relevant Issuing Lender for any
draft paid under any Domestic Letter of Credit issued by it. Each Issuing
Lender shall provide notice to the Company on such Business Day as a draft is
presented and paid by such Issuing Lender indicating the amount of (i) such
draft so paid and (ii) any taxes, fees, charges or other costs or expenses
incurred by such Issuing Lender in connection with such payment. Each such
payment shall be made to such Issuing Lender at its address for notices
specified herein in Dollars and in immediately available funds.
(b) Interest shall be payable on any and all amounts remaining
unpaid by the Company under this subsection from the date such amounts become
payable until payment in full at the rate which would be payable on any
outstanding Loans that are ABR Loans which were then overdue.
(c) Each drawing under any Domestic Letter of Credit shall
constitute a request by the Company to the Administrative Agent for a
borrowing of ABR Loans in the amount of such drawing. The Borrowing Date
with respect to such borrowing shall be the date of such drawing.
5.6 OBLIGATIONS ABSOLUTE. (a) The obligations of the Company under
subsection 5.5(a) shall be absolute and unconditional under any and all
circumstances and irrespective of any set-off, counterclaim or defense to
payment which the Company may have or have had against the relevant Issuing
Lender, any L/C Participant or any beneficiary of a Domestic Letter of Credit.
(b) The Company also agrees with each Issuing Lender that such
Issuing Lender shall not be responsible for, and the Company's Reimbursement
Obligations under subsection 5.5(a) shall not be affected by, among other
things, (i) the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or (ii) any dispute between or among the Company and
any beneficiary of any Domestic Letter of Credit or any other party to which
such Domestic Letter of Credit may be transferred or (iii) any claims
whatsoever of the Company against any beneficiary of such Domestic Letter of
Credit or any such transferee.
(c) Neither the Issuing Lender with respect to any Domestic Letter
of Credit nor any L/C Participant with respect thereto shall be liable for
any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with
such Domestic Letter of Credit, except for errors or omissions caused by such
Issuing Lender's gross negligence, bad faith or willful misconduct.
(d) The Company agrees that any action taken or omitted by the
Issuing Lender under or in connection with any Domestic Letter of Credit
issued by it or the related drafts or documents, if done in the absence of
gross negligence, bad faith or willful misconduct and in accordance with the
standards of care specified in the Uniform Commercial Code of the State of
New York, shall be binding on the Company and shall not result in any
liability of such Issuing Lender or any L/C Participant to the Company.
40
5.7 DOMESTIC LETTER OF CREDIT PAYMENTS. If any draft shall be
presented for payment under any Domestic Letter of Credit, the responsibility
of the Issuing Lender thereof to the Company in connection with such draft
shall, in addition to any payment obligation expressly provided for in such
Domestic Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such Domestic Letter of Credit in
connection with such presentment are in conformity with such Domestic Letter
of Credit.
5.8 APPLICATION. To the extent that any provision of any
Application related to any Domestic Letter of Credit is inconsistent with the
provisions of this Section 5, the provisions of this Section 5 shall apply.
5.9 ISSUING LENDER REPORTING REQUIREMENTS. Each Issuing Lender
shall, no later than the fifth Business Day following the last day of each
calendar month and on the last Business Day of each calendar quarter (or, to
the extent that the Administrative Agent so agrees, not more than two
Business Days thereafter), provide to the Administrative Agent and the
Company separate schedules for Commercial Domestic Letters of Credit and
Standby Domestic Letters of Credit issued by such Issuing Lender, in form and
substance reasonably satisfactory to the Administrative Agent, setting forth
the aggregate Domestic L/C Obligations outstanding to such Issuing Lender at
the end of each month or calendar quarter, as the case may be, and any
information requested by the Administrative Agent or the Company relating to
the date of issue, account party, amount, expiration date and reference
number of each Domestic Letter of Credit issued by it. Promptly following
receipt by the Administrative Agent of the quarterly schedule, the
Administrative Agent shall provide to each Revolving Credit Lender a report
containing such information.
5.10 TRANSITIONAL PROVISIONS. Schedule 5.10 lists certain letters
of credit issued prior to the date hereof by the Revolving Credit Lenders for
the account of the Company. On the Closing Date, (i) such letters of credit,
to the extent outstanding, shall be automatically and without further action
by the parties thereto converted to Domestic Letters of Credit Issued
pursuant to this Section 5 for the account of the Company and subject to the
provisions hereof, and for this purpose the fees specified in Section 5.3
shall be payable (in substitution for any fees set forth in the reimbursement
agreement relating to such letters of credit) as if such letters of credit
had been issued on the Closing Date and (ii) the face amount of such letters
of credit shall be included in the calculation of the aggregate amount of
outstanding Domestic L/C Obligations. No letter of credit converted in
accordance with this subsection 5.10 shall be amended, extended or renewed
without the prior written consent of the Administrative Agent. To the extent
that any fees with respect to the letters of credit listed on Schedule 5.10
were paid in advance to the issuing bank under such letter of credit, the
Administrative Agent shall use reasonable efforts (but shall otherwise not be
obligated) to obtain a PRO RATA refund for the Company of such fees to the
extent such fees were paid in respect of any time period during which such
letter of credit shall be a letter of credit on account of the provisions of
this subsection. Notwithstanding anything set forth in Section 5.2(c)(A), to
the extent that any letter of credit listed on Schedule 5.10 has an
expiration date in excess of one year, such letter of credit shall continue
in full force and effect pursuant to the terms hereof after the Closing Date
through its stated expiration date
41
(but shall be cash collateralized upon terms reasonably satisfactory to the
relevant Issuing Lender during the period from the Termination Date through
such stated expiration date).
SECTION 6. AMOUNT AND TERMS OF SWING LINE SUB-FACILITY
6.1 SWING LINE COMMITMENTS. (a) Subject to the terms and
conditions hereof, the Swing Line Lender agrees to make swing line loans (the
"SWING LINE LOANS") to the Company on any Business Day from time to time
during the Commitment Period in an aggregate principal amount not to exceed
$15,000,000 at any one time outstanding; PROVIDED that, after giving effect
to the making of such Swing Line Loan, the Aggregate Outstanding RC
Extensions of Credit of all Revolving Credit Lenders shall not exceed the
Aggregate Revolving Credit Commitment then in effect. Amounts borrowed under
this subsection 6.1 may be repaid and, to but excluding the Termination Date,
reborrowed.
(b) All Swing Line Loans shall be made and maintained as ABR Loans
and, notwithstanding the provisions of subsection 10.6, shall not be entitled
to be converted into Eurocurrency Loans; PROVIDED that nothing contained in
this subsection 6.1 shall prohibit the conversion into Eurocurrency Loans of
any Revolving Credit Loans the proceeds of which are utilized to refund Swing
Line Loans.
6.2 PROCEDURE FOR SWING LINE LOAN BORROWING. The Company may
borrow under the Swing Line Commitment during the Commitment Period on any
Business Day; PROVIDED that the Company shall give the Administrative Agent
irrevocable notice (which notice must be received by the Administrative Agent
prior to 1:30 P.M., New York City time), on the requested borrowing date
(which shall be a Business Day) specifying the amount of each requested Swing
Line Loan, which shall be in a minimum amount of $500,000 or a multiple of
$100,000 in excess thereof. Upon receipt of any such notice from the Company
the Administrative Agent shall promptly notify the Swing Line Lender thereof.
The Swing Line Lender will make the amount of its Swing Line Loan available
to the Administrative Agent for the account of the Company at the office of
the Administrative Agent specified in subsection 17.3 prior to 2:30 P.M., New
York City time, on the Borrowing Date requested by the Company in funds
immediately available to the Administrative Agent. The proceeds of each
Swing Line Loan will then be made immediately available to the Company by the
Administrative Agent crediting the account of the Company on the books of
such office with the amount made available to the Administrative Agent by the
Swing Line Lender and in like funds as received by the Administrative Agent.
6.3 REFUNDING OF SWING LINE LOANS. (a) The Administrative Agent,
at any time in its sole and absolute discretion, may (or, upon the request of
the Swing Line Lender, shall) on behalf of the Company (which hereby
irrevocably directs the Administrative Agent to act on its behalf) request
that each Revolving Credit Lender make a Revolving Credit Loan in an amount
equal to such Revolving Credit Lender's Revolving Credit Commitment
Percentage of the then outstanding principal amount of Swing Line Loans (the
"REFUNDED SWING LINE LOANS") on the date such notice is given (regardless of
whether the Refunded Swing Line Loans comply with the
42
minimum borrowing provisions of subsection 4.2). In the event that the Swing
Line Lender makes its request for refunding of the Swing Line Loans, each
Revolving Credit Lender shall make the proceeds of its Revolving Credit Loan
available in immediately available funds to the Administrative Agent, for the
benefit of the Swing Line Lender, at the office of the Administrative Agent
specified in subsection 17.3 prior to 11:00 A.M., New York City time, on the
first Business Day following such request (or, if such request is made prior
to 10:00 A.M., New York City time, on any date, then the proceeds of such
Revolving Credit Loans shall instead be so made available to the
Administrative Agent prior to 2:00 P.M., New York City time, on the date of
such request); PROVIDED, HOWEVER, that in the event that any Bankruptcy Event
shall have occurred and be continuing, the Revolving Credit Lenders shall not
make such Revolving Credit Loans and the provisions of subsection 6.3(b)
shall apply.
(b) If, prior to the making of a Revolving Credit Loan pursuant to
subsection 6.3(a), a Bankruptcy Event shall have occurred and be continuing,
each Revolving Credit Lender will, on the date such Revolving Credit Loan was
to have been made, purchase from the Swing Line Lender an undivided
participating interest in the Swing Line Loan to be refunded in an amount
equal to its Revolving Credit Commitment Percentage of such Swing Line Loan
to be refunded. Each Revolving Credit Lender will immediately transfer to the
Administrative Agent, in immediately available funds, the amount of its
participation.
(c) Whenever, at any time after the Swing Line Lender has received
from any Revolving Credit Lender such Revolving Credit Lender's participating
interest in a Swing Line Loan to be refunded pursuant to subsection 6.3(b),
the Swing Line Lender receives any payment on account thereof, the Swing Line
Lender will distribute to such Revolving Credit Lender its participating
interest in such amount (appropriately adjusted, in the case of interest
payments, to reflect the period of time during which such Revolving Credit
Lender's participating interest was outstanding and funded) in like funds as
received; PROVIDED, HOWEVER, that in the event that such payment received by
the Swing Line Lender is required to be returned, such Revolving Credit
Lender will return to the Swing Line Lender any portion thereof previously
distributed by the Swing Line Lender to it in like funds as such payment is
required to be returned by the Swing Line Lender (together with such
Revolving Credit Lender's ratable share of any interest required to be paid
by the Swing Line Lender upon such return).
(d) Notwithstanding anything to the contrary contained in this
subsection 6.3, no Revolving Credit Lender shall be required to make a
Revolving Credit Loan pursuant to subsection 6.3(a) or acquire a
participation pursuant to subsection 6.3(b) in a Swing Line Loan if an Event
of Default shall have occurred and be continuing at the time such Swing Line
Loan was made and such Revolving Credit Lender shall have notified the
relevant Swing Line Lender and the Administrative Agent in writing, at least
one Business Day prior to the time such Swing Line Loan was made, that such
Event of Default has occurred and that such Revolving Credit Lender will not
acquire participations in Swing Line Loans made while such Event of Default
is continuing.
6.4 UNCONDITIONAL OBLIGATION TO REFUND SWING LINE LOANS. Each
Revolving Credit Lender's obligation to make Revolving Credit Loans and to
purchase participating
43
interests in accordance with subsections 6.3(b) and (c) above shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any set-off, counterclaim, recoupment,
defense or other right which such Revolving Credit Lender may have against
the Swing Line Lender, the Company or any other Person for any reason
whatsoever; (ii) the occurrence or continuance of any Default or Event of
Default; (iii) any adverse change in the condition (financial or otherwise)
of the Company or any other Person; (iv) any breach of this Agreement by the
Company or any other Person; (v) any inability of the Company to satisfy the
conditions precedent to borrowing set forth in this Agreement on the date
upon which such Revolving Credit Loan is to be made or participating interest
is to be purchased or (vi) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing. If any Revolving
Credit Lender does not make available to the Administrative Agent the amount
required pursuant to subsections 6.3(b) and (c) above, as the case may be,
the Administrative Agent shall be entitled to recover such amount on demand
from such Revolving Credit Lender, together with interest thereon for each
day from the date of non-payment until such amount is paid in full at the
Federal Funds Effective Rate for the first two Business Days and at ABR
thereafter.
6.5 USE OF PROCEEDS OF SWING LINE LOANS. The proceeds of Swing
Line Loans hereunder shall be used by the Company for any purpose for which
the proceeds of Revolving Credit Loans may be used.
SECTION 7. AMOUNTS AND TERMS OF EUROPEAN FACILITY
7.1 EUROPEAN REVOLVING CREDIT FACILITY. (a) Subject to the terms
and conditions set forth herein:
(i) each European Lender hereby severally and not jointly agrees to
make revolving credit loans (each individually, a "SYNDICATED EUROPEAN
LOAN" and, collectively, the "SYNDICATED EUROPEAN LOANS") to (A) the
Borrowers in Dollars and (b) the Foreign Borrowers (including, without
limitation, the Local Loan Borrowers) in any one or more of the Optional
Currencies, (in each case) from time to time during the period from the
Closing Date to the Termination Date in accordance with the provisions of
subsection 7.2; and
(ii) each Local Lender hereby severally and not jointly agrees to make
revolving credit loans (each individually, a "LOCAL EUROPEAN LOAN" and,
collectively, the "LOCAL EUROPEAN LOANS"; together with the Syndicated
European Loans, the "EUROPEAN REVOLVING LOANS") to its respective Local
Loan Borrower in Dollars and any one or more of the Optional Currencies
from time to time during the period from the Closing Date to the
Termination Date in accordance with the provisions of subsection 7.3;
PROVIDED that, after giving effect to the making of such European Revolving
Loans and the simultaneous use of proceeds thereof, (x) each European
Lender's Aggregate Outstanding European Extensions of Credit shall not exceed
its European Loan Commitment then in effect,
44
(y) the Aggregate Outstanding European Extensions of Credit of all European
Lenders shall not exceed the Aggregate European Loan Commitment then in
effect and (z) the aggregate outstanding amount of European Revolving Loans
and European Letters of Credit made to such Foreign Borrower shall not exceed
at any time its Foreign Borrower Sublimit then in effect. Any European Loans
borrowed by the Foreign Borrowers in Dollars shall be made and maintained as
Eurocurrency Loans.
(b) Amounts borrowed pursuant to this subsection 7.1 may be repaid
and, to but excluding the Termination Date, reborrowed.
7.2 PROCEDURE FOR BORROWING SYNDICATED EUROPEAN LOANS. The
Borrowers may borrow Eurocurrency Loans under the Aggregate European Loan
Commitment pursuant to subsection 7.1 during the Commitment Period on any
Business Day, PROVIDED that the relevant Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent prior to 11:00 A.M., London, England time, three
Business Days prior to the requested Borrowing Date), specifying (i) the
amount to be borrowed, (ii) the requested Borrowing Date, (iii) whether the
borrowing is to be made in Dollars or in an Optional Currency (and, if
applicable, specifying the relevant Optional Currency) (PROVIDED that the
Company shall be permitted to borrow under the Aggregate European Loan
Commitment only in Dollars) and (iv) the length of the initial Interest
Period therefor. Each borrowing of Syndicated European Loans that is
denominated in Dollars shall be in an aggregate minimum amount of $2,000,000
or a whole multiple of $1,000,000 in excess of that amount and each such
borrowing that is denominated in an Optional Currency shall be in an integral
multiple of 100,000 units in such Optional Currency and equal to or greater
than the Local Equivalent of $2,000,000. Upon receipt of any such notice
from the relevant Borrower, the Administrative Agent shall promptly notify
each European Lender thereof. Each European Lender will make the amount of
its European Commitment Percentage of each borrowing available to the
Administrative Agent for the account of such Borrower prior to 11:00 A.M.
(New York City time, in the case of borrowings by the Company, or London,
England time, otherwise) on the Borrowing Date requested by such Borrower in
funds immediately available to the Administrative Agent in the relevant
currency. Such borrowing will then be made available to the relevant Borrower
by the Administrative Agent crediting the account of such Borrower with the
Administrative Agent with the aggregate of the amounts made available to the
Administrative Agent by the European Lenders and in like funds as received by
the Administrative Agent.
7.3 PROCEDURE FOR BORROWING LOCAL EUROPEAN LOANS. The Local Loan
Borrowers may borrow under the Aggregate European Loan Commitment pursuant to
subsection 7.1 during the Commitment Period on any Business Day, PROVIDED
that the relevant Local Loan Borrower shall give the Administrative Agent
irrevocable notice (which notice must be received by the Administrative Agent
prior to 11:00 A.M. (local time in the jurisdiction in which the relevant
Local European Loan is to be made) three Business Days prior to the requested
Borrowing Date), specifying (i) the amount to be borrowed, (ii) the requested
Borrowing Date, (iii) whether the borrowing is to be made in Dollars or in an
Optional Currency (and, if applicable, specifying the relevant Optional
Currency) and (iv) the length of the initial Interest Period therefor. Each
borrowing of Local European Loans that is denominated in Dollars shall be in
an aggregate minimum amount of $100,000 or a whole multiple thereof and each
such borrowing that is denominated in an Optional Currency shall be in an
aggregate
45
minimum amount equal to at least 50,000 units in such Optional Currency or a
whole multiple of 10,000 units in excess thereof (and equal to or greater
than the Local Equivalent of $100,000). Upon receipt of any such notice from
the relevant Local Loan Borrower, the Administrative Agent shall promptly
notify the relevant Local Lender thereof. The Local Lender will make the
amount of such borrowing available to the relevant Local Loan Borrower by
initiating a transfer prior to 11:00 A.M. (local time) to the account
specified by the Local Loan Borrower on the Borrowing Date requested by such
Local Loan Borrower in funds immediately available to such Local Loan
Borrower in the relevant currency.
7.4 CONTINGENT CURRENCY CONVERSION. (a) Upon the occurrence and
during the continuance of any Event of Default, the Administrative Agent may
(or, upon the request of the European Lenders holding the majority of the
Aggregate European Loan Commitment, shall) request from time to time that any
one or more of the European Revolving Loans made in Optional Currencies be
converted into Dollars, by delivering to the European Lenders, the Company
and any affected Local Lenders a notice to such effect (a "CURRENCY
CONVERSION NOTICE"); PROVIDED that, in the event that any of the events
specified in Section 15(f) has occurred and is continuing, no actual Currency
Conversion Notice shall be required, but rather such Currency Conversion
Notice shall be deemed to have been delivered (automatically and without any
action by any Person) immediately prior to the occurrence of such event.
(b) In the event that a Currency Conversion Notice is delivered or
deemed to be delivered, all European Revolving Loans specified therein
promptly shall be converted by each European Lender or Local Lender (as
applicable) into Dollars at the actual exchange rate at which such European
Lender or Local Lender (as the case may be) would be able to obtain the
applicable amount of the relevant Optional Currency. Promptly following such
conversion, each affected European Lender and Local Lender shall notify the
Administrative Agent of the exchange rate utilized by it in making its
conversion (which rate shall be deemed to be correct, in the absence of
manifest error) and the amount in Dollars of its relevant European Revolving
Loans (after giving effect to such conversion). The Administrative Agent
promptly shall notify each European Lender, the Company and each affected
Local Lender of the aggregate outstanding principal amount (in Dollars) of
such converted European Revolving Loan and shall provide the Company with the
conversion data provided to the Administrative Agent by each such European
Lender and Local Lender. From and after such conversion, (i) all such
specified European Revolving Loans shall be deemed to be outstanding in
Dollars as ABR Loans and (ii) all amounts from time to time accruing, and all
amounts from time to time payable, on account of such converted European
Revolving Loans (including, without limitation, any interest and other
amounts which were accrued but unpaid on the date of such conversion) shall
be payable in Dollars as if such European Revolving Loan originally had been
made in Dollars.
7.5 MATTERS RELATING TO LOCAL EUROPEAN LOANS. (a) Each European
Lender hereby unconditionally and irrevocably agrees to purchase (in the
currency in which the relevant Local European Loan is outstanding) from time
to time an undivided participating interest in its
46
European Commitment Percentage of such portion of the Local European Loans
then outstanding as the Administrative Agent may at any time request;
PROVIDED that:
(i) the Administrative Agent hereby agrees that, unless an Event
of Default has occurred and is continuing, it will not request any such
purchase of participating interests unless the Administrative Agent has
given to the relevant Borrower and the affected European Lenders and
Local Lenders at least three Business Days' prior notice thereof;
(ii) the Administrative Agent hereby agrees that it will request
that the European Lenders purchase such participating interest in the
Local European Loans made by any Local Lender promptly following
receipt by the Administrative Agent of a written certification from
such Local Lender that an Event of Default described in Section 15(a)
has occurred and is continuing with respect to the Local European Loans
made by such Local Lender and requesting that such request be made by
the Administrative Agent; and
(iii) in the event that any of the events specified in Section
15(f) shall have occurred with respect to any Borrower who has Local
European Loans then outstanding, each European Lender shall be deemed
to have purchased, automatically and without request, such
participating interest in the Local European Loans made to such
Borrower.
Any such request by the Administrative Agent shall be made in writing to each
European Lender and shall specify the relevant currency and the amount
thereof required from such European Lender in order to effect the purchase by
such European Lender of a participating interest in the amount equal to its
European Commitment Percentage TIMES the aggregate then outstanding principal
amount of the relevant Local European Loans (together with accrued interest
thereon and other amounts owing in connection therewith). Promptly upon
receipt of such request, each European Lender shall deliver to the
Administrative Agent (in immediately available funds and in the requested
currency) the amount so specified by the Administrative Agent. The
Administrative Agent shall promptly deliver to the relevant Local Lender all
amounts actually received by the Administrative Agent in like funds as
received. Promptly following receipt thereof, such Local Lender will deliver
to each European Lender (through the Administrative Agent) a certificate
evidencing the participating interest in the Local European Loans purchased
by such European Lender. From and after such purchase, all amounts from time
to time accruing, and all amounts from time to time payable, on account of
such Local European Loans (including, without limitation, any interest and
other amounts which were accrued but unpaid on the date of such purchase)
shall (other than with respect to the portion of the Applicable Margin which,
pursuant to subsection 10.8(d), is expressly stated to be paid for the
account of the Local Lender) be distributed by such Local Lender to the
Administrative Agent, for the accounts of the European Lenders, on account of
such participating interests. The failure of any European Lender to deposit
the amount described above with the Administrative Agent on the date when due
shall not relieve any other European Lender of its obligations hereunder to
purchase its participating interest or prejudice any rights that the relevant
Local Lender may have against such European Lender as a result of any such
default by such European Lender. No European Lender shall be responsible for
any failure by any other European Lender to perform its
47
obligation to purchase such participating interest hereunder nor shall the
European Loan Commitment of any European Lender be increased or decreased as
a result of any such failure.
(b) Whenever, at any time after a Local Lender has received from
any European Lender such European Lender's participating interest in a Local
European Loan pursuant to subsection 7.5(a), such Local Lender receives any
payment on account thereof, such Local Lender will distribute to the
Administrative Agent, for the account of such European Lender, such European
Lender's participating interest in such amount (appropriately adjusted, in
the case of interest payments, to reflect the period of time during which
such European Lender's participating interest was outstanding) in like funds
as received; PROVIDED, HOWEVER, that in the event that such payment received
by such Local Lender is required to be returned, such European Lender will
return to such Local Lender any portion thereof previously distributed by
such Local Lender for the account of such European Lender in like funds as
such payment is required to be returned by such Local Lender.
(c) Each European Lender's obligation to purchase participating
interests pursuant to clause (a) above shall be irrevocable, shall not be
subject to any qualification or exception whatsoever except willful
misconduct, bad faith or gross negligence of the Local Lender, and shall be
honored in accordance with this Section 7 (irrespective of the satisfaction
of the applicable conditions described in Section 12) under all
circumstances, including, without limitation, (A) any lack of validity or
enforceability hereof or of any of the other Credit Documents, (B) the
existence of any claim, setoff, defense or other right that any Borrower may
have at any time against the Local Lender, any other Lender, the
Administrative Agent or any other Person, whether in connection herewith, or
with any Local European Loan, the transactions contemplated herein or any
unrelated transactions, (C) the surrender or impairment of any security for
the performance or observance of any of the terms of any of the Credit
Documents; (D) the occurrence of any Event of Default or Default or (E) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.
(d) Notwithstanding anything to the contrary contained herein, (i)
each Local European Loan borrowed by Salver shall be due and payable (but any
such payment need not be accompanied by a reduction of European Loan
Commitments) on the date that is 17 months from the date of its borrowing
hereunder (or, if feasible, the last day of the Commitment Period) and (ii)
the Local Lender with respect to Salver shall be entitled to terminate its
commitment to serve as such Local Lender on the date which is 17 months after
the Closing Date and on each date which is 17 months thereafter by giving
written notice to the Company, Salver and the Administrative Agent not less
than 30 days prior to the effective date of such termination. In the event
that the Administrative Agent receives notice from such Local Lender of its
election to terminate its commitment to serve as such, then either (x) the
Administrative Agent may, prior to the effective date of such termination,
designate an alternate Local Lender to serve in such capacity (which
alternate Local Lender must be willing, in its sole discretion, to serve in
such capacity in accordance with the terms of this Agreement and must provide
to the Administrative Agent such alternate Local Lender's written agreement
to perform the obligations of the Local Lender with respect to Salver
hereunder and to be bound hereby) or (y) the right of Salver to receive Local
European Loans shall be terminated (subject to reinstatement in the event
that an
48
alternate Local Lender is at any time thereafter appointed) and all Local
European Loans then outstanding to Salver shall be due and payable on such
date of termination. From and after the date upon which an alternate Local
Lender is appointed in accordance with the terms hereof, such alternate Local
Lender shall be deemed to be the Local Lender to Salver for all purposes
under this Agreement and the other Credit Documents.
7.6 USE OF PROCEEDS OF EUROPEAN REVOLVING LOANS. Proceeds of the
European Revolving Loans shall be used for any purpose for which Revolving
Credit Loans would be available to the Company; PROVIDED, that (i) European
Revolving Loans made to Composites-UK and Hexcel-Spain shall not be used to
repay any loans (or refinancings thereof) used to acquire Composites-UK and
Hexcel-Spain, respectively, and (ii) European Revolving Loans made to
Composites-France and Fabrics-France shall not be used by Composites-France
or Fabrics-France to repay any Indebtedness (or refinancings thereof) used to
acquire Brochier SA or Confection et Diffusion de Stores et Rideaux.
7.7 TERMINATION OF FOREIGN BORROWER STATUS. The Company may
terminate its designation of a Foreign Borrower as a Borrower, by written
notice to the Administrative Agent, which notice shall be executed by the
Company and the relevant Foreign Borrower. Once notice of such termination
is received by the Administrative Agent (and all amounts owing by such
Foreign Borrower have been paid in full), such Foreign Borrower shall
immediately cease to be a "Foreign Borrower" for purposes of this Agreement
(other than any indemnities and similar obligations of such Foreign Borrower
which expressly survive the termination of this Agreement).
7.8 RESIGNATION OF LOCAL LENDER. (a) In the event that the
European Loan Commitment of a Local Lender shall at any time terminate
(otherwise than on termination of the Aggregate European Loan Commitment) or
a Local Lender shall assign all of its European Loan Commitment in accordance
with the provisions of subsection 17.7(c) or a Local Lender shall otherwise
so elect, such Local Lender shall resign as "Local Lender" by giving written
notice of its resignation to the Company, the relevant Foreign Borrower and
the Administrative Agent, with such resignation becoming effective on the
date which is the earlier of (i) the date upon which a European Lender
reasonably acceptable to the Administrative Agent and the Company is
designated as a substitute Local Lender in accordance with the provisions of
subsection 7.8(b) and (ii) such other date upon which such Local Lender, the
Company and the relevant Foreign Borrower otherwise agree; PROVIDED that such
effective date shall in no event be later than the date which is 60 days
following the date upon which such written notice is delivered to the
Company. Any Local European Loans made by such Local Lender which are
outstanding on such termination date shall be due and payable on such
termination date.
(b) In the event that any Local Lender shall cease to serve as such
pursuant to subsection 7.8(a), the Company may designate another European
Lender reasonably acceptable to the Administrative Agent to serve as "Local
Lender" with respect to the relevant Foreign Borrower; PROVIDED that no
European Lender shall be so designated without its agreement (in its sole
discretion) to serve as the "Local Lender" with respect to such Foreign
Borrower hereunder. Upon any such designation and the receipt by the
Administrative Agent of a Local Lender
49
Joinder Agreement, duly executed and delivered by such designated Local
Lender, such European Lender shall be deemed to be the "Local Lender" with
respect to such Foreign Borrower for all purposes under this Agreement and
the other Credit Documents.
(c) During any period when no substitute Local Lender has been duly
appointed in accordance with the terms of subsection 7.8(b), the right of the
relevant Foreign Borrower to borrow Local European Loans shall be suspended.
7.9 DESIGNATION OF ADDITIONAL FOREIGN BORROWERS. (a) The Company
may from time to time request that any one or more Foreign Subsidiaries which
are Wholly-owned Subsidiaries of the Company be designated as a "Foreign
Borrower" hereunder (each such additional Foreign Borrower, an "ADDITIONAL
BORROWER") by providing written notice to the Administrative Agent specifying
(i) the identity of such Foreign Subsidiary, (ii) the jurisdiction of its
incorporation and (iii) whether such Foreign Subsidiary is to be a Local Loan
Borrower and, if so, the European Lender (or Affiliate or Subsidiary thereof)
which is to serve as the Local Lender with respect thereto (which Local
Lender shall have agreed, in its sole discretion, to serve in such capacity).
The Administrative Agent shall promptly notify each European Lender of such
request. Within five Business Days following the receipt of such notice,
each European Lender shall notify the Administrative Agent in writing whether
such designation is acceptable to such European Lender (in its sole
discretion) and the Administrative Agent promptly shall notify the Company
thereof.
(b) In the event that such designation is acceptable to the
European Lenders holding the majority of the Aggregate European Loan
Commitment, the Company shall cause the requested Additional Borrower to
deliver to the Administrative Agent (i) an Additional Borrower Joinder
Agreement, (ii) a Local Lender Joinder Agreement, (iii) any documents,
instruments and agreements required pursuant to subsection 13.9 and (iv) such
other documents, instruments, agreements and legal opinions as the
Administrative Agent reasonably may request (including, in any event, an
opinion of local counsel in the relevant jurisdiction as to the applicable
matters covered by the opinions delivered on the Closing Date with respect to
the Foreign Borrowers).
(c) From and after the date upon which the Administrative Agent has
received the documents (all of which shall be in form and substance
reasonably satisfactory to the Administrative Agent) described in subsection
7.9(b), the requested Additional Borrower shall be a Foreign Borrower for all
purposes hereunder and (if applicable) the European Lender designated to
serve as Local Lender in the relevant jurisdiction with respect to such
Additional Borrower shall be a Local Lender for all purposes hereunder.
(d) Notwithstanding the foregoing provisions of this subsection
7.9, Interglas may (at the option of the Company) be designated as an
Additional Borrower hereunder at any time from and after the date upon which
80% or more of the Capital Stock of Interglas is owned by the Company and the
Company has taken the actions otherwise described in this subsection 7.9 for
the designation of an Additional Borrower; PROVIDED that the designation of
Interglas as an Additional Borrower shall not require the consent of the
European Lenders contemplated by clause (a) hereof or that Interglas be a
Wholly-owned Subsidiary of the Company.
50
7.10 REPORTING BY LOCAL LENDERS. Within five Business Days
following the last day of each March, June, September and December, each
Local Lender shall deliver to the Administrative Agent a statement showing
the average daily principal amount of Local European Loans in each currency
during the calendar quarter most recently ended and the principal amount of
Local European Loans in each currency which was outstanding on the last day
of such quarter. Promptly following receipt thereof, the Administrative
Agent shall provide to each European Lender a report containing such
information.
7.11 ADJUSTMENT OF EUROPEAN LOAN COMMITMENTS. (a) Upon the written
request of the Company from time to time and with the consent of the
Administrative Agent, the Aggregate European Loan Commitment may be increased
and the Aggregate Revolving Credit Commitment shall be simultaneously
decreased to the extent that one or more of the Revolving Credit Lenders (in
its sole discretion) is willing to convert its Revolving Credit Commitment
into a European Loan Commitment; PROVIDED that, after giving effect to such
increase in the Aggregate European Loan Commitment and such related decrease
in the Aggregate Revolving Credit Commitment, the sum of the Aggregate
European Loan Commitment and the Aggregate Revolving Credit Commitment shall
be unchanged (it being understood that such reallocation shall alter the
Revolving Credit Commitment Percentages of the Revolving Credit Lenders and
the European Commitment Percentages of the European Lenders).
(b) In the event that the Company desires to effect a reallocation
in accordance with the provisions of clause (a) above, the Company shall
provide to the Administrative Agent written notice to such effect, specifying
(i) the aggregate amount to be reallocated from the Aggregate Revolving
Credit Commitment to the Aggregate European Loan Commitment, (ii) the
identity of each Revolving Credit Lender which has agreed to convert all or a
portion of its Revolving Credit Commitment into a European Loan Commitment
and the amount which each such Revolving Credit Lender has agreed to so
convert and (iii) the requested effective date for such conversion (which
date shall be not less than 15 Business Days following the date of such
notice). The Administrative Agent shall provide a copy of such notice to
each European Lender and each Revolving Credit Lender and, within five
Business Days following the delivery by the Administrative Agent of such
notice, each such Revolving Credit Lender which has been identified by the
Company as being agreeable to such conversion shall provide a written
confirmation to the Administrative Agent of its agreement to do so.
(c) From and after the requested effective date, (i) the Aggregate
Revolving Credit Commitment shall be decreased and the Aggregate European
Loan Commitment shall be increased by the amount of the Revolving Credit
Commitments which the Revolving Credit Lenders specified in such notice from
the Borrower have confirmed to the Administrative Agent that they are willing
to convert to European Loan Commitments and (ii) Schedule I hereto shall be
deemed to be amended to reflect such conversion. Promptly following such
requested effective date, the Administrative Agent shall provide to each
Tranche A Lender, Tranche B Lender, Revolving Credit Lender and European
Lender an updated Schedule I reflecting such conversion.
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SECTION 8. AMOUNT AND TERMS OF EUROPEAN LETTER OF CREDIT SUB-FACILITY
8.1 EUROPEAN L/C COMMITMENT. (a) Subject to the terms and
conditions hereof, each Issuing Lender, in reliance on the agreements of the
other European Lenders set forth in subsection 8.4(a), agrees to issue
letters of credit ("EUROPEAN LETTERS OF CREDIT") for the account of the
Borrowers on any Business Day during the Commitment Period in such form as
may be approved from time to time by such Issuing Lender; PROVIDED that such
Issuing Lender shall have no obligation to issue any European Letter of
Credit if, after giving effect to such issuance,(i) the European L/C
Obligations would exceed the European L/C Commitment,(ii) the Available
European Loan Commitment of any European Lender would be less than zero,
(iii) the Aggregate Outstanding European Extensions of Credit of all European
Lenders would exceed the Aggregate European Loan Commitment then in effect or
(iv) the aggregate outstanding amount of European Revolving Loans and
European Letters of Credit made to such Foreign Borrower would exceed at any
time its Foreign Borrower Sublimit then in effect.
(b) Each European Letter of Credit shall (i) be denominated in
Dollars or (other than in the case of European Letters of Credit issued for
the account of the Company, which shall be denominated only in Dollars) in an
Optional Currency, (ii) be (x) a standby letter of credit (a "STANDBY
EUROPEAN LETTER OF CREDIT") issued to support obligations of the Company or
any of its Subsidiaries, contingent or otherwise, or to finance the working
capital and business needs of the Company or any of its Subsidiaries in the
ordinary course of business (including, without limitation, to secure or
support lines of credit obtained by Foreign Subsidiaries in accordance with
the terms hereof) or (y) a commercial letter of credit (a "COMMERCIAL
EUROPEAN LETTER OF CREDIT") issued in respect of the purchase of goods or
services by the Company and its Subsidiaries in the ordinary course of
business and (iii) expire no later than the earlier of (x) the date that is
12 months after the date of its issuance and (y) five Business Days prior to
the Termination Date; PROVIDED that any European Letter of Credit with an
expiration date occurring up to twelve months after such European Letter of
Credit's date of issuance may be automatically renewable for subsequent
12-month periods (but in no event to a date which is later than five Business
Days prior to the Termination Date) unless the Issuing Lender with respect to
such European Letter of Credit shall have given 60 days' prior written notice
to the relevant Borrower and the beneficiary of such European Letter of
Credit that it will not be renewed. Notwithstanding the foregoing, at the
request of any Borrower and with the consent of the Administrative Agent, any
European Letter of Credit issued for the account of such Borrower may have an
expiration date which is later than the date set forth in clause (iii)(x) and
(y) above, PROVIDED that (x) such Borrower agrees that, from and after the
Termination Date, it shall provide to the Administrative Agent, as collateral
security for the European L/C Obligations on account of such European Letter
of Credit, an amount of cash which is equal to at least 105% of the face
amount thereof and (y) no European Letter of Credit shall terminate more than
one year after the Termination Date.
(c) Each European Letter of Credit shall be subject to the Uniform
Customs and, to the extent not inconsistent therewith, the laws of the
jurisdiction in which such European Letter of Credit is issued.
52
(d) No Issuing Lender shall at any time be obligated to issue any
European Letter of Credit hereunder if such issuance would conflict with, or
cause such Issuing Lender or any L/C Participant to exceed any limits imposed
by, any applicable Requirement of Law.
8.2 PROCEDURE FOR ISSUANCE OF EUROPEAN LETTERS OF CREDIT. Any
Borrower may request that an Issuing Lender issue a European Letter of Credit
at any time during the Commitment Period by delivering to such Issuing Lender
(with a copy to the Administrative Agent) at its address for notices
specified herein an Application therefor, completed to the satisfaction of
the Issuing Lender, and such other certificates, documents and other papers
and information as the Issuing Lender may reasonably request. Upon receipt
of any Application, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the European Letter of Credit requested thereby (but in no
event shall the Issuing Lender be required to issue any European Letter of
Credit earlier than three Business Days after its receipt of the Application
therefor and all such other certificates, documents and other papers and
information relating thereto) by issuing the original of such European Letter
of Credit to the beneficiary thereof or as otherwise may be agreed by such
Issuing Lender and such Borrower. Each Issuing Lender shall furnish to the
Company and the Administrative Agent a copy of each European Letter of Credit
issued by such Issuing Lender, promptly following the issuance thereof.
8.3 FEES, COMMISSIONS AND OTHER CHARGES. (a) The Borrowers shall
pay to the Administrative Agent, for the ratable account of the relevant
Issuing Lender and the L/C Participants, a letter of credit fee with respect
to each Standby European Letter of Credit, computed for the period from and
including the date of issuance of such Standby European Letter of Credit to
the expiration date of such Standby European Letter of Credit, at a rate per
annum equal to the Applicable Margin then in effect for European Revolving
Loans (calculated on the basis of the actual number of days elapsed over a
360-day year) of the aggregate face amount of Standby European Letters of
Credit outstanding (of which 1/4 of 1% of such aggregate face amount shall be
for the account of the Issuing Lender with respect thereto and the remainder
of such amount shall be for the ratable account of such Issuing Lender and
the L/C Participants). Such fee shall be payable to the Administrative
Agent, for the ratable account of the European Lenders, in arrears, on each
L/C Fee Payment Date (commencing on December 31, 1998) to occur following the
issuance of such Standby European Letter of Credit for the period since the
last payment was made.
(b) The Borrowers shall pay to the Administrative Agent, for the
ratable account of the relevant Issuing Lender and the L/C Participants, a
letter of credit fee with respect to each Commercial European Letter of
Credit at a flat rate equal to 50% of the Applicable Margin then in effect
for European Revolving Loans which are Eurocurrency Loans (calculated on the
basis of the actual number of days elapsed over a 360-day year) of the
aggregate face amount of such Commercial European Letter of Credit
outstanding (of which 1/4 of 1% of such aggregate face amount shall be for
the account of the Issuing Lender with respect thereto and the remainder of
such amount shall be for the ratable account of such Issuing Lender and the
L/C Participants). Such fee shall be payable to the Administrative Agent,
for the ratable account of the European
53
Lenders, in arrears, on each L/C Fee Payment Date (commencing on December 31,
1998) to occur following the issuance of such Commercial European Letter of
Credit for the period since the last payment was made.
(c) In addition to the foregoing fees and commissions, the
Borrowers shall pay or reimburse the Issuing Lender for such normal and
customary costs and expenses as are incurred or charged by such Issuing
Lender in issuing, effecting payment under, amending or otherwise
administering any European Letter of Credit issued by it.
(d) The Administrative Agent shall, promptly following its receipt
thereof, distribute to the relevant Issuing Lender and the L/C Participants
all fees and commissions received by the Administrative Agent for their
respective accounts pursuant to this subsection.
8.4 L/C PARTICIPATIONS. (a) Each Issuing Lender irrevocably agrees
to grant and hereby grants to each L/C Participant, and, to induce such
Issuing Lender to issue European Letters of Credit hereunder, each L/C
Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions hereinafter
stated, for such L/C Participant's own account and risk an undivided interest
equal to such L/C Participant's European Commitment Percentage from time to
time in effect in such Issuing Lender's obligations and rights under each
European Letter of Credit issued by such Issuing Lender hereunder and the
amount of each draft paid by such Issuing Lender thereunder. Each L/C
Participant unconditionally and irrevocably agrees with such Issuing Lender
that, if a draft is paid under any European Letter of Credit issued by such
Issuing Lender for which such Issuing Lender is not reimbursed in full by the
relevant Borrower in accordance with the terms of this Agreement, such L/C
Participant shall pay to such Issuing Lender upon demand at such Issuing
Lender's address for notices specified herein an amount equal to such L/C
Participant's then European Commitment Percentage of the amount of such
draft, or any part thereof, which is not so reimbursed; PROVIDED that, if
such demand is made prior to 12:00 Noon, London time, on a Business Day, such
L/C Participant shall make such payment to such Issuing Lender prior to the
end of such Business Day and otherwise such L/C Participant shall make such
payment on the next succeeding Business Day.
(b) If any amount required to be paid by any L/C Participant to an
Issuing Lender pursuant to paragraph 8.4(a) in respect of any unreimbursed
portion of any payment made by such Issuing Lender under any European Letter
of Credit is paid to such Issuing Lender within three Business Days after the
date such payment is due, such L/C Participant shall pay to such Issuing
Lender on demand an amount equal to the product of (i) such amount, times
(ii) the annual interest rate reasonably determined by the Issuing Lender to
reflect the cost of funds to such Issuing Lender in maintaining such
unreimbursed amount during the period from and including the date such
payment is required to the date on which such payment is immediately
available to such Issuing Lender, times (iii) a fraction the numerator of
which is the number of days that elapse during such period and the
denominator of which is 360. If any such amount required to be paid by any
L/C Participant pursuant to paragraph 8.4(a) is not in fact made available to
such Issuing Lender by such L/C Participant within three Business Days after
the date such payment is due, such Issuing Lender shall be entitled to
recover from such L/C Par-
54
ticipant, on demand, such amount with interest thereon calculated from such
due date at the rate per annum applicable to Syndicated European Loans in the
relevant currency hereunder. A certificate of an Issuing Lender submitted to
any L/C Participant with respect to any amounts owing to such Issuing Lender
under this subsection shall be conclusive in the absence of manifest error.
(c) Whenever, at any time after an Issuing Lender has made payment
under any European Letter of Credit issued by it and has received from any L/C
Participant its European Commitment Percentage of such payment in accordance
with subsection 8.4(a), such Issuing Lender receives any payment related to such
European Letter of Credit (whether directly from the relevant Borrower or
otherwise, including proceeds of collateral applied thereto by such Issuing
Lender), or any payment of interest on account thereof, such Issuing Lender will
promptly distribute to such L/C Participant its European Commitment Percentage
thereof; PROVIDED, HOWEVER, that in the event that any such payment received by
such Issuing Lender and distributed to the L/C Participants shall be required to
be returned by such Issuing Lender, each such L/C Participant shall return to
such Issuing Lender the portion thereof previously distributed by such Issuing
Lender to it.
(d) Notwithstanding anything to the contrary contained in this
subsection 8.4, no European Lender shall be required to acquire a participating
interest in a European Letter of Credit if an Event of Default shall have
occurred and be continuing at the time such European Letter of Credit was issued
and such European Lender shall have notified the Administrative Agent in
writing, at least one Business Day prior to the issuance date with respect to
such European Letter of Credit, that such Event of Default has occurred and that
such European Lender will not acquire participations in European Letters of
Credit issued while such Event of Default is continuing.
8.5 REIMBURSEMENT OBLIGATION OF THE BORROWERS. (a) Each Borrower
agrees to reimburse the relevant Issuing Lender on the same Business Day on
which a draft is presented under any European Letter of Credit issued by such
Issuing Lender for the account of such Borrower and paid by such Issuing Lender,
PROVIDED that such Issuing Lender provides notice to such Borrower prior to
12:00 Noon, local time at the address for notices specified herein with respect
to such Borrower, on such Business Day and otherwise such Borrower will
reimburse the Issuing Lender on the next succeeding Business Day; PROVIDED,
FURTHER, that the failure to provide such notice shall not affect the absolute
and unconditional obligation of such Borrower to reimburse the relevant Issuing
Lender for any draft paid under any European Letter of Credit issued by it.
Each Issuing Lender shall provide notice to such Borrower on such Business Day
as a draft is presented and paid by such Issuing Lender indicating the amount of
(i) such draft so paid and (ii) any taxes, fees, charges or other costs or
expenses incurred by such Issuing Lender in connection with such payment. Each
such payment shall be made to such Issuing Lender at its address for notices
specified herein in lawful money of the currency in which such European Letter
of Credit was denominated and in immediately available funds.
(b) Interest shall be payable on any and all amounts remaining unpaid
by the relevant Borrower under this subsection from the date such amounts become
payable until
55
payment in full at the rate reasonably determined by the Issuing Lender as
reflecting its cost of funds for the maintenance of such extension of credit
on an overnight basis PLUS 2% above the Applicable Margin then in effect for
ABR Loans.
(c) Each drawing under any European Letter of Credit shall constitute
a request by the relevant Borrower to the Local European Lender for the relevant
currency for a borrowing of Local European Loans in the amount of such drawing
(or, if there is no such Local European Lender, to the Administrative Agent for
such a borrowing of Syndicated European Loans). The Borrowing Date with respect
to such borrowing shall be the date of such drawing.
8.6 OBLIGATIONS ABSOLUTE. (a) The obligations of each Borrower under
subsection 8.5(a) shall be absolute and unconditional under any and all
circumstances and irrespective of any set-off, counterclaim or defense to
payment which such Borrower may have or have had against the relevant Issuing
Lender, any L/C Participant or any beneficiary of a European Letter of Credit.
(b) Each Borrower also agrees with each Issuing Lender that such
Issuing Lender shall not be responsible for, and such Borrower's Reimbursement
Obligations under subsection 8.5(a) shall not be affected by, among other
things, (i) the validity or genuineness of documents or of any endorsements
thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or (ii) any dispute between or among such Borrower and any
beneficiary of any European Letter of Credit or any other party to which such
European Letter of Credit may be transferred or (iii) any claims whatsoever of
such Borrower against any beneficiary of such European Letter of Credit or any
such transferee.
(c) Neither the Issuing Lender with respect to any European Letter of
Credit nor any L/C Participant with respect thereto shall be liable for any
error, omission, interruption or delay in transmission, dispatch or delivery of
any message or advice, however transmitted, in connection with such European
Letter of Credit, except for errors or omissions caused by such Issuing Lender's
gross negligence, bad faith or willful misconduct.
(d) Each Borrower agrees that any action taken or omitted by the
Issuing Lender under or in connection with any European Letter of Credit issued
by it for the account of such Borrower or the related drafts or documents, if
done in the absence of gross negligence, bad faith or willful misconduct and in
accordance with the standards of care specified in the Uniform Commercial Code
of the State of New York, shall be binding on such Borrower and shall not result
in any liability of such Issuing Lender or any L/C Participant to such Borrower.
8.7 EUROPEAN LETTER OF CREDIT PAYMENTS. If any draft shall be
presented for payment under any European Letter of Credit, the responsibility of
the Issuing Lender thereof to the relevant Borrower in connection with such
draft shall, in addition to any payment obligation expressly provided for in
such European Letter of Credit, be limited to determining that the documents
(including each draft) delivered under such European Letter of Credit in
connection with such presentment are in conformity with such European Letter of
Credit.
56
8.8 APPLICATION. To the extent that any provision of any Application
related to any European Letter of Credit is inconsistent with the provisions of
this Section 8, the provisions of this Section 8 shall apply.
8.9 ISSUING LENDER REPORTING REQUIREMENTS. Each Issuing Lender
shall, no later than the fifth Business Day following the last day of each
calendar month and on the last Business Day of each calendar quarter (or, to
the extent that the Administrative Agent so agrees, not more than two
Business Days thereafter), provide to the Administrative Agent and the
Company separate schedules for Commercial European Letters of Credit and
Standby European Letters of Credit issued by such Issuing Lender, in form and
substance reasonably satisfactory to the Administrative Agent, setting forth
the aggregate European L/C Obligations outstanding to such Issuing Lender at
the end of each month or calendar quarter, as the case may be, and any
information requested by the Administrative Agent or the Company relating to
the date of issue, account party, amount, expiration date and reference
number of each European Letter of Credit issued by it. Promptly following
receipt by the Administrative Agent of the quarterly schedule, the
Administrative Agent shall provide to each European Lender a report
containing such information.
8.10 TRANSITIONAL PROVISIONS. Schedule 8.10 lists certain letters of
credit issued prior to the date hereof for the account of the Borrowers. On the
Closing Date, (i) such letters of credit, to the extent outstanding, shall be
automatically and without further action by the parties thereto converted to
European Letters of Credit issued pursuant to this Section 8 for the account of
the Borrower who presently is the account party thereunder and subject to the
provisions hereof, and for this purpose the fees specified in Sections 8.3 shall
be payable (in substitution for any fees set forth in the reimbursement
agreement relating to such letters of credit) as if such letters of credit had
been issued on the Closing Date and (ii) the face amount of such letters of
credit shall be included in the calculation of the aggregate amount of
outstanding European L/C Obligations. No letter of credit converted in
accordance with this subsection 8.10 shall be amended, extended or renewed
without the prior written consent of the Administrative Agent. To the extent
that any fees with respect to the letters of credit listed on Schedule 8.10 were
paid in advance to the issuing bank under such letter of credit, the
Administrative Agent shall use reasonable efforts (but shall otherwise not be
obligated) to obtain a PRO RATA refund for the relevant Borrower of such fees to
the extent such fees were paid in respect of any time period during which such
letter of credit shall be a letter of credit on account of the provisions of
this subsection. Notwithstanding anything set forth in Section 8.2(c)(A), to
the extent that any letter of credit listed on Schedule 8.10 has an expiration
date in excess of one year, such letter of credit shall continue in full force
and effect pursuant to the terms hereof after the Closing Date through its
stated expiration date (but shall be cash collateralized upon terms reasonably
satisfactory to the relevant Issuing Lender during the period from the
Termination Date through such stated expiration date).
SECTION 9. AMOUNTS AND TERMS OF EUROPEAN OVERDRAFT FACILITY
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9.1 EUROPEAN OVERDRAFT FACILITY. Subject to the terms and
conditions set forth herein, the European Overdraft Lender shall make loans
(the "EUROPEAN OVERDRAFT LOANS") to the Foreign Borrowers from time to time
during the period from the day immediately following the Closing Date to the
Termination Date, up to an aggregate principal amount at any time outstanding
which shall not exceed the European Overdraft Commitment then in effect;
PROVIDED that (x) except to the extent that the European Overdraft Lender
shall otherwise agree, Composites-Austria shall not, in the aggregate, have
the right to borrow more than $250,000 (or the Local Equivalent thereof) at
any one time under the European Overdraft Commitment and (y) except to the
extent that the European Overdraft Lender otherwise shall so agree, Salver
shall not have the right to borrow any amounts under the European Overdraft
Commitment. All European Overdraft Loans shall be payable on the Termination
Date with accrued interest thereon and shall be secured by the Collateral and
shall, except as expressly provided in this Section 9, otherwise be subject
to all the terms and conditions applicable to Syndicated European Loans,
except that each European Overdraft Loan shall be denominated in a single
Optional Currency and shall not be subject to a minimum borrowing requirement.
9.2 MAKING OF EUROPEAN OVERDRAFT LOANS. All European Overdraft Loans
shall be made available to the Foreign Borrowers at the office of the European
Overdraft Lender in London in immediately available funds on the Borrowing Date
applicable thereto. The European Overdraft Lender shall not make any European
Overdraft Loan in the period commencing on the first Business Day after it has
notice that one or more of the conditions precedent contained in subsection 12.2
shall not on such date be satisfied, and ending when such conditions are
satisfied, and the European Overdraft Lender shall not otherwise be required to
determine that, or take notice whether, the conditions precedent set forth in
subsection 12.2 hereof have been satisfied in connection with the making of any
European Overdraft Loan.
9.3 REPAYMENT OF EUROPEAN OVERDRAFT LOANS. Each Foreign Borrower
shall repay the outstanding European Overdraft Loans owing by it to the European
Overdraft Lender at any time, but in no event later than the earlier of
(A) demand by the European Overdraft Lender and (B) the Termination Date.
9.4 USE OF PROCEEDS OF EUROPEAN OVERDRAFT LOANS. The proceeds of the
European Overdraft Loans may be used to provide for ongoing working capital
needs in the ordinary course of the business of the Foreign Borrowers and their
respective Subsidiaries and for any other lawful corporate purposes not
prohibited hereunder.
9.5 ADJUSTMENT OF EUROPEAN OVERDRAFT COMMITMENT. (a) Upon the written
request of the Company from time to time and with the consent of each of the
Administrative Agent and the European Overdraft Lender (in their respective sole
discretion) the European Overdraft Commitment of the European Overdraft Lender
may be increased to an amount not in excess of $25,000,000. Any such increase
in the European Overdraft Commitment shall be accompanied by a reduction in the
European Commitment of Citibank, N.A. to the extent required by subsection
10.5(f); PROVIDED that, after giving effect to such decrease in the European
Commitment of Citibank, N.A., the sum of the European Commitment of Citibank,
N.A. and the European Overdraft Commitment shall be unchanged (it being
understood that such reduction in
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the European Commitment of Citibank, N.A. shall alter the European Commitment
Percentage of each European Lender).
(b) Upon the written request of the Company from time to time and with
the consent of each of the Administrative Agent and the European Overdraft
Lender (such consents not to be unreasonably withheld), the European Overdraft
Commitment of the European Overdraft Lender may be reduced and the European
Commitment of Citibank, N.A. may be increased by an amount not to exceed the
amount of such reduction; PROVIDED that, after giving effect to such increase in
the European Commitment of Citibank, N.A., the sum of the European Commitment of
Citibank, N.A. and the European Overdraft Commitment shall be unchanged (it
being understood that such increase in the European Commitment of Citibank, N.A.
shall alter the European Commitment Percentage of each European Lender).
SECTION 10. PROVISIONS RELATING TO THE EXTENSIONS OF CREDIT;
FEES AND PAYMENTS
10.1 REPAYMENT OF LOANS; EVIDENCE OF DEBT. (a) Each Borrower hereby
unconditionally promises to pay to (i) with respect to Swing Line Loans, the
Swing Line Lender, (ii) with respect to Local European Loans in which the
purchase of participating interests have not been funded pursuant to subsection
7.5(a), the relevant Local Lender, (iii) with respect to European Overdraft
Loans, the European Overdraft Lender and (iv) otherwise, the Administrative
Agent, the then unpaid principal amount of each Loan borrowed by it on the
applicable Termination Date (or such earlier date on which such Loans become due
and payable hereunder). Each Borrower hereby further agrees to pay interest on
the unpaid principal amount of the Loans from time to time owing by it from the
date hereof until payment in full thereof at the rates PER ANNUM, and on the
dates, set forth in subsection 10.8.
(b) Each Lender (including, without limitation, the European
Overdraft Lender) shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of each Borrower to such Lender
resulting from each Loan of such Lender from time to time, including the amounts
of principal and interest payable and paid to such Lender from time to time
under this Agreement.
(c) The Administrative Agent shall maintain the Register pursuant to
subsection 17.7(d), and a subaccount therein for each Lender, in which shall be
recorded (i) the amount of Loan made hereunder, the Type thereof, each Interest
Period applicable thereto and the Borrower with respect thereto, (ii) the amount
of any principal or interest due and payable or to become due and payable from
each Borrower to each Lender hereunder and (iii) both the amount of any sum
received by the Administrative Agent hereunder from any Borrower and each
applicable Lender's share thereof; PROVIDED that the Administrative Agent shall
have no obligation to record in the Register any matters with respect to
European Overdraft Loans.
(d) The entries made in the Register and the accounts of each Lender
maintained pursuant to subsection 10.1(b) shall, to the extent permitted by
applicable law, be PRIMA FACIE
59
evidence of the existence and amounts of the obligations of the Borrowers
therein recorded; PROVIDED, HOWEVER, that the failure of any Lender or the
Administrative Agent to maintain the Register or any such account, or any
error therein, shall not in any manner affect the obligation of each Borrower
to repay (with applicable interest) the Loans made to such Borrower by such
Lender in accordance with the terms of this Agreement.
(e) Each relevant Borrower agrees that, upon request of any such
Lender through the Administrative Agent, such Borrower will execute and deliver
to such Lender:
(i) in the case of a Tranche A Lender, a promissory note of such
Borrower evidencing the Tranche A Loans of such Tranche A Lender,
substantially in the form of Exhibit A-1 with appropriate insertions as to
date and principal amount (a "TRANCHE A NOTE");
(ii) in the case of a Tranche B Lender, a promissory note of such
Borrower evidencing the Tranche B Loans of such Tranche B Lender,
substantially in the form of Exhibit A-2 with appropriate insertions as to
date and principal amount (a "TRANCHE B NOTE");
(iii) in the case of a Revolving Credit Lender, a promissory note of
such Borrower evidencing the Revolving Credit Loans of such Revolving
Credit Lender, substantially in the form of Exhibit A-3 with appropriate
insertions as to date and principal amount (a "REVOLVING CREDIT NOTE"); and
(iv) in the case of the Swing Line Lender, a promissory note of such
Borrower evidencing the Swing Line Loans, substantially in the form of
Exhibit A-4 with appropriate insertions as to date and principal amount (a
"SWING LINE NOTE").
No promissory notes shall be provided with respect to any European Revolving
Loans or the European Overdraft Facility.
10.2 FACILITY FEE. (a) The Borrowers shall pay to the Administrative
Agent, for the account of:
(i) each Revolving Credit Lender, a facility fee computed on the
average daily amount of the Revolving Credit Commitment of such Revolving
Credit Lender during the period for which payment is made;
(ii) each European Lender, a facility fee computed on the average
daily amount of the European Loan Commitment of such European Lender during
the period for which payment is made; and
(iii) for each Tranche A Lender, a facility fee computed on the
average daily amount of the Tranche A Loan Commitment remaining available
for the making of Subsequent Tranche A Loans during the period for which
payment is made.
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Such facility fee shall (x) accrue for each day during the period from and
including the first day of the Commitment Period to and including the
Termination Date, (y) be payable at the rate PER ANNUM equal to the Applicable
Facility Fee Rate and (z) be payable (A) quarterly, in arrears, on the last
Business Day of each March, June, September and December, commencing on December
31, 1998, for the period ending on (and including) the last day of such
December, March, June or September, respectively, and (B) on the Termination
Date.
(b) The Borrowers shall pay to the European Overdraft Lender a
facility fee for each day during the period from and including the first day of
the Commitment Period to and including the Termination Date, computed at the
rate PER ANNUM equal to the Applicable Facility Fee Rate on the average daily
amount of the European Overdraft Commitment during the period for which payment
is made. Such facility fee shall be payable (A) quarterly in arrears on the
last Business Day of each March, June, September and December, commencing on
December 31, 1998, for the period ending on (and including) the last day of the
immediately preceding December, March, June or September, respectively, and (B)
on the Termination Date.
10.3 OPTIONAL PREPAYMENTS. (a) Each Borrower may at any time and from
time to time prepay the Loans made to it (other than (x) the Swing Line Loans,
as to which the provisions of subsection 10.3(b) shall apply and (y) the
European Overdraft Loans, as to which the provisions of subsection 9.3 shall
apply), in whole or in part, without premium or penalty, upon at least three
Business Days' (or, in the case of prepayments of ABR Loans, same day's)
irrevocable notice to the Administrative Agent (which notice must be received by
the Administrative Agent prior to (x) in the case of Loans denominated in
Dollars, 11:00 A.M., New York City time, and (y) in the case of Loans
denominated in Optional Currencies, 11:00 A.M., London time, on the date upon
which such notice is due), specifying whether such prepayment is to be applied
to the Tranche A Loans, the Tranche B Loans, the Revolving Credit Loans or the
European Revolving Loans (and, if European Revolving Loans, whether such Loans
are Syndicated European Loans or Local European Loans and the currency in which
such Loans are denominated) hereunder and, in any event, the date and amount of
prepayment and whether the prepayment is of Eurocurrency Loans, ABR Loans or a
combination thereof, and, if of a combination thereof, the amount allocable to
each. Upon receipt of any such notice, the Administrative Agent shall promptly
notify each affected Lender thereof. If any such notice is given, the amount
specified in such notice shall be due and payable on the date specified therein,
together with any amounts payable pursuant to subsection 10.15 and, except in
the case of prepayments of Revolving Credit Loans which are ABR Loans, accrued
interest to such date on the amount prepaid. Partial prepayments shall be (i)
in the case of Loans denominated in Dollars, in an aggregate principal amount of
$1,000,000 or a whole multiple of $1,000,000 in excess thereof, (ii) in the case
of Syndicated European Loans denominated in any Optional Currency, in an
aggregate principal amount equal to an integral multiple of 100,000 units of
such Optional Currency and equal to or greater than the Local Equivalent of
$2,000,000 and (iii) in the case of Local European Loans denominated in any
Optional Currency, in an aggregate principal amount equal to an integral
multiple of 50,000 units of such Optional Currency and equal to or greater than
the Local Equivalent of $100,000. Partial prepayments of the Tranche A Loans
and the Tranche B Loans shall be applied ratably to the remaining installments
thereof.
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(b) The Company may at any time and from time to time prepay, in whole
or in part and without premium or penalty, any Swing Line Loans then owing by it
on any Business Day; PROVIDED that the Company has given irrevocable notice to
the Administrative Agent not later than 1:00 P.M., New York City time, on the
date of such prepayment. Partial prepayments of Swing Line Loans shall be in a
minimum amount of $1,000,000 or a multiple of $100,000 in excess thereof.
10.4 OPTIONAL TERMINATION OR REDUCTION OF COMMITMENTS. The Company
shall have the right, upon not less than three Business Days' notice to the
Administrative Agent, to (a) terminate any of the Aggregate Tranche A Loan
Commitment, the Aggregate Tranche B Loan Commitment, the Aggregate Revolving
Credit Commitment or the Aggregate European Loan Commitment or (b) from time to
time, to reduce the amount of any thereof; PROVIDED that no such termination or
reduction of the Aggregate Revolving Credit Commitment or the Aggregate European
Loan Commitment shall be permitted if, after giving effect thereto and to any
prepayments of the Loans thereunder made on the effective date of such
termination or reduction, the Aggregate Outstanding RC Extensions of Credit (in
the case of any termination or reduction of the Aggregate Revolving Credit
Commitment) or the Aggregate Outstanding European Extensions of Credit (in the
case of any termination or reduction of the Aggregate European Loan Commitment)
would exceed the Aggregate Revolving Credit Commitment or the Aggregate European
Loan Commitment, as the case may be, then in effect. Any such reduction shall
be in an amount equal to the Local Equivalent of $1,000,000 or a whole multiple
thereof and shall reduce permanently the Aggregate Revolving Credit Commitment
then in effect.
10.5 MANDATORY REDUCTION OF COMMITMENTS AND PREPAYMENTS. (a) Each of
the Aggregate Revolving Credit Commitment and the Aggregate European Loan
Commitment shall terminate on the Termination Date.
(b) If the Aggregate Outstanding RC Extensions of Credit of all
Revolving Credit Lenders shall at any time exceed the Aggregate Revolving Credit
Commitment then in effect (including, without limitation, as a result of any
reduction or termination of the Aggregate Revolving Credit Commitment pursuant
to subsection 10.4 or this subsection 10.5), the Borrowers shall immediately
repay the Aggregate Outstanding RC Extensions of Credit by the amount of such
excess, with such prepayment being applied, FIRST, to the then outstanding Swing
Line Loans, SECOND, to the then outstanding Revolving Credit Loans and, THIRD,
to cash collateralize the then outstanding L/C Obligations thereunder.
(c) If the Aggregate Outstanding European Extensions of Credit of all
European Lenders shall at any time exceed the Aggregate European Loan Commitment
then in effect (including, without limitation, as a result of any reduction or
termination of the Aggregate European Loan Commitment pursuant to subsection
10.4 or this subsection 10.5), the Borrowers shall immediately repay the
Aggregate Outstanding European Extensions of Credit by the amount of such
excess, with such prepayment being applied, FIRST, to the then outstanding
European Revolving Loans (in such order as the Company shall elect) and, SECOND,
to cash collateralize the then outstanding L/C Obligations thereunder.
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(d) If the aggregate outstanding principal amount of European
Overdraft Loans shall at any time exceed the European Overdraft Commitments then
in effect, the Foreign Borrowers shall, within five Business Days, repay the
European Overdraft Loans by the amount of such excess.
(e) If any Foreign Borrower shall at any time cease to be a "Foreign
Borrower" hereunder, such Foreign Borrower shall immediately (i) repay all
European Revolving Loans owing by it (together with accrued interest and any
other amounts owing in respect thereof) and (ii) provide to the relevant Issuing
Lender cash collateral (on terms reasonably satisfactory to such Issuing Lender
and the Administrative Agent) in the amount equal to 105% of then outstanding
face amount of the European Letters of Credit issued by such Issuing Lender for
the account of such Foreign Borrower.
(f) If the European Overdraft Commitment shall at any time be
increased pursuant to subsection 9.5(a), the European Loan Commitment of
Citibank, N.A. immediately shall be temporarily reduced (subject to
reinstatement in accordance with the provisions of subsection 9.5(b)) by 100% of
the amount of such increase and the Aggregate Outstanding European Extensions of
Credit owing to Citibank, N.A. immediately shall be prepaid by the amount
necessary to cause such Aggregate Outstanding European Extensions of Credit to
equal Citibank, N.A.'s European Commitment Percentage of (after giving effect to
such reduction of its European Loan Commitment) the Aggregate Outstanding
European Extensions of Credit of all European Lenders.
(g) The Aggregate Commitment shall be reduced by the amount equal to
100% of any Net Proceeds (other than Reserved Proceeds) derived by the Company
and its Subsidiaries from any Net Proceeds Event; PROVIDED, HOWEVER, that:
(x) no such reduction shall be required with respect to the first
$25,000,000 of Net Proceeds derived from any Net Proceeds Event received by
the Company and its Subsidiaries during any period of 365 consecutive days
(other than any Net Proceeds Event on account of the sale, transfer or
other disposition of assets described in clause (y) below);
(y) no such reduction shall be required with respect to any Net
Proceeds received on account of the sale, transfer or other disposition of
any property listed on Schedule 10.5; and
(z) in the event that such Net Proceeds Event is of the type described
in clause (c) of the definition of such term and the Leverage Ratio in
effect on the date of such Net Proceeds Event was not more than 3.0 to 1.0,
the Aggregate Commitment shall be reduced by 50% (rather than 100%) of such
Net Proceeds.
Any reduction of the Aggregate Commitment pursuant to this clause (g) shall be
applied:
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FIRST, to the Aggregate Tranche A Loan Commitment (or, from and after
the Closing Date, the Tranche A Loans then outstanding) and the
Aggregate Tranche B Loan Commitment (or, from and after the
Closing Date, the Tranche B Loans then outstanding), with such
application to be ratably between such Commitments and ratably
among the remaining installments of each; PROVIDED that, at the
Company's option, up to $125,000,000 of Net Proceeds received by
the Company on or before December 31, 1998 from a Net Proceeds
Event of the type described in clause (c) of the definition of
such term may be applied first to the Aggregate Tranche B Loan
Commitment (or, from and after the Closing Date, the Tranche B
Loans then outstanding), with such application to be ratably
among the remaining installments thereof; and
SECOND, to the Aggregate Revolving Credit Commitment and the Aggregate
European Loan Commitment, with such application to be ratably
between such Commitments; PROVIDED that with respect to any
amount being applied pursuant to this clause SECOND as a result
of such amount ceasing to be Reserved Proceeds, 71% of such
amount shall be applied to reduce the Aggregate Revolving Credit
Commitment and the remaining 29% of such amount shall be applied
to reduce the Aggregate European Loan Commitment;
PROVIDED that, unless the Company otherwise elects, prepayments made pursuant to
this subsection 10.5(g) shall be applied to the Loans under any Commitment,
FIRST, to ABR Loans and, SECOND, to Eurocurrency Loans. Notwithstanding
anything to the contrary contained in this clause (g), any Reserved Proceeds
shall cease to be Reserved Proceeds (unless previously reinvested in accordance
with the definition of such term) on the earlier to occur of (i) the 366th day
following such occurrence and (ii) to the extent that an Event of Default is
then continuing, the date upon which the Administrative Agent or the Majority
Lenders shall request such application. Upon any such amount ceasing to be
Reserved Proceeds, such amount shall be applied to reduce the Aggregate
Commitment in accordance with the provisions of this clause (g).
(h) Notwithstanding anything to the contrary contained herein, in the
event that a Borrower would incur costs pursuant to subsection 10.15 as a result
of any payment due as a result of any commitment reduction or prepayment
required to be made pursuant to this subsection 10.5, such Borrower may deposit
the amount of such payment with the Administrative Agent, for the benefit of the
Lenders who would have received such payment, in a cash collateral account,
until the end of the applicable Interest Period at which time such payment shall
be made. Each Borrower hereby grants to the Administrative Agent, for the
benefit of such Lenders, a security interest in all amounts in which such
Borrower has any right, title or interest which are from time to time on deposit
in such cash collateral account and expressly waives all rights (which rights
such Borrower hereby acknowledges and agrees are vested exclusively in the
Administrative Agent) to exercise dominion or control over any such amounts.
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10.6 CONVERSION AND CONTINUATION OPTIONS.(a) Each Borrower may elect
from time to time to convert Eurocurrency Loans to ABR Loans by delivering to
the Administrative Agent an irrevocable Notice of Borrowing by 11:00 A.M., New
York City time, at least one Business Day prior to the requested date of
conversion; PROVIDED that any such conversion of Eurocurrency Loans may only be
made on the last day of an Interest Period with respect thereto. Each Borrower
may elect from time to time to convert ABR Loans to Eurocurrency Loans by
delivering to the Administrative Agent an irrevocable Notice of Borrowing by
11:00 A.M., New York City time, at least three Business Days' prior to the
requested conversion date. Any such Notice of Borrowing with respect to a
conversion to Eurocurrency Loans shall specify the length of the initial
Interest Period or Interest Periods therefor. Upon receipt of any such Notice
of Borrowing, the Administrative Agent shall promptly notify each affected
Lender thereof. All or any part of outstanding Eurocurrency Loans and ABR Loans
may be converted as provided herein, PROVIDED that (i) no Loan may be converted
into a Eurocurrency Loan when any Event of Default has occurred and is
continuing and the Administrative Agent has or the Required Lenders have
determined that such a conversion is not appropriate, (ii) no Revolving Credit
Loan may be converted into a Eurocurrency Loan after the date that is one month
prior to the Termination Date and (iii) no European Revolving Loan which is
denominated in an Optional Currency or Local European Loan may be converted into
an ABR Loan. Notwithstanding anything to the contrary contained herein, Swing
Line Loans shall at all times be maintained as ABR Loans and shall not be
converted to Eurocurrency Loans hereunder.
(b) Any Eurocurrency Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
relevant Borrower delivering to the Administrative Agent an irrevocable Notice
of Borrowing, in accordance with the applicable provisions of the term "Interest
Period" set forth in subsection 1.1, setting forth (among other things) the
length of the next Interest Period to be applicable to such Loans, PROVIDED that
(i) no Loan may be continued as a Eurocurrency Loan when any Event of Default
has occurred and is continuing and the Administrative Agent has or the Required
Lenders have determined that such a continuation is not appropriate and (ii) no
Revolving Credit Loan may be continued as a Eurocurrency Loan after the date
that is one month prior to the Termination Date and PROVIDED, FURTHER, that if a
Borrower shall fail to give such notice or if such continuation is not
permitted, such Loans shall (x) in the case of any Loan to the Company or any
Syndicated European Loan denominated in Dollars, be automatically converted to
ABR Loans on the last day of such then expiring Interest Period and (y) in each
other case, bear interest at a rate equal to the rate determined by the
Administrative Agent (in its reasonable discretion and notified to the relevant
Borrower) as reflecting a reasonable cost of funds for the maintenance by the
relevant Lenders of such Loan on an overnight basis PLUS (in the case of this
clause (y)) the Applicable Margin then in effect with respect to Eurocurrency
Loans. Upon receipt of any such Notice of Borrowing, the Administrative Agent
shall promptly notify each affected Lender thereof.
10.7 MINIMUM AMOUNTS AND MAXIMUM NUMBER OF TRANCHES. All borrowings,
conversions and continuations of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant to such
elections so that, after giving effect thereto, the aggregate principal amount
of the Loans comprising each Eurocurrency Tranche shall be equal to (a) in the
case of Loans denominated in Optional Currencies, 100,000
65
units in such Optional Currency and at least the Local Equivalent of
$2,000,000 and (b) in the case of all other Loans, $2,000,000 or a whole
multiple of $1,000,000 in excess thereof. In no event shall there be more
than 10 Eurocurrency Tranches outstanding to the Company at any time or more
than 15 Eurocurrency Tranches outstanding to the Foreign Borrowers (in the
aggregate) at any time. Notwithstanding the foregoing, the provisions of
this Section 10.7 shall not apply to European Overdraft Loans.
10.8 INTEREST RATES AND PAYMENT DATES. (a) Each Eurocurrency Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the Eurocurrency Rate determined for such
day plus the Applicable Margin with respect thereto. Interest on each
Eurocurrency Loan shall be payable in the currency in which such Eurocurrency
Loan is denominated.
(b) Each ABR Loan (including, without limitation, each Swing Line
Loan) shall bear interest at a rate per annum equal to the ABR plus the
Applicable Margin with respect thereto. Interest on each ABR Loan shall be
payable in Dollars.
(c) If all or a portion of (i) any principal of any Loan, (ii) any
interest payable thereon, (iii) any facility fee or (iv) any other amount
payable hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), the principal of the Loans and any such overdue
interest, facility fee or other amount shall bear interest at a rate per annum
which is (x) in the case of principal, the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this subsection plus
2% or (y) in the case of any such overdue interest, facility fee or other amount
(including, without limitation, fees and commissions on Letters of Credit), the
rate which would have been applicable thereto if such amount were principal of a
Loan denominated in the relevant currency (with any such amount which is
denominated in Dollars being treated as if it were an ABR Loan) plus 2%, in each
case from the date of such non-payment until such overdue principal, interest,
facility fee or other amount is paid in full (as well after as before judgment).
(d) Interest shall be payable in arrears on each Interest Payment Date
(PROVIDED that interest accruing pursuant to paragraph (c) of this subsection
shall be payable from time to time on demand) and shall be payable (w) in the
case of interest on account of Swing Line Loans, to the Swing Line Lender (for
its own account), (x) in the case of interest on Local European Loans, to the
relevant Local Lender (for its own account), (y) in the case of interest on
European Overdraft Loans, to the European Overdraft Lender (for its own account)
and (z) otherwise, to the Administrative Agent (for the ratable account of the
Lenders holding the obligations on account of which such interest was paid).
(e) Each Local Lender hereby agrees that, in consideration of the
agreement of the European Lenders to purchase participating interests in the
Local European Loans made by it, such Local Lender shall pay to the
Administrative Agent (for the ratable account of the European Lenders) promptly
upon receipt by such Local Lender of any interest payment hereunder a fee in the
amount equal to (x) the Applicable Margin for Eurocurrency Loans on the average
daily principal amount of its Local European Loans during the period for which
payment is due MINUS
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(y) the amount equal to 1/4 of 1% on such average daily principal amount
(which amount shall be retained by such Local Lender, for its own account);
PROVIDED, HOWEVER, that, in the event that the European Lenders have funded
the purchase of participating interests in such Local European Loans pursuant
to subsection 7.5(a), such Local Lender instead shall pay to the
Administrative Agent, for the account of each European Lender which has so
funded such purchase, the amount equal to such European Lender's European
Commitment Percentage of the full amount (other than the amount equal to 1/4
of 1% PER ANNUM on the average daily principal amount on which such interest
is being paid, which amount shall be retained by the relevant Local Lender as
an administrative fee) of the interest paid to such Local Lender by the
relevant Borrower. In addition to the foregoing amounts, the relevant
Borrower also shall pay to each relevant Lender any amounts due pursuant to
subsection 10.15.
10.9 COMPUTATION OF INTEREST AND FEES. (a) Facility fees and, other
than when calculated on the basis of the Prime Rate, interest shall be
calculated on the basis of a 360-day year for the actual days elapsed; and, when
calculated on the basis of the Prime Rate, interest shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed; PROVIDED that interest on all Eurocurrency Loans denominated in Belgian
francs or British pounds sterling ("Euro sterling") shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed. The Administrative Agent shall as soon as practicable notify the
relevant Borrower and the affected Lenders of each determination of a
Eurocurrency Rate. Any change in the interest rate on a Loan or the Applicable
Facility Fee Rate resulting from a change in (i) the ABR or the Eurocurrency
Reserve Requirements shall become effective as of the opening of business on the
day on which such change becomes effective and (ii) the Leverage Ratio of the
Company and its Subsidiaries shall become effective as of the opening of
business on the date upon which the Administrative Agent receives the financial
statements required to be delivered pursuant to subsection 13.1 which evidence
such change in the Leverage Ratio. The Administrative Agent shall as soon as
practicable notify the relevant Borrower and the affected Lenders of the
effective date and the amount of each such change in interest rate.
(b) Each determination of an interest rate by the Administrative Agent
pursuant to any provision of this Agreement shall be conclusive and binding on
the Borrowers and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of any Borrower, deliver to such
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to subsection 10.9(a) which is applicable
to the Loans of such Borrower and, with respect to Loans made to French
Borrowers or in French Francs, the overall interest rate ("taux effectif
global") applicable to such Loans.
10.10 INABILITY TO DETERMINE INTEREST RATE. If prior to the
determination of the Eurocurrency Rate with respect to any Interest Period:
(a) the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrowers) that, by
reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurocurrency Rate for
such Interest Period;
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(b) the Administrative Agent shall have received notice from any
Lender that deposits in Dollars or the applicable Optional Currency, as
applicable, in the principal amounts of the Eurocurrency Rate Loans to
which such Interest Period is to be applicable are not generally available
in the London interbank market for a period equal to such Interest Period;
or
(c) the Administrative Agent shall have received notice from the
Required Lenders that the Eurocurrency Rate to be determined for such
Interest Period will not adequately and fairly reflect the cost to such
Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,
the Administrative Agent shall give telecopy or telephonic notice thereof to the
Company and the affected Lenders as soon as practicable thereafter. If such
notice is given, then:
(x) with respect to Loans (other than Local European Loans)
denominated in Dollars, (i) any Eurocurrency Loans requested to be made on
the first day of such Interest Period shall be made as ABR Loans, (ii) any
ABR Loans that were to have been converted on the first day of such
Interest Period to Eurocurrency Loans shall be converted to or continued as
ABR Loans and (z) any outstanding Eurocurrency Loans shall be converted, on
the first day of such Interest Period, to ABR Loans; and
(y) with respect to any other Loans, any Eurocurrency Loans requested
to be made or continued on the first day of such Interest Period shall
thereafter (and until such notice has been withdrawn) bear interest at the
rate determined by the Administrative Agent (or, in the case of European
Overdraft Loans or Local European Loans, the European Overdraft Lender or
the relevant Local Lender, as the case may be) as reflecting a reasonable
cost of funds for the maintenance by the relevant Lenders of such Loan on
an overnight basis PLUS the Applicable Margin then in effect with respect
to Eurocurrency Loans.
Until such notice has been withdrawn by the Administrative Agent, no further
Eurocurrency Loans under the Aggregate Revolving Credit Commitment shall be made
or continued as such, nor shall the relevant Borrower have the right to convert
Loans to Eurocurrency Loans.
10.11 PRO RATA TREATMENT AND PAYMENTS. (a) Each borrowing (other than
a borrowing of Swing Line Loans, Local European Loans or European Overdraft
Loans) by a Borrower hereunder, each payment by a Borrower on account of any
facility fee hereunder and any reduction of the Commitments shall be made PRO
RATA according to the respective relevant Commitment Percentages of the Lenders
holding the affected obligations. Each payment (including each prepayment) by a
Borrower on account of principal of and (subject to the provisions of subsection
10.12) interest on the Loans (other than the Swing Line Loans, the European
Overdraft Loans or any Local European Loans in which the purchase of
participating interests has not been funded pursuant to subsection 7.5(a)) shall
be made PRO RATA according to the respective outstanding principal amounts of
such Loans then held by the Lenders. Except as otherwise set forth herein, all
payments (including prepayments) to be made by any Borrower
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hereunder, whether on account of principal, interest, fees or otherwise,
shall be made without set off or counterclaim and shall be made prior to 1:00
P.M., New York City time (with respect to amounts denominated in Dollars) or
London time (with respect to other amounts), on the due date thereof to the
Administrative Agent, for the account of the applicable Lenders, at the
Administrative Agent's office specified in subsection 17.3 (or at such other
office as the Administrative Agent may from time to time specify), in
immediately available funds and in the currency in which the underlying
obligation is denominated (PROVIDED that facility fees payable pursuant to
subsection 10.2 shall be payable in Dollars). The Administrative Agent shall
distribute such payments to the Lenders holding obligations on account of
which such amounts were paid promptly upon receipt in like funds as received.
If any payment hereunder becomes due and payable on a day other than a
Business Day, such payment shall be extended to the next succeeding Business
Day, and, with respect to payments of principal, interest thereon shall be
payable at the then applicable rate during such extension.
(b) Unless the Administrative Agent shall have been notified in
writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its relevant Commitment Percentage of such
borrowing available to the Administrative Agent, the Administrative Agent may
assume that such Lender is making such amount available to the Administrative
Agent, and the Administrative Agent may, in reliance upon such assumption,
make available to the relevant Borrower a corresponding amount. If such
amount is not made available to the Administrative Agent by the required time
on the Borrowing Date therefor, such Lender shall pay to the Administrative
Agent, on demand, such amount with interest thereon at a rate equal to the
daily average Federal Funds Effective Rate (or, in the case of amounts
denominated in Optional Currencies, the rate PER ANNUM reasonably determined
by the Administrative Agent to reflect the cost of funds to it in maintaining
such Lender's unfunded portion of the Loan) for the period until such Lender
makes such amount immediately available to the Administrative Agent. A
certificate of the Administrative Agent submitted to any Lender with respect
to any amounts owing under this subsection 10.11 shall be conclusive in the
absence of manifest error. If such Lender's relevant Commitment Percentage
of such borrowing is not made available to the Administrative Agent by such
Lender within three Business Days of such Borrowing Date, the Administrative
Agent shall also be entitled to recover such amount with interest thereon
calculated from such Borrowing Date at the rate per annum applicable to ABR
Loans hereunder (or, in the case of amounts denominated in Optional
Currencies, the higher of (x) the rate PER ANNUM reasonably determined by the
Administrative Agent to reflect the cost of funds to it in maintaining such
Lender's unfunded portion of the Loan for the period until such Lender makes
such amount immediately available to the Administrative Agent and (y) the
rate then applicable to the relevant European Revolving Loan hereunder).
(c) Notwithstanding anything to the contrary contained herein, in the
event that the Administrative Agent shall make any payment to a Lender on
account of amounts owing to such Lender by a Borrower hereunder and the
Administrative Agent either (i) shall not receive the corresponding amount from
such Borrower or (ii) shall be required to be return such amount to such
Borrower, such Lender shall (upon the request of the Administrative Agent)
promptly return to the Administrative Agent the amount of such payment.
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(d) For the purposes of this Agreement, the Dollar Equivalent of a
European Revolving Loan which is denominated in an Optional Currency or any L/C
Obligations denominated in an Optional Currency shall be determined by the
Administrative Agent upon receipt from any Borrower of the Notice of Borrowing
requesting a European Revolving Loan or any Application for a European Letter of
Credit, and such Dollar Equivalent shall be recalculated on each date that it
shall be necessary to determine the Available European Loan Commitment or any or
all of the Aggregate Outstanding European Extensions of Credit outstanding on
such date (it being understood that such calculation or recalculation may, under
the circumstances described in the definition of the term "Dollar Equivalent" in
Section 1.1, be made based upon an exchange rate in effect on the last Business
Day of the most recently ended calendar quarter).
10.12 ILLEGALITY. Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender to make or maintain
Eurocurrency Loans as contemplated by this Agreement, (a) the commitment of such
Lender hereunder to make Eurocurrency Loans, continue Eurocurrency Loans as such
and convert ABR Loans to Eurocurrency Loans shall forthwith be cancelled and (b)
such Lender's Loans then outstanding as Eurocurrency Loans, if any, shall be
converted automatically to:
(i) in the case of Loans denominated in Dollars, ABR Loans; and
(ii) otherwise, a rate equal to the rate determined by the
Administrative Agent (or, in the case of Local European Loans, the relevant
Lender) in its reasonable discretion and notified to the relevant Borrower
as reflecting a reasonable cost of funds for the maintenance by the
relevant Lenders of such Loan on an overnight basis PLUS (in the case of
this clause (ii)) the Applicable Margin then in effect with respect to
Eurocurrency Loans which are European Revolving Loans;
in each case on the respective last days of the then current Interest Periods
with respect to such Loans or within such earlier period as required by law. If
any such conversion of a Eurocurrency Loan occurs on a day which is not the last
day of the then current Interest Period with respect thereto, the relevant
Borrower shall pay to the relevant Lenders such amounts, if any, as may be
required pursuant to subsection 10.15.
10.13 REQUIREMENTS OF LAW. (a) If the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:
(i) shall subject any Lender to any tax of any kind whatsoever
with respect to this Agreement, any Note, any Letter of Credit, any
Application or any Eurocurrency Loan made by it, or change the basis of
taxation of payments to such Lender in respect thereof (except for
Non-Excluded Taxes covered by subsection 10.14 and changes in the rate
of tax on the overall net income of such Lender);
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(ii) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other acquisition of funds by, any
office of such Lender which is not otherwise included in the determination
of the Eurocurrency Rate hereunder; or
(iii) shall impose on such Lender any other condition;
and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurocurrency Loans or issuing or participating in
Letters of Credit or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the Company shall promptly pay (or cause to be
paid) to such Lender such additional amount or amounts as will compensate such
Lender for such increased cost or reduced amount receivable.
(b) If any Lender shall have determined that the adoption of or any
change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder or under any Letter of Credit to a
level below that which such Lender or such corporation could have achieved but
for such adoption, change or compliance (taking into consideration such Lender's
or such corporation's policies with respect to capital adequacy) by an amount
deemed by such Lender to be material, then from time to time, the Company shall
promptly pay (or cause to be paid) to such Lender such additional amount or
amounts as will compensate such Lender for such reduction. For purposes of
clarification, the parties hereto expressly agree that the introduction of,
changeover to and operation of the Euro shall constitute a change in a
Requirement of Law regarding capital adequacy to which the provisions of this
subsection 10.13 shall apply.
(c) If any Lender becomes entitled to claim any additional amounts
pursuant to this subsection, it shall promptly notify the Company (with a copy
to the Administrative Agent) of the event by reason of which it has become so
entitled. A certificate as to any additional amounts payable pursuant to this
subsection (accompanied by a statement as to the amount of such compensation and
a summary of the basis for such demand with detailed calculations) submitted by
such Lender to the Company (with a copy to the Administrative Agent) shall be
conclusive in the absence of manifest error. The agreements in this subsection
shall survive the termination of this Agreement and the payment of the Loans and
all other amounts payable hereunder.
10.14 TAXES. (a) All payments made by the Borrowers under this
Agreement and any Notes shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or
71
assessed by any Governmental Authority, excluding net income taxes, franchise
taxes (imposed in lieu of net income taxes) and branch profits taxes imposed
on the Administrative Agent or any Lender as a result of a present or former
connection between the Administrative Agent or such Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from the Administrative Agent or such Lender having
executed, delivered or performed its obligations or received a payment under,
or enforced, this Agreement or any Note). If any such non-excluded taxes,
levies, imposts, duties, charges, fees deductions or withholdings
("NON-EXCLUDED TAXES") are required to be withheld from any amounts payable
to the Administrative Agent or any Lender hereunder or under any Note, the
amounts so payable to the Administrative Agent or such Lender shall be
increased to the extent necessary to yield to the Administrative Agent or
such Lender (after payment of all Non-Excluded Taxes) interest or any such
other amounts payable hereunder at the rates or in the amounts specified in
this Agreement, PROVIDED, HOWEVER, that the Borrowers shall be entitled to
deduct and withhold and shall not be required to increase any such amounts
payable to any Lender that is not a United States person as defined in
section 7701(a)(30) of the Code (a "NON-U.S. LENDER") if such Lender fails to
comply with the requirements of paragraph (b) of this subsection. Whenever
any Non-Excluded Taxes are payable by a Borrower, as promptly as possible
thereafter such Borrower shall send to the Administrative Agent for its own
account or for the account of such Lender, as the case may be, a certified
copy of an original official receipt received by such Borrower showing
payment thereof. If such Borrower fails to pay any Non-Excluded Taxes when
due to the appropriate taxing authority or fails to remit to the
Administrative Agent the required receipts or other required documentary
evidence, such Borrower shall indemnify the Administrative Agent and the
Lenders for any incremental taxes, interest or penalties that may become
payable by the Administrative Agent or any Lender as a result of any such
failure. The agreements in this subsection shall survive the termination of
this Agreement and the payment of the Loans and all other amounts payable
hereunder.
(b) Each Non-U.S. Lender shall:
(i) deliver to the Company and the Administrative Agent (a) if
such Lender is a "bank" within the meaning of Section 881(c)(3)(A) of the
Code, (A) two duly completed copies of United States Internal Revenue
Service Form 1001 or 4224, or successor applicable form, as the case may
be, and (B) two duly completed copies of Internal Revenue Service Form W-8
or W-9, or successor applicable form, as the case may be, or (b) if such
Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the
Code, is unable to provide the Forms specified in (a) and intends to claim
exemption from U.S. Federal withholding tax under Section 871(h) or 881(c)
of the Code with respect to payment of "portfolio interest", a Form W-8, or
any subsequent versions thereof or successors thereto (and, if such
Non-U.S. Lender delivers a Form W-8, a certificate substantially in the
form of Exhibit I, properly completed and duly executed by such Non-U.S.
Lender claiming complete exemption from, or a reduced rate of, U.S. Federal
withholding tax on payments of interest by the Borrower under this
Agreement and the other Credit Documents;
72
(ii) deliver to the Company and the Administrative Agent two
further copies of any such form or certification on or before the date that
any such form or certification expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recent form
previously delivered by it to the Company; and
(iii) obtain such extensions of time for filing and complete such
forms or certifications as may reasonably be requested by the Company or
the Administrative Agent;
unless in any such case an event (including, without limitation, any change in
treaty, law or regulation) has occurred prior to the date on which any such
delivery would otherwise be required which renders all such forms inapplicable
or which would prevent such Lender from duly completing and delivering any such
form with respect to it and such Lender so advises the Company and the
Administrative Agent. Such Lender shall certify (i) in the case of a Form 1001
or 4224, that it is entitled to receive payments from the Company under this
Agreement without deduction or withholding of any United States federal income
taxes and (ii) in the case of a Form W-8 or W-9, that it is entitled to an
exemption from United States backup withholding tax. Each Person that shall
become a Lender or a Participant pursuant to subsection 17.7 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and statements required pursuant to this subsection, provided that in the case
of a Participant such Participant shall furnish all such required forms and
statements to the Lender from which the related participation shall have been
purchased.
(c) Each of the Lenders and the Administrative Agent agrees, within
a reasonable time after receiving a written request from the Company, to
provide the Company and the Administrative Agent with such certificates as
are reasonably required and take such other actions as are reasonably
necessary to claim such exemptions as such Lender, the Administrative Agent
or Affiliate or Subsidiary may be entitled to claim in respect of all or a
portion of any Non-Excluded Taxes that are otherwise required to be paid or
deducted or withheld pursuant to this subsection 10.14 in respect of any
payments under this Agreement or under the Notes.
(d) To the extent that the undertaking to indemnify and reimburse the
Administrative Agent and the Lenders set forth in this subsection may be invalid
and/or unenforceable because it is violative of any law or public policy, such
Borrower shall contribute the maximum portion that it is permitted to pay under
applicable law to the payment of the Non-Excluded Taxes imposed on the
Administrative Agent and the Lenders and the remaining portion shall be an
Obligation hereunder and under the other Credit Documents.
(e) If a Lender or the Administrative Agent shall become aware that it
is entitled to receive a refund (including interest and penalties, if any) in
respect of Non-Excluded Taxes as to which it has been indemnified by a Borrower
pursuant to this subsection 10.14, it shall promptly notify in writing such
Borrower of the availability of such refund (including interest and penalties,
if any) and shall, within 30 days after receipt of a request by such Borrower,
apply for such refund at such Borrower's expense; PROVIDED that neither the
Lender nor the Administrative Agent shall have any liability to any Borrower for
any failure to provide such
73
notice if such right to receive such refund could reasonably be attributed to
factors unrelated to the transactions under this Agreement or if such failure
results from a good faith error on the part of such Lender or the
Administrative Agent.
(f) Each Lender confirms to the Administrative Agent (on the date
hereof, or, in the case of a Lender which becomes a party hereto by assignment
or transfer, on the date on which the relevant transfer or assignment become
effective) that either:
(i) it is not resident for tax purposes in the United Kingdom and is
beneficially entitled to its participation in the relevant Loans and
interest thereon; or
(ii) it is a bank as defined for the purposes of Section 349 of the
Income & Corporation Taxes Act 1988 of the United Kingdom and is
beneficially entitled to its participation in the relevant Loans and the
interest thereon,
and each Lender in favor of the Administrative Agent agrees to notify the
Administrative Agent if there is any change in its position from that set out
above.
10.15 INDEMNITY. Each Borrower agrees to indemnify each Lender and to
hold each Lender harmless from any loss or expense which such Lender may sustain
or incur as a consequence of (a) failure by such Borrower to make a borrowing
of, conversion into or continuation of Eurocurrency Loans after such Borrower
has given a notice requesting the same in accordance with the provisions of this
Agreement, (b) failure by such Borrower to make any prepayment after such
Borrower has given a notice thereof in accordance with the provisions of this
Agreement or (c) the making of a prepayment of Eurocurrency Loans on a day which
is not the last day of an Interest Period with respect thereto. Such
indemnification may include an amount equal to the excess, if any, of (i) the
amount of interest which would have accrued on the amount so prepaid, or not so
borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) which
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurocurrency
market. Any Lender requesting indemnification pursuant to this subsection 10.15
shall deliver to the applicable Borrower, concurrently with such demand, a
written statement in reasonable detail as to such losses and expenses, and such
statement shall be conclusive in the absence of manifest error. This covenant
shall survive the termination of this Agreement and the payment of the Loans and
all other amounts payable hereunder.
10.16 CERTAIN FEES. The Company agrees to pay to the Administrative
Agent and to the Documentation Agent, for their own accounts, the non-refundable
fees previously agreed to with the Administrative Agent and the Documentation
Agent in the manner and on the dates so previously agreed.
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10.17 CHANGE OF LENDING OFFICE. (a) Each Lender agrees that if it
makes any demand for payment under subsection 10.12 or 10.14(a), or if any
adoption or change of the type described in subsection 10.13 shall occur with
respect to it, it will use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions and so long as such efforts
would not be disadvantageous to it, as determined in its sole discretion) to
designate a different lending office if the making of such a designation
would reduce or obviate the need for a Borrower to make payments under
subsection 10.12 or 10.14(a), or would eliminate or reduce the effect of any
adoption or change described in subsection 10.13.
(b) Notwithstanding anything to the contrary contained herein, no
Lender shall be entitled to receive any amount under subsections 10.12, 10.13
or 10.14(a) as a result of the transfer of any Eurocurrency Loan to a lending
office which is greater than such Lender would have been entitled to receive
immediately prior thereto, unless (i) the transfer occurred at a time when
circumstances giving rise to the claim for such greater amount did not exist
and (ii) such claim would have arisen even if such transfer had not occurred.
10.18 OVERALL INTEREST RATE FOR FRENCH LAW. Given the variable
rates of interest applicable to the Loans, the overall interest rate ("taux
effectif global"), as governed by the French Usury Law of December 28, 1966
and the Decree of September 4, 1985, cannot be calculated at the time of
execution of this Agreement.
10.19 ADDITIONAL ACTION IN CERTAIN EVENTS. In the event that any
Lender shall seek reimbursement for amounts owing pursuant to subsection
10.12, 10.13 or 10.14(a), the Company may (after the relevant Borrower has
paid the amounts owing pursuant to such subsections), either:
(a) require such Lender to assign, in whole (but not in part),
without recourse, its Commitments, Loans and other extensions of credit
hereunder in accordance with the provisions of subsection 17.7 (except
that the Company shall be liable to the Administrative Agent for any
registration and processing fee payable under subsection 17.7(e)) to
one or more Assignees identified to such Lender by the Company and (if
not already a Lender) reasonably satisfactory to the Administrative
Agent; PROVIDED that no Lender shall be required to effect any such
assignment until such Lender shall have received from such Assignees
one or more payments which, in an aggregate, are at least equal to the
aggregate outstanding principal amount of the Loans and Reimbursement
Obligations owing to such Lender and all accrued interest and other
amounts (including, without limitation, any amounts owing pursuant to
subsection 10.15) owing hereunder; or
(b) upon five Business Days' prior written notice to the
Administrative Agent and such Lender, terminate the Commitments of such
Lender and prepay in full all Loans and Reimbursement Obligations owing
to, such Lender, together with all accrued interest and other amounts
(including, without limitation, any amounts owing pursuant to
subsection 10.15) owing hereunder; PROVIDED that (i) no such
termination and prepayment shall be permitted if, after giving effect
thereto, the Aggregate Outstanding RC Extensions of Credit or the
Aggregate Outstanding European Extensions of Credit of any Lender shall
75
exceed its Revolving Credit Commitment or European Loan Commitment (as
the case may be) then in effect, (ii) no such termination and repayment
shall be permitted under this clause (b) at any time when any Default
or Event of Default has occurred and is continuing;
and, PROVIDED, FURTHER, that (x) prior to any such replacement or
termination, such Lender shall not have taken action under Section 10.17 so
as to eliminate the continued need for payment of amounts of the type
requested to be reimbursed and (y) such replacement or termination does not
conflict with any Requirement of Law.
From and after the effectiveness of any termination of Commitments
contemplated by clause (b) above, (x) any participating interests held by
such terminated Lender in Letters of Credit or Local European Loans shall be
allocated ratably among the remaining Revolving Credit Lenders or European
Lenders (as applicable) and (y) the Revolving Credit Commitment Percentages
of the remaining Revolving Credit Lenders or the European Commitment
Percentages of the remaining European Lenders shall be ratably adjusted.
10.20 EUROPEAN MONETARY UNION. (a) If, as a result of the
implementation of European monetary union, (i) any Optional Currency ceases
to be lawful currency of the nation issuing the same and is replaced by the
Euro or (ii) any Optional Currency and the Euro are at the same time
recognized by the central bank or comparable authority of the nation issuing
such currency as lawful currency of such nation and the Administrative Agent
or the Required Lenders (or, in the case of European Overdraft Loans or Local
European Loans, the European Overdraft Lender or the relevant Local Lender,
as the case may be) shall so request in a notice delivered to the Company,
then any amount payable hereunder in such Optional Currency shall instead by
payable in the Euro and the amount so payable shall be determined by
converting the amount payable in such Optional Currency to the Euro at the
exchange rate recognized by the European Central Bank for the purpose of
implementing European monetary union.
(b) The Company agrees, at the request of any European Lender, any
Local Lender or the European Overdraft Lender, to compensate such Lender for
any reasonable loss, cost, expense or reduction in return that shall be
incurred or sustained by such Lender (other than through such Lender's gross
negligence, bad faith or willful misconduct) as a result of the
implementation of European monetary union, that would not have been incurred
or sustained but for the transactions provided for herein and that, to the
extent that such loss, cost, expense or reduction is of a type generally
applicable to extensions of credit similar to the extensions of credit
hereunder, is generally being requested from borrowers subject to similar
provisions. A certificate of such Lender setting forth (x) the amount or
amounts necessary to compensate such Lender (y) describing the nature of the
loss or expense sustained or incurred by such Lender as a consequence thereof
and (z) setting forth a reasonably detailed explanation of the calculation
thereof shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.
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(c) The Company agrees, at the request of the Required Lenders (or,
with respect to matters relating to the European Overdraft Loans or Local
European Loans, the European Overdraft Lender or the relevant Local Lender,
as the case may be), at the time of or at any time following the
implementation of European monetary union, to enter into an agreement
amending this Agreement in such manner as the Required Lenders (or the
European Overdraft Lender or the relevant Local Lender, as the case may be)
reasonably shall request in order to reflect the implementation of such
monetary union to place the parties hereto in the position they would have
been in had such monetary union not been implemented.
SECTION 11. REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into
this Agreement and to make its Loans and other extensions of credit
hereunder, the Company hereby represents and warrants (and, to the extent
that any such representation and warranty concerns matters relating to any
other Borrower or any of its Subsidiaries, such Borrower hereby represents
and warrants) to each Lender and the Administrative Agent as follows:
11.1 FINANCIAL CONDITION. (a) The condensed, consolidated balance
sheet of the Company and its consolidated Subsidiaries as at December 31,
1997 and the related consolidated statements of income and of cash flows for
the fiscal year ended on such date, reported on by Price Waterhouse LLP,
copies of which have heretofore been furnished to each Lender, are complete
and correct and present fairly the consolidated financial condition of the
Company and its consolidated Subsidiaries as at such date, and the
consolidated results of their operations and their consolidated cash flows
for the fiscal year then ended. The unaudited condensed, consolidated balance
sheet of the Company and its consolidated Subsidiaries as at each of March
31, 1998 and June 30, 1998 and the related unaudited consolidated statements
of income and of cash flows for the respective three- and six-month periods
ended on such dates, certified by a Responsible Officer, copies of which have
heretofore been furnished to each Lender, are complete and correct and
present fairly the consolidated financial condition of the Company and its
consolidated Subsidiaries as at such dates, and the consolidated results of
their operations and their consolidated cash flows for the respective three-
and six-month periods then ended (subject to normal year-end audit
adjustments). All such financial statements, including the related schedules
and notes thereto, have been prepared in accordance with GAAP applied
consistently throughout the periods involved (except as approved by such
accountants or Responsible Officer, as the case may be, and as disclosed
therein).
(b) To the Company's knowledge, the unaudited consolidated balance
sheet of the Acquired Businesses as at December 31, 1997 and the related
consolidated statements of income and of cash flows for the fiscal year ended
on such date, copies of which have heretofore been furnished to each Lender,
are complete and correct and present fairly the consolidated financial
condition of the Acquired Businesses as at such date, and the consolidated
results of their operations and their consolidated cash flows for the fiscal
year then ended. To the Company's knowledge, the unaudited consolidated
balance sheet of the Acquired Businesses as at each of March 31, 1998 and
June 30, 1998 and the related unaudited consolidated statements of income
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and of cash flows for the respective three- and six-month periods ended on
such dates, copies of which have heretofore been furnished to each Lender,
are complete and correct and present fairly the consolidated financial
condition of the Acquired Businesses as at such dates, and the consolidated
results of their operations and their consolidated cash flows for the
respective three- and six-month periods then ended (subject to normal
year-end audit adjustments). To the Company's knowledge, all such financial
statements, including the related schedules and notes thereto, have been
prepared in accordance with GAAP applied consistently throughout the periods
involved (except as disclosed therein).
(c) Neither the Company nor any of its consolidated Subsidiaries
had, at the date of the most recent balance sheet referred to above, any
material Guarantee Obligation, contingent liability or liability for taxes,
or any long-term lease or unusual forward or long-term commitment, including,
without limitation, any interest rate or foreign currency swap or exchange
transaction, which is not reflected in the foregoing statements or in the
notes thereto.
(d) During the period from December 31, 1997 to and including the
date hereof, there has been no sale, transfer or other disposition by the
Company or any of its consolidated Subsidiaries of any material part of its
business or property and no purchase or other acquisition (other than the
Acquisition and the Interglas Transaction) of any business or property
(including any Capital Stock of any other Person) material in relation to the
consolidated financial condition of the Company and its consolidated
Subsidiaries at December 31, 1997.
11.2 NO CHANGE. Since December 31, 1997, there has been no
development or event which has had or could reasonably be expected to have a
Material Adverse Effect; PROVIDED that, to the extent that the representation
and warranty contained in this subsection 11.2 is being made on the Closing
Date or on the borrowing date for any extension of credit made within 30 days
following the Closing Date in order to finance the purchase of all or any
portion of the Capital Stock or assets of the Acquired Businesses (including,
without limitation, the Initial Interglas Transaction and, to the extent it
occurs within 30 days after the Closing Date, the Subsequent Interglas
Transaction), the term "Material Adverse Effect" shall be deemed to mean the
occurrence or discovery by the Administrative Agent or any Lender of one or
more conditions and events which (individually or in the aggregate) have had
or would be reasonably likely to have a material adverse effect upon (a) the
assets, business, operations or financial condition of the Company and its
Subsidiaries taken as a whole or the Acquired Businesses, other than any such
effects described in this proviso which are attributable to general economic
conditions or to other changes generally affecting Persons in the same
business as the Company and its Subsidiaries or the Acquired Businesses, as
the case may be or (b) the ability of the Lenders, the Documentation Agent or
the Administrative Agent to enforce the material provisions of the Credit
Documents.
11.3 PRO FORMA BALANCE SHEET. The Company has heretofore furnished
to the Lenders an unaudited PRO FORMA consolidated balance sheet as of June
30, 1998, adjusted to reflect the consummation of the Acquisition (or any
part thereof which has been consummated on the Closing Date) and the other
transactions which are contemplated to occur on the Closing Date. Such PRO
FORMA balance sheet has been prepared based upon good faith assumptions
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believed by the Company to be reasonable at the time made and present the
Company's good faith estimate of the consolidated financial position of the
Company and its Subsidiaries as of June 30, 1998 on a PRO FORMA basis,
assuming that the Acquisition (or any part thereof which has been consummated
on the Closing Date) and such other transactions had occurred on such date.
11.4 CORPORATE EXISTENCE; COMPLIANCE WITH LAW. Each of the Company
and its Subsidiaries (a) is duly organized, validly existing and (to the
extent applicable) in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate power and authority, and the legal right,
to own and operate its property, to lease the property it operates as lessee
and to conduct the business in which it is currently engaged, (c) is duly
qualified as a foreign corporation and in good standing (or, with respect to
Foreign Subsidiaries, maintains the analogous status) under the laws of each
jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification, except to the extent
that the failure to maintain such status could not, in the aggregate,
reasonably be expected to have a Material Adverse Effect and (d) is in
compliance with all Requirements of Law except to the extent that the failure
to comply therewith could not, in the aggregate, reasonably be expected to
have a Material Adverse Effect.
11.5 CORPORATE POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS. The
Company and each other Credit Party has the corporate power and authority,
and the legal right, to make, deliver and perform the Credit Documents to
which it is a party and, in the case of each Borrower, to borrow hereunder
and has taken all necessary corporate action to authorize the borrowings on
the terms and conditions of this Agreement and any Notes or Applications and
to authorize the execution, delivery and performance of the Credit Documents
to which it is a party. Except to the extent described on Schedule 11.5, no
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is required in
connection with the borrowings hereunder or with the execution, delivery,
performance, validity or enforceability of the Credit Documents to which the
Company and each other Credit Party is a party. Subject to the requirements
listed on Schedule 11.5, this Agreement has been, and each other Credit
Document to which it is a party will be, duly executed and delivered on
behalf of the Company and each other Credit Party. This Agreement
constitutes, and each other Credit Document to which it is a party when
executed and delivered will constitute, a legal, valid and binding obligation
of the Company and each other Credit Party enforceable against the Company
and each other Credit Party, as the case may be, in accordance with its
terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of
good faith and fair dealing.
11.6 NO LEGAL BAR. The execution, delivery and performance of each
Credit Document, the incurrence or issuance of and use of the proceeds of the
Loans and of drawings under the Letters of Credit and the transactions
contemplated by the Credit Documents (a) will not violate any material
Requirement of Law or any material Contractual Obligation applicable to or
binding upon the Company or any of its Subsidiaries or any of their
respective properties or assets, in any manner and (b) will not result in the
creation or imposition of any Lien on any
79
properties or assets of the Company or any of its Subsidiaries pursuant to
any Requirement of Law applicable to it, as the case may be, or any of its
Contractual Obligations, except for the Liens arising under the Security
Documents.
11.7 NO MATERIAL LITIGATION. Except to the extent described in
Schedule 11.7, no litigation by, investigation by, or proceeding of or before
any arbitrator or any Governmental Authority is pending or, to the knowledge
of the Company, threatened by or against the Company or any of its
Subsidiaries, or against any of its or their respective properties or
revenues, with respect to any Credit Document, the Loans made hereunder, the
use of proceeds thereof, or any drawings under a Letter of Credit and the
other transactions contemplated hereby or which could reasonably be expected
to have a Material Adverse Effect and all applicable waiting periods have
expired without any action being taken or threatened by any Governmental
Authority which would restrain, prevent or otherwise impose material adverse
conditions on the transactions contemplated hereby or thereby or which would
be reasonably likely to have a Material Adverse Effect.
11.8 NO DEFAULT. None of the Company or any of its Subsidiaries is
in default under or with respect to any of its Contractual Obligations in any
respect which could reasonably be expected to have a Material Adverse Effect.
No Default or Event of Default has occurred and is continuing.
11.9 OWNERSHIP OF PROPERTY; LIENS. Each of the Company and its
Subsidiaries has good record and marketable title in fee simple to, or a
valid leasehold interest in, all its real property, and good title to, or a
valid leasehold interest in, all its other property, and none of such
property is subject to any Lien except as permitted by subsection 14.3.
11.10 INTELLECTUAL PROPERTY. The Company and each of its
Subsidiaries owns, or is licensed to use, all trademarks, tradenames,
copyrights, technology, know-how and processes necessary for the conduct of
its business as currently conducted except for those the failure to own or
license which could not reasonably be expected to have a Material Adverse
Effect (the "INTELLECTUAL PROPERTY"). No material claim has been asserted
and is pending by any Person challenging or questioning the use of any such
Intellectual Property or the validity or effectiveness of any such
Intellectual Property, nor does the Company know of any valid basis for any
such claim. The use of such Intellectual Property by the Company and its
Subsidiaries does not infringe on the rights of any Person, except for such
claims and infringements that, in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.
11.11 TAXES. Each of the Company and its Subsidiaries has filed or
caused to be filed all material tax returns which, to the knowledge of the
Company, are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of
its property by any Governmental Authority (other than any the amount or
validity of which are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Company or its Subsidiaries, as the case
may be); no tax Lien has been filed; to the knowledge of the Company,
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no claim is being asserted, with respect to any such tax, fee or other charge
which would reasonably be likely to have a Material Adverse Effect.
11.12 FEDERAL REGULATIONS. No part of the proceeds of any Loans
will be used for "purchasing" or "carrying" any "margin stock" within the
respective meanings of each of the quoted terms under Regulation U of the
Board of Governors of the Federal Reserve System as now and from time to time
hereafter in effect. If requested by any Lender or the Administrative Agent,
the Company will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR
Form U-1 or G-1 (as applicable) referred to in said Regulation U.
11.13 EMPLOYEE BENEFITS. (a) Neither a Reportable Event nor an
"accumulated funding deficiency" (within the meaning of Section 412 of the
Code or Section 302 of ERISA) has occurred during the five-year period prior
to the date on which this representation is made or deemed made with respect
to any Plan, and each Plan has complied in all material respects with the
applicable provisions of ERISA and the Code. No termination of a Single
Employer Plan has occurred, and no Lien in favor of the PBGC or a Plan has
arisen, during such five-year period. The present value of all accrued
benefits under each Single Employer Plan (based on those assumptions used to
fund such Plans) did not, as of the last annual valuation date prior to the
date on which this representation is made or deemed made, exceed the value of
the assets of such Plan allocable to such accrued benefits by more than
$1,000,000. Neither the Company nor any Commonly Controlled Entity has had a
complete or partial withdrawal from any Multiemployer Plan, and neither the
Company nor any Commonly Controlled Entity would become subject to any
liability under ERISA if the Company or any such Commonly Controlled Entity
were to withdraw completely from all Multiemployer Plans as of the valuation
date most closely preceding the date on which this representation is made or
deemed made. No such Multiemployer Plan is in Reorganization or Insolvent.
(b) Each Foreign Employee Benefit Plan is in compliance in all
material respects with all Requirements of Law applicable thereto and the
respective requirements of the governing documents for such Foreign Employee
Benefit Plan. The aggregate of the liabilities to provide all of the accrued
benefits under any Foreign Pension Plan does not exceed the current fair
market value of the assets held in the trust or other funding vehicle for
such Foreign Employee Benefit Plan by an amount in excess of $5,000,000.
With respect to any Foreign Employee Benefit Plan maintained by a Borrower,
any of its Subsidiaries or any Commonly Controlled Entity (other than a
Foreign Pension Plan), reasonable reserves have been established in
accordance with prudent business practice or where required by ordinary
accounting practices in the jurisdiction in which such Foreign Employee
Benefit Plan is maintained. The aggregate unfunded liabilities, after giving
effect to any reserves for such liabilities, with respect to such Foreign
Employee Benefit Plans are not material. There are no actions, suits or
claims (other than routine claims for benefits) pending or, to the knowledge
of such Borrower, threatened against such Borrower, any of its Subsidiaries
or any Commonly Controlled Entity with respect to any Foreign Employee
Benefit Plan that would subject such Borrower, any of its Subsidiaries or an
Commonly Controlled Entity to a liability in excess of $5,000,000.
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11.14 INVESTMENT COMPANY ACT; OTHER REGULATIONS. No Borrower is an
"investment company", or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended. No
Borrower is subject to regulation under any Federal or State statute or
regulation (other than Regulation X of the Board of Governors of the Federal
Reserve System) which limits its ability to incur Indebtedness.
11.15 SUBSIDIARIES. On the Closing Date, the Subsidiaries of the
Company, their jurisdiction of incorporation and the percentage of the
Capital Stock thereof which is owned (directly or indirectly) by the Company
shall be as set forth on Schedule 11.15.
11.16 ENVIRONMENTAL MATTERS. Except as set forth on Schedule 11.16:
(a) none of the Company, any of its Subsidiaries or any of their
respective operations or present or past Property are subject to any
investigation by, or any judicial or administrative proceeding, order,
judgment, settlement, decree or other agreement alleging or addressing (i)
a material violation of any Environmental, Health or Safety Requirement of
Law; (ii) any Remedial Action; or (iii) any material claims or Liabilities
and Costs arising from the Release or threatened Release of a Contaminant
into the environment, nor has the Company or any of its Subsidiaries
received any notice of the foregoing, except, in each case, for any matter
that, individually or in the aggregate is not reasonably likely to have a
Material Adverse Effect;
(b) none of the Company or any of its Subsidiaries is or has been the
owner or operator of any Property that has any of the following that would
reasonably be likely to have a Material Adverse Effect:
(i) any past or present on-site generation, treatment,
recycling, storage or disposal of any hazardous waste, as that
term is defined under 40 C.F.R. Part 261 or any state or local
equivalent;
(ii) any past or present landfill, waste-pile, underground
storage tank or surface impoundment;
(iii) any asbestos-containing material or any Contaminant;
(iv) any polychlorinated biphenyls (PCBs) used in hydraulic
oils, electrical transformers or other equipment;
(c) no Environmental Lien has attached to any Property of the Company
or any of its Subsidiaries that would reasonably be likely to have a
Material Adverse Effect;
(d) there have been no Releases of any Contaminants into the
environment in reportable quantities by the Company or any of its
Subsidiaries or any other Person that would reasonably be likely to have a
Material Adverse Effect;
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(e) neither the Company nor any of its Subsidiaries has any contingent
liability in connection with any Release or threatened Release of any
Contaminants into the environment that would reasonably be likely to have a
Material Adverse Effect;
(f) neither the Company nor any of its Subsidiaries has disposed of or
sent or directly arranged for the transport of any waste or Contaminant at
or to any site listed or proposed for listing on the National Priorities
List ("NPL") pursuant to CERCLA or on the Comprehensive Environmental
Response Compensation Liability Information System List ("CERCLIS"), or any
similar state list, or any other location the effect of which would
reasonably be likely to have a Material Adverse Effect;
(g) no present or past Property of the Company or any of its
Subsidiaries is listed or proposed for listing on the NPL pursuant to
CERCLA or on the CERCLIS or any similar state list of sites requiring
Remedial Action, and the Company and its Subsidiaries are unaware of any
conditions on such Property that would qualify such Property for inclusion
on any such list, except, in either case, where such listing would not
reasonably be likely to have a Material Adverse Effect;
(h) neither the Company nor any of its Subsidiaries is subject to any
Environmental Property Transfer Act as a result of the transactions
contemplated by the Credit Documents or, to the extent such acts are
applicable to any such property, the Company or the relevant Subsidiary has
fully complied with the requirements of such acts, except where the failure
to comply would not reasonably be likely to have a Material Adverse Effect;
(i) neither the Company nor any of its Subsidiaries has assumed,
either contractually or by operation of law, any liabilities or potential
liabilities under any Environmental, Health or Safety Requirements of Law
except where (i) such assumption would not reasonably be likely to have a
Material Adverse Effect or (ii) the Company has received a written
indemnity with respect to such liabilities or potential liabilities (as the
case may be) from a Person (other than the Company or any of its
Subsidiaries) who would reasonably be expected to pay in full all
reasonable claims in respect of such indemnity; and
(j) The Company and each of its Subsidiaries has obtained, and is in
compliance with, all permits, approvals, registrations, authorization
licenses, variances, facility security clearances and personnel security
clearances, and all permissions required from a Governmental Authority
required under any Environmental, Health or Safety Requirements of Law,
except where the failure to obtain or comply therewith would not, in the
aggregate, reasonably be likely to have a Material Adverse Effect.
11.17 COLLATERAL DOCUMENTS. (a) Upon execution and delivery
thereof by the parties thereto, each Security Document (other than the
Foreign Pledge Agreements) will be effective to create in favor of the
Documentation Agent, for the ratable benefit of the Lenders, a legal, valid
and enforceable security interest in the Collateral described therein and,
when the
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Documentation Agent has received the stock certificates evidencing the
Capital Stock pledged thereunder (together with the related stock power), the
security interests granted pursuant thereto shall constitute a perfected
first lien on, and security interest in, all right, title and interest of the
pledgor party thereto in the Collateral described therein.
(b) Upon execution and delivery thereof by the parties thereto,
each Foreign Pledge Agreement will be effective to create in favor of the
Documentation Agent, for the ratable benefit of the Lenders, a legal, valid
and enforceable security interest in not less than 65% of the Capital Stock
of each Foreign Subsidiary which is directly owned by the Company or a
Domestic Subsidiary and, when the actions (if any) specified in the legal
opinion delivered in connection with such Foreign Pledge Agreement have been
duly taken, the security interests granted pursuant thereto shall constitute
a perfected first lien on, and security interest in, all right, title and
interest of the pledgor party thereto in such Capital Stock.
11.18 ACCURACY AND COMPLETENESS OF INFORMATION. The factual
statements contained in the financial statements referred to in subsection
11.1(a) and (b), the Credit Documents (including the schedules thereto) and
any other certificates or documents furnished or to be furnished to the
Administrative Agent, the Documentation Agent or any Lender from time to time
in connection with this Agreement, taken as a whole, do not and will not, to
the best knowledge of the Company and its Subsidiaries, as of the date when
made, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements contained therein not
misleading in light of the circumstances in which the same were made, all
except as otherwise qualified herein or therein, such knowledge qualification
being given only with respect to factual statements made by Persons other
than the Company or any of its Subsidiaries. Notwithstanding the foregoing,
any representation or warranty contained in this subsection 11.18 with
respect to factual matters concerning the Acquired Businesses is made only
"to the best knowledge" of the Company.
11.19 PROJECTIONS. Each of the Company's business plans and all
other financial projections and related materials and documents delivered to
the Lenders pursuant hereto were prepared in good faith on the basis of the
assumptions accompanying them, and such projections and assumptions as of the
date of preparation thereof were, and as of the Closing Date are, reasonable
in light of the then current and foreseeable business conditions and
prospects of the Company and its Subsidiaries and represented management's
opinion of the Company's and its Subsidiaries' projected financial
performance based on the information available to the Company at the time so
furnished, it being understood that (a) such projections are subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Company, and that no assurance is or can be given that the
projections actually will be realized and (b) any representation or warranty
contained in this subsection 11.19 with respect to financial projections
prepared by the Acquired Businesses and delivered to the Lenders prior to the
Closing Date is made only "to the best knowledge" of the Company.
11.20 SOLVENCY. Each Borrower is, and after giving effect to the
incurrence of all Indebtedness and obligations being incurred in connection
herewith will be, Solvent.
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11.21 GOVERNMENT CONTRACTS. (a) None of the Company or any of its
Subsidiaries is party to any Contractual Obligation or subject to any
Requirement of Law as a result of any conflict of interest by, between or
among the Company or such Subsidiaries or otherwise that would result in the
termination of any contract with any Governmental Authority or that would
impose any limitation on the ability of the Company or such Subsidiary to
perform any such contract, except where such termination or limitation is not
reasonably likely to have a Material Adverse Effect, or to continue its
business substantially as presently conducted and proposed to be conducted.
(b)(i) None of the Company, any of its Subsidiaries or any of their
respective directors or executive officers is (or during the last three years
has been) under administrative, civil or criminal investigation or indictment
by any Governmental Authority, with respect to any alleged irregularity,
misstatement or omission arising under or relating to any contract with a
Governmental Authority; and (ii) during the last three years, none of the
Company or any of its Subsidiaries has conducted or initiated any internal
investigation or made a voluntary disclosure to the United States Government
with respect to any alleged irregularity, misstatement or omission arising
under or relating to a contract with any Governmental Authority, in each case
except (with respect to such matters occurring after the Closing Date) as
disclosed in writing to the Lenders.
(c) Except (with respect to such matters occurring after the
Closing Date) as disclosed in writing to the Lenders, none of the Company or
any of its Subsidiaries or any of their respective directors or executive
officers is (or during the last three years has been) suspended or debarred
from doing business with the United States Government or is (or during such
period was) the subject of a finding of nonresponsibility or ineligibility
for United States Government contracting.
11.22 YEAR 2000. The computer and management information systems
of the Company and its Subsidiaries will be programmed and/or reprogrammed
prior to December 31, 1999, such that the occurrence of January 1, 2000 will
not cause malfunctions of such computer and management information systems
which would, in the aggregate, reasonably be expected to have a Material
Adverse Effect. The costs to the Company and its Subsidiaries that have not
been incurred as of the date hereof for such programming and/or reprogramming
could not reasonably be expected to have a Material Adverse Effect.
SECTION 12. CONDITIONS PRECEDENT
12.1 CONDITIONS TO INITIAL LOANS. The agreement of each Lender to
make the initial Loans and other extensions of credit requested to be made by
it is subject to the satisfaction, immediately prior to or concurrently with
the making of such Loan or other extension of credit (and, in any event, on
or prior to September 30, 1998), of the following conditions precedent:
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(a) CREDIT DOCUMENTS. The Administrative Agent shall have
received (i) this Agreement, executed and delivered by a duly
authorized officer of each Borrower, (ii) the Collateral Agreement,
executed and delivered by a duly authorized officer of the Company and
each Subsidiary Guarantor and (iii) the Assignment Agreement, duly
executed by the parties specified therein.
(b) RELATED AGREEMENTS. The Administrative Agent shall have
received true and correct copies, certified as to authenticity by the
Company, of each of (i) the CS Asset Purchase Agreement, (ii) the Lease
Agreement and (iii) such other documents or instruments as may be
reasonably requested by the Administrative Agent.
(c) THE ACQUISITION. The Administrative Agent and the Lenders
shall be satisfied that (i) the CS Asset Purchase Agreement and all
related documentation (including, without limitation, the Lease
Agreement) shall have been duly executed and delivered by the parties
thereto and (other than with respect to such documentation as has been
delivered to the Administrative Agent and the Lenders for review prior
to the Closing Date and remains unmodified) are in form and substance
reasonably satisfactory to the Administrative Agent and the Lenders,
(ii) all conditions precedent to the consummation of the Acquisition
(other than the payment of the purchase price for the Acquired
Businesses and the Interglas Transaction) under the CS Asset Purchase
Agreement and the related documentation shall have been satisfied in
all material respects (and no modification or waiver of any such
condition shall have been made without the consent of the
Administrative Agent), (iii) the Acquisition has been, or substantially
simultaneously with the making of the initial extensions of credit
hereunder on the Closing Date, will be, consummated and (iv) the fees
and expenses of the Company and its Subsidiaries on account of the
Acquisition shall not exceed $15,000,000 in the aggregate.
(d) CAPITAL STRUCTURE. The Administrative Agent and the Lenders
shall be satisfied that, after giving effect to the consummation of the
Acquisition and the other transactions contemplated to occur on the
Closing Date (but without giving effect to the consummation of the
Subsequent Interglas Transaction), the Company and its Subsidiaries
shall have (i) not more than $718,300,000 in aggregate principal amount
of senior Indebtedness then outstanding, (ii) not more than
$893,000,000 in aggregate principal amount of Indebtedness then
outstanding and (iii) PRO FORMA, combined EBITDA of not less than
$200,000,000 for the period of four consecutive fiscal quarters most
recently ended.
(e) FINANCIAL PROJECTIONS. The Administrative Agent shall have
received financial projections of the Borrower (giving effect on a PRO
FORMA basis to the Acquisition and the other transactions contemplated
to occur on the Closing Date and during the relevant periods covered
thereby), displaying on an annual basis the projected balance sheets as
at the end of each of each fiscal year to be completed during the
period from the Closing Date through December 31, 2005, and the related
projected statements of income and cash flow for each such period.
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(f) CORPORATE PROCEEDINGS OF THE COMPANY. The Administrative
Agent shall have received a copy of the resolutions, in form and
substance satisfactory to the Administrative Agent, of the Board of
Directors of the Company authorizing (i) the execution, delivery and
performance of this Agreement and the other Credit Documents to which
it is a party, (ii) the borrowings contemplated hereunder and (iii) the
granting by it of the Liens created pursuant to the Security Documents
to which it is a party, certified by the Secretary or an Assistant
Secretary of the Company as of the Closing Date, which certificate
shall be in form and substance satisfactory to the Administrative Agent
and shall state that the resolutions thereby certified have not been
amended, modified, revoked or rescinded.
(g) COMPANY INCUMBENCY CERTIFICATE. The Administrative Agent
shall have received a Certificate of the Company, dated the Closing
Date, as to the incumbency and signature of the officers of the Company
executing any Credit Document satisfactory in form and substance to the
Administrative Agent.
(h) CORPORATE PROCEEDINGS OF CREDIT PARTIES. The Administrative
Agent shall have received a copy of the resolutions, in form and
substance satisfactory to the Administrative Agent, of the Board of
Directors of each Credit Party (other than the Company) which is a
party to a Credit Document authorizing (i) the execution, delivery and
performance of the Credit Documents to which it is a party and (ii) the
granting by it of the Liens created pursuant to the Security Documents
(if any) to which it is a party, certified by the Secretary or an
Assistant Secretary (or another competent officer or a director) of
each such Subsidiary as of the Closing Date, which certificate shall be
in form and substance satisfactory to the Administrative Agent and
shall state that the resolutions thereby certified have not been
amended, modified, revoked or rescinded.
(i) CREDIT PARTY INCUMBENCY CERTIFICATES. The Administrative
Agent shall have received a certificate of each Credit Party (other
than the Company), dated the Closing Date, as to the incumbency and
signature of the officers of such Credit Party executing any Credit
Document, satisfactory in form and substance to the Administrative
Agent.
(j) CORPORATE DOCUMENTS. The Administrative Agent shall have
received true and complete copies of the certificate of incorporation
and by-laws of the Company, certified as of the Closing Date as
complete and correct copies thereof by the Secretary or an Assistant
Secretary of the Company.
(k) LEGAL OPINIONS. The Administrative Agent shall have received
the following executed legal opinions:
(i) the executed legal opinion of Skadden, Arps, Slate,
Meagher & Flom LLP, counsel to the Company and the other Credit
Parties, substantially in the form of Exhibit C;
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(ii) the executed legal opinions of counsel described on
Schedule 12.1, which opinions shall be in form and substance
reasonably acceptable to the Administrative Agent.
Each such legal opinion shall cover such other matters incident to the
transactions contemplated by this Agreement as the Administrative Agent
may reasonably require. The Company hereby directs each of its special
counsel, Skadden, Arps, Slate, Meagher & Flom LLP, and each of the
foreign counsel to the Borrowers to prepare and deliver to the
Administrative Agent, the Documentation Agent and the Lenders, its
opinions.
(l) PLEDGED STOCK; STOCK POWERS. The Documentation Agent shall
have received the certificates representing the shares pledged pursuant
to the Collateral Agreement and each Foreign Pledge Agreement (it being
understood that the Capital Stock of each of Composites-Austria,
Hexcel-France and Salver is represented by uncertificated securities
and that the Capital Stock of Hexcel-Belgium exists in registered
form), together with (if legally possible) an undated stock power for
each such certificate executed in blank by a duly authorized officer of
the pledgor thereof.
(m) ACTIONS TO PERFECT LIENS. The Administrative Agent shall have
received evidence in form and substance satisfactory to it that all
filings, recordings, registrations and other actions necessary or, in
the opinion of the Administrative Agent, desirable to perfect the Liens
created by the Security Documents shall have been completed.
(n) NO CONSENTS. The Company and its Subsidiaries shall have
obtained all consents and approvals of Governmental Authorities and
third parties necessary or reasonably advisable in connection with the
Loans and other extensions of credit hereunder and the continuing
operations of the Company and its Subsidiaries; all such consents and
approvals shall be in full force and effect and all applicable appeal
and waiting periods shall have expired without any governmental or
judicial action being taken or threatened that has had or would be
reasonably likely to have a Material Adverse Effect.
(o) FEES. The Administrative Agent shall have received all fees
and other amounts due and payable on or prior to the Closing Date,
including, to the extent invoiced a reasonable time prior to the
Closing Date, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Company and its Subsidiaries
hereunder or under any other Credit Document.
12.2 CONDITIONS TO EACH LOAN. The agreement of each Lender to make
any Loan or other extension of credit requested to be made by it on any date
(including, without limitation, any Loan or other extension of credit to be
made on the Closing Date) is subject to the satisfaction of the following
conditions precedent:
(a) REPRESENTATIONS AND WARRANTIES. Each of the representations
and warranties made by the Borrowers requesting such Loan or other
extension of credit in or pursuant
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to the Credit Documents shall be true and correct in all material
respects on and as of such date as if made on and as of such date.
(b) NO DEFAULT. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the
Loans and other extensions of credit requested to be made on such date.
(c) NO MATERIAL ADVERSE CHANGE. No event shall have occurred
since December 31, 1997, which has or is reasonably likely, in the
opinion of the Majority Lenders, to have a material adverse effect on
the business, condition (financial or otherwise), performance,
properties or prospects of the Borrower requesting such Loan or other
extension of credit; PROVIDED that the condition precedent contained in
this clause (c) need not be satisfied with respect to any borrowing
made on the Closing Date or with respect to any other borrowing made
within 30 days following the Closing Date in order to finance the
purchase of all or any portion of the Capital Stock or assets of the
Acquired Businesses (including, without limitation, the Initial
Interglas Transaction and, to the extent it occurs within 30 days of
the Closing Date, the Subsequent Interglas Transaction).
(d) ADDITIONAL MATTERS. All corporate and other proceedings, and
all documents, instruments and other legal matters in connection with
the transactions contemplated by this Agreement and the other Credit
Documents shall be satisfactory in form and substance to the
Administrative Agent, and the Administrative Agent shall have received
such other documents and legal opinions in respect of any aspect or
consequence of the transactions contemplated hereby or thereby as it
shall reasonably request.
Each borrowing by a Borrower hereunder shall constitute a
representation and warranty by such Borrower as of the date thereof
that the conditions contained in this subsection have been satisfied.
SECTION 13. AFFIRMATIVE COVENANTS
The Company hereby agrees that, so long as the Aggregate Commitment
or the European Overdraft Commitment remains in effect or any amount is owing
to any Lender, the Documentation Agent or the Administrative Agent hereunder
or under any other Credit Document, it shall and (except in the case of
delivery of financial information, reports and notices) shall cause each of
its Subsidiaries to:
13.1 FINANCIAL STATEMENTS. Furnish to the Administrative Agent
(who shall promptly forward such documents to the Lenders):
(a) as soon as available, but in any event within 90 days after the
end of each fiscal year of the Company after the Closing Date, a copy of
the consolidated balance sheet of the Company and its consolidated
Subsidiaries as at the end of such year and the
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related consolidated statements of income and cash flows for such year,
setting forth in each case in comparative form the figures for the previous
year, reported on without a "going concern" or like qualification or
exception, or qualification arising out of the scope of the audit, by Price
Waterhouse or other independent certified public accountants of nationally
recognized standing;
(b) as soon as available, but in any event not later than 45 days
after the end of each of the first three quarterly periods of each fiscal
year of the Company, the unaudited consolidated balance sheets of the
Company and its consolidated Subsidiaries as at the end of such quarter and
the related unaudited consolidated statements of income and cash flows of
the Company and its consolidated Subsidiaries for such quarter and the
portion of the fiscal year through the end of such quarter, setting forth
in each case in comparative form the figures for the previous year,
certified by a Responsible Officer as being fairly stated in all material
respects (subject to normal year-end audit adjustments); and
(c) not later than 30 days (or, in the case of the first fiscal month
following the Closing Date, 45 days) after the end of each fiscal month of
the Company (not already provided for in 10.1(a) or (b)), a copy of the
unaudited consolidated balance sheet of the Company and its consolidated
Subsidiaries as at the end of such month and the related unaudited
consolidated statements of income and cash flows of the Company and its
consolidated Subsidiaries for such month, certified by a Responsible
Officer as being fairly stated in all material respects (subject to normal
year-end audit adjustments);
all such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and in accordance with
GAAP applied consistently throughout the periods reflected therein and with
prior periods (except as approved by such accountants or officer, as the case
may be, and disclosed therein).
13.2 CERTIFICATES; OTHER INFORMATION. Furnish to the
Administrative Agent (who shall promptly forward such documents to the
Lenders):
(a) concurrently with the delivery of the financial statements
referred to in subsection 13.1(a), a letter from the independent certified
public accountants reporting on such financial statements stating that in
making the examination necessary therefor no knowledge was obtained of any
Default or Event of Default, except as specified in such letter;
(b) concurrently with the delivery of the financial statements
referred to in subsections 13.1(a) and (b), a certificate of a Responsible
Officer, substantially in the form of Exhibit F;
(c) concurrently with the delivery of the financial statements
referred to in subsections 13.1(a), (b) and (c), a certificate of a
Responsible Officer identifying the aggregate amount of Reserved Proceeds
then outstanding and specifying amounts which
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are to be applied to reduce the Available Revolving Credit Commitment and
the Available European Loan Commitment;
(d) not later than thirty days after the end of each fiscal year of
the Company, a combined annual budget (in the format customarily utilized
by the Company for making financial projections) of (i) the Company and its
Domestic Subsidiaries, (ii) each Foreign Borrower and (iii) the Company and
its Subsidiaries for the succeeding fiscal year of the Company, displaying
on a quarterly basis the anticipated balance sheets as at the end of such
period and the related statements of income and cash flow of each of the
Persons described in clauses (i) through (iii) above;
(e) during the month of March in each calendar year, the Company shall
submit to the Administrative Agent and the Lenders a report prepared by the
appropriate officers of the Company summarizing the status of any material
environmental, health or safety non-compliance, hazard or liability issues,
and identifying the cash expenditures for Liabilities and Costs arising out
of or relating to such environmental health or safety matters made by the
Company and its Subsidiaries during the previous calendar year; and
(f) within five days after the same are sent, copies of all financial
statements and reports which the Company sends to its stockholders or
debtholders generally, and within five days after the same are filed,
copies of all financial statements and reports which the Company may make
to, or file with, the Securities and Exchange Commission or any successor
or analogous Governmental Authority;
(g) promptly, copies of all amendments, supplements and other
modifications of the Lease Agreement; and
(h) promptly, such additional financial and other information as any
Lender (acting through the Administrative Agent) may from time to time
reasonably request.
13.3 PAYMENT OF OBLIGATIONS. Pay, discharge or otherwise satisfy
at or before maturity or before they become delinquent, as the case may be,
all its obligations of whatever nature, except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided
on the books of the Company or its Subsidiaries, as the case may be.
13.4 CONDUCT OF BUSINESS AND MAINTENANCE OF EXISTENCE. (a)
Continue to engage in business of the same general type as now conducted by
it and preserve, renew and keep in full force and effect its corporate
existence and take all reasonable action to maintain all rights, privileges
and franchises necessary or desirable in the normal conduct of its business,
except (i) as otherwise permitted pursuant to subsection 14.5 and (ii) to the
extent that the failure to maintain or preserve such rights, privileges and
franchises would not reasonable be expected to have a Material Adverse Effect.
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(b) Comply with all Contractual Obligations and Requirements of Law
except to the extent that failure to comply therewith could not, in the
aggregate, be reasonably expected to have a Material Adverse Effect.
13.5 MAINTENANCE OF PROPERTY; INSURANCE. (a) Keep all property
useful and necessary in its business in good working order and condition;
PROVIDED that nothing contained in this subsection 13.5 shall be deemed to
prohibit the Company or any of its Subsidiaries from discontinuing the
operation or maintenance of any such property if such discontinuance (i) is,
in the reasonable judgment of the Company or such Subsidiary, necessary or
appropriate in the conduct of its business, (ii) is otherwise permitted by
this Agreement and (iii) would not be reasonably likely to have a Material
Adverse Effect.
(b) Maintain with financially sound and reputable insurance
companies insurance on all its property in at least such amounts and against
at least such risks as are usually insured against in the same general area
by companies engaged in the same or a similar business; and furnish to each
Lender, upon written request, full information as to the insurance carried.
13.6 INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS. Keep
proper books of records and account in which full, true and correct entries
in conformity with GAAP and all Requirements of Law shall be made of all
dealings and transactions in relation to its business and activities; and
(subject to applicable Requirements of Law concerning classified information
and to the rights of any tenants or licensees of such properties) permit
representatives of the Administrative Agent (or, after the occurrence and
during the continuance of any Event of Default under Section 15(a), any
Lender) to visit and inspect any of its properties and examine and make
abstracts from any of its books and records at any reasonable time and as
often as may reasonably be desired (upon reasonable written notice) and to
discuss the business, operations, properties and financial and other
condition of the Company and its Subsidiaries with officers and employees of
the Company and its Subsidiaries and with its independent certified public
accountants. All reasonable costs and expenses incurred by the
Administrative Agent as a result of any inspections, audits and examinations
conducted pursuant to this subsection 13.6 shall be paid by the Company.
13.7 NOTICES. Promptly give notice to the Administrative Agent and
each Lender of:
(a) the occurrence of any Default or Event of Default;
(b) any (i) default or event of default under any Contractual
Obligation of the Company or any of its Subsidiaries or (ii) litigation,
investigation or proceeding which may exist at any time between the Company
or any of its Subsidiaries and any Governmental Authority, which in either
case, if not cured or if adversely determined, as the case may be, could
reasonably be expected to have a Material Adverse Effect;
92
(c) any litigation or proceeding affecting the Company or any of its
Subsidiaries which (after giving effect to any applicable insurance
coverage) would be reasonably likely to have (in the Company's reasonable
judgment) a Material Adverse Effect;
(d) the following events, as soon as possible and in any event within
30 days after the Company knows or has reason to know thereof: (i) the
occurrence or expected occurrence of any Reportable Event with respect to
any Plan, a failure to make any required contribution to a Plan, the
creation of any Lien in favor of the PBGC or a Plan or any withdrawal from,
or the termination, Reorganization or Insolvency of, any Multiemployer Plan
or (ii) the institution of proceedings or the taking of any other action by
the PBGC or the Company or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the terminating,
Reorganization or Insolvency of, any Plan;
(e) any loss or threatened loss of the security clearances necessary
for the operation of the Company's "government contracts business" unless
disclosure thereof is prohibited by any Requirement of Law; and
(f) any development or event which has had or could reasonably be
expected to have (i) a Material Adverse Effect or (ii) a material adverse
effect on the value of, or the Documentation Agent's interest in, the
Collateral.
Each notice pursuant to this subsection 13.7 shall be accompanied by a
statement of a Responsible Officer setting forth details of the occurrence
referred to therein and stating what action the Company proposes to take with
respect thereto.
13.8 FURTHER ASSURANCES. Upon the request of the Administrative
Agent, promptly perform or cause to be performed any and all acts and execute
or cause to be executed any and all documents (including, without limitation,
financing statements and continuation statements) for filing under the
provisions of the Uniform Commercial Code or any other Requirement of Law
which are necessary or advisable to maintain in favor of the Documentation
Agent, for the benefit of the Lenders, Liens on the Collateral that are duly
perfected in accordance with all applicable Requirements of Law.
13.9 ADDITIONAL COLLATERAL. (a) With respect to any Person (other
than a Domestic Subsidiary formed for the sole purpose of holding the Capital
Stock of one or more of the Company's Foreign Subsidiaries) that, subsequent
to the Closing Date, becomes a Domestic Subsidiary which is a Material
Subsidiary, promptly upon the request of the Administrative Agent: (i)
execute and deliver to the Documentation Agent, for the benefit of the
Lenders, such supplements to the Collateral Agreement as the Administrative
Agent shall deem necessary or advisable to (A) cause such Subsidiary to
become a Subsidiary Guarantor and (B) grant to the Documentation Agent, for
the benefit of the Lenders, a Lien on the Capital Stock of such Subsidiary
which is owned by the Company or any of its Subsidiaries, (ii) deliver to the
Documentation Agent the certificates representing such Capital Stock,
together with undated stock powers executed and delivered in blank by a duly
authorized officer of the Company or
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such Subsidiary, as the case may be, (iii) cause such new Subsidiary to take
all actions necessary or advisable to cause the Lien created by the
Collateral Agreement to be duly perfected in accordance with all applicable
Requirements of Law and (iv) if requested by the Administrative Agent,
deliver to the Administrative Agent legal opinions relating to the matters
described in clauses (i), (ii) and (iii) immediately preceding, which
opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.
(b) With respect to any Person that, subsequent to the Closing
Date, becomes a Foreign Subsidiary and which has Capital Stock which is owned
directly by the Company or a Domestic Subsidiary which is a Material
Subsidiary, promptly upon the request of the Administrative Agent: (i)
execute and deliver to the Documentation Agent a new Foreign Pledge Agreement
or such amendments to the relevant Foreign Pledge Agreement as the
Administrative Agent shall deem necessary or advisable to grant to the
Documentation Agent, for the benefit of the Lenders, a Lien on the Capital
Stock of such Subsidiary which is owned directly by the Company or any of its
Domestic Subsidiaries (PROVIDED that in no event shall more than 65% of the
Capital Stock of any such Subsidiary be required to be so pledged if the
pledge of more than such amount would be reasonably likely to cause adverse
tax consequences), (ii) to the extent reasonably deemed advisable by the
Administrative Agent, deliver to the Administrative Agent any certificates
representing such Capital Stock, together with undated stock powers executed
and delivered in blank by a duly authorized officer of the Company or such
Subsidiary, as the case may be, (iii) take or cause to be taken all such
other actions under the law of the jurisdiction of organization of such
Foreign Subsidiary as may be necessary or advisable to perfect such Lien on
such Capital Stock and (iv) if requested by the Administrative Agent, deliver
to the Administrative Agent legal opinions relating to the matters described
in clauses (i) through (iii) immediately preceding, which opinions shall be
in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent.
Each Foreign Borrower hereby covenants and agrees that it shall not take any
action or fail to take any action which would constitute a Default or Event
of Default hereunder.
SECTION 14. NEGATIVE COVENANTS
The Company hereby agrees that, so long as the Aggregate Commitment
or the European Overdraft Commitment remains in effect or any amount is owing
to any Lender, the Documentation Agent or the Administrative Agent hereunder
or under any other Credit Document, it shall not and (except in the case of
subsection 14.1) shall not permit any of its Subsidiaries to, directly or
indirectly:
14.1 FINANCIAL CONDITION COVENANTS.
(a) MINIMUM INTEREST COVERAGE RATIO. Permit the Interest Coverage
Ratio of the Company and its Subsidiaries on the last day of any fiscal
quarter of the Company occurring during a period set forth below to be less
than the ratio set forth opposite such period:
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---------------------------------------------------
---------------------------------------------------
Period Ratio
----------------------------------- -----------
Closing Date - December 31, 1999 2.50 to 1.0
January 1, 2000 - December 31, 2000 2.75 to 1.0
January 1, 2001 - thereafter 3.00 to 1.0
---------------------------------------------------
---------------------------------------------------
(b) MAXIMUM LEVERAGE RATIO. Permit the Leverage Ratio of the
Company and its Subsidiaries on the last day of any fiscal quarter of the
Company occurring during a period set forth below to be greater than the
ratio set forth opposite such period:
---------------------------------------------------
---------------------------------------------------
Period Ratio
----------------------------------- -----------
Closing Date - March 31, 1999 4.50 to 1.0
April 1, 1999 - June 30, 1999 4.25 to 1.0
July 1, 1999 - September 30, 1999 4.00 to 1.0
October 1, 1999 - December 31, 1999 3.50 to 1.0
January 1, 2000 - March 31, 2000 3.25 to 1.0
April 1, 2000 - thereafter 3.00 to 1.0
---------------------------------------------------
---------------------------------------------------
(c) MINIMUM FIXED CHARGE COVERAGE RATIO. Permit the Fixed Charge
Coverage Ratio of the Company and its Subsidiaries on the last day of any
fiscal quarter of the Company to be less than 1.25 to 1.0.
14.2 LIMITATION ON INDEBTEDNESS. Create, incur, assume or suffer
to exist any Indebtedness (including, in any event, any preferred stock),
except:
(a) Indebtedness of the Borrowers and their Subsidiaries under
this Agreement and the other Credit Documents, and other Indebtedness
of the Borrowers arising pursuant to Interest Rate Agreements, currency
hedging agreements and foreign exchange contracts to which any Lender
or Affiliate or Subsidiary thereof is a party;
(b) Indebtedness listed on Schedule 14.2 and any refinancings,
refundings, renewals or extensions thereof; PROVIDED that (x) the
aggregate principal amount of replacement Indebtedness is not greater
than the principal amount of the Indebtedness being so replaced and (y)
the terms of such replacement Indebtedness are, in the aggregate, no
less favorable to the Company or such Subsidiary than the terms of the
Indebtedness being so replaced;
(c) (i) Permitted Lease Indebtedness and (ii) Financing Leases and
purchase money Indebtedness incurred by the Company or any of its
Subsidiaries to finance the acquisition of tangible or intangible
assets, and Indebtedness incurred by the Company or any of its
Subsidiaries to refinance such Financing
95
Leases and purchase money Indebtedness, in an aggregate principal amount
not to exceed $20,000,000 (or the Local Equivalent thereof) at any one
time outstanding;
(d) Indebtedness of the Company owing to any Subsidiary and of any
Subsidiary owing to the Company or any other Subsidiary;
(e) Indebtedness of a Person which becomes a Subsidiary after the
Closing Date; PROVIDED that (i) such Indebtedness existed at the time
such Person became a Subsidiary and was not created in anticipation
thereof and (ii) immediately after giving effect to the acquisition of
such Person by the Borrower no Default or Event of Default shall have
occurred and be continuing, and any refinancings, refundings, of
renewals or extensions thereof; PROVIDED that the amount of such
Indebtedness is not increased at the time of such refinancing,
refunding, renewal or extension;
(f) Permitted Subordinated Indebtedness of the Company and any
refinancings, refundings, renewals or extensions thereof; PROVIDED that
(x) the aggregate principal amount of replacement Indebtedness is not
greater than the principal amount of the Indebtedness being so
replaced, except to the extent any such excess replacement Indebtedness
complies with the provisions of subsection 14.2(k) with respect thereto
and (y) the terms of such replacement Indebtedness are, in the
aggregate, no less favorable to the Company than the terms of the
Indebtedness being so replaced;
(g) Indebtedness incurred for the working capital purposes of the
Foreign Borrowers in an aggregate principal amount not to exceed
$125,000,000 (or the Local Equivalent thereof) at any one time
outstanding; PROVIDED that (x) the Aggregate European Loan Commitment
shall be temporarily reduced (except for the purpose of calculating the
facility fee payable pursuant to subsection 10.2) by the amount of any
Indebtedness incurred pursuant to this subsection 14.2(g) and (y)
during such time as a Foreign Borrower has any Indebtedness under this
subsection 14.2(g), it shall have no outstanding European Revolving
Loans hereunder;
(h) foreign currency cap agreements, foreign currency rate swap
agreements and other similar agreements and arrangements entered into
by the Company or any Subsidiary to provide protection against
fluctuations in foreign currency rates; PROVIDED that such agreements
are entered into by the Company or any Subsidiary in the ordinary
course of business;
(i) Indebtedness of the Company in respect of unsecured standby
and commercial letters of credit issued by a Lender in an aggregate
face amount (including, without limitation, any reimbursement
obligations owing in respect thereof) not to exceed $10,000,000 (or the
Local Equivalent thereof) at any one time outstanding;
(j) Indebtedness of the Company owing to employees of the Company
and its Subsidiaries on account of employee contributions to a
non-qualified benefit plan;
96
(k) Preferred stock of Subsidiaries of the Company and
subordinated Indebtedness of the Company or any of its Domestic
Subsidiaries which is upon terms reasonably satisfactory to the
Majority Lenders; PROVIDED that the Company and its Subsidiaries are in
compliance on a PRO FORMA basis (based upon the EBITDA of the Company
and its Subsidiaries for the period of four consecutive fiscal quarters
most recently ended and the Indebtedness of the Company and its
Subsidiaries on the date of, and after giving effect to, the incurrence
of such Indebtedness) with the provisions of subsection 14.1; and
(l) additional Indebtedness in an aggregate principal amount not
to exceed $20,000,000 (or the Local Equivalent thereof) at any time
outstanding.
Notwithstanding anything to the contrary contained in this subsection 14.2,
AcquisitionCo and its Subsidiaries shall not incur Indebtedness prior to the
Term Loan Repayment Date (x) to Persons other than the Company and its
Subsidiaries, other than (i) Permitted Lease Indebtedness, (ii) Indebtedness of
Interglas existing on the date it becomes a Subsidiary of the Company (and any
refinancings thereof) and (iii) any such Indebtedness which does not exceed
$15,000,000 in aggregate principal amount at any one time outstanding (excluding
Indebtedness of Interglas (if any) incurred as a Borrower and permitted by
Section 14.2(a)) or (y) to the Company and its Subsidiaries (other than
AcquisitionCo and Subsidiaries of AcquisitionCo), other than Indebtedness
incurred (i) as a result of the lending by the Company to AcquisitionCo or any
of AcquisitionCo's Domestic Subsidiaries which is a Subsidiary Guarantor of the
proceeds of the Tranche A Loans and/or the Tranche B Loans and any portion of
the Revolving Loans and the European Loans used to finance the Acquisition;
PROVIDED, that any such loans are evidenced by a promissory note in form and
substance satisfactory to the Administrative Agent which is a Pledged Note (as
defined in the Collateral Agreement) and (ii) to finance the working capital
needs of AcquisitionCo and its Subsidiaries in the ordinary course of business.
14.3 LIMITATION ON LIENS. Create, incur, assume or suffer to exist
any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except for:
(a) Liens for taxes, assessments and governmental charges not yet due
or which are being contested in good faith by appropriate proceedings,
PROVIDED that adequate reserves with respect thereto are maintained on the
books of the Company or its Subsidiaries, as the case may be, in conformity
with GAAP (or, in the case of Foreign Subsidiaries, generally accepted
accounting principles in effect from time to time in their respective
jurisdictions of incorporation);
(b) carriers', warehousemen's, mechanics', materialmen's, repairmen's
or other like Liens arising in the ordinary course of business which are
not overdue for a period of more than 60 days or which are being contested
in good faith by appropriate proceedings;
(c) pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation and deposits
securing liability to insurance carriers under insurance or self-insurance
arrangements;
97
(d) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(e) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and which do not in any case
materially detract from the value of the property subject thereto or
materially interfere with the ordinary conduct of the business of the
Company or any Subsidiary;
(f) Liens arising from precautionary Uniform Commercial Code financing
statement filings regarding operating leases entered into by the Company
and its Subsidiaries in the ordinary course of business;
(g) Liens in favor of banking institutions arising as a matter of law
and encumbering the deposits (including the right of setoff) held by such
banking institutions in the ordinary course of business and which are
within the general parameters customary in the banking industry;
(h) Liens in favor of customs and revenue authorities arising as a
matter of law to secure the payment of customs duties in connection with
the importation of goods; and
(i) Liens created pursuant to the Security Documents and the
Assignment Agreement;
(j) Liens listed on Schedule 14.3, securing Indebtedness permitted by
subsection 14.2(b), PROVIDED that no such Lien is spread to cover any
additional property after the Closing Date and that the amount of
Indebtedness secured thereby is not increased;
(k) (i) purchase money Liens (including the interest of a lessor
under a Financing Lease), (ii) Liens to which any Property is subject
at the time of the acquisition thereof securing Indebtedness permitted
by subsection 14.2(c) and (iii) Liens securing the obligations of
Hexcel CS Corporation (to be renamed Clark-Schwebel Corporation) under
the Lease Agreement, limited in each case to the property purchased or
subject to such lease;
(l) any attachment or judgment Lien the existence of which does not
constitute an Event of Default under Section 15(h);
(m) Liens securing Indebtedness permitted by subsection 14.2(g);
PROVIDED that such Lien shall encumber only assets of the Foreign Borrower
who is the primary obligor in respect of such Indebtedness and shall
encumber only assets which are located outside of the United States of
America;
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(n) Liens on the property or assets of a Person which becomes a
Subsidiary after the Closing Date securing Indebtedness permitted by
Section 14.2(e); PROVIDED that (i) such Liens existed at the time such
Person became a Subsidiary and were not created in anticipation thereof,
(ii) any such Lien is not spread to cover any property or assets of such
Person after the time such corporation becomes a Subsidiary, and (iii) the
amount of Indebtedness secured thereby is not increased; and
(o) additional Liens securing Indebtedness which, in the aggregate
with the amount guaranteed pursuant to any Guarantee Obligation created in
reliance upon the provisions of subsection 14.4(i), does not exceed 5% of
the consolidated net assets of the Company and its Subsidiaries; PROVIDED
that (x) no Default or Event of Default has occurred and is continuing at
the time that such Indebtedness is incurred, (y) until the Term Loan
Repayment Date, the Liens incurred in reliance upon the provisions of this
clause (o) which encumber the assets of AcquisitionCo and its Subsidiaries
shall not secure Indebtedness which, (in the aggregate with the amount
guaranteed pursuant to any Guarantee Obligations made by AcquisitionCo and
its Subsidiaries in reliance upon the provisions of subsection 14.4(i)),
exceeds 5% of the consolidated net assets of AcquisitionCo and its
Subsidiaries and (z) until the Term Loan Repayment Date, AcquisitionCo and
its Subsidiaries shall not incur any Liens encumbering their respective
assets pursuant to clause (y) of this proviso which secure or support
Indebtedness or Guarantee Obligations of any affiliate of AcquisitionCo
other than AcquisitionCo's Subsidiaries and joint ventures of AcquisitionCo
or AcquisitionCo's Subsidiaries.
14.4 LIMITATION ON GUARANTEE OBLIGATIONS. Create, incur, assume or
suffer to exist any Guarantee Obligation except:
(a) Guarantee Obligations listed on Schedule 14.4;
(b) Guarantee Obligations arising under the Credit Documents;
(c) Guarantee Obligations arising on account of obligations,
warranties and indemnities which (i) are not with respect to
Indebtedness of any Person, (ii) have been or are undertaken or made in
the ordinary course of business or in connection with the sale of
assets permitted by subsection 14.6(f) and (iii) are not for the
benefit of or in favor of an Affiliate of the Company;
(d) Guarantee Obligations of (i) (x) the Company in respect of
obligations of any of its Wholly-owned Subsidiaries and (y) any
Subsidiary of the Company (other than, until the Term Loan Repayment
Date, AcquisitionCo or any of its Subsidiaries) in respect of
obligations of the Company or any Wholly-owned Subsidiary of the
Company or (ii) (x) AcquisitionCo in respect of obligations of any of
its Wholly-owned Subsidiaries and (y) any Subsidiary of AcquisitionCo
in respect of obligations of AcquisitionCo or any Wholly-owned
Subsidiary of AcquisitionCo;
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(e) Guarantee Obligations with respect to obligations, warranties
and indemnities (other than with respect to Indebtedness) arising (i)
in the ordinary course of business, (ii) under the Existing Transaction
Documents or (iii) with respect to customary representations,
warranties and indemnities entered into in connection with the sale or
other disposition of assets;
(f) Guarantee Obligations in respect of payments made by the
Company to Dainippon Ink & Chemical, Inc. in an aggregate amount not to
exceed at any time $10,500,000;
(g) Guarantee Obligations in respect of Indebtedness of
Subsidiaries of the Company which was incurred in reliance upon the
provisions of subsection 14.2(g); PROVIDED that, until the Term Loan
Repayment Date, AcquisitionCo and its Subsidiaries shall not incur any
Guarantee Obligations in reliance upon the provisions of this clause
(g) in respect of any Affiliate of AcquisitionCo other than
Subsidiaries of AcquisitionCo;
(h) Guarantee Obligations constituting Investments pursuant to
subsection 14.8(k); and
(i) additional Guarantee Obligations of the Company and its
Subsidiaries in respect of obligations which, in the aggregate with the
aggregate amount of Indebtedness secured by Liens incurred in reliance
upon the provisions of subsection 14.3(o), does not exceed 5% of the
consolidated net assets of the Company and its Subsidiaries; PROVIDED
that (x) no Default or Event of Default has occurred and is continuing
at the time that such Guarantee Obligation is incurred, (y) until the
Term Loan Repayment Date, the Guarantee Obligations incurred by
AcquisitionCo and its Subsidiaries in reliance upon the provisions of
this clause (i), in the aggregate with the aggregate amount of
Indebtedness secured by Liens encumbering assets of AcquisitionCo and
its Subsidiaries in reliance upon the provisions of subsection 14.3(o),
does not exceed 5% of the consolidated net assets of AcquisitionCo and
its Subsidiaries and (z) until the Term Loan Repayment Date,
AcquisitionCo and its Subsidiaries shall not incur any Guarantee
Obligations pursuant to clause (y) of this proviso which secure or
support Indebtedness or Guarantee Obligations of any affiliate of
AcquisitionCo other than AcquisitionCo's Subsidiaries and joint
ventures of AcquisitionCo or AcquisitionCo's Subsidiaries.
14.5 LIMITATION ON FUNDAMENTAL CHANGES. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease, assign,
transfer or otherwise dispose of, all or substantially all of its property,
business or assets, or make any material change in its present method of
conducting business, except:
(a) any Subsidiary of the Company (other than (x) a Borrower or (y)
prior to the Term Loan Repayment Date, AcquisitionCo or any of its
Subsidiaries) may be merged or consolidated with or into the Company
(PROVIDED that the Company shall be the continuing or surviving
corporation) or with or into any one or more Wholly-owned
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Subsidiaries of the Company (PROVIDED that the Wholly-owned Subsidiary
or Subsidiaries shall be the continuing or surviving corporation);
(b) any Wholly-owned Subsidiary (other than, prior to the Term Loan
Repayment Date, AcquisitionCo or any of its Subsidiaries) may sell, lease,
transfer or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the Company or any other Wholly-owned
Subsidiary of the Company; and
(c) any Subsidiary of AcquisitionCo (other than a Borrower) may (i) be
merged or consolidated with or into AcquisitionCo (PROVIDED that
AcquisitionCo shall be the continuing or surviving corporation) or with or
into any one or more Wholly-owned Subsidiaries of AcquisitionCo (PROVIDED
that the Wholly-owned Subsidiary or Subsidiaries shall be the continuing or
surviving corporation) and (ii) sell, lease, transfer or otherwise dispose
of any or all of its assets (upon voluntary liquidation or otherwise) to
AcquisitionCo or any other Wholly-owned Subsidiary of AcquisitionCo.
14.6 LIMITATION ON SALE OF ASSETS. Convey, sell, lease, assign,
transfer or otherwise dispose of any of its property, business or assets
(including, without limitation, receivables and leasehold interests), whether
now owned or hereafter acquired, or, in the case of any Subsidiary, issue or
sell any shares of such Subsidiary's Capital Stock to any Person other than
the Company or any Wholly-owned Subsidiary, except:
(a) the sale of inventory in the ordinary course of business;
(b) the sale or other disposition of obsolete or worn out property in
the ordinary course of business;
(c) the sale or discount without recourse of accounts receivable
arising in the ordinary course of business in connection with the
compromise or collection thereof;
(d) assignments and licenses of intellectual property of the Company
and its Subsidiaries (i) to joint ventures, (ii) in the ordinary course of
business or (iii) pursuant to the Strategic Alliance Agreement;
(e) leases of owned real property and subleases of leased real
property, to the extent such leases and subleases have anticipated annual
rentals of less than $1,000,000 each; PROVIDED, HOWEVER, leases and
subleases of real property among the Company and its subsidiaries or among
such subsidiaries shall be permitted without regard to anticipated annual
rentals;
(f) the sale by the Company and its Subsidiaries of all or any part
of the property referred to on Schedule 10.5; PROVIDED, that (i) the
Administrative Agent shall have received the documentation evidencing such
sales, (ii) such sales shall not be made for less than the fair market
value of such Property and for consideration other than at least
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85% cash and (iii) the Net Proceeds arising from such sales shall not be
substantially less than the amount specified with respect to such Property
listed on Schedule 10.5;
(g) sales permitted by subsection 14.5 or 14.9; and
(h) the sale, transfer or other disposition of all or substantially
all of the Capital Stock or assets of Salver for fair market value;
PROVIDED that (i) Salver shall not be a Borrower hereunder after giving
effect to such sale, transfer or other disposition and (ii) the Net
Proceeds from such sale, transfer or other disposition are applied in
accordance with the provisions of subsection 10.5(g); and
(i) additional sales of assets for consideration having a fair market
value which is not in excess of $20,000,000 (or the Local Equivalent
thereof) in any fiscal year;
PROVIDED that the Company and its Subsidiaries shall not convey, sell, lease,
assign, transfer or otherwise dispose of all or any portion of the Capital
Stock of AcquisitionCo.
Any Collateral which is sold, transferred or otherwise conveyed pursuant to
this subsection 14.6 to a Person other than the Company and its Subsidiaries
shall, upon the consummation of such sale in accordance with the terms of
this Agreement and the other Credit Documents, be released from the Liens
granted pursuant to the Security Documents and each Lender hereby authorizes
and instructs each of the Administrative Agent and the Documentation Agent to
take such action as the Company reasonably may request to evidence such
release.
14.7 LIMITATION ON RESTRICTED PAYMENTS. Declare or pay any
dividend (other than dividends payable solely in common stock of the
Borrower) on, or make any payment on account of, or set apart assets for a
sinking or other analogous fund for, the purchase, redemption, defeasance,
retirement or other acquisition of, any shares of any class of Capital Stock
of the Company or (until the Term Loan Repayment Date) AcquisitionCo, or any
warrants or options to purchase any such Capital Stock, whether now or
hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in obligations
of the Company or any Subsidiary (such declarations, payments, setting apart,
purchases, redemptions, defeasances, retirements, acquisitions and
distributions being herein called "RESTRICTED PAYMENTS"), except that, during
such time as no Default or Event of Default has occurred and is continuing or
would result therefrom:
(a) the Company may make Restricted Payments with respect to (i)
employee or director stock options, stock incentive plans or restricted
stock plans of the Company, (ii) the purchase from time to time by the
Company of its common stock (for not more than market price) with the
proceeds of the exercise by grantees under any equity-based incentive plan,
(iii) other purchases from time to time by the Company of its common stock
not to exceed $40,000,000 in the aggregate since the date hereof and (iv)
transactions otherwise permitted pursuant to subsection 14.14; and
(b) AcquisitionCo may make cash Restricted Payments to its
shareholders.
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14.8 LIMITATION ON INVESTMENTS. Make any Investment in any Person
after the Closing Date, except:
(a) Investments in cash and Cash Equivalents;
(b) Investments received in connection with the bankruptcy or
reorganization of suppliers and customers and in settlement of
delinquent obligations of, and other disputes with, customers and
suppliers arising in the ordinary course of business;
(c) Investments on account of (i) intercompany loans which are
permitted by subsection 14.2(d), (ii) the purchase of equity interests of,
and the making of capital contributions to, Wholly-owned Subsidiaries and
(iii) Permitted Belgian Capital;
(d) cash contributions to Hexcel Foundation not to exceed $500,000 in
the aggregate in any fiscal year; PROVIDED, that the unused portion of such
amount may be used in the next succeeding year;
(e) Investments specifically contemplated by any Existing Transaction
Document and Investments on account of the Interglas Transaction;
(f) promissory notes and other Investments received as consideration
pursuant to transactions permitted by subsection 14.6(f);
(g) extensions of trade credit in the ordinary course of business;
(h) loans and advances to employees of the Company and its
Subsidiaries for travel, entertainment and relocation expenses in the
ordinary course of business;
(i) during such time as no Default or Event of Default is continuing
or would result therefrom, Investments on account of the Interglas
Transaction;
(j) Investments on account of the acquisition by the Company and its
Subsidiaries of all or substantially all of the Capital Stock or assets of
any Person (or business units thereof); PROVIDED that, after giving effect
to the consummation of such Investment, the Company and its Subsidiaries
are in compliance on a PRO FORMA basis (based upon the EBITDA of the
Company, its Subsidiaries and the acquired entity for the period of four
consecutive fiscal quarters most recently ended and the Indebtedness of the
Company, its Subsidiaries and the acquired entity on the date of, and after
giving effect to, the consummation of such Investment) with the provisions
of subsection 14.1; and
(k) additional Investments by the Company and its Subsidiaries;
PROVIDED that, after giving effect to the consummation of such Investment,
(i) the aggregate amount of all Investments (with the amount of any
Guarantee Obligations being deemed to be the amount so guaranteed) made by
the Company and its Subsidiaries in reliance upon the
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provisions of this subsection 14.8(k) does not exceed the greater of
(A) $75,000,000 and (B) the amount then equal to 15% of the
consolidated tangible net assets of the Company and its Subsidiaries
and (ii) the Company and its Subsidiaries are in compliance on a PRO
FORMA basis (based upon the EBITDA of the Company and its Subsidiaries
for the period of four consecutive fiscal quarters most recently ended
and the Indebtedness of the Company and its Subsidiaries on the date
of, and after giving effect to, the consummation of such Investment)
with the provisions of subsection 14.1.
14.9 LIMITATION ON TRANSACTIONS WITH AFFILIATES. Enter into
any transaction, including, without limitation, any purchase, sale,
lease or exchange of property or the rendering of any service, with any
Affiliate unless such transaction is (a) otherwise permitted under this
Agreement, (b) in the ordinary course of the Borrower's or such
Subsidiary's business and (c) upon fair and reasonable terms no less
favorable to the Company or such Subsidiary, as the case may be, than
it would obtain in a comparable arm's length transaction with a Person
which is not an Affiliate; PROVIDED, HOWEVER, that nothing contained
herein shall be deemed to prohibit (i) employment or compensation
agreements or other arrangements with officers or directors of the
Company or any of its Subsidiaries which have been approved by the
Board of Directors of the Company or any committee of the disinterested
directors of the Company, (ii) existing management agreements, (iii)
stock options and awards granted to employees and directors of the
Company or any of its Subsidiaries under plans or other employee
benefit plans, and (iv) any contract or transaction providing for
indemnification of officers or directors of the Company or any of its
Subsidiaries from liability, or providing or maintaining insurance or
other arrangements on behalf of any such officer or director against
any liability asserted against such person and incurred in or arising
out of such capacity, (v) the transactions set forth on Schedule 14.9
or permitted by subsection 14.5, (vi) transactions which are expressly
contemplated by the Existing Transaction Documents and (vii) the
Interglas Transaction.
14.10 LIMITATION ON SALES AND LEASEBACKS. Enter into any
arrangement with any Person providing for the leasing by the Company or
any Subsidiary of real or personal property which has been or is to be
sold or transferred by the Company or such Subsidiary to such Person or
to any other Person to whom funds have been or are to be advanced by
such Person on the security of such property or rental obligations of
the Company or such Subsidiary, other than any such transactions
relating to the sale and lease of equipment upon terms and subject to
conditions satisfactory to the Administrative Agent to the extent that
the aggregate fair market value of all equipment sold from and after
the date hereof does not exceed $20,000,000 (or the Local Equivalent
thereof); PROVIDED that, until the Term Loan Repayment Date,
AcquisitionCo and its Subsidiaries shall not enter into any such
arrangement providing for the lease by AcquisitionCo or any of its
Subsidiaries of any such property which has been or is to be sold or
transferred by the AcquisitionCo or such Subsidiary to the Company or
any of its Subsidiaries.
14.11 LIMITATION ON CHANGES IN FISCAL YEAR OR ACCOUNTING
TREATMENT. (a) Permit the fiscal year of the Company to end on a day
other than December 31.
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(b) Make any material change in accounting treatment and reporting
practices or tax reporting treatment, except as required by GAAP and disclosed
to the Lenders and the Administrative Agent.
14.12 LIMITATION ON NEGATIVE PLEDGE CLAUSES. Enter into with any
Person any agreement, other than (a) the Credit Documents and (b) any industrial
revenue bonds, purchase money mortgages or Financing Leases permitted by this
Agreement (in which cases, any prohibition or limitation shall only be effective
against the assets financed thereby), which prohibits or limits the ability of
the Company or any of its Subsidiaries to create, incur, assume or suffer to
exist any Lien upon any of its property, assets or revenues, whether now owned
or hereafter acquired.
14.13 LIMITATION ON LINES OF BUSINESS. Enter into any business,
either directly or through any Subsidiary, which would not reasonably be
considered to be related to (or an extension of) the businesses in which the
Company and its Subsidiaries (including, without limitation, the Acquired
Businesses) are engaged on the date hereof.
14.14 LIMITATION ON MODIFICATION OF AGREEMENTS AND PAYMENTS ON
ACCOUNT OF DEBT. (a) Prepay, redeem, purchase, repurchase, defease or retire
any long-term Indebtedness, other than:
(i) the Indebtedness hereunder;
(ii) any intercompany Indebtedness permitted by subsection 14.2 if an
Event of Default is not existing and would not result from giving effect to
such prepayment;
(iii) other scheduled payments in respect of Indebtedness;
(iv) regularly scheduled payments on the Permitted Subordinated
Indebtedness and repurchases and prepayments of the Subordinated Ciba
Notes;
(v) payments of equity or cash made upon the conversion of any
Permitted Subordinated Indebtedness into equity in accordance with the
relevant indenture governing such Indebtedness, PROVIDED that (A) such
payments are permitted to be made under the terms of the Permitted
Subordinated Indebtedness, (B) no Default or Event of Default has occurred
and is continuing and (C) payments of cash do not exceed $10,000,000 in the
aggregate;
(vi) payments of Indebtedness made in connection with (A) the Existing
Transaction Documents (including, without limitation, payments under the
Lease Agreement) or (B) as set forth on Schedule 14.14; and
(vii) payments of Indebtedness and profit participation capital of
Interglas made pursuant to the Interglas Transaction;
105
PROVIDED that nothing contained herein shall be deemed to prohibit (x) the
Company from converting into equity any intercompany Indebtedness which is
owing to it from any of its Subsidiaries, (y) any Subsidiary of the Company
from converting into equity any Indebtedness which is owing to it from any
other Subsidiary or (z) the conversion of the Permitted Subordinated
Indebtedness into common stock of the Company in a manner not inconsistent
with the terms thereof (and the payment of (i) cash adjustments by the
Company in lieu of issuing fractional shares of common stock upon the
conversion of the Subordinated Convertible Notes or the Subordinated
Debentures and (ii) accrued interest thereon).
(b) Amend, supplement or otherwise modify the terms of any Existing
Transaction Document, the Subordinated Debentures, the Subordinated Debenture
Indenture, the Subordinated Convertible Notes, the Subordinated Convertible
Notes Indenture or the Lease Agreement in any material respect, other than
amendments to any non-material Existing Transaction Document in a manner which
could not reasonably be expected to be adverse to the Lenders.
(c) Amend, supplement or otherwise modify the terms of (i) its
articles/certificate of incorporation (or the equivalent organizational
documents), (ii) its by-laws (or the equivalent governing documents, if any) or
(iii) any document setting forth the designation, amount and/or relative rights,
limitations and preferences of any class or series of its Capital Stock, except
for any such amendments, supplements and other modifications which could not
reasonably be expected to adversely affect the rights or interests of the
Administrative Agent or the Lenders.
14.15 NO NEW RESTRICTIONS ON SUBSIDIARY DIVIDENDS. Agree to create or
otherwise permit to become effective any consensual encumbrance or restriction
of any kind on the ability of any Subsidiary to:
(a) pay, directly or indirectly, dividends or make any other
distributions in respect of its Capital Stock;
(b) make any other distribution or transfer of funds or assets to the
Company; or
(c) make loans or advances to or other Investments in, or pay any
Indebtedness or other obligation owing to, the Company;
except to the extent required by (x) any applicable Requirements of Law, (y) the
Credit Documents or the Subordinated Ciba Notes Indenture or (z) to the extent
permitted (including, without limitation, by waiver of applicable restrictions
contained therein) by the Subordinated Ciba Notes Indenture, any document or
agreement governing Indebtedness which is incurred in reliance upon the
provisions of subsection 14.2(g) (PROVIDED that any such restriction permitted
by this clause (z) shall apply only to the Subsidiary which is the borrower of
such Indebtedness).
Each Foreign Borrower hereby covenants and agrees that it shall not take any
action or fail to take any action which would constitute a Default or Event of
Default hereunder.
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SECTION 15. EVENTS OF DEFAULT
If any of the following events shall occur and be continuing:
(a) Any Borrower shall fail to pay any principal of any Loan or pay
any Reimbursement Obligation when due in accordance with the terms thereof
or hereof; or any Borrower shall fail to pay any interest on any Loan, or
any other amount payable hereunder, within five days after any such
interest or other amount becomes due in accordance with the terms thereof
or hereof; or
(b) Any representation or warranty made or deemed made by the Company
or any other Credit Party herein or in any other Credit Document or which
is contained in any certificate, document or financial or other statement
furnished by it at any time under or in connection with this Agreement or
any such other Credit Document shall prove to have been incorrect in any
material respect on or as of the date made or deemed made; or
(c) The Company or any other Credit Party shall default in the
observance or performance of any agreement contained in Section 14 or any
negative covenant contained in any of the other Credit Documents; or
(d) The Company or any other Credit Party shall default in the
observance or performance of any other agreement contained in this
Agreement or any other Credit Document (other than as provided in
paragraphs (a) through (c) of this Section), and such default (to the
extent that it is susceptible to remedy) shall continue unremedied for a
period of 30 days; or
(e) The Company or any of its Subsidiaries shall (i) default in any
payment of principal of or interest of any Indebtedness (other than the
Loans) or in the payment of any Guarantee Obligation, beyond the period of
grace (not to exceed 30 days), if any, provided in the instrument or
agreement under which such Indebtedness or Guarantee Obligation was
created; or (ii) default in the observance or performance of any other
agreement or condition relating to any such Indebtedness or Guarantee
Obligation or contained in any instrument or agreement evidencing, securing
or relating thereto, or any other event shall occur or condition exist, the
effect of which default or other event or condition is to cause, or to
permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Guarantee Obligation (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause, with
the giving of notice if required, such Indebtedness to become due prior to
its stated maturity or such Guarantee Obligation to become payable (or, if
such Indebtedness is a Financing Lease, to cause such Financing Lease to be
terminated as a result of an event of default thereunder); PROVIDED,
HOWEVER, that no Default or Event of Default shall exist under this
paragraph unless the aggregate amount of Indebtedness and/or Guarantee
Obligations in respect of which any default or other event or condition
referred to in this paragraph shall have occurred shall be equal to at
least $10,000,000 (or the Local Equivalent thereof); or
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(f) (i) The Company or any of its Material Subsidiaries shall commence
any case, proceeding or other action (A) under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization or relief of debtors, seeking to have an order
for relief entered with respect to it, or seeking to adjudicate it a
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment,
winding-up, liquidation, dissolution, composition or other relief with
respect to it or its debts, or (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all
or any substantial part of its assets, or the Company or any of its
Material Subsidiaries shall make a general assignment for the benefit of
its creditors; or (ii) there shall be commenced against the Company or any
of its Material Subsidiaries any case, proceeding or other action of a
nature referred to in clause (i) above which (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or (iii)
there shall be commenced against the Company or any of its Material
Subsidiaries any case, proceeding or other action seeking issuance of a
warrant of attachment, execution, distraint or similar process against all
or any substantial part of its assets which results in the entry of an
order for any such relief which shall not have been vacated, discharged, or
stayed or bonded pending appeal within 60 days from the entry thereof; or
(iv) the Company or any of its Material Subsidiaries shall take any action
in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the acts set forth in clause (i), (ii), or (iii)
above; or (v) the Company or any of its Material Subsidiaries shall
generally not, or shall be unable to, or shall admit in writing its
inability to, pay its debts as they become due; or
(g) (i) Any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302
of ERISA), whether or not waived, shall exist with respect to any Plan or
any Lien in favor of the PBGC or a Plan shall arise on the assets of the
Company or any Commonly Controlled Entity, (iii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate,
any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of
the Required Lenders, likely to result in the termination of such Plan for
purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Company or any
Commonly Controlled Entity shall, or in the reasonable opinion of the
Required Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
Plan or (vi) any other event or condition shall occur or exist with respect
to a Plan; and in each case in clauses (i) through (vi) above, such event
or condition, together with all other such events or conditions, if any,
involve an aggregate amount in excess of $3,000,000; or
(h) One or more judgments or decrees shall be entered against the
Company or any of its Subsidiaries involving in the aggregate a net
liability (after reduction for the amount of any applicable insurance
coverage) of $10,000,000 (or the Local Equivalent
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thereof) or more, and all such judgments or decrees shall not have been
vacated, discharged, stayed or bonded pending appeal within 60 days from
the entry thereof; or
(i) (i) Any of the Security Documents or the Assignment Agreement (or
any material provision of any thereof) shall cease, for any reason, to be
in full force and effect, or the Company or any other Credit Party which is
a party to any of the Security Documents or the Assignment Agreement shall
so assert or (ii) the Lien created by any of the Security Documents or the
Assignment Agreement shall cease to be enforceable and of the same effect
and priority purported to be created thereby, except, in each case, to the
extent such cessation is (A) in accordance with the terms of the Credit
Documents or (B) a result of (x) the failure of the Documentation Agent to
maintain possession of the securities representing the Collateral or
(y) the gross negligence, bad faith or willful misconduct of any of the
Administrative Agent, the Documentation Agent or the Lenders; or
(j) Any Change of Control shall occur; or
(k) Any Foreign Borrower shall cease to be (or shall not be) a
Wholly-owned Subsidiary of the Company;
then, and in any such event, (A) if such event is a Bankruptcy Event with
respect to any Borrower, automatically each of the Aggregate Commitment shall
immediately terminate and the Loans hereunder (with accrued interest thereon)
and all other amounts owing under this Agreement (including, without limitation,
all amounts of Domestic L/C Obligations and European L/C Obligations, whether or
not the beneficiaries of the then outstanding Letters of Credit shall have
presented the documents required thereunder) shall immediately become due and
payable, and (B) if such event is any other Event of Default, either or both of
the following actions may be taken: (i) with the consent of the Required
Lenders, the Administrative Agent may, or upon the request of the Required
Lenders, the Administrative Agent shall, by notice to the Company declare the
Aggregate Tranche A Loan Commitment, the Aggregate Tranche B Loan Commitment,
Aggregate Revolving Credit Commitment, the Aggregate European Loan Commitment
and/or the European Overdraft Commitment to be terminated forthwith, whereupon
such Commitment(s) shall immediately terminate; and (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Company,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement (including, without limitation, all amounts
of Domestic L/C Obligations and European L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented the
documents required thereunder) to be due and payable forthwith, whereupon the
same shall immediately become due and payable.
With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration
pursuant to the preceding paragraph, the relevant Borrower shall at such time
deposit in one or more cash collateral accounts opened by the Administrative
Agent (or, with the consent of the Administrative Agent, by the relevant
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Issuing Lender) an amount equal to the aggregate then undrawn and unexpired
amount of such Letters of Credit. Each Borrower hereby grants to the
Administrative Agent, for the benefit of the Issuing Lenders and the L/C
Participants, a security interest in such cash collateral to secure all
obligations of such Borrower under this Agreement and the other Credit
Documents. Any amounts held in such cash collateral account shall be applied
by the Administrative Agent to the payment of drafts drawn under such Letters
of Credit issued for the account of such Borrower, and the unused portion
thereof after all such Letters of Credit shall have expired or been fully
drawn upon, if any, shall be applied to repay other obligations of the
Borrowers hereunder and under the Notes. After all such Letters of Credit
shall have expired or been fully drawn upon, all Reimbursement Obligations
shall have been satisfied and all other obligations of the Borrowers
hereunder and under the Notes shall have been paid in full, the balance, if
any, in such cash collateral account shall be returned to the relevant
Borrower. Each Borrower shall execute and deliver to the Administrative
Agent, for the account of the relevant Issuing Lenders and the L/C
Participants, such further documents and instruments as the Administrative
Agent may request to evidence the creation and perfection of the within
security interest in such cash collateral account.
Except as expressly provided above in this Section 15, presentment,
demand, protest and all other notices of any kind are hereby expressly waived.
SECTION 16. THE ADMINISTRATIVE AGENT AND THE DOCUMENTATION AGENT
16.1 APPOINTMENT. Each Lender hereby irrevocably designates and
appoints (a) the Administrative Agent as the administrative agent of such
Lender under this Agreement and the other Credit Documents and (b) the
Documentation Agent as the documentation agent hereunder and under the other
Credit Documents. Each such Lender hereby further irrevocably authorizes the
Administrative Agent and the Documentation Agent, in its respective capacity
as such, to take such action on its behalf under the provisions of this
Agreement and the other Credit Documents and to exercise such powers and
perform such duties as are expressly delegated to the Administrative Agent or
the Documentation Agent (as the case may be) by the terms of this Agreement
and the other Credit Documents, together with such other powers as are
reasonably incidental thereto (including, without limitation, acting on
behalf of and for the account of each Lender in the creation, execution,
perfection, delivery and enforcement of the Foreign Pledge Agreements).
Notwithstanding any provision to the contrary elsewhere in this Agreement,
neither the Administrative Agent not the Documentation Agent shall have any
duties or responsibilities, except those expressly set forth with respect to
it herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities
shall be read into this Agreement or any other Credit Document or otherwise
exist against the Administrative Agent or the Documentation Agent.
16.2 DELEGATION OF DUTIES. Each of the Administrative Agent and the
Documentation Agent may execute any of its duties under this Agreement and the
other Credit Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
Neither the Administrative Agent nor the
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Documentation Agent shall be responsible for the negligence or misconduct of
any agent or attorneys in-fact selected by it with reasonable care.
16.3 EXCULPATORY PROVISIONS. None of the Administrative Agent, the
Documentation Agent nor any of their respective officers, directors, employees,
agents, attorneys-in-fact, Subsidiaries or Affiliates shall be (i) liable for
any action lawfully taken or omitted to be taken by it or such Person under or
in connection with this Agreement or any other Credit Document (except for its
or such Person's own gross negligence, bad faith or willful misconduct) or
(ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by any Borrower or any officer
thereof contained in this Agreement or any other Credit Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent or the Documentation Agent under or in
connection with, this Agreement or any other Credit Document or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Credit Document or for any failure of any Borrower to
perform its obligations hereunder or thereunder. Neither the Administrative
Agent nor the Documentation Agent shall be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Credit
Document, or to inspect the properties, books or records of any Borrower.
16.4 RELIANCE BY ADMINISTRATIVE AGENT AND DOCUMENTATION AGENT. Each
of the Administrative Agent and the Documentation Agent shall be entitled to
rely, and shall be fully protected in relying, upon any Note, writing,
resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or
teletype message, statement, order or other document or conversation believed by
it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons and upon advice and statements of legal counsel (including,
without limitation, counsel to any Borrower), independent accountants and other
experts selected by the Administrative Agent or the Documentation Agent (as the
case may be). Each of the Administrative Agent and the Documentation Agent may
deem and treat the payee of any Note as the owner thereof for all purposes
unless a written notice of assignment, negotiation or transfer thereof shall
have been filed with the Administrative Agent or the Documentation Agent (as the
case may be). Each of the Administrative Agent and the Documentation Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Credit Document unless it shall first receive such advice
or concurrence of the Majority Lenders as it deems appropriate or it shall first
be indemnified to its 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. Each of the Administrative Agent and the Documentation
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Credit Documents in accordance with a
request of the Majority Lenders (or such larger number of Lenders as may be
explicitly required hereunder), and such request and any action taken or failure
to act pursuant thereto shall be binding upon all the Lenders and all future
holders of the Loans.
16.5 NOTICE OF DEFAULT. Neither the Administrative Agent nor the
Documentation Agent shall be deemed to have knowledge or notice of the
occurrence of any Default or Event of
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Default hereunder unless it has received notice from the Documentation Agent,
a Lender or a Borrower referring to this Agreement, describing such Default
or Event of Default and stating that such notice is a "notice of default".
In the event that the Documentation Agent receives such a notice, it shall
promptly give notice thereof to the Administrative Agent. In the event that
the Administrative Agent receives such a notice from the Documentation Agent,
any Lender or a Borrower, the Administrative Agent shall give notice thereof
to the Lenders. Each of the Administrative Agent and the Documentation Agent
shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders or (in the case of the
Documentation Agent) as shall be reasonably directed by the Administrative
Agent; PROVIDED that unless and until the Administrative Agent or the
Documentation Agent (as the case may be) shall have received such directions,
it may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of the Lenders.
16.6 NON-RELIANCE ON ADMINISTRATIVE AGENT, DOCUMENTATION AGENT AND
OTHER LENDERS. Each Lender expressly acknowledges that none of the
Administrative Agent, the Documentation Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact, Subsidiaries or
Affiliates has made any representations or warranties to it and that no act
by the Administrative Agent or the Documentation Agent hereinafter taken,
including any review of the affairs of any Borrower, shall be deemed to
constitute any representation or warranty by the Administrative Agent or the
Documentation Agent (as the case may be) to any Lender. Each Lender
represents to the Administrative Agent and the Documentation Agent that such
Lender has, independently and without reliance upon the Administrative Agent,
the Documentation Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own appraisal of and
investigation into the business, operations, property, financial and other
condition and creditworthiness of each Borrower and made its own decision to
make its Loans and other extensions of credit hereunder and enter into this
Agreement. Each Lender also represents that it will, independently and
without reliance upon the Administrative Agent, the Documentation Agent 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 analysis,
appraisals and decisions in taking or not taking action under this Agreement
and the other Credit Documents, and to make such investigation as it deems
necessary to inform itself as to the business, operations, property,
financial and other condition and creditworthiness of the Borrowers. Except
for notices, reports and other documents expressly required to be furnished
to the Lenders by the Administrative Agent or the Documentation Agent
hereunder, neither the Administrative Agent nor the Documentation Agent (as
the case may be) shall have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, operations,
property, condition (financial or otherwise), prospects or creditworthiness
of any Borrower which may come into the possession of the Administrative
Agent or the Documentation Agent (as the case may be) or any of their
respective officers, directors, employees, agents, attorneys-in-fact,
Subsidiaries or Affiliates.
16.7 INDEMNIFICATION. The Lenders agree to indemnify each of the
Administrative Agent and the Documentation Agent, in its capacity as such (to
the extent not reimbursed by the Borrowers and without limiting the obligation
of the Borrowers to do so),
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ratably (according to the percentage which the Commitments of such Lender
constitutes of the Aggregate Commitment on the date on which indemnification
is sought or, if the Aggregate Commitment has then terminated, such
percentage immediately prior to such termination), from and against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at
any time (including, without limitation, at any time following the payment of
the Loans) be imposed on, incurred by or asserted against the Administrative
Agent or the Documentation Agent in any way relating to or arising out of,
the Aggregate Commitment (or any component thereof), this Agreement, any of
the other Credit Documents or any documents contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any
action taken or omitted by the Administrative Agent or the Documentation
Agent under or in connection with any of the foregoing; PROVIDED that no
Lender shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from the gross negligence, bad faith or
willful misconduct of the Administrative Agent or the Documentation Agent (as
the case may be). The agreements in this subsection 16.7 shall survive the
payment of the Loans and all other amounts payable hereunder.
16.8 AGENTS IN THEIR INDIVIDUAL CAPACITIES. Each of the
Administrative Agent, the Documentation Agent and their respective Affiliates
and Subsidiaries may make loans to, accept deposits from and generally engage
in any kind of business with any Borrower as though the Administrative Agent
or the Documentation Agent (as the case may be) were not the Administrative
Agent or the Documentation Agent hereunder and under the other Credit
Documents. With respect to the Loans and other extensions of credit made by
it, each of the Administrative Agent and the Documentation Agent shall have
the same rights and powers under this Agreement and the other Credit
Documents as any Lender and may exercise the same as though it were not the
Administrative Agent or the Documentation Agent (as the case may be), and the
terms "Lender" and "Lenders" shall include each of the Administrative Agent
and the Documentation Agent, in its respective individual capacity.
16.9 SUCCESSOR AGENTS. Each of the Administrative Agent and the
Documentation Agent may resign as such upon 30 days' notice to the Lenders. If
the Administrative Agent shall resign as "Administrative Agent" or the
Documentation Agent shall resign as "Documentation Agent" under this Agreement
and the other Credit Documents, then the Majority Lenders shall appoint from
among the Lenders a successor Administrative Agent or Documentation Agent (as
the case may be) for the Lenders, which successor Administrative Agent or
Documentation Agent (PROVIDED that, to the extent that no Default or Event of
Default is continuing at the time of such appointment, such Administrative Agent
or Documentation Agent, as the case may be, shall have been approved by the
Company, with such approval not to be unreasonably withheld), shall succeed to
the rights, powers and duties of the Administrative Agent or the Documentation
Agent (as the case may be) hereunder. Effective upon such appointment and
approval, the term "Administrative Agent" or "Documentation Agent" (as the case
may be) shall mean such successor Administrative Agent or Documentation Agent,
and the rights, powers and duties of the former Administrative Agent as
Administrative Agent or of the former Documentation Agent as Documentation Agent
(as the case may be) shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or
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Documentation Agent (as the case may be) or any of the parties to this
Agreement or any holders of the Loans. After any resignation of the retiring
Administrative Agent as Administrative Agent or of the retiring Documentation
Agent as Documentation Agent, the provisions of this Section 16 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it
was Administrative Agent or Documentation Agent (as the case may be) under
this Agreement and the other Credit Documents. Notwithstanding anything to
the contrary contained herein, during such time as shares of Capital Stock of
Hexcel Pottsville Corporation are pledged to the Documentation Agent pursuant
to the terms hereof, any successor Documentation Agent shall be a Person who
is acceptable to the Defense Investigative Service.
SECTION 17. MISCELLANEOUS
17.1 AMENDMENTS AND WAIVERS. Neither this Agreement nor any other
Credit Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this subsection. The
Majority Lenders may, or, with the written consent of the Majority Lenders, the
Administrative Agent (and/or, to the extent applicable, the Documentation Agent)
may, from time to time, (a) enter into with each Borrower directly affected
thereby written amendments, supplements or modifications hereto and to the other
Credit Documents for the purpose of adding any provisions to this Agreement or
the other Credit Documents or changing in any manner the rights of the Lenders
or of such Borrowers hereunder or thereunder or (b) waive, on such terms and
conditions as the Majority Lenders or the Administrative Agent (and/or, to the
extent applicable, the Documentation Agent), as the case may be, may specify in
such instrument, any of the requirements of this Agreement or the other Credit
Documents or any Default or Event of Default and its consequences; PROVIDED,
HOWEVER, that no such waiver and no such amendment, supplement or modification
shall:
(i) without the consent of each Lender directly affected thereby, (A)
reduce the amount or extend the scheduled date of maturity of any Loan or
of any installment thereof, (B) reduce the stated rate of any interest or
fee payable hereunder or extend the scheduled date of any payment thereof
or (C) increase the amount or extend the expiration date of any Lender's
Commitment;
(ii) without the written consent of all the Lenders (other than the
Swing Line Lender, the Issuing Lenders and the European Overdraft Lenders),
(A) amend, modify or waive any provision of this subsection, (B) reduce the
percentage specified in the definition of Required Lenders, Majority
Facility Lenders or Majority Lenders, (C) consent to the assignment or
transfer by any Borrower of any of its rights and obligations under this
Agreement and the other Credit Documents or (D) release all or
substantially all of the Collateral;
(iii) without the prior written consent of the Issuing Lender with
respect thereto, amend, supplement or otherwise modify any provisions of or
directly applicable to any Letter of Credit;
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(iv) amend, modify or waive any provision of Section 6 or any other
provision of this Agreement governing the rights or obligations of the
Swing Line Lender without the written consent of the Swing Line Lender;
(v) amend, modify or waive any provision of Section 7 or any other
provision of this Agreement directly governing the rights or obligations of
any Local European Lender without the written consent of such Local
European Lender;
(vi) amend, modify or waive any provision of Section 9 or any other
provision of this Agreement governing the rights or obligations of the
European Overdraft Lender without the written consent of the European
Overdraft Lender; or
(vii) amend, modify or waive any provision of Section 16 without the
written consent of the then Administrative Agent and, to the extent
affected thereby, the Documentation Agent.
Notwithstanding the foregoing, (a) if any such amendment, modification or
waiver of any provision of this Agreement or any other Credit Document
affects solely one or more particular Facilities (it being understood that
any amendment, modification or waiver of any provision of Section 12.2
subsequent to the initial extension of credit on the Closing Date affects
solely the European Loan Facility, the Revolving Credit Facility and, during
such time as any amount remains available under the Aggregate Tranche A Loan
Commitment, the Tranche A Loan Facility), such amendment, modification or
waiver shall only require the written consent of the Majority Facility
Lenders in respect of each such affected Facility and (b) any such amendment,
modification or waiver of subsection 10.5(g) which causes amounts payable to
a particular Facility (the "Affected Facility") pursuant to subsection
10.5(g) to be applied to a different Facility shall require the consent of
the Majority Facility Lenders under the Affected Facility.
Any such waiver and any such amendment, supplement or modification
shall apply equally to each of the Lenders and shall be binding upon the
Borrowers, the Lenders, the Documentation Agent, the Administrative Agent and
all future holders of the Loans. In the case of any waiver, the Borrowers,
the Lenders, the Documentation Agent and the Administrative Agent shall be
restored to their former positions and rights hereunder and under the other
Credit Documents, and any Default or Event of Default waived shall be deemed
to be cured and not continuing; no such waiver shall extend to any subsequent
or other Default or Event of Default or impair any right consequent thereon.
17.2 RELEASE OF COLLATERAL. (a) Notwithstanding anything to the
contrary contained herein (other than the provisions of subsection 17.2(b))
or in any Security Document, the Documentation Agent shall (upon request of
the Company, but without any notice to or vote or consent of any Lender) take
action having the effect of releasing:
(i) any collateral and/or guarantee obligations provided for in any
Credit Document to the extent necessary to permit the consummation of any
Net Proceeds Event or any asset dispositions permitted by subsection 14.6
by the Company or any of its
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Subsidiaries in accordance with the provisions of this Agreement and the
Credit Documents; PROVIDED that the Net Proceeds of any Net Proceeds
Events are applied in the manner contemplated by subsections 10.5 (if so
required);
(ii) all collateral and guarantee obligations provided for in the
Credit Documents upon the termination of the Aggregate Commitment,
payment in full of all Loans and Reimbursement Obligations owing
hereunder and termination of all Domestic L/C Obligations and European
L/C Obligations; and
(iii) all collateral (but not any guarantee obligations) provided
for in the Credit Documents on the date upon which the senior,
unsecured, long-term debt of the Company receives a credit rating of
BBB- or better from S&P and Baa3 or better from Moody's.
In furtherance of the foregoing, each Lender hereby authorizes and instructs
the Documentation Agent to execute and deliver or file such termination and
partial release statements and do such other things as the Company reasonably
may request to evidence and effect any release contemplated hereby.
(b) Notwithstanding the provisions of subsection 17.2(a), the
Documentation Agent shall not be required to execute any release document
which, in the Documentation Agent's opinion, would expose the Documentation
Agent to liability or impose additional obligations upon the Documentation
Agent.
17.3 NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission) and, unless otherwise expressly provided herein,
shall be deemed to have been duly given or made (a) in the case of delivery
by hand, when delivered, (b) in the case of delivery by mail, three days
after being deposited in the mails, postage prepaid, or (c) in the case of
delivery by facsimile transmission, when sent and receipt has been confirmed,
addressed as follows in the case of the Borrowers, the Documentation Agent
and the Administrative Agent, and as set forth in Schedule II in the case of
the other parties hereto, or to such other address as may be hereafter
notified by the respective parties hereto:
The Company: Hexcel Corporation
Two Stamford Plaza
281 Tresser Boulevard
Stamford, Connecticut 06901
Attention: Treasurer
Fax: 203/358-3993
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Foreign Borrowers: c/o Hexcel Corporation
Two Stamford Plaza
281 Tresser Boulevard
Stamford, Connecticut 06901
Attention: Treasurer
Fax: 203/358-3993
The Documentation Agent: Citibank, N.A.
399 Park Avenue
New York, New York 10022
Attention: Jordan Schweon
Fax: 212/793-7460
The Administrative Agent: Credit Suisse First Boston
11 Madison Avenue
New York, New York 10010
Attention: Karl Studer
Fax: 212-325-8326
PROVIDED that any notice, request or demand to or upon the Administrative
Agent or the Lenders pursuant to subsection 2.2, 3.2, 4.2, 5.2, 6.2, 7.2,
7.3, 8.2, 9.2, 10.3, 10.4 or 10.11(b) shall not be effective until received.
17.4 NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent, the
Documentation Agent or any Lender, any right, remedy, power or privilege
hereunder or under the other Credit Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.
17.5 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder, in the other Credit Documents
and in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this
Agreement and the making of the Loans hereunder.
17.6 PAYMENT OF EXPENSES AND TAXES. The Borrowers agree (a) to pay
or reimburse the Administrative Agent and the Documentation Agent for all its
respective reasonable out-of-pocket costs and expenses incurred in connection
with the development, preparation and execution of, and any amendment,
supplement or modification to, this Agreement and the other Credit Documents
and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and
thereby, including, without limitation, the reasonable fees and disbursements
of the several counsel to the Administrative Agent and the Documentation
Agent, (b) to pay or reimburse each Lender, the Documentation Agent and the
Administrative Agent for
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all its reasonable costs and expenses incurred in connection with the
enforcement or preservation of any rights under this Agreement, the other
Credit Documents and any such other documents, including, without limitation,
the fees and disbursements of the several counsel to the Lenders, the
Documentation Agent and the Administrative Agent, (c) to pay, indemnify, and
hold each Lender, the Documentation Agent and the Administrative Agent
harmless from, any and all recording and filing fees and any and all
liabilities with respect to, or resulting from any delay in paying, stamp,
excise and other similar taxes, if any, which may be payable or determined to
be payable in connection with the execution and delivery of, or consummation
or administration of any of the transactions contemplated by, or any
amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the other Credit Documents and any such other
documents and (d) to pay, indemnify, and hold each Lender, the Documentation
Agent and the Administrative Agent and their respective officers, directors,
employees, agents, investment advisors which are under common institutional
control with a Lender and trustees harmless from and against any and all
other liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever with respect to the execution, delivery, enforcement, performance
and administration of this Agreement, the other Credit Documents and the
other transactions contemplated hereby, or the use of the proceeds of the
Loans and other extensions of credit hereunder and any such other documents,
including, without limitation, any of the foregoing relating to the violation
of, noncompliance with or liability under, any Environmental, Health or
Safety Requirements of Law applicable to the operations of the Company, any
of its Subsidiaries or any Property (all the foregoing in this clause (d),
collectively, the "INDEMNIFIED LIABILITIES"), PROVIDED that (x) no Borrower
shall be obligated hereunder to the Administrative Agent, the Documentation
Agent or any Lender with respect to indemnified liabilities arising from the
gross negligence, bad faith or willful misconduct of the Administrative
Agent, the Documentation Agent or any such Lender (as the case may be), (y)
neither of Composites-UK or Hexcel-Spain shall be liable for any indemnified
liabilities to the extent such indemnified liabilities relate to or are
associated with its own acquisition by the Company or any of its Subsidiaries
and (z) none of the Foreign Borrowers shall have any obligation to the
Administrative Agent, the Documentation Agent or any Lender hereunder with
respect to indemnified liabilities relating to the Loans made to, or the
Letters of Credit issued for the account of, any Borrower other than such
Foreign Borrower. The agreements in this subsection 17.6 shall survive
repayment of the Loans and all other amounts payable hereunder.
17.7 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS. (a)
This Agreement shall be binding upon and inure to the benefit of the
Borrowers, the Lenders, the Documentation Agent, the Administrative Agent and
their respective successors and assigns, except that no Borrower may assign
or transfer any of its rights or obligations under this Agreement other than
in accordance with the provisions of subsection 17.1.
(b) Any Lender may, in the ordinary course of its commercial
lending business and in accordance with applicable law, at any time sell to
one or more banks or other entities ("PARTICIPANTS") participating interests
in any Loan owing to such Lender, any Commitment of such Lender or any other
interest of such Lender hereunder and under the other Credit Documents. In
the event of any such sale by a Lender of a participating interest to a
Participant,
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such Lender's obligations under this Agreement to the other parties to this
Agreement shall remain unchanged, such Lender shall remain solely responsible
for the performance thereof, such Lender shall remain the holder of any such
Loan or other extension of credit for all purposes under this Agreement and
the other Credit Documents, and the relevant Borrowers, the Documentation
Agent and the Administrative Agent shall continue to deal solely and directly
with such Lender in connection with such Lender's rights and obligations
under this Agreement and the other Credit Documents. No Lender shall be
entitled to create in favor of any Participant, in the participation
agreement pursuant to which such Participant's participating interest shall
be created or otherwise, any right to vote on, consent to or approve any
matter relating to this Agreement or any other Credit Document except for
those specified in clause (ii) of the proviso to subsection 17.1 or, to the
extent that such Lender would have the right to vote on any matter specified
therein, clause (i) of such proviso. The Borrowers agree that if amounts
outstanding under this Agreement are due or unpaid, or shall have been
declared or shall have become due and payable upon the occurrence of an Event
of Default, each Participant shall, to the maximum extent permitted by
applicable law, be deemed to have the right of setoff in respect of its
participating interest in amounts owing under this Agreement to the same
extent as if the amount of its participating interest were owing directly to
it as a Lender under this Agreement, PROVIDED that, in purchasing such
participating interest, such Participant shall be deemed to have agreed to
share with the Lenders the proceeds thereof as provided in subsection 17.8(a)
as fully as if it were a Lender hereunder. The Borrowers also agree that
each Participant shall be entitled to the benefits of subsections 10.13,
10.14 and 10.15 with respect to its participation in the Commitments, Loans
and other extensions of credit outstanding from time to time as if it was a
Lender; PROVIDED that, in the case of subsection 10.14, such Participant
shall have complied with the requirements of said subsection and PROVIDED,
FURTHER, that no Participant shall be entitled to receive any greater amount
pursuant to any such subsection than the transferor Lender would have been
entitled to receive in respect of the amount of the participation transferred
by such transferor Lender to such Participant had no such transfer occurred.
(c) Any Lender may, in the ordinary course of its commercial
lending business and in accordance with applicable law, at any time and from
time to time assign to (i) any Lender or any Affiliate, Approved Fund or
Subsidiary thereof which would reasonably be expected to be able to perform
the obligations hereunder which have been assigned to it, (ii) with the
consent of the Administrative Agent (which shall not be unreasonably
withheld), to any Eligible Assignee or (iii) with the consent of the
Administrative Agent and the Company (which, in each case, shall not be
unreasonably withheld or delayed), to any additional bank or financial
institution or other entity which is regularly engaged in making, purchasing
or investing in loans (any assignee described in clause (i), (ii) or (iii),
an "ASSIGNEE") all or any part of its rights and obligations under this
Agreement and the other Credit Documents pursuant to an Assignment and
Acceptance, substantially in the form of Exhibit E, executed by such
Assignee, such assigning Lender (and, in the case of an Assignee that is not
then a Lender or an Affiliate or Subsidiary thereof, by the Administrative
Agent and, to the extent required pursuant to clause (iii) above, by the
Company) and delivered to the Administrative Agent for its acceptance and
recording in the Register, PROVIDED that, in the case of any such assignment
to an additional bank or financial institution, the sum of the aggregate
principal amount of the Tranche A Loans, Tranche B Loans, Aggregate Revolving
Credit Commitment and/or Aggregate European Loan Commitment being
119
assigned (it being understood that assignments to an Assignee by one or more
Tranche B Lenders which are Approved Funds with respect to each other shall
be aggregated for purposes of this proviso and treated as if they were
assigned by a single Lender to such Assignee) is not less than $5,000,000 or
such lesser amount as may be agreed to by the Company (such agreement not to
be unreasonably withheld) and the Administrative Agent. Upon such execution,
delivery, acceptance and recording, from and after the effective date
determined pursuant to such Assignment and Acceptance, (x) the Assignee
thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender
hereunder with Tranche A Loans, Tranche B Loans or a Commitment (as the case
may be) as set forth therein, and (y) the assigning Lender thereunder shall,
to the extent provided in such Assignment and Acceptance, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's
rights and obligations under this Agreement, such assigning Lender shall
cease to be a party hereto). Notwithstanding any provision of this paragraph
(c) and paragraph (e) of this subsection 17.7, the consent of the Company
shall not be required, and, unless requested by the Assignee and/or the
assigning Lender, new Notes shall not be required to be executed and
delivered by the relevant Borrower, for any assignment which occurs at any
time when any of the events described in Section 15(f) shall have occurred
and be continuing.
(d) The Administrative Agent, on behalf of each Borrower, shall
maintain at the address of the Administrative Agent referred to in subsection
17.3 a copy of each Assignment and Acceptance delivered to it and a register
(the "REGISTER") for the recordation of the names and addresses of the
Lenders and the Commitments of, and principal amounts of the Loans (other
than the European Overdraft Loans, which the Administrative Agent shall have
no obligation to record in the Register) owing to, each Lender from time to
time. The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrowers, the Administrative Agent, the
Documentation Agent and the Lenders may (and, in the case of any Loan or
other obligation hereunder not evidenced by a Note, shall) treat each Person
whose name is recorded in the Register as the owner of a Loan or other
obligation hereunder as the owner thereof for all purposes of this Agreement
and the other Credit Documents, notwithstanding any notice to the contrary.
Any assignment of any Loan or other obligation hereunder not evidenced by a
Note shall be effective only upon appropriate entries with respect thereto
being made in the Register.
(e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an Assignee (and, in the case of an Assignee that is not
then a Lender or an Affiliate or Subsidiary thereof, the Administrative Agent
and, when none of the events described in Section 15(f) shall have occurred
and be continuing, the Company), together with payment to the Administrative
Agent of a registration and processing fee of $3,500, the Administrative
Agent shall (i) promptly accept such Assignment and Acceptance and (ii) on
the effective date determined pursuant thereto record the information
contained therein in the Register and give notice of such acceptance and
recordation to the Lenders, the Company and (if not the Company) the relevant
Borrower.
(f) Each Borrower authorizes each Lender to disclose to any
Participant or Assignee (each, a "TRANSFEREE") and any prospective Transferee
any and all financial information
120
in such Lender's possession concerning such Borrower and its Affiliates and
Subsidiaries which has been delivered to such Lender by or on behalf of such
Borrower pursuant to this Agreement or which has been delivered to such
Lender by or on behalf of such Borrower in connection with such Lender's
credit evaluation of such Borrower and its Affiliates and Subsidiaries prior
to becoming a party to this Agreement.
(g) For avoidance of doubt, the parties to this Agreement
acknowledge that the provisions of this subsection 17.7 concerning
assignments of Loans and Notes relate only to absolute assignments and that
such provisions do not prohibit assignments creating security interests,
including, without limitation, any pledge or assignment by a Lender of any
Loan or Note to any Federal Reserve Bank in accordance with applicable law.
(g) Notwithstanding anything to the contrary contained herein, any
Lender (a "GRANTING BANK") may grant to a special purpose funding vehicle (an
"SPC") of such Granting Bank (but not more than one such SPC, unless the
Company shall otherwise agree), identified as such in writing from time to
time by the Granting Bank to the Administrative Agent and the Company, the
option to provide to the Borrowers all or any part of any Loan that such
Granting Bank would otherwise be obligated to make to the Borrowers pursuant
to subsection 2.2, 3.2, 4.2 or 7.2; PROVIDED that (i) nothing contained
herein shall constitute a commitment by any SPC to make any Loan, (ii) if an
SPC elects not to exercise such option or otherwise fails to provide all or
any part of such Loan, the Granting Bank shall be obligated to make such Loan
pursuant to the terms hereof and (iii) the funding of such Loan by the SPC
would not (at the time of such funding) reasonably be expected to subject any
Borrower to any cost, expense or indemnity pursuant to subsection 10.12,
10.13, or 10.14 hereof which is in excess of the amount for which such
Borrower would have been liable if such Loan had been funded by the relevant
Granting Bank; and PROVIDED, FURTHER, that no SPC or Granting Bank shall be
entitled to receive any greater amount pursuant to subsection 10.12, 10.13,
or 10.14 than the Granting Bank wold have been entitled to received had the
Granting Bank not otherwise granted such SPC the option to provide any Loan
to the Borrowers. The making of a Loan by an SPC hereunder shall be deemed
to utilize the Commitments of all Lenders to the same extent, and as if, such
Loan were made by the Granting Bank. Each party hereto hereby agrees that no
SPC shall be liable for any payment under this Agreement for which a Lender
would otherwise be liable for so long as, and to the extent that, the related
Granting Bank makes such payment. In furtherance of the foregoing, each
party hereto hereby agrees that, prior to the date that is one year and one
day after the payment in full of all outstanding senior indebtedness of any
SPC, 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 or any state thereof. Notwithstanding the foregoing, the Granting
Bank unconditionally agrees to indemnify the Borrowers, the Administrative
Agent, the Documentation Agent and each Lender against all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever which may be
incurred by or asserted against such Borrower, the Administrative Agent, the
Documentation Agent or such Lender, as the case may be, in any way relating
to or arising as a consequence of any such forbearance or delay in the
initiation of any such proceeding against its SPC. Each party hereto hereby
acknowledges and agrees that no SPC
121
shall have any voting rights hereunder and that the voting rights
attributable to any extensions of credit made by an SPC shall be exercised
only by the relevant Granting Bank. The Borrowers, the Administrative Agent,
the Documentation Agent and the Lenders may, at their option, pursue remedies
against any Granting Bank which arise out of any failure of its SPC to
perform such SPC's obligations under this Agreement or any other Credit
Document. Each Granting Bank shall serve as the administrative agent and
attorney in fact for its SPC and shall on behalf of its SPC: (i) receive any
and all payments made for the benefit of such SPC and (ii) give and receive
all communications and notices and take all actions hereunder and the other
Credit Documents to the extent, if any, such SPC shall have any rights
hereunder or thereunder. To the extent a SPC shall have the right to receive
or give any such notice or take any such action in writing, it shall be
signed by its Granting Bank as administrative agent and attorney in fact for
such SPC and need not be signed by such SPC on its own behalf. The
Borrowers, the Administrative Agent, the Documentation Agent and the Lenders
may rely thereon without any requirement that the SPC sign or acknowledge the
same. Notwithstanding anything to the contrary contained herein, no SPC may
assign or transfer all or any portion of its interest hereunder or under any
other Credit Document, other than via an assignment to its Granting Bank.
17.8 ADJUSTMENTS; SET-OFF. (a) If any Lender (other than a Local
European Lender)(a "BENEFITTED LENDER") shall at any time receive any payment
of all or part of any of its Loans or Reimbursement Obligations owing to it
under any Commitment, or interest thereon, pursuant to a guarantee or
otherwise, or receive any collateral in respect thereof (whether voluntarily
or involuntarily, by set-off or otherwise), in a greater proportion than any
such payment to and collateral received by any other Lender, if any, in
respect of such other Lender's Loans or Reimbursement Obligations, as the
case may be, owing to it under such Commitment or interest thereon, such
benefitted Lender shall purchase for cash from the other Lenders such portion
of each such other Lender's similar Loans or Reimbursement Obligations, or
shall provide such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such benefitted Lender
to share the excess payment or benefits of such collateral or proceeds
ratably with each of the Lenders which hold such Commitment; PROVIDED,
HOWEVER, that if all or any portion of such excess payment or benefits is
thereafter recovered from such benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of
such recovery, but without interest. Each Borrower agrees that each Lender
so purchasing a portion of another Lender's Loans or Reimbursement
Obligations may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if
such purchasing Lender were the direct holder of such portion.
(b) In addition to any rights and remedies of the Lenders provided
by law, each Lender shall have the right, without prior notice to the
relevant Borrower, any such notice being expressly waived by such Borrower to
the extent permitted by applicable law, upon any amount becoming due and
payable by a Borrower hereunder (whether at the stated maturity, by
acceleration or otherwise) to set-off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional
or final), in any currency, and any other credits, indebtedness or claims, in
any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender or
any branch or
122
agency thereof to or for the credit or the account of such Borrower. Each
Lender agrees promptly to notify the relevant Borrower and the Administrative
Agent after any such set-off and application made by such Lender, PROVIDED
that the failure to give such notice shall not affect the validity of such
set-off and application.
17.9 COUNTERPARTS. This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by facsimile transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of
the copies of this Agreement signed by all the parties shall be lodged with
the Company and the Administrative Agent.
17.10 CERTAIN WAIVERS. (a) Each Lender hereby acknowledges that
certain of the Foreign Pledge Agreements and related documentation
(including, without limitation, amendments and/or releases of the Foreign
Pledge Agreements under, and as defined in, the Existing Agreement) may not
be executed and delivered prior to or on the Closing Date. Each Lender
hereby waives compliance with the provision of Section 12 of this Agreement
to the extent and only to the extent necessary to permit the Borrowers to
borrow under this Agreement without the delivery of such Foreign Pledge
Agreements and other documentation. The Company hereby covenants that it
shall, and shall cause its Subsidiaries to, deliver to the Administrative
Agent all such Foreign Pledge Agreements and related documentation within 45
days following the Closing Date and that the failure to deliver any such
Foreign Pledge Agreement or related documentation within such 45-day period
shall constitute an Event of Default hereunder; PROVIDED that the
Administrative Agent may (in its sole discretion) elect to extend such 45-day
period by not more than an additional 45 days.
(b) This Agreement shall be effective (other than with respect to
Composites-France) notwithstanding the failure of Composites-France to
execute this Agreement on the Closing Date. Upon receipt by the
Administrative Agent from Composites-France of its executed counterpart to
this Agreement, an opinion of foreign counsel to Composites-France, documents
evidencing corporate authorization of Composites-France and other related
documents required under Section 12 of this Agreement on or prior to December
31, 1998, this Agreement shall be effective with respect to Composites-France
and Composites-France shall have all the rights and obligations of, and shall
become, a Foreign Borrower and a Credit Party hereunder at such time.
(c) The Company hereby agrees, and each Lender which is both a
party to this Agreement and the Existing Agreement hereby agrees (in its
capacity as a "Lender" under the Existing Agreement), that the Existing
Agreement hereby is superseded by this Agreement, except that (i) the Company
and its Subsidiaries shall remain obligated to pay any amounts owing
thereunder and (ii) any provision of the Existing Agreement which is
expressly stated therein to survive the termination thereof shall be deemed
to be incorporated in this Agreement for the benefit of the Lenders under
(and as defined in) the Existing Agreement.
17.11 SEVERABILITY. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such
123
prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.
17.12 INTEGRATION. This Agreement and the other Credit Documents
represent the agreement of the Borrowers, the Administrative Agent, the
Documentation Agent and the Lenders with respect to the subject matter
hereof, and there are no promises, undertakings, representations or
warranties by the Administrative Agent, the Documentation Agent or any Lender
relative to subject matter hereof not expressly set forth or referred to
herein or in the other Credit Documents.
17.13 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
17.14 SUBMISSION TO JURISDICTION; WAIVERS. Each Borrower hereby
irrevocably and unconditionally:
(a) submits for itself and for its property to the non-exclusive
jurisdiction of any New York State or Federal court sitting in The City of
New York and any competent court of the jurisdiction of organization of
such Borrower (a "LOCAL COURT"), and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or
the Notes;
(b) agrees that all claims in respect of such action or proceeding may
be heard and determined in such New York State or local court or, to the
extent permitted by law, in such Federal court and waives, to the fullest
extent it may effectively do so, any defense of an inconvenient forum to
the maintenance of such action or proceeding in any such court and any
right of jurisdiction on account of the place of residence or domicile of
such Borrower;
(c) appoints United States Corporation Services Company (the "NEW YORK
PROCESS AGENT"), with an office on the date hereof at 80 State Street,
Albany, New York 12207, as its agent to receive on behalf of such Borrower
and its respective property service of copies of the summons and complaint
and any other process which may be served in any such action or proceeding
in any such New York State or Federal court and agrees promptly to appoint
a successor New York Process Agent in The City of New York (which successor
Process Agent shall accept such appointment in a writing prior to the
termination for any reason of the appointment of the initial New York
Process Agent);
(d) agrees that, in any such action or proceeding in such New York
State or Federal court sitting in The City of New York, such service may be
made on such Borrower by delivering a copy of such process to such Borrower
in care of the appropriate Process Agent at such Process Agent's above
address and by depositing a
124
copy of such process in the mails by certified or registered air mail,
addressed to such Borrower (such service to be effective upon such receipt
by the appropriate Process Agent and the depositing of such process in the
mails as aforesaid);
(e) authorizes and directs such Process Agent to accept such service
on its behalf.
(f) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law (including, without
limitation, by the mailing of copies of such process to such Borrower by
certified or registered air mail at its address referred to in subsection
17.3 or shall limit the right to sue in any other jurisdiction;
(g) agrees that, to the fullest extent permitted by applicable law, a
final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law; and
(h) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to
in this subsection 17.14 any special, exemplary, punitive or consequential
damages.
17.15 ACKNOWLEDGEMENTS. Each Borrower hereby acknowledges that:
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Credit Documents;
(b) none of the Administrative Agent, the Documentation Agent or any
Lender has any fiduciary relationship with or duty to such Borrower arising
out of or in connection with this Agreement or any of the other Credit
Documents, and the relationship between Administrative Agent, the
Documentation Agent and the Lenders, on one hand, and such Borrower, on the
other hand, in connection herewith or therewith is solely that of debtor
and creditor; and
(c) no joint venture is created hereby or by the other Credit
Documents or otherwise exists by virtue of the transactions contemplated
hereby among the Lenders or among such Borrower and the Lenders.
17.16 WAIVERS OF JURY TRIAL. EACH BORROWER, THE ADMINISTRATIVE
AGENT, THE DOCUMENTATION AGENT AND THE LENDERS HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN.
17.17 CONFIDENTIALITY. Subject to subsection 17.7(f), the
Administrative Agent, the Documentation Agent and the Lenders shall hold all
nonpublic information obtained pursuant to the requirements hereof and
identified as such by any Borrower in accordance with such Person's customary
procedures for handling confidential information of this nature and in
125
accordance with safe and sound lending practices and in any event may make
disclosure reasonably required by a bona fide offeree, assignee or
participant in connection with the contemplated transfer or participation, or
as required or requested by any Governmental Authority or representative
thereof, or pursuant to legal process or any applicable Requirement of Law,
or to its accountants, lawyers and other advisors, and shall require any such
offeree, assignee or participant to agree (and require any of its offerees,
assignees or participants to agree) to comply with this subsection 17.17. In
no event shall the Administrative Agent, the Documentation Agent or any
Lender be obligated or required to return any materials furnished by the
Borrowers; PROVIDED, that each offeree shall be required to agree that if it
does not become an assignee or participant it shall return all materials
furnished to it by the Borrowers in connection herewith.
17.18 JUDGMENT CURRENCY. (a) If for the purposes of obtaining
judgment in any court it is necessary to convert a sum due hereunder or under
the Notes in any currency (the "ORIGINAL CURRENCY") into another currency
(the "OTHER CURRENCY") the parties hereto agree, to the fullest extent that
they may effectively do so, that the rate of exchange used shall be that at
which in accordance with normal banking procedures the Administrative Agent
could purchase the Original Currency with the Other Currency at 11:00 a.m. in
New York, New York on the second Business Day preceding that on which final
judgment is given.
(b) The obligation of any Borrower in respect of any sum due in
the Original Currency from it to any Lender, the Documentation Agent or the
Administrative Agent hereunder or under the Note held by such Lender shall,
notwithstanding any judgment in any Other Currency, be discharged only to the
extent that on the Business Day following receipt by such Lender, the
Documentation Agent or the Administrative Agent (as the case may be) of any
sum adjudged to be so due in such Other Currency such Lender, the
Documentation Agent or the Administrative Agent (as the case may be) may in
accordance with normal banking procedures purchase Dollars with such Other
Currency; if the amount of the Original Currency so purchased is less than
the sum originally due to such Lender, the Documentation Agent or the
Administrative Agent (as the case may be) in the Original Currency, such
Borrower agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Lender, the Documentation Agent or the
Administrative Agent (as the case may be) against such loss, and if the
amount of the Original Currency so purchased exceeds the sum originally due
to any Lender or the Administrative Agent (as the case may be) in the
Original Currency, such Lender, the Documentation Agent or the Administrative
Agent (as the case may be) agrees to remit to such Borrower such excess.
17.19 DELAYED FUNDING OF EUROPEAN REVOLVING LOANS. (a) The
Borrowers hereby agree, and each Lender which is a party to this Agreement
and to the Existing Agreement hereby agrees (in its capacity as a "Lender"
under the Existing Agreement) that, from and after the Closing Date, (i) the
Existing Agreement shall be superseded by this Agreement, (ii) the Borrowers
shall have no further right to borrow thereunder, (iii) any provision of the
Existing Agreement which is expressly stated therein to survive the
termination of the Existing Agreement shall survive the Closing Date
hereunder and (iv) any Default or Event of Default under (and as defined in)
the Existing Agreement which occurs solely as a result of the
126
transactions contemplated hereby and compliance with the terms, conditions
and provisions of the Existing Agreement to the extent such terms, conditions
and provisions would be breached as a result of the transactions contemplated
hereby shall be deemed to be waived through and including the European
Repayment Date.
(b) The Borrowers hereby agree, and each Lender which is a party to
this Agreement and to the Existing Agreement hereby agrees (in its capacity
as a "Lender" under the Existing Agreement) that, notwithstanding anything to
the contrary contained in this Agreement:
(i) the Borrowers need not repay the European Revolving Loans
under (and as defined in) the Existing Agreement (the "EXISTING EUROPEAN
LOANS") until the fourth Business Day following the Closing Date (the
"EUROPEAN REPAYMENT DATE"); and
(ii) the Borrowers shall not be entitled to borrow European
Revolving Loans hereunder until the later of (A) the European Repayment
Date and (B) the date upon which all principal and interest owing on
account of the Existing European Loans has been paid in full;
PROVIDED that (x) the restriction contained in clause (ii) above shall not
impair the obligation of the Borrowers to pay facility fees pursuant to
subsection 10.2(a)(ii) hereof on the Aggregate European Loan Commitment as if
European Revolving Loans were available to the Borrowers (but undrawn) during
such period and (y) the provisions of clause (i) above shall be effective
only to the extent that the Borrowers have submitted Notices of Borrowing on
or prior to the Closing Date which request sufficient European Revolving
Loans under this Agreement to repay in full the principal of the Existing
European Loans.
(c) The parties hereto hereby agree that any credit support and
collateral security granted pursuant to the Existing Agreement shall continue
to secure and support the Existing European Loans until all principal and
interest on account thereof has been paid in full. For purposes of the
Security Documents delivered pursuant to this Agreement, the Existing
European Loans and other amounts owing in respect thereof shall be deemed to
be outstanding hereunder.
(d) The parties hereto hereby agree that any failure by the
Borrowers to have paid on or prior to the European Repayment Date all
principal, interest and any other amounts which are then due and payable by
the Borrowers under the Existing Agreement shall constitute an Event of
Default hereunder.
(e) The Company hereby represents and warrants that, as of the
Closing Date, the aggregate outstanding principal amounts of Existing
European Loans are as set forth below:
127
----------------------------------------------
----------------------------------------------
Borrower Principal Amount
--------------- -------------------
Hexcel-France FF 42,000,000
Hexcel-UK Stg. 14,000,000
Salver ItL 6,500,000,000
Hexcel-Spain Ptas. 1,255,000,000
----------------------------------------------
----------------------------------------------
128
IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first above written.
HEXCEL CORPORATION
HEXCEL (U.K.) LIMITED
HEXCEL COMPOSITES LIMITED
HEXCEL S.A. (France)
HEXCEL FABRICS S.A.
HEXCEL COMPOSITES S.A. (Belgium)
SALVER S.R.L.
HEXCEL COMPOSITES GMBH (Austria)
HEXCEL COMPOSITES S.A. (Spain)
HEXCEL COMPOSITES GMBH (Germany)
By:/s/ S.C. Forsyth
--------------------------------------
Title: Attorney-In-Fact
HEXCEL COMPOSITES S.A.
By:
--------------------------------------
Title:
CREDIT SUISSE FIRST BOSTON, as
Administrative Agent and Arranger
By: /s/ Richard B. Carey
--------------------------------------
Title: Director
By: /s/ Julia P. Kingsbury
--------------------------------------
Title: Vice President
CITIBANK, N.A., as Documentation Agent and
as a Lender
By: /s/ Willaim Clark
--------------------------------------
Title: Attorney-In-Fact
By:
--------------------------------------
Title:
CREDIT SUISSE FIRST BOSTON, as a Lender
By: /s/ Karl M. Studer
--------------------------------------
Title: Director
By: /s/ Richard B. Carey
--------------------------------------
Title: Director
CREDIT SUISSE FIRST BOSTON,
as a Local Lender
By: /s/ Ian Piddock
--------------------------------------
Title: Director
By: /s/ Jasmine Channer
--------------------------------------
Title: Associate
CREDIT SUISSE FIRST BOSTON
AKTIENGESELLSCHAFT, as a Local Lender
By: /s/ Hans-Joachim Franke
--------------------------------------
Title: Director
By: /s/ Manfred Sommer
--------------------------------------
Title: Vice President
BALANCED HIGH-YIELD FUND II LTD.
By: BHF Bank Aktiengesellshaft, acting
through its New York Branch, as
attorney-in-fact
By: /s/ Anthony Heyman
--------------------------------------
Title: Assistant Vice President
By: /s/ Hans J. Scholz
--------------------------------------
Title: Assistant Vice President
THE BANK OF NEW YORK
By: /s/ Elizabeth T. Ying
--------------------------------------
Title: Vice President
BANQUE NATIONALE DE PARIS
By: /s/ P. Nicholas Rogers
--------------------------------------
Title: Senior Vice President
By: /s/ Mark McElwain
--------------------------------------
Title: Assistant Vice President
CHANCELLOR/TRITON CBO, LIMITED
By: INVESCO Senior Secured Management, Inc.
as Collateral Manager
By: /s/ Kathleen A. Lenarcic
--------------------------------------
Title: Authorized Signatory
THE CHASE MANHATTAN BANK
By: /s/ Robert T. Sacks
--------------------------------------
Title: Managing Director
CREDIT AGRICOLE INDOSUEZ
By: /s/ Craig Welch
--------------------------------------
Title: First Vice President
By: /s/ John McCloskey
--------------------------------------
Title: Vice President
CREDIT LYONNAIS NEW YORK BRANCH
By: /s/ Olivier Perrain
--------------------------------------
Title: First Vice President
CYPRESSTREE SENIOR FLOATING RATE FUND
By: CypressTree Investment Management
Company, Inc. as Portfolio Manager
By: /s/ Catherine C. McDermott
--------------------------------------
Title: Principal
KZH CYPRESSTREE - 1 LLC
By: /s/ Virginia Conway
--------------------------------------
Title: Authorized Agent
CYPRESSTREE BOSTON PARTNERS
By: /s/ Todd Dahlstrom
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Title: Partner
CYPRESSTREE INVESTMENT FUND, LLC
By: CypressTree Investment Management
Company, Inc. its Managing Member
By: /s/ Catherine C. McDermott
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Title: Principal
CYPRESSTREE INSTITUTIONAL FUND, LLC
By: CypressTree Investment Management
Company, Inc. its Managing Member
By: /s/ Catherine C. McDermott
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Title: Principal
DEUTSCHE BANK AG NEW YORK BRANCH AND/OR CAYMAN
ISLANDS BRANCH
By: /s/ Joel Makowsky
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Title: Vice President
By: /s/ Andreas Neumeier
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Title: Vice President
ERSTE BANK DER OESTERREICHISCHEN SPARKASSEN AG
By: /s/ David Manheim /s/ Rima Terradista
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Title: Assistant Vice Vice President
President
THE FIRST NATIONAL BANK OF CHICAGO
By: /s/ Juan J. Duarte
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Title: Vice President
FIRST UNION NATIONAL BANK
By: /s/ David Silander
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Title: Vice President
GENERAL ELECTRIC CAPITAL CORPORATION
By: /s/ Janet K. Williams
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Title: Duly Authorized Signatory
INDUSTRIAL BANK OF JAPAN LIMITED, NEW YORK
BRANCH
By: /s/ J. Kenneth Biegen
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Title: Senior Vice President
KEYBANK NATIONAL ASSOCIATION
By: /s/ Richard A. Pohle
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Title: Senior Vice President
KZH ING - 2 LLC
By: /s/ Virginia Conway
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Title: Authorized Agent
KZH ING - 3 LLC
By: /s/ Virginia Conway
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Title: Authorized Agent
CIBC INC.
By: /s/ Frank Fiorito
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Title: Authorized Signatory
KZH Soleil - 2 LLC
By: /s/ Virginia Conway
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Title: Authorized Agent
KZH III LLC
By: /s/ Virginia Conway
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Title: Authorized Signatory
MERITA BANK Plc
By: /s/ Frank Maffei
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Title: Vice President
By: /s/ Paul Brooks
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Title: Vice President
DEBT STRATEGIES FUND II, INC.
By: /s/ Colleen M. Cunniffe
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Title: Authorized Signatory
MERRILL LYNCH SENIOR FLOATING RATE FUND, INC.
By: /s/ Colleen M. Cunniffe
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Title: Authorized Signatory
METROPOLITAN LIFE INSURANCE COMPANY
By: /s/ Scott W. Isley
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Title: Director
ML CLO XIX STERLING (CAYMAN) LTD.
By: Sterling Asset Manager, L.L.C.,
as its Investment Advisor
By: /s/ Louis A. Pistecchia
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Title: Executive Vice President
MORGAN STANLEY DEAN WITTER PRIME INCOME TRUST
By: /s/ Peter Gewirtz
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Title: Authorized Signatory
SOCIETE GENERALE
By: /s/ Georg L. Peters
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Title: Vice President
WACHOVIA BANK, N.A.
By: /s/ James Barwis
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Title: Vice President