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EXHIBIT 10.33
EXECUTION COPY
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AMENDED AND RESTATED CREDIT AGREEMENT
among
INTERNATIONAL WIRE GROUP, INC.,
as Borrower,
INTERNATIONAL WIRE HOLDING COMPANY,
as Guarantor,
The Several Lenders
from Time to Time Parties Hereto,
THE CHASE MANHATTAN BANK,
as Administrative Agent,
and
BANKERS TRUST COMPANY,
as Documentation Agent
_____________________________________
CHASE SECURITIES INC.
and
BT SECURITIES CORPORATION,
as Arrangers
_____________________________________
Dated as of February 12, 1997
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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 . . . . . . . . . . . . . . . . 34
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS . . . . . . . . . . . . . . . . 35
2.1 Revolving Credit Commitments . . . . . . . . . . . . . . . . 35
2.2 Revolving Credit Notes . . . . . . . . . . . . . . . . . . . 35
2.3 Procedure for Revolving Credit Borrowing . . . . . . . . . . 36
2.4 Commitment Fee; Administrative Agent Fees . . . . . . . . . . 36
2.5 Termination or Reduction of Revolving Credit Commitments . . 36
2.6 Term Loans . . . . . . . . . . . . . . . . . . . . . . . . . 37
2.7 Tranche A Term Notes . . . . . . . . . . . . . . . . . . . . 38
2.8 Tranche B Term Notes . . . . . . . . . . . . . . . . . . . . 39
2.9 Tranche C Term Notes . . . . . . . . . . . . . . . . . . . . 40
2.10 Procedure for Additional Term Loan Borrowing;
Repayment of Loan . . . . . . . . . . . . . . . . . . . . . 42
2.11 Optional Prepayments . . . . . . . . . . . . . . . . . . . . 43
2.12 Mandatory Prepayments and Revolving Credit Commitment
Reduction . . . . . . . . . . . . . . . . . . . . . . . . 44
2.13 Conversion and Continuation Options . . . . . . . . . . . . 47
2.14 Minimum Amounts of Tranches . . . . . . . . . . . . . . . . 48
2.15 Swing Line Commitment . . . . . . . . . . . . . . . . . . . 48
SECTION 3. LETTERS OF CREDIT . . . . . . . . . . . . . . . . . . . . . . . 50
3.1 The L/C Commitment . . . . . . . . . . . . . . . . . . . . . 50
3.2 Procedure for Issuance of Letters of Credit . . . . . . . . . 52
3.3 Fees, Commissions and Other Charges . . . . . . . . . . . . . 53
3.4 L/C Participations . . . . . . . . . . . . . . . . . . . . . 53
3.5 Reimbursement Obligation of the Borrower . . . . . . . . . . 54
3.6 Obligations Absolute . . . . . . . . . . . . . . . . . . . . 55
3.7 Letter of Credit Payments . . . . . . . . . . . . . . . . . . 55
3.8 Letter of Credit Applications . . . . . . . . . . . . . . . . 55
SECTION 4. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . 55
4.1 Interest Rates and Payment Dates . . . . . . . . . . . . . . 55
4.2 Computation of Interest and Fees . . . . . . . . . . . . . . 56
4.3 Inability to Determine Interest Rate . . . . . . . . . . . . 56
4.4 Pro Rata Treatment and Payments . . . . . . . . . . . . . . . 57
4.5 Borrowing Base Compliance . . . . . . . . . . . . . . . . . . 59
4.6 Illegality . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.7 Requirements of Law . . . . . . . . . . . . . . . . . . . . . 60
4.8 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.9 Indemnity . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
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4.10 Replacement of Lender . . . . . . . . . . . . . . . . . . . 64
SECTION 5. REPRESENTATIONS AND WARRANTIES . . . . . . . . . . . . . . . . 64
5.1 Financial Condition . . . . . . . . . . . . . . . . . . . . . 65
5.2 No Change . . . . . . . . . . . . . . . . . . . . . . . . . . 66
5.3 Corporate Existence; Compliance with Law . . . . . . . . . . 66
5.4 Corporate Power; Authorization; Enforceable Obligations . . . 66
5.5 No Legal Bar . . . . . . . . . . . . . . . . . . . . . . . . 67
5.6 No Material Litigation . . . . . . . . . . . . . . . . . . . 67
5.7 No Default . . . . . . . . . . . . . . . . . . . . . . . . . 67
5.8 Ownership of Property; Liens . . . . . . . . . . . . . . . . 67
5.9 Intellectual Property . . . . . . . . . . . . . . . . . . . . 68
5.10 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
5.11 Federal Regulations . . . . . . . . . . . . . . . . . . . . 68
5.12 ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.13 Investment Company Act; Other Regulations . . . . . . . . . 69
5.14 Subsidiaries, Etc . . . . . . . . . . . . . . . . . . . . . 69
5.15 Purpose of Loans . . . . . . . . . . . . . . . . . . . . . . 69
5.16 Environmental Matters . . . . . . . . . . . . . . . . . . . 70
5.17 Delivery of the Camden Acquisition Documents . . . . . . . . 71
5.18 Representations and Warranties Contained in the Camden
Acquisition Documents . . . . . . . . . . . . . . . . . . 71
5.19 Disclosure . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.20 Security Documents . . . . . . . . . . . . . . . . . . . . . 71
5.21 Solvency . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.22 No Fees . . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.23 Insurance . . . . . . . . . . . . . . . . . . . . . . . . . 72
5.24 Senior Debt . . . . . . . . . . . . . . . . . . . . . . . . 72
5.25 Labor Matters . . . . . . . . . . . . . . . . . . . . . . . 73
SECTION 6. CONDITIONS PRECEDENT . . . . . . . . . . . . . . . . . . . . . 73
6.1 Conditions to Effectiveness of Amendment and Restatement . . 73
6.2 Conditions to Each Loan . . . . . . . . . . . . . . . . . . . 78
SECTION 7. AFFIRMATIVE COVENANTS . . . . . . . . . . . . . . . . . . . . . 79
7.1 Financial Statements . . . . . . . . . . . . . . . . . . . . 79
7.2 Certificates; Other Information . . . . . . . . . . . . . . . 80
7.3 Payment of Obligations . . . . . . . . . . . . . . . . . . . 81
7.4 Conduct of Business and Maintenance of Existence . . . . . . 81
7.5 Maintenance of Property; Insurance . . . . . . . . . . . . . 81
7.6 Inspection of Property; Books and Records; Discussions . . . 82
7.7 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
7.8 Environmental Laws . . . . . . . . . . . . . . . . . . . . . 83
7.9 Pledge of After Acquired Property . . . . . . . . . . . . . . 84
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7.10 Pledge During Event of Default . . . . . . . . . . . . . . . 84
7.11 Interest Rate Agreements . . . . . . . . . . . . . . . . . . 84
7.12 Additional Subsidiaries . . . . . . . . . . . . . . . . . . 84
7.13 Mortgages; Mortgage Amendments; Surveys . . . . . . . . . . 85
7.14 Title Insurance Policy . . . . . . . . . . . . . . . . . . . 86
7.15 Substantive Consolidation . . . . . . . . . . . . . . . . . 86
SECTION 8. NEGATIVE COVENANTS . . . . . . . . . . . . . . . . . . . . . . 86
8.1 Financial Condition Covenants . . . . . . . . . . . . . . . . 86
8.2 Limitation on Indebtedness . . . . . . . . . . . . . . . . . 90
8.3 Limitation on Liens . . . . . . . . . . . . . . . . . . . . . 92
8.4 Limitation on Guarantee Obligations . . . . . . . . . . . . . 94
8.5 Limitation on Fundamental Changes . . . . . . . . . . . . . . 95
8.6 Limitation on Sale of Assets . . . . . . . . . . . . . . . . 95
8.7 Limitation on Dividends . . . . . . . . . . . . . . . . . . . 96
8.8 Limitation on Capital Expenditures . . . . . . . . . . . . . 97
8.9 Limitation on Investments, Loans and Advances . . . . . . . . 98
8.10 Limitation on Optional Payments and Modifications of Debt
Instruments . . . . . . . . . . . . . . . . . . . . . . . 100
8.11 Limitation on Transactions with Affiliates . . . . . . . . . 101
8.12 Limitation on Sales and Leasebacks . . . . . . . . . . . . . 101
8.13 Limitation on Changes in Fiscal Year . . . . . . . . . . . . 101
8.14 Restrictions Affecting Subsidiaries . . . . . . . . . . . . 101
8.15 Limitation on Lines of Business . . . . . . . . . . . . . . 101
8.16 Amendments to Corporate Documents; Transaction Documents;
Acquisition Documents; Camden Acquisition Documents;
License . . . . . . . . . . . . . . . . . . . . . . . . . 102
8.17 Limitations on Commodity Hedging Transactions . . . . . . . 102
SECTION 9. EVENTS OF DEFAULT . . . . . . . . . . . . . . . . . . . . . . . 102
SECTION 10. THE ADMINISTRATIVE AGENT . . . . . . . . . . . . . . . . . . . 105
10.1 Appointment . . . . . . . . . . . . . . . . . . . . . . . . 105
10.2 Delegation of Duties . . . . . . . . . . . . . . . . . . . . 105
10.3 Exculpatory Provisions . . . . . . . . . . . . . . . . . . . 105
10.4 Reliance by Administrative Agent . . . . . . . . . . . . . . 106
10.5 Notice of Default . . . . . . . . . . . . . . . . . . . . . 106
10.6 Non-Reliance on Administrative Agent and Other Lenders . . . 107
10.7 Indemnification . . . . . . . . . . . . . . . . . . . . . . 107
10.8 Administrative Agent and the Documentation Agent in Their
Individual Capacity . . . . . . . . . . . . . . . . . . . 108
10.9 Successor Administrative Agent . . . . . . . . . . . . . . . 108
10.10 Additional Ministerial Powers of Administrative Agent . . . 108
SECTION 11. GUARANTEE . . . . . . . . . . . . . . . . . . . . . . . . . . 108
11.1 Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . 108
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11.2 Waiver of Subrogation . . . . . . . . . . . . . . . . . . . 109
11.3 Modification of Obligations . . . . . . . . . . . . . . . . 109
11.4 Waiver by Holdings . . . . . . . . . . . . . . . . . . . . . 109
11.5 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . 110
11.6 Negative Covenants . . . . . . . . . . . . . . . . . . . . . 110
SECTION 12. MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . 111
12.1 Amendments and Waivers . . . . . . . . . . . . . . . . . . . 111
12.2 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . 113
12.3 No Waiver; Cumulative Remedies . . . . . . . . . . . . . . . 114
12.4 Survival of Representations and Warranties . . . . . . . . . 114
12.5 Payment of Expenses and Taxes . . . . . . . . . . . . . . . 115
12.6 Successors and Assigns; Participations and Assignments . . . 115
12.7 Adjustments; Set-off . . . . . . . . . . . . . . . . . . . . 118
12.8 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . 118
12.9 Severability . . . . . . . . . . . . . . . . . . . . . . . . 119
12.10 Integration . . . . . . . . . . . . . . . . . . . . . . . . 119
12.11 GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . . . 119
12.12 Submission To Jurisdiction; Waivers . . . . . . . . . . . . 119
12.13 Acknowledgements . . . . . . . . . . . . . . . . . . . . . 120
12.14 WAIVERS OF JURY TRIAL . . . . . . . . . . . . . . . . . . . 120
12.15 Confidentiality . . . . . . . . . . . . . . . . . . . . . . 120
12.16 Indiana Property Transfer Laws . . . . . . . . . . . . . . 121
12.17 Consent to Camden Acquisition . . . . . . . . . . . . . . . 121
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AMENDED AND RESTATED CREDIT AGREEMENT, dated as of February 12, 1997,
among INTERNATIONAL WIRE GROUP, INC., a Delaware corporation (the "Borrower"),
INTERNATIONAL WIRE HOLDING COMPANY, a Delaware corporation ("Holdings"), CAMDEN
WIRE CO., INC., a New York corporation ("Camden"), the several banks and other
financial institutions from time to time parties to this Agreement (the
"Lenders"), THE CHASE MANHATTAN BANK, a New York banking corporation, as
administrative agent for the Lenders hereunder (in such capacity, the
"Administrative Agent"), and BANKERS TRUST COMPANY, as documentation agent for
the Lenders hereunder (in such capacity, the "Documentation Agent").
W I T N E S S E T H:
WHEREAS, the Borrower, Holdings, certain of the Lenders, the
Administrative Agent and the Documentation Agent are parties to the Amended
Credit Agreement, dated as of March 5, 1996 (as amended, supplemented or
otherwise modified prior to the date hereof, the "Existing Credit Agreement");
and
WHEREAS, the Borrower desires to acquire (the "Camden Acquisition") all
of the capital stock of Camden from Oneida Ltd., a New York corporation
("Oneida"), pursuant to the Stock Purchase Agreement (the "Camden Stock
Purchase Agreement"), dated as of January 2, 1997, among the Borrower, Camden
and Oneida; and
WHEREAS, the Borrower has requested that the Lenders consent to the
Camden Acquisition; and
WHEREAS, the Borrower has requested (i) the Tranche B Term Loan Lenders
to increase their Tranche B Term Loan Commitments under the Existing Credit
Agreement by an aggregate amount of $32,500,000 pursuant to which additional
Tranche B Term Loans (the "Additional Tranche B Term Loans") in an aggregate
amount of $32,500,000 may be made to the Borrower on the Second Amendment
Closing Date, (ii) the Tranche C Term Loan Lenders to increase their Tranche C
Term Loan Commitments under the Existing Credit Agreement by an aggregate
amount of $32,500,000 pursuant to which additional Tranche C Term Loans (the
"Additional Tranche C Term Loans"; collectively with the Additional Tranche B
Term Loans, the "Second Additional Term Loans) in an aggregate amount of
$32,500,000 may be made to the Borrower on the Second Amendment Closing Date
and (iii) the Revolving Credit Lenders to increase the letter of credit
sublimit under the Revolving Credit Commitments by $15,500,000; and
WHEREAS, the proceeds of the Second Additional Term Loans will be used
to finance the cash purchase price of the Camden Acquisition and the
transaction costs associated with the Camden Acquisition, to reduce the amount
of outstanding Revolving Credit Loans (without reducing the Revolving Credit
Commitments) in order to allow the issuance of Letters of Credit to support the
obligations with respect to the IRBs (as defined below) assumed by the Borrower
in connection with the Camden Acquisition and to provide working capital to the
Borrower; and
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WHEREAS, (i) certain Tranche B Term Loan Lenders and certain Tranche C
Term Loan Lenders are willing to provide the Second Additional Term Loans, (ii)
the Revolving Credit Lenders are willing to increase the letter of credit
sublimit under the Revolving Credit Commitments by $15,500,000 and (iii) the
Lenders are willing to consent to the Camden Acquisition, but in each case only
on the terms and conditions hereof; and
WHEREAS, all of the Obligations of the Borrower hereunder will be
secured by certain collateral described in the Security Documents; and
NOW THEREFORE, in consideration of the premises and the mutual covenants
hereinafter set forth, the parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1 Defined Terms. As used in this Agreement, the following terms
shall have the following meanings:
"Acknowledgment and Confirmation of Domestic Subsidiaries'
Guarantee": the Acknowledgment and Confirmation of Domestic
Subsidiaries' Guarantee made by the Domestic Subsidiaries in favor of
the Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit B-18, as the same may be amended,
supplemented or otherwise modified from time to time.
"Acknowledgment and Confirmation of Borrower Pledge Agreement and
Borrower Security Agreement": the Acknowledgment and Confirmation of
Borrower Pledge Agreement and Borrower Security Agreement made by the
Borrower in favor of the Administrative Agent for the ratable benefit of
the Lenders, substantially in the form of Exhibit B-19, as the same may
be amended, supplemented or otherwise modified from time to time.
"Acquisition": the collective reference to the Silicones
Acquisition, the DAW Acquisition, the Albion Acquisition and the Hoosier
Merger.
"Acquisition Documents": the collective reference to the DAW
Asset Purchase Agreement, Albion Asset Purchase Agreement, Hoosier
Merger Agreement, Silicones Asset Purchase Agreement, Dekko Escrow
Agreement and all other agreements, instruments or certificates executed
in connection with the Acquisition, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with
subsection 8.16.
"Additional Term Loans": the collective reference to the
Additional Tranche A Term Loans and the Tranche C Term Loans.
"Additional Tranche A Term Loan": as defined in subsection 2.6.
"Additional Tranche A Term Loan Commitment": as to any Tranche A
Term Loan Lender, its obligation to make an Additional Tranche A Term
Loan to the
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Borrower pursuant to subsection 2.6 of this Agreement in an aggregate
amount not to exceed the amount set forth opposite such Tranche A Term
Loan Lender's name in Schedule 1.1 under the heading "Additional Tranche
A Term Loan Commitment."
""Additional Tranche B Term Loan": as defined in subsection 2.6.
"Additional Tranche B Term Loan Commitment": as to any Tranche B
Term Loan Lender, its obligation to make an Additional Tranche B Term
Loan to the Borrower pursuant to subsection 2.6 of this Agreement in an
aggregate amount not to exceed the amount set forth opposite such
Tranche B Term Loan Lender's name in Schedule 1.1 under the heading
"Additional Tranche B Term Loan Commitment."
"Additional Tranche C Term Loan": as defined in subsection 2.6.
"Additional Tranche C Term Loan Commitment": as to any Tranche C
Term Loan Lender, its obligation to make an Additional Tranche C Term
Loan to the Borrower pursuant to subsection 2.6 of this Agreement in an
aggregate amount not to exceed the amount set forth opposite such
Tranche C Term Loan Lender's name in Schedule 1.1 under the heading
"Additional Tranche C Term Loan Commitment."
"Administrative Agent": as defined in the preamble to this
Agreement.
"Affected Eurodollar Loans": as defined in subsection 2.12(j).
"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 (i) vote 51% or more of the securities
having ordinary voting power for the election of directors of such
Person or (ii) direct or cause the direction of the management and
policies of such Person, whether by contract or otherwise.
"Agreement": this Amended and Restated Credit Agreement, as
amended, amended and restated, supplemented or otherwise modified from
time to time.
"Albion": Albion Wire, Inc., an Indiana corporation.
"Albion Acquisition": the purchase by Wire Technologies of
certain assets of Albion pursuant to the Albion Asset Purchase
Agreement.
"Albion Asset Purchase Agreement": the Asset Purchase Agreement
dated as of March 5, 1996, among Albion, Holdings, the Borrower and Wire
Technologies.
"Alternate Base Rate": for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to the greatest of
(a) the Prime Rate in effect on such day, (b) the Base CD Rate in effect
on such day plus 1% and (c) the Federal Funds Effective Rate in effect
on such day plus 1/2 of 1%. For purposes hereof:
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"Prime Rate" shall mean 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; "Base CD Rate"
shall mean the sum of (a) the product of (i) the Three-Month Secondary
CD Rate and (ii) a fraction, the numerator of which is one and the
denominator of which is one minus the C/D Reserve Percentage and (b) the
C/D Assessment Rate; "Three-Month Secondary CD Rate" shall mean, for any
day, the secondary market rate for three-month certificates of deposit
reported as being in effect on such day (or, if such day shall not be a
Business Day, the next preceding Business Day) by the Board of Governors
of the Federal Reserve System (the "Board") through the public
information telephone line of the Federal Reserve Bank of New York
(which rate will, under the current practices of the Board, be published
in Federal Reserve Statistical Release H.15(519) during the week
following such day), or, if such rate shall not be so reported on such
day or such next preceding Business Day, the average of the secondary
market quotations for three-month certificates of deposit of major money
center banks in New York City received at approximately 10:00 A.M., New
York City time, on such day (or, if such day shall not be a Business
Day, on the next preceding Business Day) by the Administrative Agent
from three New York City negotiable certificate of deposit dealers of
recognized standing selected by it; and "Federal Funds Effective Rate"
shall mean, 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. If for any reason the Administrative Agent
shall have determined (which determination shall be conclusive absent
manifest error) that it is unable to ascertain the Base CD Rate or the
Federal Funds Effective Rate, or both, for any reason, including the
inability or failure of the Administrative Agent to obtain sufficient
quotations in accordance with the terms thereof, the Alternate Base Rate
shall be determined without regard to clause (b) or (c), or both, of the
first sentence of this definition, as appropriate, until the
circumstances giving rise to such inability no longer exist. Any change
in the Alternate Base Rate due to a change in the Prime Rate, the Three-
Month Secondary CD Rate or the Federal Funds Effective Rate shall be
effective on the effective day of such change in the Prime Rate, the
Three-Month Secondary CD Rate or the Federal Funds Effective Rate,
respectively.
"Alternate Base Rate Loans": Loans at such time as they are made
and/or being maintained at a rate of interest based upon the Alternate
Base Rate.
"Amendment Closing Date": the date on which the Lenders made
their Additional Term Loans (March 5, 1996).
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"Applicable Margin": for each Type of Loan, the rate per annum
set forth under the relevant column heading below:
Alternate Base Rate Loans
-------------------------
Type Applicable Margin
---- -----------------
Tranche A Term Loans 1-1/2%
Tranche B Term Loans 2%
Tranche C Term Loans 2-1/2%
Revolving Credit Loans 1-1/2%
(including Swing Line Loans)
Eurodollar Rate Loans
---------------------
Type Applicable Margin
---- -----------------
Tranche A Term Loans 2-1/2%
Tranche B Term Loans 3%
Tranche C Term Loans 3-1/2%
Revolving Credit Loans 2-1/2%
; provided that in the event that the ratio of Consolidated Total Debt
of the Borrower and its Subsidiaries to Consolidated EBITDA of the
Borrower and its Subsidiaries, as most recently determined in accordance
with subsection 8.1(c), is as set forth in the relevant column heading
below for any quarterly period, any such Applicable Margin with respect
to Tranche A Term Loans and Revolving Credit Loans (including in the
case of Alternate Base Rate Loans, Swing Line Loans) shall be as
provided in the relevant column heading below, but in no event shall any
such reductions be effective prior to the first anniversary of the
Amendment Closing Date:
Relevant Ratio of Consolidated Applicable Margin
Total Debt to Consolidated Applicable Margin For for Alternate Base
EBITDA Eurodollar Loans Rate Loans
------------------------------- -------------------- ------------------
4.00x and above 2-1/2% 1-1/2%
3.75x to but excluding 4.00x 2-1/4% 1-1/4%
3.50x to but excluding 3.75x 2% 1%
3.00x to but excluding 3.50x 1-3/4% 3/4%
Below 3.00x 1-1/2% 1/2%
if the financial statements required to be delivered pursuant to
subsection 7.1(a) or 7.1(b), as applicable, and the related compliance
certificate required to be delivered pursuant to subsection 7.2(b), are
delivered on or prior to the date when due (or, in the case of the
fourth quarterly period of each fiscal year of the Borrower, if
financial statements which satisfy the requirements of, and are
delivered within the time period specified in, subsection 7.l(b) and a
related compliance certificate which satisfies the requirements of, and
is delivered within the time period
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specified in, subsection 7.2(b), with respect to any such quarterly
period are so delivered within such time periods), then the Applicable
Margin in respect of the Revolving Credit Loans and the Tranche A Term
Loans from the date upon which such financial statements were delivered
shall be the Applicable Margin as set forth in the relevant column
heading above; provided, however, that in the event that the financial
statements delivered pursuant to subsection 7.1(a) or 7.1(b), as
applicable, and the related compliance certificate required to be
delivered pursuant to subsection 7.2(b), are not delivered when due,
then:
(a) if such financial statements and certificate are
delivered after the date such financial statements and
certificate were required to be delivered (without giving effect
to any applicable cure period) and the Applicable Margin
increases from that previously in effect as a result of the
delivery of such financial statements and certificate, then the
Applicable Margin in respect of Revolving Credit Loans (including
in the case of Alternate Base Rate Loans, Swing Line Loans) and
Tranche A Term Loans during the period from the date upon which
such financial statements and certificate were required to be
delivered (without giving effect to any applicable cure period)
until the date upon which they actually are delivered shall,
except as otherwise provided in clause (c) below, be the
Applicable Margin as so increased;
(b) if such financial statements and certificate are
delivered after the date such financial statements and
certificate were required to be delivered (without giving effect
to any applicable cure period) and the Applicable Margin
decreases from that previously in effect as a result of the
delivery of such financial statements and certificate, then such
decrease in the Applicable Margin shall not become applicable
until the date upon which such financial statements and
certificate actually are delivered; and
(c) if such financial statements and certificate are not
delivered prior to the expiration of the applicable cure period,
then, effective upon such expiration, for the period from the
date upon which such financial statements and certificate were
required to be delivered (after the expiration of the applicable
cure period) until two Business Days following the date upon
which they actually are delivered, the Applicable Margin in
respect of Revolving Credit Loans (including in the case of
Alternate Base Rate Loans, Swing Line Loans) and Tranche A Term
Loans shall be 2-1/2%, in the case of Eurodollar Loans, and 1-
1/2%, in the case of Alternate Base Rate Loans (it being
understood that the foregoing shall not limit the rights of the
Administrative Agent and the Lenders set forth in Section 9).
"Asset Sale": any sale, transfer or other disposition (including
any sale and leaseback of assets and any sale of accounts receivable in
connection with a receivable financing transaction) by the Borrower or
any of its Subsidiaries of any property of the Borrower or any such
Subsidiary (including property subject to any Lien under
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any Security Document), other than as permitted pursuant to subsection
8.6(a), (b), (c) (provided that, except with respect to the loss or
condemnation of all or substantially all of the assets of the Borrower
and its Subsidiaries, the proceeds from such casualty or condemnation
(including insurance) are used to replace or rebuild the lost or
condemned assets within the time period specified in subsection 2.12(f))
or (d) through (h).
"Assignee": as defined in subsection 12.6(c).
"Assignment (Acquisition)": the Assignment made by the Borrower
in favor of the Administrative Agent for the ratable benefit of the
Lenders, substantially in the form of Exhibit B-12, as the same may be
amended, supplemented or otherwise modified from time to time.
"Assignment (Chinese Joint Venture)": the Assignment made by OWI
in favor of the Administrative Agent for the ratable benefit of the
Lenders, substantially in the form of Exhibit B-13, as the same may be
amended, supplemented or otherwise modified from time to time.
"Assignment (GE Contract)": the Assignment made by Wirekraft
Industries in favor of the Administrative Agent for the ratable benefit
of the Lenders, substantially in the form of Exhibit B-14, as the same
may be amended, supplemented or otherwise modified from time to time.
"Assignments": the collective reference to the Assignment
(Acquisition), the Assignment (Chinese Joint Venture) and the Assignment
(GE Contract).
"Assignment and Acceptance": an assignment and acceptance
entered into by a Lender or an assignee, substantially in the form of
Exhibit E.
"Available Revolving Credit Commitment": as to any Revolving
Credit Lender at any time, an amount equal to the excess, if any, of (a)
the amount of such Revolving Credit Lender's Revolving Credit Commitment
over (b) the aggregate of (i) the aggregate unpaid principal amount at
such time of all Revolving Credit Loans made by such Revolving Credit
Lender, (ii) an amount equal to such Revolving Credit Lender's Revolving
Credit Commitment Percentage of the aggregate unpaid principal amount at
such time of all Swing Line Loans, provided that for purposes of
calculating Available Revolving Credit Commitments pursuant to
subsection 2.4 such amount shall be zero, and (iii) an amount equal to
such Revolving Credit Lender's Revolving Credit Commitment Percentage of
the Letter of Credit Outstandings at such time; collectively, as to all
the Lenders, the "Available Revolving Credit Commitments."
"Borrower": as defined in the preamble to this Agreement.
"Borrower Guarantee": the Guarantee by the Borrower in favor of
the Administrative Agent for the ratable benefit of the Lenders of
Camden's obligations
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and liabilities under any Letters of Credit issued for the account of
Camden, substantially in the form of Exhibit B-23, as the same may be
amended, supplemented or otherwise modified from time to time.
"Borrower Pledge Agreement": the Pledge Agreement made by the
Borrower in favor of the Administrative Agent for the ratable benefit of
the Lenders, substantially in the form of Exhibit B-3, as the same may
be amended, supplemented or otherwise modified from time to time.
"Borrower Security Agreement": the Security Agreement made by
the Borrower in favor of the Administrative Agent for the ratable
benefit of the Lenders, substantially in the form of Exhibit B-7, as the
same may be amended, supplemented or otherwise modified from time to
time.
"Borrowing Base": an amount equal to the sum of (a) 75% of
"accounts receivable" plus (b) 50% of "inventory" plus (c) $10,000,000
minus any accounts receivable and/or inventory securing any amounts
borrowed pursuant to subsection 8.2(i)(iii). For purposes of
determining the amount of the Borrowing Base, the terms "accounts
receivable" and "inventory" are used herein as such terms are used
and/or defined in the consolidated balance sheet of the Borrower and its
Subsidiaries at the end of the prior month for which the Borrowing Base
is being calculated.
"Borrowing Date": any Business Day specified in a notice
pursuant to subsection 2.3 or 2.15 as a date on which the Borrower
requests Lenders to make Loans hereunder.
"Business": the collective reference to the Dekko Business, the
Omega Business, the Wirekraft Business and the Camden Business.
"Business Day": a day other than a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by
law to close, provided that when used in connection with a Eurodollar
Loan, the term "Business Day" shall also exclude any day on which
commercial banks are not open for dealing in Dollar deposits in the
London interbank market.
"Camden": as defined in the preamble hereto.
"Camden Acquisition": as defined in the recitals hereto.
"Camden Acquisition Documents": the collective reference to the
Camden Stock Purchase Agreement and all other agreements, instruments or
certificates executed in connection with the Camden Acquisition, as the
same may be amended, supplemented or otherwise modified from time to
time in accordance with subsection 8.16.
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9
"Camden Business": Camden's business of designing, manufacturing
and marketing non-insulated copper wire acquired by the Borrower
pursuant to the Camden Acquisition.
"Camden Guarantee": the Guarantee by Camden in favor of the
Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit B-20, as the same may be amended,
supplemented or otherwise modified from time to time.
"Camden Patent Security Agreement": the Patent Security
Agreement made by Camden in favor of the Administrative Agent for the
ratable benefit of the Lenders, substantially in the form of Exhibit B-
21, as the same may be amended, supplemented or otherwise modified from
time to time.
"Camden Security Agreement": the Domestic Subsidiary Security
Agreement made by Camden in favor of the Administrative Agent for the
ratable benefit of the Lenders, substantially in the form of Exhibit B-
8, as the same may be amended, supplemented or otherwise modified from
time to time.
"Camden Stock Purchase Agreement": as defined in the recitals
hereto.
"Camden Trademark Security Agreement": the Trademark Security
Agreement made by Camden in favor of the Administrative Agent for the
ratable benefit of the Lenders, substantially in the form of Exhibit B-
22, as the same may be amended, supplemented or otherwise modified from
time to time.
"Capital Expenditures": expenditures (including, without
limitation, obligations created under Financing Leases and purchase
money Indebtedness in the year in which created but excluding payments
made thereon) of the Borrower and its Subsidiaries 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 expensed in accordance with GAAP and
excluding the Acquisition and the Camden Acquisition).
"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.
"C/D Assessment Rate": for any day as applied to the Base CD
Rate, the net annual assessment rate (rounded upward to the nearest
1/100th of 1%) determined by Chase to be payable on such day to the
Federal Deposit Insurance Corporation or any successor ("FDIC") for
FDIC's insuring time deposits made in Dollars at offices of Chase in the
United States.
"C/D Reserve Percentage": for any day as applied to the Base CD
Rate, that percentage (expressed as a decimal) which is in effect on
such day, as prescribed by
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10
the Board of Governors of the Federal Reserve System (or any successor),
for determining the maximum reserve requirement for a member bank of the
Federal Reserve System in New York City with deposits exceeding one
billion Dollars in respect of new non-personal time deposits in Dollars
in New York City having a three month maturity and in an amount of
$100,000 or more.
"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, time deposits, overnight bank deposits, bankers
acceptances and repurchase agreements of any commercial bank which has
capital and surplus in excess of $100,000,000 having maturities of one
year or less from the date of acquisition, (c) commercial paper of an
issuer rated at least A-2 by Standard & Poor's Corporation or P-2 by
▇▇▇▇▇'▇ Investors Service, Inc., or carrying an equivalent rating by a
nationally recognized rating agency if both of the two named rating
agencies cease publishing ratings of investments, (d) money market
accounts or funds with or issued by Qualified Issuers, (e) repurchase
obligations with a term of not more than 90 days for underlying
securities of the types described in clause (a) above entered into with
any bank meeting the qualifications specified in clause (b) above and
(f) demand deposit accounts maintained in the ordinary course of
business with any Lender or with any bank that is not a Lender not in
excess of $100,000 in the aggregate on deposit with any such bank.
"Change of Control": Hicks, Muse, ▇▇▇▇ & ▇▇▇▇▇ Incorporated,
▇▇▇▇▇ & Partners, Inc. and/or their respective Affiliates ("HMTFI")
shall cease to have the power, directly or indirectly, to vote or direct
the voting of securities having a majority of the ordinary voting power
for the election of directors of Holdings, provided that the occurrence
of the foregoing event shall not be deemed a Change of Control if (a) at
any time prior to the consummation of an Initial Public Offering, and
for any reason whatever, (i) HMTFI otherwise has the right to designate
(and does so designate) a majority of the board of directors of Holdings
or (ii) HMTFI and its employees, directors and officers (the "HMTFI
Group") own of record and beneficially an amount of common stock of
Holdings equal to at least 50% of the amount of common stock of Holdings
owned by the HMTFI Group of record and beneficially as of the Closing
Date and such ownership by the HMTFI Group represents the largest single
block of voting securities of Holdings held by any Person or related
group for purposes of Section 13(d) of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), or (b) at any time after the
consummation of an Initial Public Offering, and for any reason whatever,
(i) HMTFI shall own greater than 10% of the outstanding common stock of
Holdings, (ii) any "Person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), excluding HMTFI, is not
or shall not become the "beneficial owner" (as defined in Rules 13(d)-3
and 13(d)-5 under the Exchange Act), directly or indirectly, of a
greater percentage of voting stock of Holdings than is owned by HMTFI
and (iii) the board of directors of Holdings shall consist of a majority
of Continuing Directors.
"Chase": The Chase Manhattan Bank (formerly known as Chemical
Bank).
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"Closing Date": the date on which the Lenders made their initial
Loans (June 12, 1995).
"Code": the Internal Revenue Code of 1986, as amended from time
to time.
"Commitment Letter": the commitment letter relating to this
Agreement and the Camden Acquisition dated December 26, 1996 addressed
to the Borrower from Chase, CSI, Bankers Trust Company and BT Securities
Corporation and all exhibits thereto, as the same may be amended,
supplemented or otherwise modified from time to time.
"Commitment Percentage": as to any Lender, at any time, the
percentage of the aggregate Revolving Credit Commitments and Term Loan
Commitments constituted by such Lender's Revolving Credit Commitment and
Term Loan Commitment.
"Commitments": the collective reference to the Revolving Credit
Commitments, the Swing Line Commitment, the Term Loan Commitments and
the L/C Commitment; individually, a "Commitment."
"Commonly Controlled Entity": an entity, whether or not
incorporated, which is under common control with the Borrower within the
meaning of Section 4001 of ERISA or is part of a group which includes
the Borrower and which is treated as a single employer under Section 414
of the Code.
"Consolidated Current Assets": at any date, the amount which, in
conformity with GAAP, would be set forth opposite the caption "Total
Current Assets" (or any like caption) on a consolidated balance sheet of
the Borrower and its Subsidiaries at such date, except that there shall
be excluded therefrom cash and Cash Equivalents and equipment and other
fixed assets held for sale.
"Consolidated Current Liabilities": at any date, the amount
which, in conformity with GAAP, would be set forth opposite the caption
"Total Current Liabilities" (or any like caption) on a consolidated
balance sheet of the Borrower and its Subsidiaries at such date, except
that there shall be excluded therefrom the current portion of (a) all
Loans and, (b) all long-term Indebtedness for borrowed money (including
Financing Leases) in each case, to the extent included therein.
"Consolidated EBITDA": for any period, with respect to any
Person, Consolidated Net Income of such Person for such period (A) plus,
without duplication and to the extent reflected as a charge in the
statement of such Consolidated Net Income for such period, the sum of
(i) total income and franchise tax expense, (ii) interest expense,
amortization or writeoff of debt discount and debt issuance costs and
commissions and discounts and other fees and charges associated with
Indebtedness, (iii) depreciation and amortization expense, (iv)
amortization of intangibles (including, but not limited to, goodwill and
organization costs (including, with respect to the Borrower, costs
associated with the Camden Acquisition, the Acquisition, the Omega
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Acquisition, the Mergers and the Wirekraft Acquisition)), (v) other
noncash charges (including non-cash currency exchange losses), (vi) any
extraordinary and unusual losses (including losses on sales of assets
other than inventory sold in the ordinary course of business) other than
any loss from any discontinued operation and (vii) restructuring costs
expensed in fiscal years 1996 and 1997 as contemplated in connection
with the Acquisition in an aggregate amount not exceeding $8,000,000,
which shall include, but not be limited to costs associated with plant
shutdowns, severance and relocations, and (B) minus, without duplication
and to the extent reflected as a credit or gain in the statement of such
Consolidated Net Income for such period, the sum of (i) any
extraordinary and unusual gains (including gains on the sales of assets,
other than inventory sold in the ordinary course of business) other than
any income from discontinued operations and (ii) other noncash credits
or gains (including non-cash currency exchange gains).
"Consolidated Net Income": for any period, with respect to any
Person, the amount which, in conformity with GAAP, would be set forth
opposite the caption "Net Income/(Loss)" (or any like caption) on a
consolidated statement of operations of such Person and its Subsidiaries
for such period.
"Consolidated Total Debt": at a particular date, with respect to
the Borrower, the aggregate principal amount of Indebtedness outstanding
under this Agreement, the Senior Subordinated Notes, Financing Leases,
purchase money Indebtedness and any other Indebtedness for borrowed
money of the Borrower and its Subsidiaries at such date.
"Consolidated Working Capital": at any date, the excess of
Consolidated Current Assets at such date over Consolidated Current
Liabilities at such date.
"Continuing Directors": the directors of Holdings on the Closing
Date and each other director, if, in each case, such other director's
nomination for election to the board of directors of Holdings is
recommended by a majority of the then Continuing Directors or such other
director receives the vote of HMTFI in his or her election by the
shareholders.
"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.
"Credit Parties": the collective reference to Holdings, the
Borrower and (after giving effect to the Camden Acquisition) each of
their respective Subsidiaries which from time to time is a party to any
Loan Document.
"CSI": Chase Securities Inc. (formerly known as Chemical
Securities Inc.)
"DAW": Dekko Automotive Wire, Inc., an Indiana corporation.
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13
"DAW Acquisition": the purchase by Wire Technologies of certain
assets of DAW pursuant to the DAW Asset Purchase Agreement.
"DAW Asset Purchase Agreement": the Asset Purchase Agreement
dated as of March 5, 1996, among DAW, Holdings, the Borrower and Wire
Technologies.
"Default": any of the events specified in Section 9, whether or
not any requirement for the giving of notice, the lapse of time, or
both, or any other condition, has been satisfied.
"Dekko": the collective reference to DAW, Albion, Hoosier and
Silicones.
"Dekko Business": Albion's, DAW's, Hoosier's and Silicones'
business of designing, manufacturing and marketing noninsulated and
insulated wire and wire products acquired by the Borrower pursuant to
the Acquisition.
"Dekko Escrow Agreement": the Escrow Agreement among Wire
Technologies, Albion, DAW, Silicones, Dekko Group Services LLC
(individually and as representative and agent for the shareholders of
Hoosier) and Fort ▇▇▇▇▇ National Bank, as escrow agent.
"Documentation Agent": as defined in the preamble to this
Agreement.
"Dollars" and "$": dollars in lawful currency of the United
States of America.
"Domestic Subsidiaries' Guarantee": the Guarantee by the
Domestic Subsidiaries party thereto in favor of the Administrative Agent
for the ratable benefit of the Lenders, substantially in the form of
Exhibit B-1, as the same may be amended, supplemented or otherwise
modified from time to time.
"Domestic Subsidiary": any Subsidiary of the Borrower or
Holdings other than a Foreign Subsidiary.
"Domestic Subsidiaries Pledge Agreement": the Pledge Agreement
made by each of Omega, OWI, Wirekraft, WB Holdings and Wirekraft
Industries in favor of the Administrative Agent for the ratable benefit
of the Lenders, substantially in the form of Exhibit B-4, as the same
may be amended, supplemented or otherwise modified from time to time.
"Domestic Subsidiary Security Agreements": the collective
reference to the Security Agreements made by each Domestic Subsidiary in
favor of the Administrative Agent for the ratable benefit of the
Lenders, substantially in the form of Exhibit B-8, as the same may be
amended, supplemented or otherwise modified from time to time.
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14
"ECM": Electro Componentes de Mexico, S.A. de C.V., a Mexican
corporation.
"ECM Acquisition Note": the promissory note dated January 1,
1995, in the original principal amount of $4,687,000, executed by ECM,
originally payable to GE and successively endorsed by (a) GE to
Wirekraft, (b) Wirekraft to WB Holdings, and (c) WB Holdings to
Wirekraft Industries, as the same may be amended, supplemented or
otherwise modified from time to time.
"ECM Holdings": ECM Holding Company, a Delaware corporation.
"ECM Notes": the collective reference to the ECM VAT Note, the
ECM Acquisition Note, the ECM Revolving Note and all other promissory
notes or similar instruments from time to time evidencing Indebtedness
of ECM to Wirekraft, and all promissory notes and similar instruments
issued in substitution, replacement or exchange therefor.
"ECM Revolving Note": the promissory note dated January 1, 1995,
in the original principal amount of $10,000,000, executed by ECM and
payable to Wirekraft, as the same may be amended, supplemented or
otherwise modified from time to time.
"ECM VAT Note": the promissory note dated January 1, 1995, in
the original principal amount of $1,973,500, executed by ECM and payable
to Wirekraft, as the same may be amended, supplemented or otherwise
modified from time to time.
"Environmental Laws": any applicable foreign, Federal, state,
local or municipal laws, rules, orders, regulations, statutes,
ordinances, codes, decrees, legally binding requirements of any
Governmental Authority or other Requirements of Law (including common
law) regulating, relating to or imposing liability or standards of
conduct concerning protection of human health or the environment, as now
or may at any time hereafter be in effect.
"ERISA": the Employee Retirement Income Security Act of 1974, as
amended from time to time.
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"Eurocurrency Reserve Requirements": for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the maximum
rates (expressed as a decimal fraction) of reserve requirements in
effect on such day (including, without limitation, basic, supplemental,
marginal and emergency reserves under any regulations of the Board of
Governors of the Federal Reserve System or other Governmental Authority
having jurisdiction with respect thereto) dealing with reserve
requirements prescribed for eurocurrency funding (currently referred to
as "Eurocurrency Liabilities" in Regulation D of such Board) maintained
by a member bank of such System.
"Eurodollar Base Rate": with respect to each day during each
Interest Period pertaining to a Eurodollar Loan, the rate per annum
equal to the rate at which Chase is offered Dollar deposits at or about
10:00 A.M., New York City time, two Business Days prior to the beginning
of such Interest Period in the interbank eurodollar market where the
eurodollar and foreign currency and exchange operations in respect of
its Eurodollar Loans are then being conducted for delivery on the first
day of such Interest Period for the number of days comprised therein and
in an amount comparable to the amount of its Eurodollar Loan to be
outstanding during such Interest Period.
"Eurodollar Loans": Loans the rate of interest applicable to
which is based upon the Eurodollar Rate.
"Eurodollar Rate": with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for
such day in accordance with the following formula (rounded upward to the
nearest 1/100th of 1%):
Eurodollar Base Rate
1.00 - Eurocurrency Reserve Requirements
"Event of Default": any of the events specified in Section 9,
provided that any requirement for the giving of notice, the lapse of
time, or both, or any other condition, has been satisfied.
"Excess Cash Flow": for any fiscal year of the Borrower, the
excess of (a) the sum, without duplication, of (i) Consolidated EBITDA
for such fiscal year (calculated for purposes of this definition without
giving effect to clause (vii) of the definition of Consolidated EBITDA),
(ii) the amount of returned surplus assets of any Plan during such
fiscal year to the extent not included in Consolidated Net Income to
determine Consolidated EBITDA for such fiscal year, (iii) decreases in
Consolidated Working Capital of the Borrower and its Subsidiaries for
such fiscal year, (iv) the amount of any refund received by the Borrower
and its Subsidiaries on taxes paid by the Borrower and its Subsidiaries
(other than the Sellers Tax Escrow Amount), (v) cash dividends, cash
interest and other similar cash payments received by the Borrower in
respect of investments to the extent not included in Consolidated Net
Income to determine Consolidated EBITDA for such fiscal year and (vi)
extraordinary cash gains to the extent subtracted or otherwise not
included in Consolidated Net Income to determine Consolidated EBITDA for
such fiscal year over (b) the sum, without duplication, of (i) the
aggregate amount of cash Capital Expenditures made by the Borrower and
its Subsidiaries during such fiscal year and permitted hereunder (other
than Capital Expenditures permitted under subsection 8.8(b)), (ii) the
aggregate amount of all reductions of the Revolving Credit Commitments
(to the extent such reductions are accompanied by prepayment of
Revolving Credit Loans, Swing Line Loans and/or L/C Obligations) or
payments or prepayments of the Term Loans during such fiscal year other
than pursuant to subsection 2.12(a), (b) or (c), (iii) the aggregate
amount of payments of principal in respect of any Indebtedness (other
than
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revolving credit Indebtedness to the extent the related commitment is
not permanently reduced) permitted hereunder during such fiscal year
(other than under this Agreement), (iv) increases in Consolidated
Working Capital of the Borrower and its Subsidiaries for such fiscal
year, (v) cash interest expense of the Borrower and its Subsidiaries for
such fiscal year, (vi) taxes actually paid in such fiscal year or to be
paid in the subsequent fiscal year on account of such fiscal year to the
extent added to Consolidated Net Income to determine Consolidated EBITDA
for such fiscal year, (vii) extraordinary cash losses to the extent
added to Consolidated Net Income to determine Consolidated EBITDA for
such fiscal year, (viii) the amount of all Investments made in such
fiscal year as permitted by clauses (d), (h) and (j) of subsection 8.9
and (ix) dividends or other direct payments paid by the Borrower to or
for the benefit of Holdings to the extent permitted by subsection 8.7(a)
to the extent not subtracted in the determination of Consolidated Net
Income of the Borrower for such fiscal year. For purposes of
determining changes in Consolidated Working Capital, the working capital
acquired in connection with the Acquisition and the Camden Acquisition
will be excluded.
"Exchange": as defined in subsection 8.2(o).
"Exchange Agreements": the collective reference to (a) the Omega
Common Stock Exchange Agreement dated June 2, 1995 among Holdings and
certain other parties named as exchanging shareholders therein, (b) the
Omega Class A Common Stock Exchange Agreement dated June 2, 1995 among
Holdings and certain other parties named as exchanging shareholders
therein, (c) the Junior Note Exchange Agreement dated June 2, 1995 among
Holdings and certain other parties named as exchanging noteholders
therein, (d) the Wirekraft Common Stock Exchange Agreement dated June 2,
1995 among Holdings and certain other parties named as exchanging
shareholders therein, (e) the Wirekraft Director Common Stock Exchange
Agreement dated June 2, 1995 among Holdings and certain other parties
named as exchanging shareholders therein and (f) the Wirekraft Class A
Common Stock Exchange Agreement dated June 2, 1995 among Holdings and
certain other parties named as exchanging shareholders therein, as the
same may be amended, supplemented or otherwise modified from time to
time in accordance with subsection 8.16; individually an "Exchange
Agreement".
"Exchange Notes": the $10,000,000 aggregate principal
amount (as such amount may be increased due to accumulated dividends on
the Preferred Stock at the time of exchange) of 14% Senior Subordinated
Exchange Notes due June 1, 2005 of the Borrower to be issued to holders
of the Preferred Stock in exchange for the Preferred Stock pursuant to
the terms of the Preferred Stock.
"Excluded Leased Properties": the collective reference to the
real properties leased by the Borrower or any of its Subsidiaries
described on Part III of Schedule 5.20, including all buildings,
improvements, structures and fixtures now or subsequently located
thereon.
"Existing Credit Agreement": as defined in the recitals to this
Agreement.
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"Fee Properties": the collective reference to the real
properties owned in fee by the Borrower and its Subsidiaries described
on Part I of Schedule 5.20, including all buildings, improvements,
structures and fixtures now or subsequently located thereon.
"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.
"Foreign Subsidiary": any Subsidiary of the Borrower or Holdings
which is organized under the laws of any jurisdiction outside of the
United States of America.
"Foreign Subsidiary Pledge Agreement": the Pledge Agreement made
by ECM Holdings in favor of the Administrative Agent for the ratable
benefit of the Lenders, substantially in the form of Exhibit B-5, as the
same may be amended, supplemented or otherwise modified from time to
time.
"GAAP": the generally accepted accounting principles in the
United States of America as in effect from time to time set forth in the
opinions and pronouncements of the Accounting Principles Board and the
American Institute of Certified Public Accountants and the statements
and pronouncements of the Financial Accounting Standards Board and the
rules and regulations of the Securities and Exchange Commission, or in
such other statements by such other entity as may be in general use by
significant segments of the accounting profession, which are applicable
to the circumstances of the Borrower as of the date of determination
except that for purposes of subsection 8.1, GAAP shall be determined on
the basis of such principles in effect on the date hereof and consistent
with those used in the preparation of the audited financial statements
referred to in subsection 5.1. In the event that any "Accounting
Change" (as defined below) shall occur and such change results in a
change in the method of calculation of financial covenants, standards or
terms in this Agreement, then the Borrower and the Administrative Agent
agree to enter into negotiations in order to amend such provisions of
this Agreement so as to equitably reflect such Accounting Changes with
the desired result that the criteria for evaluating the Borrower's
financial condition shall be the same after such Accounting Changes as
if such Accounting Changes had not been made. Until such time as such
an amendment shall have been executed and delivered by the Borrower, the
Administrative Agent and the Required Lenders, all financial covenants,
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred. "Accounting
Changes" means: changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the
Financial Accounting Standards Board of the American Institute of
Certified Public Accountants or, if applicable, the Securities and
Exchange Commission (or successors thereto or agencies with similar
functions).
"GE": General Electric Company, a New York corporation.
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"GE Contract": the Parts Sourcing Contract dated as of December
2, 1994, between Wirekraft Industries and GE, as amended.
"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 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
board of directors of such Person in good faith.
"Guarantees": the collective reference to the Holdings
Guarantee, the Borrower Guarantee, the Domestic Subsidiaries' Guarantee,
the Wire Technologies Guarantee, the Camden Guarantee and each other
guarantee executed and delivered by a Domestic Subsidiary pursuant to
subsection 7.12.
"HM Funds": as defined in the definition of Holdings Stock
Purchase Agreement.
"HMTFI": as defined in the definition of "Change of Control".
"Holdings": as defined in the preamble to this Agreement.
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"Holdings Deferred Obligation": the obligation of Holdings to
issue to the HM Funds not less than $15,159,789 worth of its common
stock pursuant to and in connection with the terms of the Merger
Agreement within thirty days of the Closing Date.
"Holdings Guarantee": the guarantee made by Holdings in favor of
the Administrative Agent for the ratable benefit of the Lenders in
Section 11 of this Agreement, as the same may be amended, supplemented
or otherwise modified from time to time.
"Holdings Pledge Agreement": the Pledge Agreement made by
Holdings in favor of the Administrative Agent for the ratable benefit of
the Lenders, substantially in the form of Exhibit B-2, as the same may
be amended, supplemented or otherwise modified from time to time.
"Holdings Stock Purchase Agreement": the Holdings Stock Purchase
Agreement dated as of June 15, 1995 between Holdings, Hicks, Muse, ▇▇▇▇
& ▇▇▇▇▇ Equity Fund II, L.P. ("HM Fund II") and ▇▇▇▇▇, Muse & Co.
Partners, L.P. ("HM L.P." and together with HM Fund II the "HM Funds"),
as the same may be amended, supplemented or otherwise modified from time
to time.
"Hoosier": Hoosier Wire Inc., an Indiana corporation.
"Hoosier Merger": the merger of Wire Technologies into Hoosier
pursuant to the Hoosier Merger Agreement.
"Hoosier Merger Agreement": the Agreement and Plan of Merger
dated as of March 5, 1996, among Hoosier, Group Dekko Services, LLC, the
Borrower and Wire Technologies.
"Indebtedness": of any Person at any date, (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, which are not more than 90 days past due, and accrued
expenses incurred in the ordinary course of business) or which is
evidenced by a note, bond, debenture or similar instrument, (b) all
obligations under Interest Rate Agreements, (c) all obligations of such
Person under Financing Leases, (d) all obligations of such Person in
respect of bankers' acceptances or similar instruments 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 the amount of such Indebtedness of any Person described in
this clause (e) shall, for purposes of this Agreement, be deemed to be
equal to the lesser of (i) the aggregate unpaid amount of such
Indebtedness and (ii) the fair market value of the property or asset
encumbered, as determined by such Person in good faith.
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"Initial Public Offering": means an underwritten public offering
of Capital Stock of the Borrower, Holdings or the corporate parent of
Holdings pursuant to a registration statement filed with the Securities
and Exchange Commission in accordance with the Securities Exchange Act
of 1933, as amended.
"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.
"Intellectual Property": as defined in subsection 5.9.
"Interest Coverage Ratio": for any period, with respect to the
Borrower and its Subsidiaries, the ratio of (a) Consolidated EBITDA to
(b) consolidated cash interest expense (including any such cash interest
expense in respect of Indebtedness under Financing Leases and purchase
money Indebtedness permitted under subsection 8.2(e)) of the Borrower
and its Subsidiaries net of cash interest income (such consolidated cash
interest expense to include fees payable on account of letters of credit
but to exclude amortization of debt discount (including discount of
liabilities and reserves established under Accounting Principles Board
Opinion No. 16 as in effect on the date hereof) and costs of debt
issuance) of the Borrower and its Subsidiaries.
"Interest Payment Date": (a) as to any Alternate Base Rate Loan,
the last day of each March, June, September and December to occur while
such Loan is outstanding and, if such Alternate Base Rate Loan is a Term
Loan, the date of each payment of principal thereof, (b) as to any
Eurodollar Loan having an Interest Period of three months or less, the
last day of such Interest Period and (c) as to any Eurodollar Loan
having 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 as well as the last day of such Interest Period.
"Interest Period": (a) with respect to any Eurodollar Loan:
(i) initially, the period commencing on the borrowing or
conversion date, as the case may be, with respect to such
Eurodollar Loan and ending one, two, three or six months,
thereafter, as selected by the Borrower in its notice of
borrowing or notice of conversion, as the case may be, given with
respect thereto; and
(ii) thereafter, each period commencing on the last day
of the immediately preceding Interest Period applicable to such
Eurodollar Loan and ending one, two, three or six months
thereafter, as selected by the Borrower by irrevocable notice to
the Administrative Agent not less than three Business Days prior
to the last day of the then current Interest Period with respect
thereto;
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provided that, all of the foregoing provisions relating to Interest
Periods are subject to the following:
(1) if any Interest Period pertaining to a Eurodollar
Loan 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) no Interest Period shall extend beyond the Revolving
Credit Commitment Termination Date in the case of Revolving
Credit Loans or the date final payment is due on the Term Loans
in the case of Term Loans;
(3) no Interest Period with respect to the Term Loans
shall extend beyond any date upon which repayment of principal
thereof is required to be made pursuant to subsection 2.7, 2.8 or
2.9 if, after giving effect to the selection of such Interest
Period, the aggregate principal amount of Term Loans with
Interest Periods ending after such date would exceed the
aggregate principal amount of Term Loans permitted to be
outstanding after such scheduled repayment; and
(4) any Interest Period pertaining to a Eurodollar Loan
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.
"Interest Rate Agreement": any interest rate protection
agreement, interest rate future, interest rate option, interest rate cap
or other interest rate hedge arrangement, to or under which the Borrower
is a party or a beneficiary on the date hereof or becomes a party or a
beneficiary after the date hereof.
"Investments": as defined in subsection 8.9.
"IRBs": the collective reference to (i) the $6,500,000 City of El
Paso Industrial Development Authority, Incorporated Industrial Revenue
Bonds (Camden Wire Co., Inc. Project) Series 1996 and (ii) the
$9,000,000 City of Pine Bluff, Arkansas Variable Rate Demand Industrial
Development Refunding and Construction Revenue Bonds (Camden Wire
Project), Series 1985 dated August 1, 1985.
"Issuing Lender": Chase or any of its Affiliates or, with the
approval of Chase, any of the other Lenders which chooses to be an
Issuing Lender, in its capacity as issuer of each Letter of Credit.
"Junior Subordinated Debt": the unsecured junior subordinated
debt securities of OWC in an aggregate principal not in excess of
$15,000,000 issued as of March 31, 1995, as the same may have been
amended, supplemented or otherwise
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modified from time to time prior to the Closing Date in accordance with
the terms of the Omega Credit Agreement.
"L/C Commitment": the Issuing Lender's obligation to open
Letters of Credit pursuant to Section 3 of this Agreement.
"L/C Obligation": the obligation of the Borrower or Camden, as
the case may be, to reimburse the Issuing Lender in accordance with the
terms of this Agreement and the related Letter of Credit Application for
any payment made by the Issuing Lender under any Letter of Credit.
"L/C Participating Interest": with respect to any Letter of
Credit (a) in the case of the Issuing Lender with respect thereto, its
interest in such Letter of Credit and any Letter of Credit Application
relating thereto after giving effect to the granting of participating
interests therein, if any, pursuant hereto and (b) in the case of each
Participating Lender, its undivided participating interest in such
Letter of Credit and any Letter of Credit Application relating thereto.
"L/C Participation Certificate": a certificate in substantially
the form of Exhibit C.
"Leased Properties": the collective reference to the real
properties leased by the Borrower and its Subsidiaries described on Part
II of Schedule 5.20 (other than the Excluded Leased Properties)
including all buildings, improvements, structures and fixtures now or
subsequently located thereon and owned or leased by the Borrower.
"Lenders": as defined in the preamble to this Agreement.
"Letter of Credit": any Standby L/C or Trade L/C, collectively,
the "Letters of Credit."
"Letter of Credit Application": with respect to (a) a Standby
L/C, a Standby L/C Application and (b) a Trade L/C, a Trade L/C
Application; collectively, the "Letter of Credit Applications."
"Letter of Credit Outstandings": at any date, the sum of (a) the
aggregate amount then available to be drawn under all outstanding
Letters of Credit and (b) the aggregate amount of drawings under Letters
of Credit which have not then been reimbursed pursuant to subsection
3.5.
"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).
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"Loan": any loan made by any Lender pursuant to this Agreement.
"Loan Documents": the collective reference to this Agreement,
any Notes, the Letters of Credit, the Letter of Credit Applications, the
Guarantees and the Security Documents.
"Material Adverse Effect": a material adverse effect on (a) the
business, operations, property, condition (financial or otherwise) or
prospects of Holdings, the Borrower and their Subsidiaries, taken as a
whole, or, prior to the consummation of the Camden Acquisition, the
Camden Business taken as a whole, (b) the ability of Holdings, the
Borrower and each of their Subsidiaries, taken as a whole, to perform
their respective obligations under this Agreement or any of the other
Loan Documents, the Acquisition Documents or the Camden Acquisition
Documents or (c) the validity or enforceability of this Agreement or any
of the other Loan Documents, the Acquisition Documents, the Camden
Acquisition Documents or the rights or remedies of the Administrative
Agent or the Lenders hereunder or thereunder.
"Materials of Environmental Concern": any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products or
any hazardous or toxic substances, materials or wastes, defined or
regulated as such in or under any Environmental Law, including, without
limitation, friable asbestos, polychlorinated biphenyls and urea-
formaldehyde insulation.
"Merger Agreements": the Agreement and Plan of Merger dated as
of June 2, 1995 by and among Holdings, Omega Acquisition Company, WAC,
Wirekraft and OWC as amended by First Amendment to Agreement and Plan of
Merger dated June 12, 1995 and all other agreements, instruments or
certificates executed in connection with the Mergers, as the same may be
amended, supplemented or otherwise modified from time to time in
accordance with subsection 8.16.
"Merger Documents": the collective reference to the Merger
Agreements and the Exchange Agreements.
"Mergers": the collective reference to the Wirekraft Merger and
the Omega Merger.
"Mortgaged Properties": the collective reference to each of the
Fee Properties and the Leased Properties.
"Mortgages": the collective reference to each of the mortgages
and deeds of trust encumbering each of the Mortgaged Properties to be
executed and delivered by the Borrower and its Subsidiaries,
substantially in the form of Exhibit B-11, with such modifications as
are determined by Administrative Agent as necessary or desirable to
create a valid and enforceable first mortgage Lien securing the
obligations and liabilities of the Borrower or any guarantor under the
Loan Documents, as the same may be amended, supplemented, replaced,
restated, or otherwise modified from time to time.
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"Multiemployer Plan": a Plan which is a multiemployer plan as
defined in Section 4001(a)(3) of ERISA.
"Net Cash Proceeds": (a) in connection with any Asset Sale
(including any sale and leaseback of assets and any sale of accounts
receivable in connection with a receivables financing transaction) the
cash proceeds (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or
purchase price adjustment receivable or otherwise, but only as and when
received) of such Asset Sale net of all reasonable attorneys' fees,
accountants' fees, investment banking fees, survey costs, title
insurance premiums, required debt payments (other than pursuant hereto)
and other customary fees actually incurred and satisfactorily documented
in connection therewith and net of taxes paid or reasonably expected to
be payable as a result thereof and net of purchase price adjustments
reasonably expected to be payable in connection therewith and (b) in
connection with any issuance by Holdings or any of its Subsidiaries of
equity or debt securities or instruments or any Permitted Issuance or
the incurrence of loans other than Indebtedness permitted by subsection
8.2 or subsection 11.6(i), the cash proceeds received from such
issuance, net of all reasonable investment banking fees, legal fees,
accountants fees, underwriting discounts and commissions and other
customary fees and expenses, actually incurred and satisfactorily
documented in connection therewith; provided however that, with respect
to any issuance of debt instruments or securities as described in clause
(b) above, only in the event that such net cash proceeds are used to
refinance any Indebtedness permitted by this Agreement, then such net
cash proceeds shall not constitute "Net Cash Proceeds" for the purpose
of this Agreement.
"Nonconsenting Lender": as defined in subsection 4.10.
"Non-Excluded Taxes": as defined in subsection 4.8.
"Non-Funding Lender": as defined in subsection 4.4(c).
"Notes": the collective reference to the Revolving Credit Notes,
the Swing Line Note and the Term Notes.
"Obligations": the unpaid principal of and interest on
(including, without limitation, interest accruing after the maturity of
the Loans and interest accruing after the filing of any petition in
bankruptcy, or the commencement of any insolvency, reorganization or
like proceeding, relating to the Borrower, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding) the
Loans and all other obligations and liabilities of the Borrower to the
Administrative Agent or to the Lenders, whether direct or indirect,
absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection
with, this Agreement, any Notes or the other Loan Documents or any
Interest Rate Agreement entered into with a Lender pursuant to
subsection 7.11 and any other document made, delivered or given in
connection therewith or herewith, whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs, expenses
(including, without limitation, all fees and disbursements of counsel to
the
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Administrative Agent or to the Lenders that are required to be paid by
the Borrower pursuant to the terms of this Agreement) or otherwise.
"Omega": THL-Omega Holding Corporation, a Delaware corporation.
"Omega Acquisition": the acquisition of all of the Capital Stock
of Omega and its Subsidiaries by OWC pursuant to and in accordance with
the Omega Acquisition Documents.
"Omega Acquisition Agreement": the Stock Purchase Agreement
dated as of March 14, 1995, between OWC and Omega and certain other
parties set forth therein (collectively, the "Sellers"), together with
all schedules and exhibits thereto, as the same may be amended,
supplemented or otherwise modified in accordance with subsection 8.16.
"Omega Acquisition Company": International Wire Group, Inc., a
Delaware corporation, which was merged with and into OWC pursuant to and
in accordance with the Merger Documents (the surviving entity of the
Omega Merger changed its corporate name to International Wire Group,
Inc. which is the Borrower).
"Omega Acquisition Documents": the Omega Acquisition Agreement,
the Omega Escrow Agreement and all other agreements, instruments or
certificates delivered in connection with the Omega Acquisition, as the
same may be amended, supplemented or otherwise modified in accordance
with subsection 8.16; individually an "Omega Acquisition Document".
"Omega Business": Omega's and its Subsidiaries' business of
manufacturing non-insulated copper wire and cable products acquired by
OWC pursuant to the Omega Acquisition Agreement.
"Omega Credit Agreement": the Credit Agreement dated as of March
31, 1995 among OWC, Chemical Bank, as administrative agent, Bankers
Trust Company, as documentation agent and the several lenders from time
to time parties thereto.
"Omega Escrow Agreement": as defined in the Omega Acquisition
Agreement, as the same may be amended, supplemented or otherwise
modified in accordance with subsection 8.16.
"Omega Merger": the merger of Omega Acquisition Company with and
into OWC pursuant to and in accordance with the Merger Documents.
"Original Tranche A Term Loan": as defined in subsection 2.6.
"Original Tranche B Term Loan": as defined in subsection 2.6.
"Original Tranche C Term Loan": as defined in subsection 2.6.
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"OWC": Omega Wire Corp., a Delaware corporation.
"OWI": Omega Wire, Inc., a New York corporation.
"PBGC": the Pension Benefit Guaranty Corporation established
pursuant to Subtitle A of Title IV of ERISA.
"Participant": as defined in subsection 12.6(b).
"Participating Lender": any Revolving Credit Lender (other than
the Issuing Lender) with respect to its L/C Participating Interest in a
Letter of Credit.
"Patent Security Agreement": the Patent Security Agreement made
by Wirekraft Industries in favor of the Administrative Agent for the
ratable benefit of the Lenders, substantially in the form of Exhibit B-
9, as the same may be amended, supplemented or otherwise modified from
time to time.
"Permitted Issuance": (a) the issuance by Holdings of shares of
Capital Stock as dividends on issued and outstanding Capital Stock of
the same class of Holdings or pursuant to any dividend reinvestment
plan, (b) the issuance by Holdings of options or other equity securities
of Holdings to outside directors, members of management or employees of
Holdings, the Borrower or any Subsidiary of the Borrower, (c) the
issuance of securities as interest or dividends on pay-in-kind debt or
preferred equity securities permitted hereunder and under the Security
Documents, (d) the issuance to Holdings by the Borrower of its Capital
Stock or the issuance to the Borrower or any Subsidiary (or any
director, with respect to directors' qualifying shares) by any
Subsidiary of the Borrower of any of their respective Capital Stock, in
each case with respect to this clause (d) to the extent such Capital
Stock is pledged to the Administrative Agent pursuant to the relevant
Pledge Agreement (provided that only 65% of the Capital Stock of a
Foreign Subsidiary is required to be so pledged), (e) the issuance by
Holdings of the Holdings common stock pursuant to the terms and
conditions of the Holdings Stock Purchase Agreement as in effect on the
Closing Date, (f) the issuance by the Borrower of the Preferred Stock,
(g) the issuance by Holdings of the Warrants and any shares of Holdings
common stock issued to holders of the Warrants upon exercise of such
Warrants, (h) the issuance by Holdings of the Holdings class A common
stock pursuant to the terms and conditions of the Securities Purchase
Agreement dated as of March 5, 1996 by and among Holdings and the
purchasers party thereto, (i) the issuance by Holdings of the Holdings
common stock pursuant to the terms and conditions of the Securities
Purchase Agreement dated as of March 5, 1996 by and among Holdings and
the purchasers party thereto, (j) the issuance by Holdings of warrants
to purchase an aggregate of 2,000,000 shares of Holdings common stock to
Albion, DAW, Silicones and certain shareholders of Hoosier pursuant to
the terms and conditions of the Acquisition Documents as in effect on
the Amendment Closing Date and any shares of Holdings common stock
issued to holders of such warrants upon exercise of such warrants and
(k) cash payments made in lieu of issuing fractional shares of Holdings
common stock or Holdings preferred stock, in an aggregate amount not to
exceed $50,000.00.
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"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 Borrower 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.
"Pledge Agreements": the collective reference to the Holdings
Pledge Agreement, the Borrower Pledge Agreement, the Domestic
Subsidiaries Pledge Agreement, the Foreign Subsidiaries Pledge Agreement
and the Wirekraft Note Pledge Agreement.
"Pledged Notes": as defined in the Wirekraft Note Pledge
Agreement.
"Pledged Stock": as defined in each Pledge Agreement (other than
the Wirekraft Note Pledge Agreement).
"Preferred Stock": the Senior Cumulative Exchangeable Redeemable
Preferred Stock, par value $.01 per share, liquidation preference $25.00
per share of the Borrower.
"Properties": as defined in subsection 5.16.
"Qualified Issuer": any commercial bank (a) which has capital
and surplus in excess of $100,000,000 and (b) the outstanding long-term
debt securities of which are rated at least A-2 by Standard & Poor's
Corporation or at least P-2 by ▇▇▇▇▇'▇ Investors Service, Inc., or carry
an equivalent rating by a nationally recognized rating agency if both of
the two named rating agencies cease publishing ratings of investments.
"Refunded Swing Line Loans": as defined in subsection 2.15(c).
"Register": as defined in subsection 12.6(d).
"Regulation U": Regulation U of the Board of Governors of the
Federal Reserve System as in effect from time to time.
"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 and the regulations thereunder, 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.
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"Required Lenders": at any time, Lenders the Total Credit
Percentages of which aggregate at least a majority.
"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.
"Responsible Officer": as to any Person, the chief executive
officer, the president, the chief financial officer, a vice president or
the vice president-finance of such Person.
"Restricted Payments": as defined in subsection 8.7.
"Revolving Credit Commitment": as to any Revolving Credit
Lender, its obligation to make Revolving Credit Loans to the Borrower
pursuant to subsection 2.1 and to participate in Swing Line Loans and
Letters of Credit in an aggregate amount not to exceed at any one time
outstanding the amount set forth opposite such Revolving Credit Lender's
name in Schedule 1.1 under the heading "Revolving Credit Commitment", as
such amount may be reduced from time to time as provided herein;
collectively, as to all the Revolving Credit Lenders, the "Revolving
Credit Commitments."
"Revolving Credit Commitment Percentage": as to any Revolving
Credit Lender, the percentage of the aggregate Revolving Credit
Commitments constituted by its Revolving Credit Commitment.
"Revolving Credit Commitment Period": the period from and
including the Closing Date to but not including the Revolving Credit
Commitment Termination Date.
"Revolving Credit Commitment Termination Date": the earliest of
(a) September 30, 2000 or, if such date is not a Business Day, the
Business Day next preceding such date, (b) the date upon which the Term
Loans shall be paid in full and (c) the date upon which the Revolving
Credit Commitments shall be terminated pursuant hereto.
"Revolving Credit Lender": any Lender having a Revolving Credit
Commitment or that holds outstanding Revolving Credit Loans or L/C
Participating Interests hereunder.
"Revolving Credit Loan" and "Revolving Credit Loans": as defined
in subsection 2.1.
"Revolving Credit Note" and "Revolving Credit Notes": as defined
in subsection 2.2.
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"Second Additional Term Loans": the collective reference to the
Additional Tranche B Term Loans and the Additional Tranche C Term Loans.
"Second Amendment Closing Date": the date on which the Lenders
make their Second Additional Term Loans.
"Security Agreements": the collective reference to the Borrower
Security Agreement, the Domestic Subsidiaries Security Agreements
(including the Wire Technologies Security Agreement and the Camden
Security Agreement), the Wire Technologies Trademark Security Agreement,
the Wire Technologies Patent Security Agreement, the Trademark Security
Agreement, the Patent Security Agreement, the Camden Trademark Security
Agreement and the Camden Patent Security Agreement.
"Security Documents": the Pledge Agreements, the Security
Agreements, the Mortgages, the Assignments and any other collateral
security document delivered to the Administrative Agent pursuant to
subsection 7.9, 7.10 or 7.12; individually a "Security Document."
"Seller Leases": the five lease agreements between Group Dekko
International, Inc., as landlord and Wire Technologies, as tenant,
covering real property and equipment located in Kendalville, Indiana,
Albion, Indiana and El Paso, Texas.
"Sellers Tax Escrow Amount (Omega)": shall mean the portion of
the Tax Escrow Funds (as defined in the Omega Escrow Agreement) which is
payable to the Sellers (as defined in the Omega Acquisition Agreement)
pursuant to the terms of the Omega Escrow Agreement.
"Senior Subordinated Note Documents": the collective reference
to the Senior Subordinated Notes, the Senior Subordinated Note
Indenture, the Senior Subordinated Note Purchase Agreements and all
other agreements or instruments executed in connection with the Senior
Subordinated Notes, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with subsection 8.10;
individually a "Senior Subordinated Note Document."
"Senior Subordinated Note Indenture": the Indenture dated as of
June 12, 1995 between the Borrower and IBJ ▇▇▇▇▇▇▇▇ Bank & Trust
Company, as trustee, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with subsection 8.10.
"Senior Subordinated Note Purchase Agreements": the reference to
the note purchase agreement dated June 12, 1995 between the Borrower, BT
Securities Corp. and Chemical Securities Inc. and certain other parties
thereto, pursuant to which the Borrower issues or sells Senior
Subordinated Notes, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with subsection 8.10.
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"Senior Subordinated Notes": the $150,000,000 aggregate
principal amount of 11-3/4% Senior Subordinated Notes due 2005 of the
Borrower, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with subsection 8.10.
"Silicones": Silicones, Inc., an Indiana corporation
"Silicones Acquisition": the purchase by Wire Technologies of
certain assets of Silicones pursuant to the Silicones Asset Purchase
Agreement.
"Silicones Asset Purchase Agreement": the Asset Purchase
Agreement dated as of March 5, 1996, among Silicones, Holdings, the
Borrower and Wire Technologies.
"Single Employer Plan": any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan.
"Solvent" and "Solvency": with respect to any Person on a
particular date, that on such date, (a) the fair value of the property
of such Person is greater than the total amount of liabilities,
including, without limitation, contingent liabilities, of such Person,
(b) the present fair salable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability
of such Person on its debts as they become absolute and matured, (c)
such Person does not intend to, and does not believe that it will, incur
debts or liabilities beyond such Person's ability to pay as such debts
and liabilities mature, and (d) such Person is not engaged in business
or a transaction, and is not about to engage in business or a
transaction, for which such Person's property would constitute an
unreasonably small capital.
"Standby L/C": an irrevocable letter of credit issued by the
Issuing Lender pursuant to this Agreement for the account of the
Borrower in respect of obligations of the Borrower incurred pursuant to
contracts made or performances undertaken or to be undertaken or like
matters relating to contracts to which the Borrower is or proposes to
become a party in the ordinary course of the Borrower's business,
including, without limiting the foregoing, for insurance purposes, or,
for the account of Camden, solely to support its obligations with
respect to the IRBs.
"Standby L/C Application": as defined in subsection 3.2.
"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. Unless otherwise qualified, all references to a "Subsidiary" or
to "Subsidiaries" in this Agreement shall refer to a Subsidiary or
Subsidiaries of the Borrower.
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"Swing Line Commitment": the Swing Line Lender's obligation to
make Swing Line Loans pursuant to subsection 2.15.
"Swing Line Lender": Chase in its capacity as provider of the
Swing Line Loans.
"Swing Line Loan Participation Certificate": a certificate in
substantially the form of Exhibit D.
"Swing Line Loans": as defined in subsection 2.15(a).
"Swing Line Note": as defined in subsection 2.15(b).
"Term Loan" and "Term Loans": as defined in subsection 2.6.
"Term Loan Commitments": the collective reference to the Tranche
A Term Loan Commitments, the Tranche B Term Loan Commitments and the
Tranche C Term Loan Commitments; collectively, as to all the Term Loan
Lenders, the "Term Commitments."
"Term Loan Lender": the collective reference to the Tranche A
Term Loan Lenders, the Tranche B Term Loan Lenders and the Tranche C
Term Loan Lenders.
"Term Note" and "Term Notes": as defined in subsection 2.9(a).
"Total Credit Percentage": as to any Lender at any time, the
percentage of the aggregate Revolving Credit Commitments, outstanding
Tranche A Term Loans, outstanding Tranche B Term Loans and outstanding
Tranche C Term Loans then constituted by its Revolving Credit
Commitment, outstanding Tranche A Term Loans, outstanding Tranche B Term
Loans and outstanding Tranche C Term Loans (or, if the Revolving Credit
Commitments have terminated or expired, the percentage of the aggregate
outstanding Revolving Credit Loans, outstanding Tranche A Term Loans,
outstanding Tranche B Term Loans, outstanding Tranche C Term Loans and
risk interests in the Letter of Credit Outstandings and Swing Line Loans
then constituted by its outstanding Revolving Credit Loans, outstanding
Tranche A Term Loans, outstanding Tranche B Term Loans, outstanding
Tranche C Term Loans and risk interest in Letter of Credit Outstandings
and Swing Line Loans).
"Trade L/C": a commercial documentary letter of credit issued by
the Issuing Lender pursuant to subsection 3.1 for the account of the
Borrower for the purchase of goods in the ordinary course of business.
"Trade L/C Application": as defined in subsection 3.2.
"Trademark Security Agreement": the Trademark Security Agreement
made by Wirekraft Industries in favor of the Administrative Agent for
the ratable benefit of
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the Lenders, substantially in the form of Exhibit B-10, as the same may
be amended, supplemented or otherwise modified from time to time.
"Tranche": the reference to Eurodollar Loans the Interest
Periods with respect to all of 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 "Eurodollar
Tranches".
"Tranche A Term Loan Commitment": as to any Tranche A Term Loan
Lender, its obligation to make an Original Tranche A Term Loan to the
Borrower pursuant to subsection 2.6 of this Agreement and/or an
Additional Tranche A Term Loan to the Borrower pursuant to subsection
2.6 in an aggregate amount not to exceed the amount set forth opposite
such Tranche A Term Loan Lender's name in Schedule 1.1 under the heading
"Total Tranche A Term Loan Commitment."
"Tranche A Term Loan Commitment Percentage": as to any Tranche A
Term Loan Lender, the percentage of the aggregate Tranche A Term Loan
Commitments constituted by its Tranche A Term Loan Commitment or,
following the Second Amendment Closing Date, the percentage of the
aggregate outstanding Tranche A Term Loans constituted by its Tranche A
Term Loan.
"Tranche A Term Loan Lender": any Lender having a Tranche A Term
Loan Commitment hereunder or that holds outstanding Tranche A Term
Loans.
"Tranche A Term Loans": as defined in subsection 2.6.
"Tranche A Term Note": as defined in subsection 2.7(a).
"Tranche B Term Loan Commitment": as to any Tranche B Term Loan
Lender, its obligation to make an Original Tranche B Term Loan to the
Borrower pursuant to subsection 2.6 of this Agreement and/or an
Additional Tranche B Term Loan to the Borrower pursuant to subsection
2.6 in an aggregate amount not to exceed the amount set forth opposite
such Tranche B Term Loan Lender's name in Schedule 1.1 under the heading
"Total Tranche B Term Loan Commitment."
"Tranche B Term Loan Commitment Percentage": as to any Tranche B
Term Loan Lender, the percentage of the aggregate Tranche B Term Loan
Commitments constituted by its Tranche B Term Loan Commitment or,
following the Second Amendment Closing Date, the percentage of the
aggregate outstanding Tranche B Term Loans constituted by its Tranche B
Term Loan.
"Tranche B Term Loan Lender": any Lender having a Tranche B Term
Loan Commitment hereunder or that holds outstanding Tranche B Term
Loans.
"Tranche B Term Loans": as defined in subsection 2.6.
"Tranche B Term Note": as defined in subsection 2.8(a).
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"Tranche C Term Loan Commitment": as to any Tranche C Term Loan
Lender, its obligation to make an Original Tranche C Term Loan to the
Borrower pursuant to subsection 2.6 of this Agreement and/or an
Additional Tranche C Term Loan to the Borrower pursuant to subsection
2.6 in an aggregate amount not to exceed the amount set forth opposite
such Tranche C Term Loan Lender's name in Schedule 1.1 under the heading
"Total Tranche C Term Loan Commitment.""
"Tranche C Term Loan Commitment Percentage": as to any Tranche C
Term Loan Lender, the percentage of the aggregate Tranche C Term Loan
Commitments constituted by its Tranche C Term Loan Commitment or,
following the Second Amendment Closing Date, the percentage of the
aggregate outstanding Tranche C Term Loans constituted by its Tranche C
Term Loan.
"Tranche C Term Loan Lender": any Lender having a Tranche C Term
Loan Commitment hereunder or that holds outstanding Tranche C Term
Loans.
"Tranche C Term Loans": as defined in subsection 2.6.
"Tranche C Term Note": as defined in subsection 2.9(a).
"Transaction Documents": the collective reference to the Omega
Acquisition Documents, the Merger Documents and the Holdings Stock
Purchase Agreement and all other agreements, instruments or certificates
executed in connection with the Transactions, as the same may be
amended, supplemented or otherwise modified from time to time in
accordance with subsection 8.16.
"Transactions": the collective reference to each of the Omega
Acquisition, the Mergers and the Wirekraft Acquisition.
"Transferee": as defined in subsection 12.6(f).
"Type": as to any Loan, its nature as an Alternate Base Rate
Loan or a Eurodollar Loan.
"Uniform Customs": the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, and any revisions thereof.
"U.S. Tax Compliance Certificate": as defined in subsection
4.8(b)(ii).
"WAC": Wirekraft Acquisition Company, a Delaware corporation.
"Warrants": the Warrants to purchase shares of Holdings Common
Stock at an exercise price of $.01 per share issued to holders of the
Preferred Stock.
"WB Holdings": WB Holdings Inc., a Delaware corporation.
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"Wirekraft": Wirekraft Holdings Corp., a Delaware corporation.
"Wirekraft Acquisition": the acquisition by the Borrower of the
capital stock of Wirekraft.
"Wirekraft Business": Wirekraft's and its Subsidiaries' business
of manufacturing insulated copper wire and wire harnesses acquired by
WAC pursuant to the Wirekraft Acquisition.
"Wirekraft Industries": Wirekraft Industries, Inc., a Delaware
corporation.
"Wirekraft Merger": the merger of WAC with and into Wirekraft
pursuant to and in accordance with the Merger Documents.
"Wirekraft Note Pledge Agreement": the Note Pledge Agreement
made by Wirekraft Industries in favor of the Administrative Agent for
the ratable benefit of the Lenders, substantially in the form of Exhibit
B-6, as the same may be amended, supplemented or otherwise modified from
time to time.
"Wirekraft Preferred Stock": the 1,049,992 shares of Series A
Senior Preferred Stock, par value $0.01 per share plus accrued and
unpaid dividends of Wirekraft issued to GE and converted into cash
pursuant to the Merger Documents on the Closing Date.
"Wire Technologies": Wire Technologies, Inc., an Indiana
corporation.
"Wire Technologies Guarantee": the Guarantee by Wire
Technologies in favor of the Administrative Agent for the ratable
benefit of the Lenders, substantially in the form of Exhibit B-15, as
the same may be amended, supplemented or otherwise modified from time to
time.
"Wire Technologies Patent Security Agreement": the Patent
Security Agreement made by Wire Technologies in favor of the
Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit B-16, as the same may be amended,
supplemented or otherwise modified from time to time.
"Wire Technologies Security Agreement": the Domestic Subsidiary
Security Agreement made by Wire Technologies in favor of the
Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit B-8, as the same may be amended,
supplemented or otherwise modified from time to time.
"Wire Technologies Trademark Security Agreement": the Trademark
Security Agreement made by Wirekraft Industries in favor of the
Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit B-17, as the same may be amended,
supplemented or otherwise modified from time to time.
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"Wholly Owned Subsidiary": as to any Person, any Subsidiary of
which such Person owns, directly or indirectly, all of the Capital Stock
of such Subsidiary other than directors' qualifying shares or any shares
held by nominees.
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 Note or any certificate or other document made or delivered
pursuant hereto.
(b) As used herein and in any Note, and any certificate or other
document made or delivered pursuant hereto, accounting terms relating to the
Borrower 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 COMMITMENTS
2.1 Revolving Credit Commitments. (a) Subject to the terms and
conditions hereof, each Revolving Credit Lender severally agrees to make
revolving credit loans (each, a "Revolving Credit Loan", collectively,
"Revolving Credit Loans") to the Borrower from time to time during the
Revolving Credit Commitment Period in an aggregate principal amount at any one
time outstanding, when added to such Revolving Credit Lender's Revolving Credit
Commitment Percentage of all Letter of Credit Outstandings and outstanding
Swing Line Loans, not to exceed the lesser of (i) the amount of such Revolving
Credit Lender's Revolving Credit Commitment less such Revolving Credit Lender's
Revolving Credit Commitment Percentage of any commitment in respect of any
working capital facility described in subsection 8.2(i)(iii) and (ii) such
Lender's Revolving Credit Commitment Percentage of the Borrowing Base then in
effect. During the Revolving Credit Commitment Period the Borrower may use the
Revolving Credit Commitments 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) Eurodollar
Loans, (ii) Alternate Base Rate Loans or (iii) a combination thereof, as
determined by the Borrower and notified to the Administrative Agent in
accordance with subsections 2.3 and 2.13.
2.2 Revolving Credit Notes. The Borrower agrees that, upon the request
to the Administrative Agent by any Revolving Credit Lender, in order to
evidence such Lender's Revolving Credit Loans the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-1, with appropriate insertions as to payee, date
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36
and principal amount (each, as amended, supplemented, replaced or otherwise
modified from time to time, a "Revolving Credit Note"), payable to the order of
such Revolving Credit Lender and in a principal amount equal to the lesser of
(a) the amount of the initial Revolving Credit Commitment of such Revolving
Credit Lender and (b) the aggregate unpaid principal amount of all Revolving
Credit Loans made by such Revolving Credit Lender. Each Revolving Credit
Lender is hereby authorized to record the date, Type and amount of each
Revolving Credit Loan made by such Revolving Credit Lender, each continuation
thereof, each conversion of all or a portion thereof to another Type, the date
and amount of each payment or prepayment of principal thereof and, in the case
of Eurodollar Loans, the length of each Interest Period with respect thereto,
on the schedules annexed to and constituting a part of its Revolving Credit
Note, and any such recordation shall, in the absence of manifest error,
constitute prima facie evidence of the accuracy of the information so recorded,
provided that the failure by any Revolving Credit Lender to make any such
recordation shall not affect any of the obligations of the Borrower under such
Revolving Credit Note or this Agreement. Any Revolving Credit Note shall (x)
be dated the Closing Date, (y) be stated to mature on the Revolving Credit
Commitment Termination Date and (z) provide for the payment of interest in
accordance with subsection 4.1.
2.3 Procedure for Revolving Credit Borrowing. The Borrower may borrow
under the Revolving Credit Commitments during the Revolving Credit Commitment
Period on any Business Day, provided that the Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent prior to 12:00 Noon, 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 Eurodollar 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 Eurodollar Loans, Alternate Base Rate Loans or a
combination thereof and (iv) if the borrowing is to be entirely or partly of
Eurodollar Loans, the respective amounts of each such Type of Loan and the
respective lengths of the initial Interest Periods therefor. Each borrowing
under the Revolving Credit Commitments shall be in an amount equal to (A) in
the case of Alternate Base Rate Loans, $500,000 or a whole multiple of $100,000
in excess thereof (or, if the then Available Revolving Credit Commitments are
less than $500,000, such lesser amount) and (B) in the case of Eurodollar
Loans, $1,000,000 or a whole multiple of $250,000 in excess thereof. Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Revolving Credit Lender thereof. Each Revolving Credit
Lender will make the amount of its pro rata share of each borrowing available
to the Administrative Agent for the account of the Borrower at the office of
the Administrative Agent specified in subsection 12.2 prior to 11:00 A.M., New
York City time, on the Borrowing Date requested by the Borrower in funds
immediately available to the Administrative Agent. Such borrowing will then be
made available to the Borrower by the Administrative Agent crediting the
account of the Borrower 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.
2.4 Commitment Fee; Administrative Agent Fees. (a) The Borrower
agrees to pay to the Administrative Agent for the account of each Revolving
Credit Lender a commitment fee for the period from and including the first day
of the Revolving Credit Commitment
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Period to the Revolving Credit Commitment Termination Date, computed at the
rate of 1/2 of 1% per annum on the average daily Available Revolving Credit
Commitment of such Revolving Credit Lender during the period for which payment
is made, payable quarterly in arrears on the last day of each March, June,
September and December and on the Revolving Credit Commitment Termination Date.
(b) The Borrower shall pay to Chase the amounts set forth in the Fee
Letter dated December 26, 1996 among Chase, CSI, Bankers Trust Company, BT
Securities Corporation and the Borrower in the amounts and on the dates set
forth therein.
2.5 Termination or Reduction of Revolving Credit Commitments. (a) The
Borrower shall have the right, upon not less than five Business Days' notice to
the Administrative Agent, to terminate the Revolving Credit Commitments or,
from time to time, reduce the unutilized portion of the amount of the Revolving
Credit Commitments, provided that (i) the Revolving Credit Commitments shall
not be terminated if any Letters of Credit or Swing Line Loans are outstanding
and (ii) any such termination of the Revolving Credit Commitments shall be
accompanied by prepayment in full of the Revolving Credit Loans, Swing Line
Loans and L/C Obligations then outstanding, together with accrued interest
thereon to the date of such prepayment, cancellation of all Letters of Credit
(unless cash collateralized in accordance with the last sentence of this
paragraph) and the payment of any unpaid commitment fee then accrued hereunder.
Any such reduction shall be in an amount of $500,000, or a whole multiple of
$100,000 in excess thereof, and shall reduce permanently the amount of the
Revolving Credit Commitments then in effect and shall further include any
amounts due in respect thereof under subsection 4.9. Upon termination of the
Revolving Credit Commitments, any Letter of Credit then outstanding which has
been fully cash collateralized upon terms reasonably satisfactory to the
Administrative Agent and the Issuing Lender shall no longer be considered a
"Letter of Credit" as defined in subsection 1.1, and any L/C Participating
Interest heretofore granted by the Issuing Lender to the Revolving Credit
Lenders in such Letter of Credit shall be deemed terminated but the letter of
credit fees payable under subsection 3.3 shall continue to accrue to the
Issuing Lender with respect to such Letter of Credit until the expiry thereof.
(b) In the case of any reduction of the Revolving Credit Commitments
hereunder, to the extent, if any, that the sum of the Revolving Credit Loans,
Swing Line Loans and the Letter of Credit Outstandings exceeds the Revolving
Credit Commitments as so reduced, the Borrower shall make a prepayment equal to
such excess amount, the proceeds of which shall be applied first, to payment of
the Swing Line Loans then outstanding, second, to payment of the Revolving
Credit Loans then outstanding, third, to payment of any L/C Obligations then
outstanding and last, to cash collateralize any outstanding Letter of Credit on
terms satisfactory to the Required Lenders.
(c) The Revolving Credit Commitments once terminated or reduced may not
be reinstated.
2.6 Term Loans. (a) Each Tranche A Term Loan Lender identified on
Schedule 1.1 hereto as having an Original Tranche A Term Loan Commitment
severally has made a term loan (an "Original Tranche A Term Loan") on the
Closing Date in an aggregate principal
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amount set forth opposite such Lender's name in Schedule 1.1 under the heading
"Original Tranche A Term Loan Commitment". Each Tranche A Term Loan Lender
identified on Schedule 1.1 hereto as having an Additional Tranche A Term Loan
Commitment severally has made an additional term loan (an "Additional Tranche A
Term Loan"; together with the Original Tranche A Term Loans, the "Tranche A Term
Loans") on the Amendment Closing Date in an aggregate principal amount set forth
opposite such Lender's name in Schedule 1.1 under the heading "Additional
Tranche A Term Loan Commitment".
(b) Each Tranche B Term Loan Lender identified on Schedule 1.1 hereto
as having an Original Tranche B Term Loan Commitment severally has made a term
loan (an "Original Tranche B Term Loan") on the Closing Date in an aggregate
principal amount set forth opposite such Lender's name in Schedule 1.1 under
the heading "Original Tranche B Term Loan Commitment". Subject to the terms
and conditions hereof, each Tranche B Term Loan Lender identified on Schedule
1.1 hereto as having an Additional Tranche B Term Loan Commitment severally
agrees to make an additional term loan (an "Additional Tranche B Term Loan";
together with the Original Tranche B Term Loans, the "Tranche B Term Loans") on
the Second Amendment Closing Date in an aggregate principal amount set forth
opposite such Lender's name in Schedule 1.1 under the heading "Additional
Tranche B Term Loan Commitment".
(c) Each Tranche C Term Loan Lender identified on Schedule 1.1 hereto
as having an Original Tranche C Term Loan Commitment severally has made a term
loan (an "Original Tranche C Term Loan") on the Amendment Closing Date in an
aggregate principal amount set forth opposite such Lender's name in Schedule
1.1 under the heading "Original Tranche C Term Loan Commitment". Subject to
the terms and conditions hereof, each Tranche C Term Loan Lender identified on
Schedule 1.1 hereto as having an Additional Tranche C Term Loan Commitment
severally agrees to make an additional term loan (an "Additional Tranche C Term
Loan"; together with the Original Tranche C Term Loans, the "Tranche C Term
Loans"; the Tranche C Term Loans together with the Tranche A Term Loans and the
Tranche B Term Loans, the "Term Loans") on the Second Amendment Closing Date in
an aggregate principal amount set forth opposite such Lender's name in Schedule
1.1 under the heading "Additional Tranche C Term Loan Commitment".
(d) The Term Loans may from time to time be (i) Eurodollar Loans, (ii)
Alternate Base Rate Loans or (iii) a combination thereof, as determined by the
Borrower and notified to the Administrative Agent in accordance with subsection
2.10.
2.7 Tranche A Term Notes. (a) The Borrower agrees that, upon the
request to the Administrative Agent by any Tranche A Term Loan Lender, in order
to evidence such Lender's Tranche A Term Loan the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-2 (each, as amended, supplemented, replaced or otherwise modified from time
to time, a "Tranche A Term Note") (and will execute and deliver a replacement
Tranche A Term Note to any Tranche A Term Lender which has an outstanding
Original Tranche A Term Loan and which makes an Additional Tranche A Term
Loan), with appropriate insertions therein as to payee, date and principal
amount, payable to the order of such Tranche A Term Loan Lender and in a
principal amount equal to the amount set forth opposite such Tranche A Term
Loan Lender's name on
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Schedule 1.1 under the heading "Total Tranche A Term Loan Commitment". Each
Tranche A Term Loan Lender is hereby authorized to record the date, Type and
amount of its Tranche A Term Loan, each continuation thereof, each conversion
of all or a portion thereof to another Type, the date and amount of each
payment or prepayment of principal of its Tranche A Term Loan and, in the case
of Eurodollar Loans, the length of each Interest Period with respect thereto,
on the schedules annexed to and constituting a part of its Tranche A Term Note,
and any such recordation shall, in the absence of manifest error, constitute
prima facie evidence of the accuracy of the information so recorded, provided
that the failure by any Tranche A Term Loan Lender to make any such recordation
shall not affect any of the obligations of the Borrower under such Tranche A
Term Note or this Agreement. Any Tranche A Term Note shall (i) be dated the
Closing Date, (ii) be payable as provided in subsection 2.7(b) and (iii)
provide for the payment of interest in accordance with subsection 4.1.
(b) The aggregate Tranche A Term Loans of all the Tranche A Term Loan
Lenders shall be payable in 15 consecutive quarterly installments on the dates
and in a principal amount equal to the amount set forth below (together with
all accrued interest thereon) opposite the applicable installment date (or, if
less, the aggregate amount of the Tranche A Term Loans then outstanding):
Installment Amount
----------- ------
March 31, 1997 $4,573,598.13
June 30, 1997 $4,573,598.13
September 30, 1997 $4,573,598.13
December 31, 1997 $5,251,168.22
March 31, 1998 $5,251,168.22
June 30, 1998 $5,251,168.22
September 30, 1998 $5,251,168.22
December 31, 1998 $5,928,738.32
March 31, 1999 $5,928,738.32
June 30, 1999 $5,928,738.32
September 30, 1999 $5,928,738.32
December 31, 1999 $9,147,196.26
March 31, 2000 $9,147,196.26
June 30, 2000 $9,147,196.26
September 30, 2000 $9,147,196.28
2.8 Tranche B Term Notes. (a) The Borrower agrees that, upon the
request to the Administrative Agent by any Tranche B Term Loan Lender, in order
to evidence such Lender's Tranche B Term Loan the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-3 (each, as amended, supplemented, replaced or otherwise modified from time
to time, a "Tranche B Term Note") (and will execute and deliver a replacement
Tranche B Term Note to any Tranche B Term Lender
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which has an outstanding Original Tranche B Term Loan and which makes an
Additional Tranche B Term Loan), with appropriate insertions therein as to
payee, date and principal amount, payable to the order of such Tranche B Term
Loan Lender and in a principal amount equal to the amount set forth opposite
such Tranche B Term Loan Lender's name on Schedule 1.1 under the heading
"Tranche B Term Loan Commitment." Each Tranche B Term Loan Lender is hereby
authorized to record the date, Type and amount of its Tranche B Term Loan, each
continuation thereof, each conversion of all or a portion thereof to another
Type, the date and amount of each payment or prepayment of principal of its
Tranche B Term Loan and, in the case of Eurodollar Loans, the length of each
Interest Period with respect thereto, on the schedules annexed to and
constituting a part of its Tranche B Term Note, and any such recordation shall,
in the absence of manifest error, constitute prima facie evidence of the
accuracy of the information so recorded, provided that the failure by any
Tranche B Term Loan Lender to make any such recordation shall not affect any of
the obligations of the Borrower under such Tranche B Term Note or this
Agreement. Any Tranche B Term Note shall (i) be dated the Closing Date, (ii)
be payable as provided in subsection 2.8(b) and (iii) provide for the payment
of interest in accordance with subsection 4.1.
(b) The aggregate Tranche B Term Loans of all the Tranche B Term Loan
Lenders shall be payable in 23 consecutive quarterly installments on the dates
and in a principal amount equal to the amount set forth below (together with
all accrued interest thereon) opposite the applicable installment date (or, if
less, the aggregate amount of the Tranche B Term Loans then outstanding):
Installment Amount
----------- ------
March 31, 1997 $174,618.32
June 30, 1997 $174,618.32
September 30, 1997 $174,618.32
December 31, 1997 $174,618.32
March 31, 1998 $174,618.32
June 30, 1998 $174,618.32
September 30, 1998 $174,618.32
December 31, 1998 $174,618.32
March 31, 1999 $174,618.32
June 30, 1999 $174,618.32
September 30, 1999 $174,618.32
December 31, 1999 $174,618.32
March 31, 2000 $174,618.32
June 30, 2000 $174,618.32
September 30, 2000 $174,618.32
December 31, 2000 $13,969,465.65
March 31, 2001 $13,969,465.65
June 30, 2001 $13,969,465.65
September 30, 2001 $13,969,465.65
December 31, 2001 $13,969,465.65
March 31, 2002 $13,969,465.65
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41
June 30, 2002 $13,969,465.65
September 30, 2002 $13,969,465.65
2.9 Tranche C Term Notes. (a) The Borrower agrees that, upon the
request to the Administrative Agent by any Tranche C Term Loan Lender, in order
to evidence such Lender's Tranche C Term Loan the Borrower will execute and
deliver to such Lender a promissory note substantially in the form of Exhibit
A-4 (each, as amended, supplemented, replaced or otherwise modified from time
to time, a "Tranche C Term Note"; Tranche A Term Notes, Tranche B Term Notes
and Tranche C Term Notes when hereinafter referred to collectively shall be
referred to as "Term Notes") (and will execute and deliver a replacement
Tranche C Term Note to any Tranche C Term Lender which has an outstanding
Original Tranche C Term Loan and which makes an Additional Tranche C Term
Loan), with appropriate insertions therein as to payee, date and principal
amount, payable to the order of such Tranche C Term Loan Lender and in a
principal amount equal to the amount set forth opposite such Tranche C Term
Loan Lender's name on Schedule 1.1 under the heading "Tranche C Term Loan
Commitment." Each Tranche C Term Loan Lender is hereby authorized to record
the date, Type and amount of its Tranche C Term Loan, each continuation
thereof, each conversion of all or a portion thereof to another Type, the date
and amount of each payment or prepayment of principal of its Tranche C Term
Loan and, in the case of Eurodollar Loans, the length of each Interest Period
with respect thereto, on the schedules annexed to and constituting a part of
its Tranche C Term Note, and any such recordation shall, in the absence of
manifest error, constitute prima facie evidence of the accuracy of the
information so recorded, provided that the failure by any Tranche C Term Loan
Lender to make any such recordation shall not affect any of the obligations of
the Borrower under such Tranche C Term Note or this Agreement. Any Tranche C
Term Note shall (i) be dated the Amendment Closing Date, (ii) be payable as
provided in subsection 2.9(b) and (iii) provide for the payment of interest in
accordance with subsection 4.1.
(b) The aggregate Tranche C Term Loans of all the Tranche C Term Loan
Lenders shall be payable in 27 consecutive quarterly installments on the dates
and in a principal amount equal to the amount set forth below (together with
all accrued interest thereon) opposite the applicable installment date (or, if
less, the aggregate amount of the Tranche C Term Loans then outstanding):
Installment Amount
----------- ------
March 31, 1997 $167,989.42
June 30, 1997 $167,989.42
September 30, 1997 $167,989.42
December 31, 1997 $167,989.42
March 31, 1998 $167,989.42
June 30, 1998 $167,989.42
September 30, 1998 $167,989.42
December 31, 1998 $167,989.42
March 31, 1999 $167,989.42
June 30, 1999 $167,989.42
September 30, 1999 $167,989.42
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42
December 31, 1999 $167,989.42
March 31, 2000 $167,989.42
June 30, 2000 $167,989.42
September 30, 2000 $167,989.42
December 31, 2000 $167,989.42
March 31, 2001 $167,989.42
June 30, 2001 $167,989.42
September 30, 2001 $167,989.42
December 31, 2001 $167,989.42
March 31, 2002 $167,989.42
June 30, 2002 $167,989.42
September 30, 2002 $167,989.42
December 31, 2002 $30,784,060.85
March 31, 2003 $30,784,060.85
June 30, 2003 $30,784,060.85
September 30, 2003 $30,784,060.85"
2.10 Procedure for Additional Term Loan Borrowing; Repayment of Loans.
(a) The Borrower shall give the Administrative Agent irrevocable notice (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 Second Amendment Closing Date)
requesting that the Term Loan Lenders with an Additional Tranche B Term Loan
Commitment or an Additional Tranche C Term Loan Commitment make the Second
Additional Term Loans on the Second Amendment Closing Date and specifying the
amount to be borrowed. Upon receipt of such notice the Administrative Agent
shall promptly notify each such Term Loan Lender thereof. On the Second
Amendment Closing Date each such Term Loan Lender shall make available to the
Administrative Agent at its office specified in subsection 12.2 an amount in
immediately available funds equal to the Second Additional Term Loan to be made
by such Term Loan Lender. The Administrative Agent shall on such date credit
the account of the Borrower on the books of such office of the Administrative
Agent with the aggregate of the amounts made available to the Administrative
Agent by such Term Loan Lenders.
(b) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of: (i) each Revolving Credit Lender, the
then unpaid principal amount of each Revolving Credit Loan of such Lender, on
the Revolving Credit Commitment Termination Date (or such earlier date on which
the Revolving Credit Loans become due and payable pursuant to Section 9); (ii)
the Swing Line Lender, the then unpaid principal amount of the Swing Line
Loans, on the Revolving Credit Commitment Termination Date (or such earlier
date on which the Swing Line Loans become due and payable pursuant to Section
9); (iii) each Tranche A Term Loan Lender, such Tranche A Term Loan Lender's
Tranche A Term Loan Commitment Percentage of the amounts specified in
subsection 2.7(b) (or, if less, the aggregate amount of the Tranche A Term
Loans of such Tranche A Term Loan Lender then
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outstanding), on the dates specified in subsection 2.7(b) (or such earlier date
on which the Tranche A Term Loans become due and payable pursuant to Section
9); (iv) each Tranche B Term Loan Lender, such Tranche B Term Loan Lender's
Tranche B Term Loan Commitment Percentage of the amounts specified in
subsection 2.8(b) (or, if less, the aggregate amount of the Tranche B Term
Loans of such Tranche B Term Loan Lender then outstanding), on the dates
specified in subsection 2.8(b) (or such earlier date on which the Tranche B
Term Loans become due and payable pursuant to Section 9); and (v) each Tranche
C Term Loan Lender, such Tranche C Term Loan Lender's Tranche C Term Loan
Commitment Percentage of the amounts specified in subsection 2.9(b) (or, if
less, the aggregate amount of the Tranche C Term Loans of such Tranche C Term
Loan Lender then outstanding), on the dates specified in subsection 2.9(b) (or
such earlier date on which the Tranche C Term Loans become due and payable
pursuant to Section 9). The Borrower hereby further agrees to pay interest on
the unpaid principal amount of the Loans from time to time outstanding from the
date hereof until payment in full thereof at the rates per annum, and on the
dates, set forth in subsection 4.1.
(c) Each Lender (including the Swing Line Lender) shall maintain in
accordance with its usual practice an account or accounts evidencing
indebtedness of the 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.
(d) The Administrative Agent shall maintain the Register pursuant to
subsection 12.6(d), and a subaccount therein for each Lender, in which shall be
recorded (i) the amount of each Loan made hereunder, the Type thereof and each
Interest Period, if any, applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from the Borrower and each Lender's share
thereof.
(e) The entries made in the Register and the accounts of each Lender
maintained pursuant to subsection 2.10(c) shall, in the absence of manifest
error and to the extent permitted by applicable law, be prima facie evidence of
the existence and amounts of the obligations of the Borrower 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 the Borrower to repay (with applicable
interest) the Loans made to the Borrower by such Lender in accordance with the
terms of this Agreement.
2.11 Optional Prepayments. (a) The Borrower may, at any time and from
time to time, prepay the Loans, in whole or in part, without premium or
penalty, upon at least three Business Days' irrevocable notice to the
Administrative Agent, specifying the date and amount of prepayment and whether
the prepayment is of (i) Eurodollar Loans, Alternate Base Rate Loans or a
combination thereof, and, if of a combination thereof, the amount allocable to
each and (ii) Tranche A Term Loans, Tranche B Term Loans, Tranche C Term Loans,
Revolving Credit 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 Term Loan Lender or Revolving
Credit Lender, as the case may be, 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, in the case of prepayments of the Term Loans only,
accrued interest to such date on the amount prepaid. Optional prepayments of
the Term Loans shall be applied, with respect to the first $10,000,000 of such
prepayments,
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to installments of the Term Loans as the Borrower may elect (other than
scheduled installments of the Tranche B Term Loans prior to December 31, 2000
and scheduled installments of the Tranche C Term Loans prior to December 31,
2002) and, with respect to any amount of such prepayments in excess of
$10,000,000, such prepayments shall be applied pro rata to the Term Loans based
upon the then outstanding principal amounts of the Tranche A Term Loans,
Tranche B Term Loans and Tranche C Term Loans (with each Tranche A Term Loan,
Tranche B Term Loan and Tranche C Term Loan to be allocated that percentage of
the amount to be applied as is equal to a fraction (expressed as a percentage),
the numerator of which is the then outstanding principal amount of such Tranche
A Term Loan, Tranche B Term Loan or Tranche C Term Loan, as the case may be,
and the denominator of which is equal to the then outstanding principal amount
of all Term Loans).
(b) With respect to optional prepayments of the Term Loans after
$10,000,000 of optional prepayments shall have been made, the amount of each
principal payment of Term Loans shall be applied to reduce the then remaining
installments of the Tranche A Term Loans, Tranche B Term Loans and Tranche C
Term Loans, pro rata based upon the then remaining number of installments of
such Tranche A Term Loans, Tranche B Term Loans or Tranche C Term Loans, as the
case may be, after giving effect to all prior reductions thereto (i.e., each
then remaining installment of the Tranche A Term Loans, Tranche B Term Loans or
Tranche C Term Loans, as the case may be, shall be reduced by an amount equal
to the aggregate amount to be applied to the Tranche A Term Loans, Tranche B
Term Loans or Tranche C Term Loans, as the case may be, divided by the number
of the then remaining installments for such Tranche A Term Loans, Tranche B
Term Loans or Tranche C Term Loans); provided, that if the amount to be applied
to any installment as required by this Agreement would exceed the then
remaining amount of such installment, then an amount equal to such excess shall
be applied to the next succeeding installment after giving effect to all prior
reductions thereto (including the amount of prepayments theretofore allocated
pursuant to the preceding portion of this sentence). Amounts prepaid on
account of the Term Loans may not be reborrowed. Partial prepayments shall be
in an aggregate principal amount of $500,000 or a whole multiple of $100,000 in
excess thereof and shall include any amounts due in respect thereof under
subsection 4.9.
2.12 Mandatory Prepayments and Revolving Credit Commitment Reductions.
(a) If, subsequent to the Second Amendment Closing Date, unless the Required
Lenders (and Tranche A Term Loan Lenders, Tranche B Term Loan Lenders and
Tranche C Term Loan Lenders having in the aggregate at least a majority of the
outstanding Term Loans) and the Borrower shall otherwise agree, Holdings or any
of its Subsidiaries shall issue any class of Capital Stock other than a
Permitted Issuance or incur any Indebtedness other than any Indebtedness
permitted pursuant to subsection 8.2 or 11.6(i), 100% of the Net Cash Proceeds
thereof shall on the first Business Day after receipt, be applied toward the
prepayment of the Loans and reduction of Commitments as set forth in paragraph
(d) of this subsection 2.12.
(b) Unless the Required Lenders (and Tranche A Term Loan Lenders,
Tranche B Term Loan Lenders and Tranche C Term Loan Lenders having in the
aggregate at least a majority of the outstanding Term Loans) and the Borrower
shall otherwise agree, if the Borrower or any of its Subsidiaries shall receive
Net Cash Proceeds from any Asset Sale (including the sale and leaseback of
assets and any sale of accounts receivable in connection
50
45
with a receivable financing transaction) such Net Cash Proceeds shall, on the
first Business Day after receipt, be applied toward the prepayment of the Loans
and reduction of Commitments as set forth in paragraph (d) of this subsection
2.12.
(c) Unless the Required Lenders (and Tranche A Term Loan Lenders,
Tranche B Term Loan Lenders and Tranche C Term Loan Lenders having in the
aggregate at least a majority of the outstanding Term Loans) and the Borrower
shall otherwise agree, if for any fiscal year, commencing with the fiscal year
ending December 31, 1996 there shall be Excess Cash Flow for such fiscal year,
75% of such Excess Cash Flow shall be applied toward prepayment of the Loans
and reduction of the Commitments as set forth in paragraph (d) of this
subsection 2.12. Each such prepayment shall be made on or before the date
which is seven Business Days after the earlier of (A) the date on which the
financial statements referred to in subsection 7.1(a) are required to be
delivered to the Lenders and (B) the date on which said financial statements
are actually delivered.
(d) All mandatory prepayments shall be applied first to the Term Loans
and second to the permanent reduction of the Revolving Credit Commitments. The
application of prepayments referred to in the preceding sentence shall be made
first to Alternate Base Rate Loans and second to Eurodollar Loans. Each
mandatory prepayment of the Term Loans shall be applied pro rata to the Term
Loans based upon the then outstanding principal amounts of the Tranche A Term
Loans, Tranche B Term Loans and Tranche C Term Loans (with each Tranche A Term
Loan, Tranche B Term Loan and Tranche C Term Loan to be allocated that
percentage of the amount to be applied as is equal to a fraction (expressed as
a percentage), the numerator of which is the then outstanding principal amount
of such Tranche A Term Loan, Tranche B Term Loan or Tranche C Term Loan, as the
case may be, and the denominator of which is equal to the then outstanding
principal amount of all Term Loans).
The amount of each principal prepayment of Term Loans shall be applied
to reduce the then remaining installments of the Tranche A Term Loans, Tranche
B Term Loans and Tranche C Term Loans, pro rata based upon the then remaining
number of installments of such Tranche A Term Loans, Tranche B Term Loans or
Tranche C Term Loans, as the case may be, after giving effect to all prior
reductions thereto (i.e., each then remaining installment of the Tranche A Term
Loans, Tranche B Term Loans or Tranche C Term Loans, as the case may be, shall
be reduced by an amount equal to the aggregate amount to be applied to the
Tranche A Term Loans, Tranche B Term Loans or Tranche C Term Loans, as the case
may be, divided by the number of the then remaining installments for such
Tranche A Term Loans, Tranche B Term Loans or Tranche C Term Loans); provided,
that if the amount to be applied to any installment as required by this
Agreement would exceed the then remaining amount of such installment, then an
amount equal to such excess shall be applied to the next succeeding installment
after giving effect to all prior reductions thereto (including the amount of
prepayments theretofore allocated pursuant to the preceding portion of this
sentence). Amounts prepaid on account of the Term Loans may not be reborrowed.
(e) If at any time the sum of the Revolving Credit Loans, Swing Line
Loans and the Letter of Credit Outstandings exceeds the lesser of (i) the
Borrowing Base as then in effect and (ii) the Revolving Credit Commitments less
the amount of any commitment in respect of any
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46
working capital facility described in subsection 8.2(i)(iii) (including at
any time after any reduction of the Revolving Credit Commitments pursuant to
subsection 2.5 or this subsection 2.12), the Borrower shall make a payment in
the amount of such excess which payment shall be applied in the order set forth
in subsection 2.5(b). To the extent that after giving effect to any prepayment
of the Loans required by the preceding sentence, the sum of the Revolving
Credit Loans, Swing Line Loans and Letter of Credit Outstandings exceed the
lesser of clauses (i) and (ii) above, the Borrower shall, without notice or
demand, immediately cash collateralize the then outstanding L/C Obligations in
an amount equal to such excess upon terms reasonably satisfactory to the
Administrative Agent.
(f) If at any time the Borrower or any Subsidiary shall receive any
cash proceeds of any casualty or condemnation in excess of $2,000,000 permitted
by subsection 8.6(c), such proceeds shall be deposited with the Administrative
Agent who shall hold such proceeds in a cash collateral account satisfactory to
it. From time to time upon request, the Administrative Agent will release such
proceeds to the Borrower or such Subsidiary, as necessary, to pay for
replacement or rebuilding of the assets lost or condemned. If such assets are
not replaced or rebuilt within one year (subject to reasonable extension for
force majeure or weather delays) following the condemnation or casualty or if
the Borrower fails to notify the Administrative Agent in writing on or before
180 days after such casualty or condemnation that the Borrower shall commence
the replacement or rebuilding of such asset, then, in either case, the
Administrative Agent may apply any amounts in the cash collateral account to
the repayment of the Loans in accordance with subsection 2.12(d).
(g) If there shall be any reduction in the price under the Omega
Acquisition Agreement, the Omega Escrow Agreement (other than (i) any reduction
in the purchase price described in subsection 1.09(a)(ii) of the Omega
Acquisition Agreement to the extent, and only to the extent that any such
reduction does not exceed $500,000 in the aggregate and (ii) any reduction in
the purchase price which is due to a breach of any covenant, representation or
warranty in the Omega Acquisition Agreement by any party thereto other than the
Borrower which, due to such party's refusal or other failure to cure, is cured
with such reduction) pursuant to the terms thereof, then on the same Business
Day as the Borrower receives any payment in respect thereof, the Borrower
shall, unless the Required Lenders and the Borrower shall otherwise agree,
repay the Loans in the amount of such reduction to be applied first to the Term
Loans in accordance with subsection 2.12(d) and second to the permanent
reduction of the Revolving Credit Commitments. The application of prepayments
referred to in the preceding sentence shall be made first to Alternate Base
Rate Loans and second to Eurodollar Loans. Each mandatory prepayment of the
Term Loans pursuant to this subsection 2.12(g) shall be applied to the
remaining installments thereof in accordance with subsection 2.12(d). To the
extent that after giving effect to any prepayment of the Loans required by the
preceding sentence, the sum of the Revolving Credit Loans, Swing Line Loans and
Letter of Credit Outstandings exceed the lesser of (i) the Borrowing Base and
(ii) the Revolving Credit Commitments as then reduced, the Borrower shall,
without notice or demand, immediately cash collateralize the then outstanding
L/C Obligations in an amount equal to such excess upon terms reasonably
satisfactory to the Administrative Agent.
(h) If there shall be any reduction in the price under any of the
Acquisition Documents or the Camden Acquisition Documents (other than (i) an
adjustment due to
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47
working capital adjustments as contemplated by the Acquisition Documents or the
Camden Acquisition Documents, as the case may be, or (ii) any reduction in the
purchase price which is due to a breach of any covenant, representation or
warranty in any Acquisition Agreement or Camden Acquisition Document, as the
case may be, by any party thereto other than the Borrower which, due to such
party's refusal or other failure to cure, is cured with such reduction)
pursuant to the terms thereof, then on the same Business Day as the Borrower
receives any payment in respect thereof, the Borrower shall, unless the
Required Lenders and the Borrower shall otherwise agree, repay the Loans in the
amount of such reduction to be applied first to the Term Loans in accordance
with subsection 2.12(d) and second to the permanent reduction of the Revolving
Credit Commitments. The application of prepayments referred to in the
preceding sentence shall be made first to Alternate Base Rate Loans and second
to Eurodollar Loans. Each mandatory prepayment of the Term Loans pursuant to
this subsection 2.12(h) shall be applied to the remaining installments thereof
in accordance with subsection 2.12(d). To the extent that after giving effect
to any prepayment of the Loans required by the preceding sentence, the sum of
the Revolving Credit Loans, Swing Line Loans and Letter of Credit Outstandings
exceed the lesser of (i) the Borrowing Base and (ii) the Revolving Credit
Commitments as then reduced, the Borrower shall, without notice or demand,
immediately cash collateralize the then outstanding L/C Obligations in an
amount equal to such excess upon terms reasonably satisfactory to the
Administrative Agent.
(i) The provisions of this subsection 2.12 shall not be in derogation
of any other covenant or obligation of the Borrower and its Subsidiaries under
the Loan Documents and shall not be construed as a waiver of, or a consent to
departure from, any such covenant or obligation.
(j) Notwithstanding the foregoing provisions of this subsection 2.12,
if at any time the mandatory prepayment of the Term Loans pursuant to this
Agreement would result, after giving effect to the procedures set forth in this
Agreement, in the Borrower incurring breakage costs and other Eurodollar Loans
related costs under subsection 4.6, 4.7 or 4.8 as a result of Eurodollar Loans
being prepaid other than on the last day of an Interest Period applicable
thereto ("Affected Eurodollar Loans") which breakage costs are required to be
paid pursuant to subsection 4.9, then, the Borrower may so long as no Default
or Event of Default shall have occurred and be continuing, in its sole
discretion, initially deposit a portion (up to 100%) of the amounts that
otherwise would have been paid in respect to the Affected Eurodollar Loans with
the Administrative Agent (which deposit must be equal in amount to the amount
of Affected Eurodollar Loans not immediately prepaid) to be held as security
for the obligations of the Borrower to make such mandatory prepayment pursuant
to a cash collateral agreement to be entered into in form and substance
reasonably satisfactory to the Administrative Agent, with such cash collateral
to be directly applied upon the first occurrence (or occurrences) thereafter of
the last day of an Interest Period applicable to the relevant Term Loan that is
a Eurodollar Loan (or such earlier date or dates as shall be requested by the
Borrower), to repay an aggregate principal amount of such Term Loan equal to
the Affected Eurodollar Loans not initially repaid pursuant to this sentence.
2.13 Conversion and Continuation Options. (a) The Borrower may elect
from time to time to convert Eurodollar Loans to Alternate Base Rate Loans, by
giving the Administrative Agent at least two Business Days' prior irrevocable
notice of such election,
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48
provided that, unless the Borrower elects to deposit with the Administrative
Agent the amount of any breakage costs and other Eurodollar Loan related costs
to be incurred by the Borrower under this Agreement with respect to the
prepayment or conversion of such Eurodollar Loan prior to the end of an
Interest Period, any such conversion of Eurodollar Loans may only be made on
the last day of an Interest Period with respect thereto. The Borrower may
elect from time to time to convert Alternate Base Rate Loans to Eurodollar
Loans by giving the Administrative Agent at least three Business Days' prior
irrevocable notice of such election. Any such notice of conversion to
Eurodollar Loans shall specify the length of the initial Interest Period or
Interest Periods therefor. Upon receipt of any such notice the Administrative
Agent shall promptly notify each Term Loan Lender or Revolving Credit Lender,
as the case may be, thereof. All or any part of outstanding Eurodollar Loans
and Alternate Base Rate Loans may be converted as provided herein, provided
that (i) no Alternate Base Rate Loan may be converted into a Eurodollar Loan
when any Default or 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 and (ii) any such conversion may only be made if,
after giving effect thereto, subsection 2.14 shall not have been contravened.
(b) Any Eurodollar Loans may be continued as such upon the expiration
of the then current Interest Period with respect thereto by the Borrower giving
notice to the Administrative Agent, in accordance with the applicable
provisions of the term "Interest Period" set forth in subsection 1.1, of the
length of the next Interest Period to be applicable to such Loans, provided
that no Eurodollar Loan may be continued as such (i) 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 or (ii) if,
after giving effect thereto, subsection 2.14 would be contravened and provided,
further, that if the Borrower shall fail to give any required notice as
described above in this paragraph or if such continuation is not permitted
pursuant to the preceding proviso such Eurodollar Loans shall be automatically
converted to Alternate Base Rate Loans on the last day of such then expiring
Interest Period.
2.14 Minimum Amounts 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 Eurodollar Tranche shall be equal to $1,000,000 or a whole
multiple of $250,000 in excess thereof and so that there shall not be more than
15 Eurodollar Tranches at any one time outstanding.
2.15 Swing Line Commitment. (a) Subject to the terms and conditions
hereof, the Swing Line Lender agrees to make swing line loans (individually, a
"Swing Line Loan"; collectively, the "Swing Line Loans") to the Borrower from
time to time during the Revolving Credit Commitment Period in an aggregate
principal amount at any one time outstanding not to exceed $12,500,000,
provided that at no time may the sum of the Swing Line Loans, the Revolving
Credit Loans and Letter of Credit Outstandings exceed the lesser of (i) the
Revolving Credit Commitments less the amount of any commitment in respect of
any working capital facility described in subsection 8.2(i)(iii) and (ii) the
Borrowing Base then in effect. During the Revolving Credit Commitment Period,
the Borrower may use the
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49
Swing Line Commitment by borrowing, prepaying the Swing Line Loans in whole or
in part, and reborrowing, all in accordance with the terms and conditions
hereof. All Swing Line Loans shall be made as Alternate Base Rate Loans and
shall not be entitled to be converted into Eurodollar Loans. The Borrower
shall give the Swing Line Lender irrevocable notice (which notice must be
received by the Swing Line Lender prior to 12:00 Noon, New York City time) on
the requested Borrowing Date specifying the amount of the requested Swing Line
Loan which shall be in an aggregate minimum amount of $150,000 or a whole
multiple of $25,000 in excess thereof. The proceeds of the Swing Line Loan
will be made available by the Swing Line Lender to the Borrower at the office
of the Swing Line Lender by 3:00 p.m. on the Borrowing Date by crediting the
account of the Borrower at such office with such proceeds. The Borrower may at
any time and from time to time, prepay the Swing Line Loans, in whole or in
part, without premium or penalty, by notifying the Swing Line Lender prior to
12:00 Noon on any Business Day of the date and amount of prepayment. If any
such notice is given, the amount specified in such notice shall be due and
payable on the date specified therein. Partial prepayments shall be in an
aggregate principal amount of $150,000 or a whole multiple of $25,000 in excess
thereof.
(b) The Borrower agrees that, upon the request to the Administrative
Agent by the Swing Line Lender, in order to evidence the Swing Line Loans the
Borrower will execute and deliver to the Swing Line Lender a promissory note
substantially in the form of Exhibit A-5, with appropriate insertions (as the
same may be amended, supplemented, replaced or otherwise modified from time to
time, the "Swing Line Note"), payable to the order of the Swing Line Lender and
representing the obligation of the Borrower to pay the amount of the Swing Line
Commitment or, if less, the unpaid principal amount of the Swing Line Loans,
with interest thereon as prescribed in subsection 4.1. The Swing Line Lender
is hereby authorized to record the Borrowing Date, the amount of each Swing
Line Loan and the date and amount of each payment or prepayment of principal
thereof, on the schedule annexed to and constituting a part of the Swing Line
Note and any such recordation shall, in the absence of manifest error,
constitute prima facie evidence of the accuracy of the information so recorded,
provided that the failure by the Swing Line Lender to make any such recordation
shall not affect any of the obligations of the Borrower under such Swing Line
Note or this Agreement. Any Swing Line Note shall (a) be dated the Closing
Date, (b) be stated to mature on the Revolving Credit Commitment Termination
Date and (c) bear interest for the period from the date thereof until paid in
full on the unpaid principal amount thereof from time to time outstanding at
the applicable interest rate per annum determined as provided in, and payable
as specified in, subsection 4.1.
(c) The Swing Line Lender, at any time in its sole and absolute
discretion may, on behalf of the Borrower (which hereby irrevocably directs the
Swing Line Lender to act on its behalf) request each Revolving Credit Lender
including the Swing Line Lender, to make a Revolving Credit Loan in an amount
equal to such Lender's Revolving Credit Commitment Percentage of the amount of
the Swing Line Loans outstanding on the date such notice is given (the
"Refunded Swing Line Loans"). Unless any of the events described in paragraph
(f) of Section 9 shall have occurred with respect to the Borrower (in which
event the procedures of paragraph (e) of this subsection 2.15 shall apply) each
Revolving Credit Lender shall make the proceeds of its Revolving Credit Loan
available to the Administrative Agent for the account of the Swing Line Lender
at the office of the Administrative Agent
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specified in subsection 12.2 prior to 12:00 Noon (New York City time) in funds
immediately available on the Business Day next succeeding the date such notice
is given. The proceeds of such Revolving Credit Loans shall be immediately
applied to repay the Refunded Swing Line Loans. Effective on the day such
Revolving Credit Loans are made, the portion of the Swing Line Loans so paid
shall no longer be outstanding as Swing Line Loans, shall no longer be due
under any Swing Line Note and shall be due under the respective Revolving
Credit Loans issued to the Revolving Credit Lenders in accordance with their
respective Revolving Credit Commitment Percentages. The Borrower authorizes
the Swing Line Lender to charge the Borrower's accounts with the Administrative
Agent (up to the amount available in each such account) in order to immediately
pay the amount of such Refunded Swing Line Loans to the extent amounts received
from the Revolving Credit Lenders are not sufficient to repay in full such
Refunded Swing Line Loans.
(d) Notwithstanding anything herein to the contrary, the Swing Line
Lender shall not be obligated to make any Swing Line Loans if the conditions
set forth in subsection 6.2 have not been satisfied.
(e) If prior to the making of a Revolving Credit Loan pursuant to
paragraph (c) of subsection 2.15 one of the events described in paragraph (f)
of Section 9 shall have occurred and be continuing with respect to the
Borrower, each Revolving Credit Lender will, on the date such Revolving Credit
Loan was to have been made pursuant to the notice in subsection 2.15(c),
purchase an undivided participating interest in the Refunded Swing Line Loan in
an amount equal to (i) its Revolving Credit Commitment Percentage times (ii)
the Refunded Swing Line Loans. Each Revolving Credit Lender will immediately
transfer to the Swing Line Lender, in immediately available funds, the amount
of its participation, and upon receipt thereof the Swing Line Lender will
deliver to such Revolving Credit Lender a Swing Line Loan Participation
Certificate dated the date of receipt of such funds and in such amount.
(f) Whenever, at any time after any Revolving Credit Lender has
purchased a participating interest in a Swing Line Loan, 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); 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.
(g) Each Revolving Credit Lender's obligation to make the Loans
referred to in subsection 2.15(c) and to purchase participating interests
pursuant to subsection 2.15(e) 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 or the Borrower may have against the Swing Line Lender, the
Borrower or any other Person for any reason whatsoever; (ii) the occurrence or
continuance of a Default or an Event of Default; (iii) any adverse change in
the condition (financial or otherwise) of the Borrower; (iv) any breach of this
Agreement or any other Loan Document
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by the Borrower, Holdings, any of their Subsidiaries or any other Lender; or
(v) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing.
SECTION 3. LETTERS OF CREDIT
3.1 The L/C Commitment. (a) Subject to the terms and conditions
hereof, the Issuing Lender, in reliance on the agreements of the other
Revolving Credit Lenders set forth in subsection 3.4(a), agrees to issue
Letters of Credit for the account of the Borrower, and Standby L/Cs for the
account of Camden solely to support its obligations with respect to the IRBs,
on any Business Day during the Revolving Credit Commitment Period in such form
as may be approved from time to time by the Issuing Lender; provided that no
Issuing Lender shall issue any Letter of Credit if, after giving effect to such
issuance, (i) the L/C Obligations would exceed $35,000,000 or (ii) the sum of
the Revolving Credit Loans, Swing Line Loans and Letter of Credit Outstandings
of all the Revolving Credit Lenders would exceed the lesser of (x) the
Revolving Credit Commitments less the amount of any commitment in respect of
any working capital facility described in subsection 8.2(i) (iii) of all the
Revolving Credit Lenders and (y) the Borrowing Base then in effect. Each
Letter of Credit shall (i) be either (x) a Standby L/C issued to support
obligations of the Borrower or any of its Subsidiaries, contingent or
otherwise, which finance the working capital and business needs of the Borrower
and its Subsidiaries incurred in the ordinary course of business, or (y) a
Trade L/C in respect of the purchase of goods or services by the Borrower or
any of its Subsidiaries in the ordinary course of business and (ii) expire no
later than the Revolving Credit Commitment Termination Date. No Standby L/C
shall have an expiry date more than 360 days after its date of issuance,
provided that a Standby L/C may be renewed for additional 360 day periods, but
may not be extended beyond the Revolving Credit Commitment Termination Date.
No Trade L/C shall have an expiry date more than 120 days after its issuance or
later than thirty days prior to the Revolving Credit Commitment Termination
Date. Each Letter of Credit shall be denominated in Dollars. No Letter of
Credit shall be issued for the account of Camden hereunder unless the Borrower
shall have executed and delivered the Borrower Guarantee.
(b) Each 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.
(c) The Issuing Lender shall not at any time be obligated to issue any
Letter of Credit hereunder if such issuance would conflict with, or cause the
Issuing Lender or any Participating Lender to exceed any limits imposed by, any
applicable Requirement of Law.
(d) Up to an aggregate face amount of $25,000,000 of Letters of Credit
may be issued only to support the obligations of the Borrower and/or Camden
with respect to the IRBs.
(e) Notwithstanding anything set forth herein to the contrary:
(i) Upon execution and delivery of the Borrower Guarantee,
Chemical Bank Irrevocable Standby Letter of Credit No. C-281929, dated
August 1, 1985, in favor
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of ▇▇▇▇▇▇▇ First National Bank of Pine Bluff, as trustee (the "Arkansas
Trustee") under the Indenture of Trust (the "Arkansas Indenture") dated
as of August 1, 1985, by the City of Pine Bluff, Arkansas to the
Arkansas Trustee (the "Arkansas IRB Letter of Credit") shall be deemed
to have been issued hereunder and be deemed to be a Letter of Credit for
all purposes hereof, provided that the Arkansas IRB Letter of Credit
shall be subject to the Uniform Customs and Practice for Documentary
Credits (1983 Revision), International Chamber of Commerce Publication
No. 400.
(ii) The Letter of Credit, Bond Purchase and Guaranty Agreement,
dated as of August 1, 1985, among Camden, Oneida and Chemical Bank, as
amended by the Amendment, dated as of February 12, 1997 (as so amended,
the "Arkansas IRB Letter of Credit Agreement"), shall be deemed to be
the Standby L/C Application (or a part thereof) for the Arkansas IRB
Letter of Credit and the obligations of Camden under the Arkansas
IRB Letter of Credit Agreement shall be deemed to be obligations of
Camden in respect of the Arkansas IRB Letter of Credit for all purposes
hereof.
(iii) In the event that the Issuing Lender is required to
purchase any Bonds (as defined in the Arkansas Letter of Credit
Agreement) pursuant to 2.1(b) of the Arkansas IRB Letter of Credit
Agreement, such purchase shall be deemed to be a drawing under the
Arkansas IRB Letter of Credit for all purposes hereof in an amount equal
to the aggregate price paid by the Issuing Lender for such Bonds
(including accrued interest) and each Participating Lender shall
participate in such drawing pursuant to subsection 3.4 hereof, provided
that Camden shall not be required to reimburse the Issuing Lender on the
date on which the Issuing Lender notifies Camden of such drawing as
provided in subsection 3.5 hereof. The amount of any such drawing shall
bear interest as provided in the Bonds and in paragraph (iv) below.
Upon the resale of such Bonds by the Issuing Lender, the Issuing Lender
shall distribute the proceeds of such resale as though such proceeds
were a reimbursement of such drawing. The Issuing Lender shall hold all
Bonds so purchased and all amounts received in respect of such Bonds for
the ratable benefit of each Participating Lender.
(iv) In the event that the Issuing Lender is required to
purchase any Bonds, Camden and the Borrower agree, jointly and
severally, to pay to the Issuing
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Lender, for the ratable benefit of the Participating Lenders, the Make-
up Premium (as defined below) for the period from date of the purchase
of such Bonds by the Issuing Lender to, and including, the date such
Bonds are resold by the Issuing Lender (the "Hold Period"). As used
herein, the "Make-up Premium" shall mean an amount equal to the excess
of (x) the interest, calculated at the interest rate applicable to
Alternate Base Rate Loans during the Hold Period, which would be payable
on the aggregate purchase price of such Bonds during the Hold Period
over (y) the amount of interest actually received by the Issuing Lender
with respect to such Bonds during the Hold Period (including any accrued
interest received by the Issuing Lender upon resale of such Bonds).
3.2 Procedure for Issuance of Letters of Credit. The Borrower may from
time to time request that the Issuing Lender issue a Letter of Credit by
delivering to the Issuing Lender and the Administrative Agent at their
respective addresses for notices specified herein a commercial letter of credit
application in the Issuing Lender's then customary form (a "Trade L/C
Application") or a standby letter of credit application in the Issuing Lender's
then customary form (a "Standby L/C Application"), as the case may be, in each
case completed to the satisfaction of the Issuing Lender, and such other
certificates, documents and other papers and information as may be customary
for letters of credit of the kind being requested and as the Issuing Lender may
reasonably request. Upon receipt of any Letter of Credit Application, the
Issuing Lender will process such Letter of Credit Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and, upon
receipt by the Issuing Lender of confirmation from the Administrative Agent
that issuance of such Letter of Credit will not contravene subsection 3.1, the
Issuing Lender shall promptly issue the Letter of Credit requested thereby (but
in no event shall the Issuing Lender be required to issue any Letter of Credit
earlier than three Business Days after its receipt of the Letter of Credit
Application therefor and all such other certificates, documents and other
papers and information relating thereto) by issuing the original of such Letter
of Credit to the beneficiary thereof or as otherwise may be agreed by the
Issuing Lender and the Borrower. The Issuing Lender shall furnish a copy of
such Letter of Credit to the Borrower and the Administrative Agent promptly
following the issuance thereof.
3.3 Fees, Commissions and Other Charges. (a) (i) The Borrower shall
pay to the Administrative Agent, for the account of the Issuing Lender and the
Participating Lenders, a letter of credit commission with respect to each
Letter of Credit, in an amount equal to the Applicable Margin applicable to
Revolving Credit Loans bearing interest at the Eurodollar Rate of the average
daily face amount of such Letter of Credit, payable quarterly in arrears on the
last day of each March, June, September and December and on the Revolving
Credit Commitment Termination Date. A portion of such commission equal to 1/4
of 1% of the average daily face amount of such Letter of Credit shall be
payable to the Issuing Lender for its own account, and the remaining portion of
such commission shall be payable to the Issuing Lender and the Revolving Credit
Lenders to be shared ratably among them in accordance with their respective
Revolving Credit Commitment Percentages. Such commissions shall be
nonrefundable.
(b) In addition to the foregoing fees and commissions, the Borrower
shall pay or reimburse the Issuing Lender for such normal and customary costs
and expenses as are incurred or charged by the Issuing Lender in issuing,
effecting payment under, amending or otherwise administering any Letter of
Credit.
(c) The Administrative Agent shall, promptly following its receipt
thereof, distribute to the Issuing Lender and the Participating Lenders all
fees and commissions received by the Administrative Agent for their respective
accounts pursuant to this subsection.
3.4 L/C Participations. (a) Effective on the date of issuance of each
Letter of Credit, the Issuing Lender irrevocably agrees to grant and hereby
grants to each Participating Lender, and each Participating Lender irrevocably
agrees to accept and purchase and hereby accepts and purchases from the Issuing
Lender, on the terms and conditions hereinafter stated, for such Participating
Lender's own account and risk an undivided interest equal to such Participating
Lender's Revolving Credit Commitment Percentage in the Issuing Lender's
obligations and rights under each Letter of Credit issued by the Issuing
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Lender and the amount of each draft paid by the Issuing Lender thereunder.
Each Participating Lender unconditionally and irrevocably agrees with the
Issuing Lender that, if a draft is paid under any Letter of Credit for which
such Issuing Lender is not reimbursed in full by the Borrower or Camden, as the
case may be, in accordance with the terms of this Agreement, such Participating
Lender shall pay to the Administrative Agent, for the account of the Issuing
Lender, upon demand at the Administrative Agent's address specified in
subsection 12.2, an amount equal to such Participating Lender's Revolving
Credit Commitment Percentage of the amount of such draft, or any part thereof,
which is not so reimbursed. On the date that any Assignee becomes a Revolving
Credit Lender party to this Agreement in accordance with subsection 12.6,
participating interests in any outstanding Letters of Credit held by the
transferor Lender from which such Assignee acquired its interest hereunder
shall be proportionately reallotted between such Assignee and such transferor
Lender. Each Participating Lender hereby agrees that its obligation to
participate in each Letter of Credit, and to pay or to reimburse the Issuing
Lender for its participating share of the drafts drawn or amounts otherwise
paid thereunder, is absolute, irrevocable and unconditional and shall not be
affected by any circumstances whatsoever (including, without limitation, the
occurrence or continuance of any Default or Event of Default), and that each
such payment shall be made without offset, abatement, withholding or other
reduction whatsoever.
(b) If any amount required to be paid by any Participating Lender to the
Issuing Lender pursuant to subsection 3.4(a) in respect of any unreimbursed
portion of any draft paid by the Issuing Lender under any Letter of Credit is
not paid to the Issuing Lender within three Business Days after the date such
payment is due, such Participating Lender shall pay to the Administrative
Agent, for the account of the Issuing Lender, on demand, an amount equal to the
product of (i) such amount, times (ii) the daily average Federal Funds
Effective Rate during the period from and including the date such payment is
required to the date on which such payment is immediately available to the
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 Participating Lender pursuant to
subsection 3.4(a) is not in fact made available to the Administrative Agent,
for the account of the Issuing Lender, by such Participating Lender within
three Business Days after the date such payment is due, the Issuing Lender
shall be entitled to recover from such Participating Lender, on demand, such
amount with interest thereon calculated from such due date at the rate per
annum applicable to Alternate Base Rate Loans hereunder. A certificate of the
Issuing Lender submitted to any Participating Lender with respect to any
amounts owing under this subsection shall be conclusive in the absence of
manifest error.
(c) Whenever, at any time after the Issuing Lender has paid a draft
under any Letter of Credit and has received from any Participating Lender its
pro rata share of such payment in accordance with subsection 3.4(a), the
Issuing Lender receives any reimbursement on account of such unreimbursed
portion, or any payment of interest on account thereof, the Issuing Lender will
pay to the Administrative Agent, for the account of such Participating Lender,
its pro rata share thereof; provided, however, that in the event that any such
payment received by the Issuing Lender shall be required to be returned by the
Issuing
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Lender, such Participating Lender shall return to the Administrative
Agent for the account of the Issuing Lender, the portion thereof previously
distributed to it.
3.5 Reimbursement Obligation of the Borrower. Each of the Borrower and
Camden, as the case may be, agrees to reimburse the Issuing Lender on each date
on which the Issuing Lender notifies the Borrower of the date and amount of a
draft presented under any Letter of Credit and paid by the Issuing Lender for
the amount of (a) such draft so paid and (b) any taxes, fees, charges or other
costs or expenses incurred by the Issuing Lender in connection with such
payment. Each such payment shall be made to the Issuing Lender at its address
for notices specified herein in lawful money of the United States of America
and in immediately available funds. Interest shall be payable on any and all
amounts remaining unpaid by the Borrower or Camden, as the case may be, under
this subsection from the date such amounts become payable in accordance with
the first sentence of this subsection 3.5 until payment in full, at the rate
which would be payable on Alternate Base Rate Loans at such time.
3.6 Obligations Absolute. Each of the Borrower's and Camden's
obligations under this Section 3 shall be absolute and unconditional under any
and all circumstances and irrespective of any set-off, counterclaim or defense
to payment which the Borrower, Camden or any other Person may have or have had
against the Issuing Lender or any other Lender or any beneficiary of a Letter
of Credit. Each of the Borrower and Camden also agrees with the Issuing Lender
that the Issuing Lender shall not be responsible for, and the Borrower's and
Camden's obligations under subsection 3.5 shall not be affected by, among other
things, 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 any dispute between or among the Borrower or Camden,
as the case may be, and any beneficiary of any Letter of Credit or any other
party to which such Letter of Credit may be transferred or any claims
whatsoever of the Borrower or Camden, as the case may be, against any
beneficiary of such Letter of Credit or any such transferee. The Issuing
Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions caused by the Issuing Lender's gross negligence or willful
misconduct. Each of the Borrower and Camden agrees that any action taken or
omitted by the Issuing Lender under or in connection with any Letter of Credit
or the related drafts or documents, if done in the absence of gross negligence
or willful misconduct and in accordance with the standards of care specified in
the Uniform Commercial Code of the State of New York, including, without
limitation, Article V thereof, shall be binding on the Borrower and Camden and
shall not result in any liability of such Issuing Lender to the Borrower or
Camden.
3.7 Letter of Credit Payments. If any draft shall be presented for
payment under any Letter of Credit, the Issuing Lender shall promptly notify
the Borrower and the Administrative Agent of the date and amount thereof. The
responsibility of the Issuing Lender to the Borrower or Camden, as the case may
be, in connection with any draft presented for payment under any Letter of
Credit shall, in addition to any payment obligation expressly provided for in
such Letter of Credit, be limited to determining that the documents (including
each draft) delivered under such Letter of Credit in connection with such
presentment are in conformity with such Letter of Credit.
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3.8 Letter of Credit Applications. To the extent that any provision of
any Letter of Credit Application, including any reimbursement provisions
contained therein, related to any Letter of Credit is inconsistent with the
provisions of this Section 3, the provisions of this Section 3 shall prevail.
SECTION 4. GENERAL PROVISIONS
4.1 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall
bear interest for each day during each Interest Period with respect thereto at
a rate per annum equal to the Eurodollar Rate determined for such day plus the
Applicable Margin.
(b) Each Alternate Base Rate Loan shall bear interest at a rate per
annum equal to the Alternate Base Rate plus the Applicable Margin.
(c) Upon the occurrence and during the continuance of any Event of
Default specified in subsection 9(a), the Loans and any overdue amounts
hereunder shall bear interest at a rate per annum which is (x) in the case of
the Loans, the rate that would otherwise be applicable thereto pursuant to the
foregoing provisions of this subsection plus 2% or (y) in the case of overdue
interest, commitment fee or other amount, the rate described in paragraph (b)
of this subsection plus 2%.
(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.
4.2 Computation of Interest and Fees. (a) Interest on Alternate Base
Rate Loans, commitment fees, interest on overdue interest, commitment fees and
other amounts payable hereunder and interest on Eurodollar Loans shall be
calculated on the basis of a 360-day year for the actual days elapsed. The
Administrative Agent shall as soon as practicable notify the Borrower and the
Revolving Credit Lenders or the Term Loan Lenders, as the case may be, of each
determination of a Eurodollar Rate. Any change in the interest rate on a Loan
resulting from a change in the Alternate Base Rate or the Eurocurrency Reserve
Requirements shall become effective as of the opening of business on the day on
which such change becomes effective. The Administrative Agent shall as soon as
practicable notify the Borrower and the Revolving Credit Lenders or the Term
Loan Lenders, as the case may be, 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 Borrower and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to subsection 4.1(a) or (c).
4.3 Inability to Determine Interest Rate. If prior to the first day of
any Interest Period:
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(a) the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrower) that,
by reason of circumstances affecting the relevant market, adequate and
reasonable means do not exist for ascertaining the Eurodollar Rate for
such Interest Period, or
(b) the Administrative Agent shall have received notice from the
Required Lenders that the Eurodollar Rate determined or 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 Borrower and the Lenders as soon as practicable thereafter. If such notice
is given (x) any Eurodollar Loans requested to be made on the first day of such
Interest Period shall be made as Alternate Base Rate Loans, (y) any Loans that
were to have been converted on the first day of such Interest Period to
Eurodollar Loans shall be converted to or continued as Alternate Base Rate
Loans and (z) any outstanding Eurodollar Loans shall be converted, on the first
day of such Interest Period, to Alternate Base Rate Loans. Until such notice
has been withdrawn by the Administrative Agent (which the Administrative Agent
agrees to do when the circumstances that prompted the delivery of such notice
no longer exist), no further Eurodollar Loans shall be made or continued as
such, nor shall the Borrower have the right to convert Loans to Eurodollar
Loans.
4.4 Pro Rata Treatment and Payments. (a) Each borrowing, conversion
or continuation pursuant to subsection 2.13, of Loans (other than Swing Line
Loans) by the Borrower from the Lenders and any reduction of the Commitments of
the Lenders hereunder shall be made pro rata according to the respective
principal amounts of such Loans held by the Lenders or the respective
Commitment Percentages of the Lenders, as the case may be.
(b) Whenever (i) any payment received by the Administrative Agent under
this Agreement or any Note or (ii) any other amounts received by the
Administrative Agent for or on behalf of the Borrower (including, without
limitation, proceeds of collateral or payments under any guarantee) is
insufficient to pay in full all amounts then due and payable to the
Administrative Agent and the Lenders under this Agreement and any Note, such
payment shall be distributed by the Administrative Agent and applied by the
Administrative Agent and the Lenders in the following order: First, to the
payment of fees and expenses due and payable to the Administrative Agent under
and in connection with this Agreement; Second, to the payment of all expenses
due and payable under subsection 12.5, ratably among the Administrative Agent
and the Lenders in accordance with the aggregate amount of such payments owed
to the Administrative Agent and each such Lender; Third, to the payment of fees
due and payable under subsections 2.4 and 3.3(a), ratably among the Revolving
Credit Lenders in accordance with the Revolving Credit Commitment Percentage of
each Revolving Credit Lender and, in the case of the Issuing Lender, the amount
retained by the Issuing Lender for its own account pursuant to subsection
3.3(a); Fourth, to the payment of interest then due and payable under the
Loans, ratably in accordance with the aggregate amount of interest owed to each
such Lender; and Fifth, to the payment of the principal amount of the Loans and
the L/C Obligations then due and payable and, in the case
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of proceeds of collateral or payments under any guarantee, to the payment of
any other obligations to any Lender not covered in First through Fourth above
ratably secured by such collateral or ratably guaranteed under any such
guarantee, ratably among the Lenders in accordance with the aggregate principal
amount and, in the case of proceeds of collateral or payments under any
guarantee, the obligations secured or guaranteed thereby owed to each such
Lender.
(c) If any Revolving Credit Lender (a "Non-Funding Lender") has (x)
failed to make a Revolving Credit Loan required to be made by it hereunder, and
the Administrative Agent has determined that such Revolving Credit Lender is
not likely to make such Revolving Credit Loan or (y) given notice to the
Borrower or the Administrative Agent that it will not make, or that it has
disaffirmed or repudiated any obligation to make, any Revolving Credit Loans,
in each case by reason of the provisions of the Financial Institutions Reform,
Recovery and Enforcement Act of 1989, as amended, or otherwise, any payment
made on account of the principal of the Revolving Credit Loans outstanding
shall be made as follows:
(i) in the case of any such payment made on any date when and to
the extent that, in the determination of the Administrative Agent, the
Borrower would be able, under the terms and conditions hereof, to
reborrow the amount of such payment under the Revolving Credit
Commitments and to satisfy any applicable conditions precedent set forth
in subsection 6.2 to such reborrowing, such payment shall be made on
account of the outstanding Revolving Credit Loans held by the Revolving
Credit Lenders other than the Non-Funding Lender pro rata according to
the respective outstanding principal amounts of the Revolving Credit
Loans of such Revolving Credit Lenders;
(ii) otherwise, such payment shall be made on account of the
outstanding Revolving Credit Loans held by the Revolving Credit Lenders
pro rata according to the respective outstanding principal amounts of
such Revolving Credit Loans; and
(iii) any payment made on account of interest on the Revolving
Credit Loans shall be made pro rata according to the respective amounts
of accrued and unpaid interest due and payable on the Revolving Credit
Loans with respect to which such payment is being made.
The Borrower agrees to give the Administrative Agent such assistance in making
any determination pursuant to this paragraph as the Administrative Agent may
reasonably request. Any such determination by the Administrative Agent shall
be conclusive and binding on the Lenders.
(d) All payments (including prepayments) to be made by the Borrower on
account of principal, interest and fees shall be made without set-off or
counterclaim and shall be made to the Administrative Agent, for the account of
the Lenders at the Administrative Agent's office located at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, in lawful money of the United States of America and
in immediately available funds. The Administrative Agent shall promptly
distribute such payments in accordance with the provisions of subsection 4.4(b)
promptly upon receipt in like funds as received. If any payment hereunder
(other
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than payments on the Eurodollar Loans) would become due and payable on a day
other than a Business Day, such payment shall become due and payable on the
next succeeding Business Day and, with respect to payments of principal,
interest thereon shall be payable at the applicable rate during such extension.
If any payment on a Eurodollar Loan becomes due and payable on a day other than
a Business Day, the maturity thereof 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), unless the
result of such extension would be to extend such payment into another calendar
month in which event such payment shall be made on the immediately preceding
Business Day.
(e) Unless the Administrative Agent shall have been notified in writing
by any Lender prior to a Borrowing Date that such Lender will not make the
amount that would constitute its relevant Commitment Percentage of the
borrowing on such date available to the Administrative Agent, the
Administrative Agent may assume that such Lender has made such amount available
to the Administrative Agent on such Borrowing Date, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such amount is made available to the Administrative
Agent on a date after such Borrowing Date, such Lender shall pay to the
Administrative Agent on demand an amount equal to the product of (i) the daily
average Federal Funds Effective Rate during such period, times (ii) the amount
of such Lender's relevant Commitment Percentage of such borrowing, times (iii)
a fraction the numerator of which is the number of days that elapse from and
including such Borrowing Date to the date on which such Lender's relevant
Commitment Percentage of such borrowing shall have become immediately available
to the Administrative Agent and the denominator of which is 360. A certificate
of the Administrative Agent submitted to any Lender with respect to any amounts
owing under this subsection shall be conclusive in the absence of manifest
error. If such Lender's relevant Commitment Percentage of such borrowing is
not in fact made available to the Administrative Agent by such Lender within
three Business Days of such Borrowing Date, the Administrative Agent shall be
entitled to recover such amount with interest thereon at the rate per annum
applicable to Alternate Base Rate Loans hereunder, on demand, from the
Borrower. The failure of any Lender to make any Loan to be made by it shall
not relieve any other Lender of its obligation, if any, hereunder to make its
Loan on such Borrowing Date, but no Lender shall be responsible for the failure
of any other Lender to make the Loan to be made by such other Lender on such
Borrowing Date.
4.5 Borrowing Base Compliance. Throughout the Revolving Credit
Commitment Period the Borrower will deliver to the Administrative Agent
certificates of a Responsible Officer of the Borrower setting forth the amount
of accounts receivable and inventory of the Borrower and its subsidiaries as
shown on the consolidated balance sheet of the Borrower and its Subsidiaries
within 15 Business Days after the end of each month. If the Borrower is not in
compliance with the requirements in respect of the Borrowing Base, the
Administrative Agent shall promptly notify the Borrower and the Lenders of such
noncompliance and the Borrower shall immediately (and in any event within one
Business Day of receipt of such notice) make all mandatory prepayments required
pursuant to subsection 2.12(e). The Administrative Agent shall be obligated to
rely on each certificate delivered hereunder in its determination of the
Borrowing Base by the Administrative Agent and such certificate shall
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remain in effect until notice of a redetermined Borrowing Base shall have been
given by the Administrative Agent in accordance with the provisions of this
subsection 4.5.
4.6 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
Eurodollar Loans as contemplated by this Agreement, (a) the commitment of such
Lender hereunder to make Eurodollar Loans, continue Eurodollar Loans as such
and convert Alternate Base Rate Loans to Eurodollar Loans shall forthwith be
cancelled and (b) such Lender's Loans then outstanding as Eurodollar Loans, if
any, shall be converted automatically to Alternate Base Rate Loans 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; provided that before
making any such demand, each Lender agrees to 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, in its reasonable
discretion, in any legal, economic or regulatory manner) to designate a
different lending office if the making of such a designation would allow the
Lender or its lending office to continue to perform its obligations to make
Eurodollar Loans and avoid the need for, or materially reduce the amount of,
such increased cost. If any such conversion of a Eurodollar Loan occurs on a
day which is not the last day of the then current Interest Period with respect
thereto, the Borrower shall pay to such Lender such amounts, if any, as may be
required pursuant to subsection 4.9. If circumstances subsequently change so
that any affected Lender shall determine that it is no longer so affected, such
Lender will promptly notify the Borrower and the Administrative Agent, and upon
receipt of such notice, the obligations of such Lender to make or continue
Eurodollar Loans or to convert Alternate Base Rate Loans into Eurodollar Loans
shall be reinstated.
4.7 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 Loan, any Note, any Letter of Credit or
any Letter of Credit Application or change the basis of taxation of
payments to such Lender in respect thereof (except for taxes covered by
subsection 4.8 and the establishment of a tax based on the overall net
income of such Lender or changes in the rate of tax on the overall net
income of such Lender);
(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 (including, without limitation, letters of
credit) by, or any other acquisition of funds by, any office of such
Lender; or
(iii) shall impose on such Lender any other condition;
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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 Eurodollar Loans or to increase the cost to
such Lender, by an amount which such Lender deems to be material, of issuing or
maintaining any Letter of Credit or participation therein or to reduce any
amount receivable hereunder in respect thereof, then, in any such case, the
Borrower shall promptly pay such Lender, upon its demand, any additional
amounts necessary to compensate such Lender for such increased cost or reduced
amount receivable, provided that before making any such demand, each Lender
agrees to 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, in its reasonable discretion, in any legal, economic or
regulatory manner) to designate a different Eurodollar lending office if the
making of such designation would allow the Lender or its Eurodollar lending
office to continue to perform its obligations to make Eurodollar Loans or to
continue to fund or maintain Eurodollar Loans and avoid the need for, or
materially reduce the amount of, such increased cost. If any Lender becomes
entitled to claim any additional amounts pursuant to this subsection, it shall
promptly notify (in any event no later than 90 days after such Lender becomes
entitled to make such claim) the Borrower, through 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 submitted by such
Lender, through the Administrative Agent, to the Borrower shall be conclusive
in the absence of manifest error. If the Borrower so notifies the
Administrative Agent within five Business Days after any Lender notifies the
Borrower of any increased cost pursuant to the foregoing provisions of this
subsection 4.7, the Borrower may convert all Eurodollar Loans of such Lender
then outstanding into Alternate Base Rate Loans in accordance with subsection
2.13 and, additionally, reimburse such Lender for any cost in accordance with
subsection 4.9. This covenant shall survive the termination of this Agreement
and the payment of the Notes and all other amounts payable hereunder for nine
months following such termination and repayment.
(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 does or 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 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, after submission by such
Lender to the Borrower (with a copy to the Administrative Agent) of a prompt
written request therefor, the Borrower shall pay to such Lender such additional
amount or amounts as will compensate such Lender for such reduction. This
covenant shall survive the termination of this Agreement and the payment of any
Notes and all other amounts payable hereunder for nine months following such
termination and repayment.
4.8 Taxes. (a) Except as provided below in this subsection, all
payments made by the Borrower under this Agreement and any Notes shall be made
free and clear of, and
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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 assessed by any Governmental Authority, excluding net income taxes
and franchise taxes imposed in lieu of net income taxes. 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 Notes, 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 and any Notes, provided, however, that the Borrower shall be
entitled to deduct and withhold any Non-Excluded Taxes and shall not be
required to increase any such amounts payable to any Lender that is not
organized under the laws of the United States of America or a state thereof if
such Lender fails or is unable to comply with the requirements of paragraph (b)
of this subsection. Whenever any Non-Excluded Taxes are payable by the
Borrower, as promptly as possible thereafter the 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
the Borrower showing payment thereof. If the 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, the 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 for a
period of nine months thereafter.
(b) Each Lender that is not incorporated under the laws of the United
States of America or a state thereof shall:
(i) (x) on or before the date of any payment by the Borrower
under this Agreement or any Notes to such Lender, deliver to the
Borrower and the Administrative Agent (A) two duly completed copies of
United States Internal Revenue Service Form 1001 or 4224, or successor
applicable form, as the case may be, certifying that it is entitled to
receive payments under this Agreement and any Notes without any
deduction or withholding of any United States federal income taxes and
(B) a duly completed Internal Revenue Service Form W-8 or W-9, or
successor applicable form, as the case may be, certifying that it is
entitled to an exemption from United States backup withholding tax;
(y) deliver to the Borrower 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 Borrower; and
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(z) obtain such extensions of time for filing and complete
such forms or certifications as may reasonably be requested by the
Borrower or the Administrative Agent; or
(ii) in the case of any such Lender that is not a "bank" within
the meaning of Section 881(c)(3)(A) of the Code and that does not comply
with sub-paragraph (i) of this paragraph (b), (x) represent to the
Borrower (for the benefit of the Borrower and the Administrative Agent)
that it is not a bank within the meaning of Section 881(c)(3)(A) of the
Code, (y) deliver to the Borrower on or before the date of any payment
by the Borrower, with a copy to the Administrative Agent, (A) a
certificate stating that such Lender (1) is not a "bank" under Section
881(c)(3)(A) of the Code, is not subject to regulatory or other legal
requirements as a bank in any jurisdiction, and has not been treated as
a bank for purposes of any tax, securities law or other filing or
submission made to any Governmental Authority, any application made to a
rating agency or qualification for any exemption from tax, securities
law or other legal requirements, (2) is not a 10-percent shareholder
within the meaning of Section 881(c)(3)(B) of the Code and (3) is not a
controlled foreign corporation receiving interest from a related person
within the meaning of Section 881(c)(3)(C) of the Code (any such
certificate a "U.S. Tax Compliance Certificate") and (B) two duly
completed copies of Internal Revenue Service Form W-8, or successor
applicable form, certifying to such Lender's legal entitlement at
the date of such certificate to an exemption from U.S. withholding tax
under the provisions of Section 881(c) of the Code with respect to
payments to be made under this Agreement and any Notes (and to deliver
to the Borrower and the Administrative Agent two further copies of Form
W-8 on or before the date it expires or becomes obsolete and after the
occurrence of any event requiring a change in the most recently provided
form and, if necessary, obtain any extensions of time reasonably
requested by the Borrower or the Administrative Agent for filing and
completing such forms), and (z) agree, to the extent legally entitled to
do so, upon reasonable request by the Borrower, to provide to the
Borrower (for the benefit of the Borrower and the Administrative Agent)
such other forms as may be reasonably required in order to establish the
legal entitlement of such Lender to an exemption from withholding with
respect to payments under this Agreement and any Notes;
unless in any such case any change in treaty, law or regulation has occurred
after the date such Person becomes a Lender hereunder which renders any such
forms and certificates previously delivered by such Lender inapplicable or
which would prevent such Lender from duly completing and delivering such form
or certificate with respect to it and such Lender so advises the Borrower and
the Administrative Agent. Each Person that shall become a Lender or a
Participant pursuant to subsection 12.6 shall, upon the effectiveness of the
related transfer, be required to provide all of the forms, certifications and
statements required pursuant to this subsection; provided that in the case of a
Participant the obligations of such Participant pursuant to this paragraph (b)
shall be determined as if such Participant were a Lender except that such
Participant shall furnish all such required forms, certifications and
statements to the Lender from which the related participation shall have been
purchased.
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4.9 Indemnity. The 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) default by the Borrower in payment
when due of the principal amount of or interest on any Eurodollar Loan, (b)
default by the Borrower in making a borrowing of, conversion into or
continuation of Eurodollar Loans after the Borrower has given a notice
requesting the same in accordance with the provisions of this Agreement, (c)
default by the Borrower in making any prepayment after the Borrower has given a
notice thereof in accordance with the provisions of this Agreement or (d) the
making of a prepayment of Eurodollar Loans on a day which is not the last day
of an Interest Period with respect thereto, including, without limitation, in
each case, any such loss or expense (but excluding loss of margin) arising from
the reemployment of funds obtained by it or from fees payable to terminate the
deposits from which such funds were obtained. Calculation of all amounts
payable to a Lender under this subsection 4.9 shall be made as though such
Lender had actually funded its relevant Eurodollar Loan through the purchase of
a deposit bearing interest at the Eurodollar Rate in an amount equal to the
amount of such Eurodollar Loan and having a maturity comparable to the relevant
Interest Period; provided, however, that each Lender may fund each of its
Eurodollar Loans in any manner it sees fit, and the foregoing assumption shall
be utilized only for the calculation of amounts payable under this subsection
4.9. This covenant shall survive the termination of this Agreement and the
payment of any Notes and all other amounts payable hereunder for a period of
nine months thereafter.
4.10 Replacement of Lender. If at any time (a) the Borrower becomes
obligated to pay additional amounts described in subsections 4.6, 4.7 or 4.8 as
a result of any condition described in such subsections or any Lender ceases to
make Eurodollar Loans pursuant to subsection 4.6, (b) any Lender becomes
insolvent and its assets become subject to a receiver, liquidator, trustee,
custodian or other Person having similar powers, (c) any Lender becomes a
"Nonconsenting Lender" or (d) any Lender becomes a "Non-Funding Lender", then
the Borrower may, on ten Business Days' prior written notice to the
Administrative Agent and such Lender, replace such Lender by causing such
Lender to (and such Lender shall) assign pursuant to subsection 12.6(c) all of
its rights and obligations under this Agreement to a Lender or other entity
selected by the Borrower and acceptable to the Administrative Agent for a
purchase price equal to the outstanding principal amount of such Lender's Loans
and all accrued interest and fees and other amounts payable hereunder
(including amounts payable under subsection 4.9 as though such Loans were being
paid instead of being purchased); provided that (i) the Borrower shall have no
right to replace the Administrative Agent, (ii) neither the Administrative
Agent nor any Lender shall have any obligation to the Borrower to find a
replacement Lender or other such entity, (iii) in the event of a replacement of
a Nonconsenting Lender or a Lender to which the Borrower becomes
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obligated to pay additional amounts pursuant to clause (a) of this subsection
4.10, in order for the Borrower to be entitled to replace such a Lender, such
replacement must take place no later than 180 days after (A) the date the
Nonconsenting Lender shall have notified the Borrower and the Administrative
Agent of its failure to agree to any requested consent, waiver or amendment or
(B) the Lender shall have demanded payment of additional amounts under one of
the subsections described in clause (a) of this subsection 4.10, as the case
may be, and (iv) in no event shall the Lender hereby replaced be required to
pay or surrender to such replacement Lender or other entity any of the fees
received by such Lender hereby replaced pursuant to this Agreement. In the
case of a replacement of a Lender to which the Borrower becomes obligated to
pay additional amounts pursuant to clause (a) of this subsection 4.10, the
Borrower shall pay such additional amounts to such Lender prior to such Lender
being replaced and the payment of such additional amounts shall be a condition
to the replacement of such Lender. In the event that (x) the Borrower or the
Administrative Agent has requested the Lenders to consent to a departure or
waiver of any provisions of the Loan Documents or to agree to any amendment
thereto, (y) the consent, waiver or amendment in question requires the
agreement of all Lenders in accordance with the terms of subsection 12.1 and
(z) Required Lenders have agreed to such consent, waiver or amendment, then any
Lender who does not agree to such consent, waiver or amendment shall be deemed
a "Nonconsenting Lender." The Borrower's right to replace a Non-Funding Lender
pursuant to this subsection 4.10 is, and shall be, in addition to, and not in
lieu of, all other rights and remedies available to the Borrower against such
Non-Funding Lender under this Agreement, at law, in equity, or by statute.
SECTION 5. REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into this
Agreement, to make the Loans and to issue and participate in Letters of Credit
and to consent to the Camden Acquisition, the Credit Parties hereby represent
and warrant to the Administrative Agent and each Lender that:
5.1 Financial Condition. (a) The audited consolidated financial
statements of the Borrower and its Subsidiaries as of December 31, 1995,
reported on by Coopers & ▇▇▇▇▇▇▇, copies of which have heretofore been
furnished to each Lender, to the best knowledge of the Borrower, present fairly
in all material respects the consolidated financial position of the Borrower
and its Subsidiaries as at such dates, and the consolidated results of the
Borrower's operations and the Borrower's cash flows for the seven months then
ended. Such financial statements and the related schedules and notes thereto
have been prepared, to the best knowledge of the Borrower, 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). Neither the Borrower nor any of its Subsidiaries had, to
the best knowledge of the Borrower, as 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 and which, to the best knowledge
of the Borrower, has any reasonable likelihood of resulting in a material cost
or loss. During the period from December 31, 1995 to and including the date
hereof there has been, to the best knowledge of the Borrower, no sale, transfer
or other disposition by the Borrower or any of its Subsidiaries of any material
part of its business, or property and no purchase or other acquisition of any
business or property (including any capital stock of any other Person) material
in relation to the consolidated financial condition of the Borrower and its
Subsidiaries at December 31, 1995.
(b) The audited combined balance sheets of Albion, DAW, Hoosier and
Silicones at December 28, 1995 and the related statements of income, cash flows
and changes in
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shareholders equity for the fiscal year ended December 28, 1995, certified by
Coopers & ▇▇▇▇▇▇▇, copies of which have heretofore been furnished to each
Lender, to the best knowledge of the Borrower, present fairly in all material
respects the combined financial position of Dekko as at such date, and the
consolidated results of Dekko's operations and Dekko's cash flows for the
fiscal period then ended. All such financial statements and the related
schedules and notes thereto have been prepared, to the best knowledge of the
Borrower, in accordance with GAAP applied consistently throughout the periods
involved (except as approved by such accountants and as disclosed therein).
Neither the Borrower nor any of its Subsidiaries nor Dekko had, to the best
knowledge of the Borrower, as 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 and which, to the best knowledge of the
Borrower, has any reasonable likelihood of resulting in a material cost or
loss. During the period from December 28, 1995 to and including the Amendment
Closing Date there has been, to the best knowledge of the Borrower, no sale,
transfer or other disposition (other than the Acquisition) by Dekko of any
material part of its business, except as disclosed in or contemplated by the
Acquisition Documents, or property and no purchase or other acquisition of any
business or property (including any capital stock of any other Person) material
in relation to the consolidated financial condition of Dekko at December 28,
1995.
(c) The unaudited balance sheet of Camden for the fiscal years ended
January 29, 1994, January 28, 1995 and January 27, 1996 and for the ten-month
period ended November 23, 1996 and the related statements of income, cash flows
and changes in shareholders equity for such periods, copies of which have
heretofore been furnished to each Lender, to the best knowledge of the
Borrower, present fairly in all material respects the financial position of
Camden as at such dates, and the consolidated results of Camden's operations
and Camden's cash flows for the fiscal periods then ended. All such financial
statements have been prepared, to the best knowledge of the Borrower, in
accordance with GAAP applied consistently throughout the periods involved
(except as approved by such accountants and as disclosed therein). Camden had,
to the best knowledge of the Borrower, as at the date of the most recent
balance sheet referred to above, no 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 or any commodity hedge, which is
not reflected in the foregoing statements or in the notes thereto and which, to
the best knowledge of the Borrower, has any reasonable likelihood of resulting
in a material cost or loss. During the period from November 23, 1996 to and
including the Second Amendment Closing Date there has been, to the best
knowledge of the Borrower, no sale, transfer or other disposition by Camden
(other than the Camden Acquisition) of any material part of its business,
except as disclosed in or contemplated by the Camden Acquisition Documents, or
property and no purchase or other acquisition of any business or property
(including any capital stock of any other Person) material in relation to the
financial condition of Camden at November 23, 1996.
5.2 No Change. Since December 31, 1995, (a) there has been no
development or event which has had or could reasonably be expected to have a
Material Adverse Effect and
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(b) no dividends or other distributions have been declared, paid or made upon
the Capital Stock of the Credit Parties except as permitted hereby nor has any
of the Capital Stock of the Credit Parties been redeemed, retired, purchased or
otherwise acquired for value by the Credit Parties or any of their
Subsidiaries.
5.3 Corporate Existence; Compliance with Law. Holdings and each of its
Subsidiaries (a) is duly organized, validly existing and 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 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 so qualify 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 Affect.
5.4 Corporate Power; Authorization; Enforceable Obligations. Each
Credit Party has the corporate power and authority, and the legal right, to
make, deliver and perform this Agreement, any of the Notes, the other Loan
Documents to which it is a party and the Camden Acquisition Documents to which
it is a party and, with respect to the Borrower, to borrow hereunder and has
taken all necessary corporate action to authorize the borrowings on the terms
and conditions of, or the granting of any security interests under, this
Agreement, any of the Notes and the other Loan Documents and to authorize the
execution, delivery and performance of this Agreement, any of the Notes, the
other Loan Documents to which it is a party and the Camden Acquisition
Documents to which it is a party. 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, or the
granting of any security interests under, this Agreement, any of the Notes or
the other Loan Documents to which any Credit Party is a party or to the Camden
Acquisition Documents to which it is a party, except for those set forth on
Schedule 5.4, each of which have been made or taken and are in full force and
effect. This Agreement, any Note, each of the other Loan Documents and each of
the Camden Acquisition Documents has been duly executed and delivered on behalf
of the Credit Party thereto. This Agreement, any Note, each of the other Loan
Documents, each of the Transaction Documents, each of the Acquisition Documents
and each of the Camden Acquisition Documents constitutes a legal, valid and
binding obligation of the Credit Party thereto enforceable against such Credit
Party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors' rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).
5.5 No Legal Bar. The execution, delivery and performance of this
Agreement, any of the Notes, the other Loan Documents and the Camden
Acquisition Documents, the borrowings hereunder and the use of the proceeds
thereof will not violate any Requirement of Law or Contractual Obligation of
any Credit Party or of any of their Subsidiaries.
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5.6 No Material Litigation. Except as set forth in Schedule 5.6, no
litigation, investigation or proceeding of or before any arbitrator or
Governmental Authority is pending or, to the knowledge of the Credit Parties,
threatened by or against any of the Credit Parties or any of their Subsidiaries
or against any of its or their respective properties or revenues (a) with
respect to this Agreement, any Notes, the other Loan Documents, any of the
Transaction Documents, any of the Acquisition Documents, any of the Camden
Acquisition Documents or any of the transactions contemplated hereby or
thereby, or (b) which could reasonably be expected to have a Material Adverse
Effect.
5.7 No Default. None of the Credit Parties or any of their
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.
5.8 Ownership of Property; Liens. Each of the Credit Parties and their
Subsidiaries has good record and indefeasible title in fee simple to, or a
valid leasehold interest in, all its material real property, and good title to,
or a valid leasehold interest in, all its other material property, and none of
such property is subject to any Lien except as permitted by subsection 8.3.
Such real and other properties comprise all of the properties the use of which
is necessary for the conduct of the Borrower's or such Subsidiaries' business
as presently conducted and as proposed to be conducted by it. As of the date
hereof (and after giving effect to the Camden Acquisition), the Fee Properties
listed on Part I of Schedule 5.20 constitute all the real properties owned in
fee by the Borrower or its Subsidiaries and the Leased Properties listed on
Part II of Schedule 5.20 together with the Excluded Leased Properties listed on
Part III of Schedule 5.20 constitute all of the real properties leased by the
Borrower or its Subsidiaries. Each of the leases with respect to the Leased
Properties listed on Part II of Schedule 5.20 is in full force and effect.
5.9 Intellectual Property. Each of the Credit Parties and their
Subsidiaries owns, or is validly 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 of which to own or
license could not reasonably be expected to have a Material Adverse Effect (the
"Intellectual Property"). To the best knowledge of the Borrower, and except as
set forth on Schedule 5.9, no 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 do the
Credit Parties know of any valid basis for any such claim which could
reasonably be expected to have a Material Adverse Effect. The use of such
Intellectual Property by the Credit Parties and their 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.
5.10 Taxes. Except as set forth on Schedule 5.10, each of the Credit
Parties and their Subsidiaries has filed or caused to be filed all tax returns
which, to the knowledge of the Credit Parties, 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 (including without
limitation the Mortgaged Properties) and all other material taxes, fees or
other charges imposed on it or any of its property by any Governmental
Authority (other
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than (i) any such taxes, assessments, fees or other charges 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 Credit Parties or their Subsidiaries, as the
case may be, and (ii) taxes, assessments, fees or other charges imposed by any
Governmental Authority, other than income taxes imposed by the United States of
America, with respect to which the failure to make payments could not, by
reason of the amount thereof or of remedies available to such Governmental
Authorities, reasonably be expected to have a Material Adverse Effect); no tax
Lien has been filed, and, to the knowledge of the Credit Parties, no claim is
being asserted, with respect to any such tax, fee or other charge.
5.11 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 or for any purpose which violates the provisions of the Regulations
of such Board of Governors. If requested by any Lender or the Administrative
Agent, the Borrower 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 referred to in said Regulation U.
5.12 ERISA. 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. Each Plan
(other than a Multiemployer Plan) has complied in all material respects with
the applicable provisions of ERISA and the Code, except where the failure to
comply could not reasonably be expected to have a Material Adverse Effect. 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 an amount which could reasonably be expected to have a Material Adverse
Effect. None of the Credit Parties or any of their Subsidiaries nor any
Commonly Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan, and none of the Credit Parties nor any of their
Subsidiaries nor any Commonly Controlled Entity would become subject to any
liability under ERISA if the Credit Parties, any of their Subsidiaries 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. The present value (determined using
actuarial and other assumptions which are reasonable in respect of the benefits
provided and the employees participating) of the liability of the Borrower and
each Commonly Controlled Entity for post retirement benefits to be provided to
their current and former employees under Plans which are welfare benefit plans
(as defined in Section 3(1) of ERISA) does not, in the aggregate, exceed the
assets under all such Plans allocable to such benefits by an amount which could
reasonably be expected to have a Material Adverse Effect.
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5.13 Investment Company Act; Other Regulations. Neither Holdings nor
any of its Subsidiaries is an "investment company", or a company "controlled"
by an "investment company", within the meaning of the Investment Company Act of
1940, as amended. The Borrower is not subject to regulation under any
Requirement of Law which limits its ability to incur Indebtedness.
5.14 Subsidiaries, Etc. As of the date hereof, the only Subsidiaries
of the Borrower, and the only partnerships or joint ventures in which the
Borrower or any of its Subsidiaries has an interest are those listed on
Schedule 5.14. As of the date hereof, the Borrower owns the percentage of the
Capital Stock or other evidences of the ownership of each Subsidiary,
partnership or joint venture listed on Schedule 5.14 as set forth on such
Schedule. As of the date hereof, no such Subsidiary, partnership or joint
venture has issued any securities convertible into shares of its Capital Stock,
and the outstanding stock and securities (or other evidence of ownership) of
such Subsidiaries, partnerships or joint ventures owned by the Borrower and its
Subsidiaries are so owned free and clear of all Liens, warrants, options or
rights of others of any kind except as set forth in Schedule 5.14.
5.15 Purpose of Loans. The proceeds of the Term Loans (other than the
Additional Term Loans and the Second Additional Term Loans) shall be used to
finance a portion of the Mergers and the Wirekraft Acquisition and the
transaction costs associated therewith and to refinance the credit facilities
under the Omega Credit Agreement. The proceeds of the Revolving Credit Loans
shall be used to finance a portion of Mergers, the Wirekraft Acquisition and
the Acquisition and the transaction costs associated therewith and to refinance
the credit facilities under the Omega Credit Agreement, as well as for general
corporate purposes of the Borrower and the Subsidiaries. The proceeds of the
Additional Term Loans shall be used to finance a portion of the Acquisition and
the transaction costs associated therewith. The proceeds of the Second
Additional Term Loans shall be used to finance the cash purchase price of the
Camden Acquisition and the transaction costs associated with the Camden
Acquisition, to prepay Revolving Credit Loans outstanding hereunder in order to
allow the issuance of Letters of Credit hereunder to support the obligations of
the Borrower and/or Camden with respect to the IRBs and to provide working
capital to the Borrower. Up to an aggregate face amount of $15,500,000 of
Letters of Credit shall be issued only to support the obligations of the
Borrower and/or Camden with respect to the IRBs.
5.16 Environmental Matters. (a) The facilities and properties owned,
leased or operated by the Borrower or any of its Subsidiaries (the
"Properties") do not contain, and have not previously contained, any Materials
of Environmental Concern in amounts or concentrations or under such conditions
which (i) constitute or constituted a violation of, or could reasonably be
expected to give rise to liability under, any Environmental Law in effect at
the time of the making of this representation, or (ii) could materially and
adversely interfere with the continued operation of the Properties, or (iii)
materially impair the fair saleable value thereof except in each case insofar
as such violation, liability, interference, or reduction in fair market value,
or any aggregation thereof, is not reasonably likely to result in a Material
Adverse Effect.
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(b) The Business, Properties and all operations at the Properties are,
and to the knowledge of the Borrower have been, in compliance in all material
respects with all applicable Environmental Laws except for noncompliance which
is not reasonably likely to result in a Material Adverse Effect.
(c) Neither the Borrower nor any of its Subsidiaries has received any
written notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Properties or the Business, nor
does the Borrower have knowledge or reason to believe that any such notice will
be received or is being threatened except insofar as such notice or threatened
notice, or any aggregation thereof, does not involve a matter or matters that
is or are reasonably likely to result in a Material Adverse Effect.
(d) Materials of Environmental Concern have not been transported or
disposed of from the Properties in violation of, or in a manner or to a
location which could reasonably be expected to give rise to liability under,
any Environmental Law in effect at the time of the making of this
representation, nor have any Materials of Environmental Concern been generated,
treated, stored or disposed of at, on or under any of the Properties in
violation of, or in a manner that could reasonably be expected to give rise to
liability under, any applicable Environmental Law in effect at the time of the
making of this representation except insofar as any such violation or liability
referred to in this paragraph, or any aggregation thereof, is not reasonably
likely to result in a Material Adverse Effect.
(e) No judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or will be named
as a party with respect to the Properties or the Business, nor are there any
consent decrees or other decrees, consent orders, administrative orders or
other orders, or other administrative or judicial requirements outstanding
under any Environmental Law with respect to the Properties or the Business
except insofar as such proceeding, action, decree, order or other requirement,
or any aggregation thereof, is not reasonably likely to result in a Material
Adverse Effect.
(f) There has been no release or, to the best knowledge of the
Borrower, threat of release of Materials of Environmental Concern at or from
the Properties, or arising from or related to the operations of the Borrower or
any Subsidiary in connection with the Properties or otherwise in connection
with the Business, in violation of or in amounts or in a manner that could
reasonably give rise to liability under Environmental Laws in effect at the
time of making this representation except insofar as any such violation or
liability referred to in this paragraph, or any aggregation thereof, is not
reasonably likely to result in a Material Adverse Effect.
5.17 Delivery of the Camden Acquisition Documents. The Administrative
Agent has received for itself and for each Lender a complete copy of each of
the Camden Acquisition Documents (including all exhibits, schedules and
disclosure letters referred to therein or delivered pursuant thereto, if any)
and all amendments thereto, waivers relating thereto and other side letters or
agreements affecting the terms thereof.
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5.18 Representations and Warranties Contained in the Camden Acquisition
Documents. Each of the Camden Acquisition Documents has been duly executed and
delivered by the Credit Parties and, to the best knowledge of the Borrower, all
other parties thereto and is in full force and effect. As of the date hereof,
the representations and warranties of Holdings or the Borrower and, to the best
knowledge of the Borrower, Camden and any of the other parties thereto,
respectively, in the Camden Acquisition Documents are true and correct in all
material respects.
5.19 Disclosure. No information, financial statement, report,
certificate or other document prepared or furnished by or on behalf of any
Credit Party to the Administrative Agent or any Lender in connection with this
Agreement, any other Loan Document, any of the Transaction Documents, any of
the Acquisition Documents or any of the Camden Acquisition Documents (but
excluding all projections and pro forma financial statements which shall have
been prepared in good faith and based upon reasonable assumptions) contains any
untrue statement of a material fact or omits to state any material fact
necessary to make the statements herein or therein not misleading. As of the
Second Amendment Closing Date, there is no fact known to any Credit Party
(other than general economic conditions, which conditions are commonly known
and affect businesses generally) which has, or which could reasonably be
expected to have, in the reasonable judgment of such Credit Party, a Material
Adverse Effect.
5.20 Security Documents. (a) The Pledge Agreements are each effective
to create in favor of the Administrative Agent, for the ratable benefit of the
Lenders, a legal, valid and enforceable security interest in the Pledged Stock
or the Pledged Notes, as the case may be, described therein and proceeds
thereof and all actions have been taken to cause the Pledge Agreements to each
constitute a fully perfected first Lien on, and security interest in, all
right, title and interest of Holdings, the Borrower and their Subsidiaries in
such Pledged Stock or Pledged Notes, as the case may be, described therein and
in proceeds thereof superior in right to any other Person.
(b) The Security Agreements and the Assignments are each
effective to create in favor of the Administrative Agent, for the benefit of
the Lenders, a legal, valid and enforceable security interest in the respective
collateral described therein and proceeds thereof, and when financing
statements in appropriate form are filed in the offices specified on Schedule
5.20 or in such Security Agreement, and the other actions required to be taken
by all Security Agreements have been taken, the Security Agreements shall
constitute fully perfected, first priority Liens on, and security interests in,
all right, title and interest of Holdings, the Borrower and their Subsidiaries
in such collateral and the proceeds thereof superior in right to any other
Person other than Liens permitted hereby.
(c) As of the date hereof the properties listed on Schedule 5.20
constitute all material real properties owned by Holdings or any of its
Subsidiaries. The Mortgages are each effective to create in favor of the
Administrative Agent, for the ratable benefit of the Lenders, a legal, valid
and enforceable Lien on the properties described therein and proceeds thereof,
subject to obtaining necessary consents (which consents shall be obtained on or
prior to the Second Amendment Closing Date) and when the Mortgages are filed in
the offices specified on Schedule 5.20, the Mortgages shall constitute a fully
perfected, first priority
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Lien on, and security interest in, all right, title and interest of the
Borrower in the Mortgaged Properties and the proceeds thereof, superior in
right to any other Person other than Liens permitted hereby.
5.21 Solvency. Each of Holdings and the Borrower is, individually and
together with its Subsidiaries, Solvent.
5.22 No Fees. None of the Credit Parties nor any of their Subsidiaries
is under any obligation to pay any broker's fees, finder's fee, commission,
transaction fee or expenses in connection with the transactions contemplated by
this Agreement or the Camden Acquisition Documents other than fees and expenses
listed on Schedule 5.22.
5.23 Insurance. The insurance maintained by or reserved against on the
books of Holdings, the Borrower and their Subsidiaries is sufficient to protect
the Borrower against such risks as are usually insured against in the same
general area by companies engaged in the same or similar business. None of the
Credit Parties or any of their Subsidiaries is in default under any provisions
of any such policy of insurance or has received notice of cancellation of any
such insurance (other than in connection with the replacement of any such
policy). None of the Credit Parties or any of their Subsidiaries has made any
material claims under any policy of insurance with respect to which the
insurance carrier has denied liability.
5.24 Senior Debt. The Obligations of the Borrower constitute "Senior
Indebtedness" for purposes of the Senior Subordinated Notes.
5.25 Labor Matters. There are no strikes pending or, to the best
knowledge of the Borrower, threatened against Holdings or any of its
Subsidiaries which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. The hours worked and payments made
to employees of Holdings and each of its Subsidiaries have not been in
violation of any applicable United States and or Mexican labor laws, rules or
regulations or any other applicable laws, rules or regulations, except where
such violations could not reasonably be expected to have a Material Adverse
Effect. The consummation of the Camden Acquisition will not give rise to a
right of termination or right of renegotiation on the part of any union under
any collective bargaining agreement to which Holdings or any of its
Subsidiaries (or any predecessor) is a party or by which Holdings or any of its
Subsidiaries (or any predecessor) is bound.
SECTION 6. CONDITIONS PRECEDENT
6.1 Conditions to Effectiveness of Amendment and Restatement. The
agreement of (i) the Tranche B Term Loan Lenders and the Tranche C Term Loan
Lenders to provide the Second Additional Term Loans, (ii) the Revolving Credit
Lenders to increase the letter of credit sublimit under the Revolving Credit
Commitments by $15,500,000 and (iii) the Lenders to consent to the Camden
Acquisition is subject to the satisfaction, immediately prior to or
concurrently with the making of such Second Additional Term Loans on the Second
Amendment Closing Date (which date shall not occur later than March 14, 1997),
of the following conditions precedent:
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(a) Camden Acquisition. The Camden Acquisition shall have been
consummated for an aggregate purchase price (excluding fees and
expenses) of approximately $60,500,000 (subject to purchase price
adjustments as set forth in the Camden Acquisition Documents), comprised
of approximately $45,000,000 in cash and approximately $15,500,000 of
assumed obligations with respect to the IRBs and the Administrative
Agent shall have received, with a copy for each Lender, (i) a certified
copy of each of the Camden Acquisition Documents, (ii) a certificate of
a Responsible Officer to the effect that all conditions precedent and
other material transactions contemplated by the Camden Acquisition
Documents have been satisfied or consummated, as the case may be,
without amendment, waiver or modification of the terms thereof without
the prior written consent of the Lenders and (iii) a certified copy of
each of the documents and materials filed publicly by Camden and/or
Oneida in connection with such transactions.
(b) Capitalization. The corporate and capital structure of
Holdings and the Borrower and each of their Subsidiaries after giving
effect to the Camden Acquisition shall be satisfactory to the Lenders in
all material respects. There shall exist no Indebtedness of Holdings,
the Borrower or any of their subsidiaries on the Second Amendment
Closing Date, except for, in the case of the Borrower, any Indebtedness
hereunder and the Senior Subordinated Notes and certain other
indebtedness permitted hereby.
(c) Agreement; Notes. The Administrative Agent shall have
received (i) this Agreement, executed and delivered by a duly authorized
officer of the Borrower and Holdings with a counterpart for each Lender,
(ii) for the account of each of the Lenders which has requested a Note
pursuant to subsections 2.8(a) and 2.9(a), a replacement Tranche B Term
Note or a replacement Tranche C Term Note, as the case may be,
conforming to the requirements hereof and executed and delivered by a
duly authorized officer of the Borrower and (iii) the following Security
Documents and Guarantees, each executed and delivered by a Responsible
Officer of the appropriate Credit Party and by each other party thereto:
(1) the Camden Guarantee;
(2) the Camden Security Agreement;
(3) the Camden Trademark Security Agreement;
(4) the Camden Patent Security Agreement;
(5) the Acknowledgment and Confirmation of Domestic
Subsidiaries' Guarantee;
(6) the Acknowledgment and Confirmation of Borrower Pledge
Agreement and Borrower Security Agreement; and
(7) the Borrower Guarantee.
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(d) Pledged Stock. The Administrative Agent shall have received
all of the capital stock of Camden and the acknowledgement and consent
of Camden to such pledge, together with undated stock powers endorsed in
blank for each stock certificate representing such Pledged Stock.
(e) Corporate Proceedings of the Credit Parties. The
Administrative Agent shall have received, with a copy for each Lender, a
copy of the resolutions, in form and substance satisfactory to the
Administrative Agent, of the Board of Directors or duly authorized
committee of each of Holdings, the Borrower and Camden authorizing (i)
the execution, delivery and performance of this Agreement, the other
Loan Documents and the Camden Acquisition Documents to which it is a
party, (ii) the borrowings contemplated hereby and (iii) the
transactions contemplated by the Camden Acquisition (to the extent
applicable to such Person), certified by the Secretary or an Assistant
Secretary of each of Holdings, the Borrower and Camden as of the Second
Amendment Closing Date, which certificate shall state that the
resolutions thereby certified have not been amended, modified, revoked
or rescinded and shall be in form and substance reasonably satisfactory
to the Administrative Agent.
(f) Incumbency Certificates. The Administrative Agent shall
have received, with a copy for each Lender, a certificate of the
Secretary or an Assistant Secretary (or comparable officer) of each of
Holdings, the Borrower and Camden, dated the Second Amendment
Closing Date, as to the incumbency and signature of the officers of such
Person executing each Loan Document and Camden Acquisition Document to
which it is a party and any certificate or other document to be
delivered by it pursuant hereto and thereto, together with evidence of
the incumbency of such Secretary or Assistant Secretary.
(g) Corporate Documents. The Administrative Agent shall have
received, with a counterpart for each Lender, true and complete copies
of the certificate of incorporation and by-laws of each of Holdings, the
Borrower and Camden, certified as of the Second Amendment Closing Date
as complete and correct copies thereof by the Secretary or an Assistant
Secretary of each of the Credit Parties.
(h) Certificate Regarding Senior Subordinated Notes. The
Lenders shall have received a certificate from a Responsible Officer of
the Borrower, dated the Second Amendment Closing Date, that, after
giving effect to the transactions contemplated by this Agreement and the
Camden Acquisition, the Borrower will be in compliance with the debt
incurrence covenants contained in the Senior Subordinated Notes
Indenture, which certificate shall set forth the calculations used to
make such representation.
(i) Consents, Licenses and Approvals. (i) All governmental and
material third party approvals (including material landlords' and other
consents) necessary or advisable in connection with the execution,
delivery and performance of the Loan Documents and the Camden
Acquisition Documents and the continuing operation of the Business shall
have been obtained and be in full force and effect, (ii) all applicable
waiting periods shall have expired without any action being taken or
threatened by
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any competent Governmental Authority which would restrain, prevent or
otherwise impose adverse conditions on Holdings, any of its Subsidiaries
or the Camden Acquisition and (iii) the Administrative Agent shall have
received, with a counterpart for each Lender, a certificate of a
Responsible Officer of the Borrower (A) attaching copies of all
consents, authorizations and filings in connection with this Agreement
and the Camden Acquisition, and (B) stating that such consents, licenses
and filings are in full force and effect, and each such consent,
authorization and filing shall be in form and substance satisfactory to
the Administrative Agent.
(j) Fees. The Administrative Agent shall have received the fees
to be received on the Second Amendment Closing Date referred to in
subsection 2.4(b) and the Administrative Agent shall have received a
certificate in a form acceptable to it from a Responsible Officer
certifying that the total aggregate amount of all fees and expenses
incurred or to be incurred in connection with the Camden Acquisition
shall not exceed an amount customary for transactions of this type.
(k) Borrowing Certificate. The Administrative Agent shall have
received, with a copy for each Lender, a borrowing certificate
substantially in the form of Exhibit G and dated the Second Amendment
Closing Date, executed by a Responsible Officer of the Borrower.
(l) No Defaults. There shall exist no breach of or default (or
condition which would constitute a default with the giving of notice or
the passage of time) under any capital stock, financing agreements,
lease agreements or other Contractual Obligation of Holdings or any of
its Subsidiaries (including Camden) which, in any case or in the
aggregate, would have a Material Adverse Effect.
(m) Legal Opinions. (i) The Administrative Agent shall have
received, with a counterpart for each Lender, the executed legal opinion
of Weil, Gotshal & ▇▇▇▇▇▇ LLP, counsel to the Credit Parties,
substantially in the form of Exhibit F, dated the Second Amendment
Closing Date.
(ii) The Administrative Agent shall have received, with a copy
for each Lender, the opinions of counsel to the Seller (as defined in
the Camden Acquisition Documents) and to the Borrower delivered in
connection with the Camden Acquisition, and each of such opinions shall
either be addressed to the Administrative Agent or the Administrative
Agent shall be authorized to rely on such opinions as if addressed to
it.
(n) Solvency. The Administrative Agent shall have received,
with a copy for each Lender, (i) an opinion satisfactory in form and
substance to them from Brownstone Associates Incorporated, dated the
Second Amendment Closing Date, which shall document the Solvency of the
Borrower on a consolidated basis and Holdings on a consolidated basis
after giving effect to the Camden Acquisition and the other transactions
contemplated hereby and (ii) a certificate of a Responsible Officer of
the Borrower, dated the Second Amendment Closing Date, in substantially
the form of Exhibit H.
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(o) Perfection; Lien Searches. All filings and other actions
required to create and perfect a first priority security interest in all
collateral granted to the Administrative Agent pursuant to the Security
Documents shall have been duly made or taken, and all such collateral
shall be free and clear of other Liens except as permitted hereby. The
Administrative Agent shall have received, with a copy for each Lender,
the results of a recent lien search in each of the jurisdictions in the
United States where assets of Camden are located, and (i) such search
shall reveal no Liens on any of the assets of such parties other than
those permitted pursuant to subsection 8.3 or (ii) the Administrative
Agent shall have received evidence satisfactory to it that UCC-3
termination statements and other Lien release documentation shall have
been duly executed and properly filed, and all other necessary actions
shall have been duly taken, to the extent necessary to effect the
complete and irrevocable release of all Liens other than those permitted
pursuant to subsection 8.3 on the assets of Camden.
(p) Insurance. The Administrative Agent shall have received an
insurance certificate from AON Services, dated as of a recent date, and
other evidence satisfactory to it that reasonably satisfactory insurance
relating to Camden will be in place after the Camden Acquisition.
(q) Tax, ERISA, Labor and Environmental Matters. All (i) tax
aspects of the transactions contemplated hereby, and (ii) labor, ERISA
and environmental matters with respect to the Borrower and its
Subsidiaries, shall be satisfactory to the Lenders.
(r) Perfection Certificate. The Administrative Agent shall have
received, with a copy for each Lender, a Perfection Certificate, dated
the Second Amendment Closing Date, substantially in the form of Exhibit
I, duly completed by the Borrower.
(s) Environmental Audit. The Lenders shall have received an
environmental audit in form and substance satisfactory to them from
Lexicon Environmental Associates, Inc. with respect to any environmental
hazards, conditions or liabilities (contingent or otherwise) to which
Camden may be subject.
(t) Financial Statements. The Administrative Agent shall have
received, with a copy for each Lender, (i) a pro forma balance sheet of
the Borrower and its Subsidiaries as of the Second Amendment Closing
Date and after giving effect to the Camden Acquisition and the
financings contemplated thereby, which shall be in form and substance
satisfactory to the Lenders, (ii) unaudited financial statements of
Camden for the fiscal years ended January 29, 1994, January 28, 1995 and
January 27, 1996 and for the ten-month period ended November 23, 1996,
which financial statements shall have been prepared in accordance with
GAAP and shall be in form and substance satisfactory to the Lenders and
(iii) unaudited interim consolidated financial statements of each of the
Borrower, its Subsidiaries and Camden for each fiscal month and
quarterly period ended since the date of the last statement referred to
above, to the extent available, and such financial statements shall not,
in the judgment of the Lenders, reflect any material adverse change in
the consolidated financial
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condition of the Borrower, its Subsidiaries or Camden as reflected in
the financial statements or projections previously delivered to such
Lenders.
(u) Borrowing Base Certificate. The Administrative Agent shall
have received, with a copy for each Lender, a certificate of a
Responsible Officer of the Borrower setting forth information concerning
the pro forma Borrowing Base as of the Second Amendment Closing Date
after giving effect to the Camden Acquisition approved by the
Administrative Agent.
(v) Litigation. No litigation, inquiry, injunction or
restraining order shall be pending, entered or threatened (including,
without limitation, any proposed statute, rule or regulation) which, in
the reasonable opinion of the Lenders, could have a Material Adverse
Effect.
(w) No Adverse Change. There shall not have occurred any
change, or development or event involving a prospective change, which in
either case in the reasonable opinion of the Lenders, could have a
Material Adverse Effect. The Lenders shall not have become aware of any
previously undisclosed materially adverse information with respect to
(i) the Camden Acquisition or the business, assets, operations,
condition (financial or otherwise) or prospects of Holdings, the
Borrower, and their Subsidiaries, taken as a whole, (ii) their ability
to perform their obligations under this Agreement, any Note or the
other Loan Documents or (iii) the rights and remedies of the Lenders.
(x) Revolving Credit Loans. On the Second Amendment Closing
Date and after giving effect to this Agreement and the Camden
Acquisition, the aggregate principal amount of all outstanding Revolving
Credit Loans shall not exceed $27,500,000.
(y) Other Documentation. All other documentation, including,
without limitation, any tax sharing agreement, employment agreement,
management compensation arrangement or other financing arrangement of
Camden shall be reasonably satisfactory in form and substance to the
Lenders.
(z) Flood Insurance. If any Mortgage with respect to real
property owned by Camden encumbers improved real property which is
located in an area that has been identified by the Secretary of Housing
and Urban Development as an area having special flood hazards and in
which flood insurance has been made available under the National Flood
Insurance Act of 1968, as amended, the Administrative Agent shall have
received from the Borrower (i) a policy of flood insurance which (A)
covers any parcel of improved real property which is encumbered by any
such Mortgage (B) is written in an amount not less than the outstanding
principal amount of the indebtedness secured by such Mortgage which is
reasonably allocable to such real property or the maximum limit of
coverage made available with respect to the particular type of property
under the National Flood Insurance Act of 1968, as amended, whichever is
less, and (C) has a term ending not later than the maturity of the
indebtedness secured by such Mortgage and (ii) confirmation that the
Borrower
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has received the notice required pursuant to Section 208(e)(3) of
Regulation H of the Board of Governors of the Federal Reserve System.
6.2 Conditions to Each Loan. The agreement of each Lender to make any
Loan requested to be made by it on any date (including, without limitation, the
Second Additional Loans) or of the Revolving Credit Lenders and the Issuing
Lender to issue or participate in any Letter of Credit is subject to the
satisfaction of the following conditions precedent:
(a) Representations and Warranties. Each of the representations
and warranties made by the Credit Parties and their Subsidiaries in or
pursuant to the Loan 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,
except for any representation and warranty which is expressly made as of
an earlier date, which representation and warranty shall have been true
and correct in all material respects as of such earlier 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 requested to be made, or Letters of Credit requested to be issued,
on such date.
(c) Letter of Credit Application. With respect to the issuance
of any Letter of Credit, the Issuing Bank shall have received a Letter
of Credit Application, completed to its reasonable satisfaction and
duly executed by a Responsible Officer of the Borrower; provided that if
such Letter of Credit is being issued to support the repayment of any
Indebtedness of any Subsidiary of the Borrower, such Subsidiary shall
also execute such Letter of Credit Application and shall agree to be
jointly and severally liable with the Borrower for any and all
obligations arising under or in connection with such Letter of Credit or
the Letter of Credit Application related thereto.
Each borrowing by the Borrower hereunder and issuance of any Letter of
Credit shall constitute a representation and warranty by the Credit Parties as
of the date of such Loan or issuance, as the case may be, that the conditions
contained in this subsection 6.2 have been satisfied.
SECTION 7. AFFIRMATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect, any Note remains outstanding and unpaid, any Letter of Credit is
outstanding or any other Obligations are owing to any Lender or the
Administrative Agent hereunder, the Borrower shall and (except in the case of
delivery of financial information, reports and notices) shall cause each of its
Subsidiaries to:
7.1 Financial Statements. Furnish to each Lender:
(a) as soon as available, but in any event within 110 days after
the end of each fiscal year of the Borrower, a copy of the consolidated
balance sheet of the
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Borrower and its consolidated Subsidiaries as at the end of such year
and the consolidated statements of income and retained earnings and
consolidated statement of 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
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 Borrower, the unaudited consolidated balance sheet of
the Borrower and its consolidated Subsidiaries as at the end of such
quarter and the related unaudited consolidated statements of income and
retained earnings and consolidated statement of cash flows of the
Borrower 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 (i) the figures for the previous
year and (ii) the figures set forth in the relevant budgets required to
be delivered in accordance with subsection 7.2(d), certified by a
Responsible Officer as being fairly stated in all material respects when
considered in relation to the consolidated financial statements of the
Borrower and its consolidated Subsidiaries (subject to normal year-end
audit adjustments);
(c) as soon as available, but in any event not later than 45
days after the end of each month (other than a month the last day of
which coincides with the last day of any fiscal quarter) of each fiscal
year of the Borrower, the consolidated balance sheet of the Borrower and
its consolidated Subsidiaries as at the end of such month and the
related unaudited consolidated statements of income and retained
earnings and consolidated statement of cash flows of the Borrower and
its consolidated Subsidiaries for such month and the portion of the
fiscal year through the end of such month, setting forth in each case in
comparative form (i) the figures for the previous year and (ii) the
figures set forth in the relevant budgets required to be delivered in
accordance with subsection 7.2(d);
all such financial statements shall fairly present in all material respects the
consolidated financial position or the consolidating financial position, as the
case may be, of the Borrower and its Subsidiaries as of such date 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).
7.2 Certificates; Other Information. Furnish to each Lender:
(a) concurrently with the delivery of the financial statements
referred to in subsection 7.1(a), a certificate of 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 relating to the
covenants contained in subsection 8.1, except as specified in such
certificate;
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(b) concurrently with the delivery of the financial statements
referred to in subsections 7.1(a) and 7.1(b), a certificate of a
Responsible Officer of the Borrower (i) stating that, to the best of
such Responsible Officer's knowledge, the Borrower during such period
has observed or performed all of its covenants and other agreements, and
satisfied every condition, contained in this Agreement and in the Notes
and the other Loan Documents to which it is a party to be observed,
performed or satisfied by it, in all material respects, and that such
Officer has obtained no knowledge of any Default or Event of Default
except as specified in such certificate, (ii) stating that all such
financial statements fairly present in all material respects (subject,
in the case of interim statements, to normal year-end audit adjustments)
and have been prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the periods reflected therein (except as
disclosed therein) and (iii) showing in detail the calculations
supporting such statement in respect of subsections 8.1, 8.8 and 8.9;
(c) on or prior to (i) the fifteenth Business Day following the
end of each month, an officers certificate substantially in the form of
Exhibit J and made pursuant to subsection 4.5 hereof, certified by a
Responsible Officer of the Borrower as true and correct, and setting
forth the amount of accounts receivable and inventory of the Borrower
and its Subsidiaries as set forth on the consolidated balance sheet of
the Borrower and its Subsidiaries for the previous month delivered
pursuant to subsection 7.1(c);
(d) as soon as available but not later than 45 days subsequent
to the end of each fiscal year of the Borrower (in the case of the
projections for the 1997 fiscal year, however, not later than March 17,
1997), a copy of the projections by the Borrower of the operating budget
and cash flow budget of the Borrower and its Subsidiaries for the
succeeding fiscal year (showing the operating budget and cash flow
budget for each month within such fiscal year), such projections to be
accompanied by a certificate of a Responsible Officer of the Borrower to
the effect that such projections have been prepared in good faith and
based upon reasonable assumptions;
(e) within five days after the same are filed, copies of all
financial statements and reports which Holdings, the Borrower or any of
their Subsidiaries may make to, or file with, the Securities and
Exchange Commission or any successor or analogous Governmental
Authority; and
(f) promptly, such additional financial and other information as
any Lender may from time to time reasonably request.
7.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its
material 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 Borrower or its Subsidiaries, as the case may be; provided
that, notwithstanding the foregoing, the Borrower and each of its Subsidiaries
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shall have the right to pay any such obligation and in good faith contest, by
proper legal actions or proceedings, the validity or amount of such claims.
7.4 Conduct of Business and Maintenance of Existence. Except as
provided in subsection 8.5, 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 if (i) in the reasonable business judgment of the
Borrower or such Subsidiary, as the case may be, it is in its best economic
interest not to preserve and maintain such rights or franchises, and (ii) such
failure to preserve and maintain such privileges, rights or franchises would
not materially adversely affect the rights of the Lenders hereunder or the
value of the collateral security for the Loans, and as otherwise permitted
pursuant to subsection 8.5; 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.
7.5 Maintenance of Property; Insurance. Keep all property (including
the Mortgaged Properties) useful and necessary in its business in good working
order and condition; maintain with financially sound and reputable insurance
companies insurance on all its property in at least such amounts and against at
least such risks (but including in any event public liability, product
liability and business interruption) as are usually insured against in the same
general area by companies engaged in the same or a similar business or as
otherwise reasonably requested by the Administrative Agent; and furnish to each
Lender, upon written request, full information as to the insurance carried
except to the extent that the failure to do any of the foregoing with respect
to any such property could not reasonably be expected to materially adversely
affect the value or usefulness of such property.
7.6 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 permit
representatives of any Lender to visit and inspect any of its properties and
examine and make abstracts from any of its books and records upon reasonable
advance notice at any reasonable time on any Business Day and as often as may
reasonably be desired and to discuss the business, operations, properties and
financial and other condition of the Borrower and its Subsidiaries with
officers and employees of the Borrower and its Subsidiaries and with its
independent certified public accountants; provided that the Administrative
Agent or such Lender shall notify the Borrower prior to any contact with such
accountants and give the Borrower the opportunity to participate in such
discussions.
7.7 Notices. Promptly give notice to the Administrative Agent and each
Lender of:
(a) the occurrence of any Default or Event of Default;
(b) (i) any (x) default or event of default under any
Contractual Obligation of the Borrower or any of its Subsidiaries or (y)
litigation, investigation or proceeding which may exist at any time
between the Borrower or any of its Subsidiaries and any
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Governmental Authority, which in either case, if not cured or if
adversely determined, as the case may be, would have a Material Adverse
Effect and (ii) any default or event of default under the Holdings Stock
Purchase Agreement or the Senior Subordinated Notes;
(c) any litigation or proceeding affecting any of the Credit
Parties or any of their Subsidiaries in which the amount involved is
$2,000,000 or more and not covered by insurance or in which injunctive
or similar relief is sought;
(d) the following events: (i) the occurrence or expected
occurrence of any Reportable Event with respect to any Plan (other than
a Multiemployer 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 Borrower 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 development or event which has had, or could reasonably
be expected to have, a Material Adverse Effect; and
(f) the receipt by the Borrower or any Subsidiary of any
complaint, order, citation, notice or other written communication from
any Person with respect to the existence or alleged existence of a
violation of any Environmental Laws or Materials of Environmental
Concern or any other environmental, health or safety matter, including,
without limitation, the occurrence of any spill, discharge or release in
a quantity that is reportable under any Environmental Law on any
Mortgaged Property or any other property owned, leased or utilized by
the Borrower or any Subsidiary of the Borrower but only to the extent
that such complaint, order, citation, notice or written communication
individually or in the aggregate could reasonably be expected to result
in material liability or a material obligation under any Environmental
Law.
Each notice pursuant to this subsection shall be accompanied by a statement of
a Responsible Officer of the Borrower setting forth details of the occurrence
referred to therein and stating what action the Borrower, Holdings or the
applicable Commonly Controlled Entity proposes to take with respect thereto.
7.8 Environmental Laws.
(a) Comply in all material respects with, and will use
reasonable best efforts to ensure compliance in all material respects by
all tenants and subtenants, if any, with, all applicable Environmental
Laws;
(b) conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws and in a timely fashion comply in all material
respects with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except to the extent that
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the same are being contested in good faith by appropriate proceedings
and the pendency of such proceedings could not be reasonably expected to
have a Material Adverse Effect; and
(c) defend, indemnify and hold harmless the Administrative Agent
and the Lenders, and their respective employees, agents, officers,
directors and controlling persons, from and against any and all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature known or unknown, contingent or
otherwise, arising out of, or in any way relating to the violation of,
noncompliance with or liability under, any Environmental Law applicable
to the operations of the Borrower, any of its Subsidiaries or the
Properties, or any orders, requirements or demands of Governmental
Authorities related thereto, including, without limitation, reasonable
attorney's and consultant's fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the
extent that any of the foregoing arise out of or relate to the gross
negligence or willful misconduct of, or any post-foreclosure actions not
taken in the ordinary course of business consistent with past practices
of, the party seeking indemnification therefor. The agreements in this
paragraph shall survive repayment of all Loans and all other amounts
payable hereunder.
7.9 Pledge of After Acquired Property. If at any time following the
Second Amendment Closing Date the aggregate monetary value (as determined by
aggregating the monetary value of each item or items of property so acquired on
the date of the acquisition thereof) of all property (to the extent not already
secured) of any nature whatsoever acquired by the Borrower and/or any Domestic
Subsidiary after the Second Amendment Closing Date is in excess of $1,000,000,
the Borrower and any such Domestic Subsidiary shall grant to the Administrative
Agent for the ratable benefit of the Lenders a first priority Lien on and
security interest in any property acquired at any time thereafter, as collateral
security for the Obligations, pursuant to documentation reasonably satisfactory
to the Administrative Agent and take such actions as the Administrative Agent
shall reasonably require to ensure the priority and perfection of such Lien,
provided that if the grant of such Lien or Liens would be reasonably likely to
result in the Borrower incurring income tax liability (as determined by the
Borrower and agreed to by the Administrative Agent) pursuant to Subpart F of the
Code, the property pledged pursuant hereto will be that property which can be
pledged without incurring such liability.
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7.10 Pledge During Event of Default. At any time during the
continuance of an Event of Default, upon the request of the Administrative
Agent, grant to the Administrative Agent for the ratable benefit of the Lenders
a first priority Lien on and security interest in any unencumbered property of
the Borrower and its Subsidiaries of any nature whatsoever, as collateral
security for the Obligations, pursuant to documentation reasonably satisfactory
to the Administrative Agent and take such actions as the Administrative Agent
shall reasonably require to ensure the priority and perfection of such Lien,
provided, however, that if the grant of such Lien would be reasonably likely to
result in the Borrower incurring income tax liability (as determined by the
Borrower and agreed to by the Administrative Agent) pursuant to Subpart F of
the Code, the property pledged pursuant hereto will be that property which can
be pledged without incurring such liability.
7.11 Interest Rate Agreements. Not later than 90 days after the Second
Amendment Closing Date, enter into or purchase or otherwise acquire, with or
from financially responsible parties, Interest Rate Agreements which assure the
net interest cost to the Borrower on at least 50% of the aggregate principal
amount of the Second Additional Term Loans for a period of at least two years
from the date on which such Interest Rate Agreements are entered into,
purchased or otherwise acquired and at a rate reasonably satisfactory to the
Administrative Agent and otherwise upon terms and conditions reasonably
satisfactory to the Administrative Agent. The Borrower shall use its best
efforts to maintain in full force and effect Interest Rate Agreements
reasonably satisfactory to the Administrative Agent in order to ensure
compliance with the terms of this subsection 7.11 and subsection 7.11 as set
forth in the Existing Credit Agreement and shall not default (beyond any
applicable grace period) in the performance of any of its material obligations
thereunder. A security interest in all right, title and interest of the
Borrower in and to each Interest Rate Agreement shall be granted in favor of
the Administrative Agent for the benefit of the Lenders.
7.12 Additional Subsidiaries. If, at any time, either the Borrower or
any of its respective Subsidiaries shall form any new Subsidiary after the date
of this Agreement (this subsection not constituting authority to form a new
Subsidiary), the Borrower or such Subsidiary, as the case may be, shall (i)
cause such new Subsidiary (other than a Foreign Subsidiary) to execute and
deliver a Domestic Subsidiaries' Guarantee in favor of the Administrative Agent
substantially in the form of Exhibit B-1, (ii) cause such new Subsidiary (other
than a Foreign Subsidiary) to execute and deliver a Domestic Subsidiary
Security Agreement in favor of the Administrative Agent substantially in the
form of Exhibit B-8, and (iii) cause each holder of any Capital Stock of such
Subsidiary to pledge 100% of such Capital Stock to the Administrative Agent
pursuant to a Pledge Agreement substantially in the form of Exhibit B-4,
provided that if the grant of such a pledge would be reasonably likely to
result in the Borrower incurring income tax liability (as determined by the
Borrower and agreed to by the Administrative Agent) pursuant to Subpart F of
the Code, the property pledged pursuant hereto will be that property which can
be pledged without incurring such liability, and provided, further each of such
Subsidiaries' Guarantee, Domestic Subsidiary Security Agreements and Pledge
Agreement shall be accompanied by such resolutions, incumbency certificates and
legal opinions as are reasonably requested by the Administrative Agent.
7.13 Mortgages; Mortgage Amendments; Surveys. (a) Within
forty-five days of the Second Amendment Closing Date, the Borrower shall
deliver to the Administrative Agent the Mortgage relating to real property
owned by Camden located in Camden, New York, executed and delivered by a
Responsible Officer of Camden and by each other party thereto.
(b) Within forty-five days of the Second Amendment Closing Date, the
Borrower shall deliver to the Administrative Agent any amendments to the
Mortgages and endorsements to the title insurance policies previously delivered
in connection with this Agreement which are reasonably requested by Lenders,
executed and delivered by a Responsible Officer of the appropriate Credit Party
and by each other party thereto
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(c) Within forty-five days of the Second Amendment Closing Date, the
Borrower shall deliver to the Administrative Agent and the title insurance
company issuing the policy referred to in subsection 7.14 (the "Title Insurance
Company") maps or plats of an as-built survey of each Fee Property owned by
Camden on which a Mortgage has been delivered in favor of the Administrative
Agent certified by the survey company to the Administrative Agent and the Title
Insurance Company in a manner satisfactory to them, dated a date reasonably
satisfactory to the Administrative Agent and the Title Insurance Company and
prepared by an independent professionally licensed land surveyor reasonably
satisfactory to the Administrative Agent and the Title Insurance Company, which
maps or plats and the surveys on which they are based shall be made in
accordance with the Minimum Standard Detail Requirements for Land Title Surveys
jointly established and adopted by the American Land Title Association and the
American Congress on Surveying and Mapping in 1992, and, without limiting the
generality of the foregoing, there shall be surveyed and shown on such maps,
plats or surveys the following: (i) the locations on such sites of all the
buildings, structures and other improvements and the established building
setback lines; (ii) the lines of streets abutting the sites and width thereof;
(iii) all access and other easements appurtenant to the sites or necessary or
desirable to use the sites; (iv) all roadways, paths, driveways, easements,
encroachments and overhanging projections and similar encumbrances affecting
the site, whether recorded, apparent from a physical inspection of the sites or
otherwise known to the surveyor; (v) any encroachments on any adjoining
property by the building structures and improvements on the sites; and (vi) if
the site is described as being on a filed map, a legend relating the survey to
said map.
7.14 Title Insurance Policy. Within forty-five days of the
Second Amendment Closing Date, the Borrower shall deliver to the Administrative
Agent in respect of each Fee Property owned by Camden on which a Mortgage has
been delivered in favor of the Administrative Agent a mortgagee's title policy
(or policies) or marked up unconditional binder for such insurance dated no
later than 45 days from the Second Amendment Closing Date. Each such policy
shall (i) be in an amount reasonably satisfactory to the Administrative Agent;
(ii) be issued at ordinary rates; (iii) insure that the Mortgage insured
thereby creates a valid first Lien on the Fee Property free and clear of all
defects and encumbrances, except as permitted under subsection 8.3 and such
other matters as may be approved by the Administrative Agent; (iv) name the
Administrative Agent for the benefit of the Lenders as the insured thereunder;
(v) be in the form of ALTA Loan Policy - 1990, if available; (vi) contain such
endorsements and affirmative coverage as the Administrative Agent may
reasonably request and (vii) be issued by title companies reasonably
satisfactory to the Administrative Agent (including any such title companies
acting as co-insurers or reinsurers, at the option of the Administrative
Agent). The Administrative Agent shall receive evidence satisfactory to it
that all premiums in respect of each such policy, and all charges for mortgage
recording tax, if any, have been paid. Furthermore, the Borrower shall deliver
to the Administrative Agent on the date on which the title policy (or
policies) referred to above are delivered pursuant to the terms hereof a copy
of all recorded documents referred to, or listed as exceptions to title in, the
title policy or policies referred to in this subsection 7.14 and a copy,
certified by a title insurance company acceptable to the Administrative Agent,
of all documents affecting the property covered by such Mortgage not otherwise
delivered prior to or on the Second Amendment Closing Date pursuant to
subsection 6.1.
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7.15 Substantive Consolidation. The Borrower shall maintain a separate
and distinct existence from Holdings and cause each of its Subsidiaries to
maintain a separate and distinct existence from Holdings, the Borrower and each
other Subsidiary of the Borrower in order to avoid substantive consolidation of
the assets and liabilities of Holdings, the Borrower and each Subsidiary of the
Borrower under title 11 of the United States Bankruptcy Code, as amended,
through the honoring of all formalities which shall include, without
limitation, no commingling of assets, sufficient and independent
capitalization, and separate books and records.
SECTION 8. NEGATIVE COVENANTS
The Borrower hereby agrees that, so long as the Commitments remain in
effect, any Note remains outstanding and unpaid, any Letter of Credit remains
outstanding or any other Obligations are owing to any Lender or the
Administrative Agent hereunder, the Borrower shall not, and (except with
respect to subsection 8.1) shall not permit any of its Subsidiaries to,
directly or indirectly:
8.1 Financial Condition Covenants. (a) Interest Coverage. Permit the
Interest Coverage Ratio of the Borrower and its Subsidiaries (i) for the period
commencing on April 1, 1996 and ending at the end of the fourth calendar
quarter for 1996 to be less than the ratio set forth below for such calendar
quarter and (ii) thereafter (commencing with the four consecutive calendar
quarters ending on March 31, 1997), for any period of four consecutive calendar
quarters ending at the end of the calendar quarters set forth below to be less
than the ratio set forth opposite such calendar quarter below:
Calendar Quarter Interest Coverage Ratio
---------------- -----------------------
1996 4th 1.60 to 1.00
1997 1st 1.65 to 1.00
2nd 1.70 to 1.00
3rd 1.75 to 1.00
4th 1.80 to 1.00
1998 1st 1.85 to 1.00
2nd 1.90 to 1.00
3rd 1.95 to 1.00
4th 2.00 to 1.00
1999 1st 2.10 to 1.00
2nd 2.15 to 1.00
3rd 2.20 to 1.00
4th 2.30 to 1.00
2000 1st 2.35 to 1.00
2nd 2.40 to 1.00
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3rd 2.45 to 1.00
4th 2.55 to 1.00
2001 1st 2.60 to 1.00
2nd 2.65 to 1.00
3rd 2.75 to 1.00
4th 2.85 to 1.00
2002 1st 2.95 to 1.00
2nd 3.10 to 1.00
3rd 3.20 to 1.00
4th 3.35 to 1.00
2003 1st 3.40 to 1.00
2nd 3.45 to 1.00
3rd 3.50 to 1.00
4th 3.50 to 1.00
(b) Maintenance of Consolidated EBITDA. Permit Consolidated
EBITDA of the Borrower and its Subsidiaries (i) for the period
commencing on April 1, 1996 and ending at the end of the fourth
calendar quarter for 1996 to be less than the amount set forth below for
such calendar quarter and (ii) thereafter (commencing with the four
consecutive calendar quarters ending on March 31, 1997), for any period
of four consecutive calendar quarters ending at the end of the calendar
quarters set forth below to be less than the amount set forth opposite
such calendar quarter below:
Calendar Quarter Amount
---------------- ------
1996 4th 58,000,000
1997 1st 78,500,000
2nd 80,500,000
3rd 82,500,000
4th 84,000,000
1998 1st 86,000,000
2nd 87,500,000
3rd 90,000,000
4th 91,000,000
1999 1st 94,000,000
2nd 95,500,000
3rd 96,500,000
4th 98,500,000
2000 1st 99,500,000
2nd 100,500,000
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3rd 102,000,000
4th 104,000,000
2001 1st 105,000,000
2nd 106,500,000
3rd 108,000,000
4th 109,500,000
2002 1st 111,000,000
2nd 112,500,000
3rd 114,000,000
4th 115,500,000
2003 1st 117,000,000
2nd 119,000,000
3rd 120,500,000
4th 122,000,000
(c) Maintenance of Consolidated Total Debt to Consolidated
EBITDA. Permit the ratio of Consolidated Total Debt of the Borrower and
its Subsidiaries to Consolidated EBITDA of the Borrower and its
Subsidiaries for any period of four consecutive calendar quarters ending
at the end of the calendar quarters set forth below to be greater than
the ratio set forth opposite such calendar quarter below; provided that
for the purposes of determining the ratio for the period of four
consecutive calendar quarters ending at the end of the fourth calendar
quarter for 1996, Consolidated EBITDA of the Borrower and its
Subsidiaries for the first calendar quarter of 1996 shall be deemed to be
$23,400,000; and provided further that for the purposes of determining
the ratio for the period of four consecutive calendar quarters ending at
the end of (i) the first calendar quarter for 1997, Consolidated EBITDA
of the Borrower and its Subsidiaries for such period shall be deemed to
be increased by an amount equal to the Consolidated EBITDA of Camden for
the second, third and fourth calendar quarters for 1996 and for January
1997 (which amount shall equal $8,650,000), (ii) the second calendar
quarter for 1997, Consolidated EBITDA of the Borrower and its
Subsidiaries for such period shall be deemed to be increased by an amount
equal to the Consolidated EBITDA of Camden for the third and fourth
calendar quarters for 1996 and for January 1997 (which amount shall equal
$6,100,000), (iii) the third calendar quarter for 1997, Consolidated
EBITDA of the Borrower and its Subsidiaries for such period shall be
deemed to be increased by an amount equal to the Consolidated EBITDA of
Camden for the fourth calendar quarter for 1996 and for January 1997
(which amount shall equal $3,550,000) and (iv) the fourth calendar
quarter for 1997, Consolidated EBITDA of the Borrower and its
Subsidiaries for such period shall be deemed to be increased by an amount
equal to the Consolidated EBITDA of Camden for January 1997 (which amount
shall equal $1,000,000):
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Fiscal Year Ratio
----------------- -----
1996 4th 5.90 to 1.00
1997 1st 5.85 to 1.00
2nd 5.75 to 1.00
3rd 5.50 to 1.00
4th 5.40 to 1.00
1998 1st 5.15 to 1.00
2nd 4.95 to 1.00
3rd 4.80 to 1.00
4th 4.65 to 1.00
1999 1st 4.50 to 1.00
2nd 4.30 to 1.00
3rd 4.20 to 1.00
4th 4.00 to 1.00
2000 1st 3.90 to 1.00
2nd 3.70 to 1.00
3rd 3.60 to 1.00
4th 3.50 to 1.00
2001 1st 3.40 to 1.00
2nd 3.20 to 1.00
3rd 3.10 to 1.00
4th 3.00 to 1.00
2002 1st 3.00 to 1.00
2nd 2.80 to 1.00
3rd 2.60 to 1.00
4th 2.50 to 1.00
2003 1st 2.50 to 1.00
2nd 2.50 to 1.00
3rd 2.50 to 1.00
4th 2.50 to 1.00
8.2 Limitation on Indebtedness. Create, incur, assume or suffer
to exist any Indebtedness, except:
(a) Indebtedness of the Credit Parties under the Loan Documents;
(b) Indebtedness of the Borrower or any Domestic Subsidiary,
including any new Domestic Subsidiary, to the Borrower or any Domestic
Subsidiary arising as a result of intercompany loans;
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(c) Indebtedness outstanding on the Second Amendment Closing
Date and listed on Schedule 8.2 and extensions, renewals or replacements
thereof provided that no such extension, renewal or replacement shall
(i) amend or modify any subordination provisions, if any, contained in
the original Indebtedness, (ii) shorten the fixed maturity or increase
the principal amount of, or increase the rate or shorten the time of
payment of interest on, or increase the amount or shorten the time of
payment of any principal or premium payable whether at maturity, at a
date fixed for prepayment or by acceleration or otherwise of the
original Indebtedness, or increase the amount of, or accelerate the time
of payment of, any fees payable in connection therewith, (iii) make any
modification relating to the affirmative or negative covenants, events
of default or remedies under the documents or instruments evidencing the
original Indebtedness the effect of which is to subject the Borrower or
any Subsidiary to any more materially onerous or restrictive provisions,
or (iv) materially adversely affect the interests of the Lenders under
this Agreement or any other Loan Document in any respect;
(d) Indebtedness resulting from the endorsement of negotiable
instruments in the ordinary course of business;
(e) Indebtedness in respect of obligations under Financing
Leases and purchase money Indebtedness not to exceed $15,000,000 in the
aggregate at any one time outstanding;
(f) Indebtedness in respect of (i) the Interest Rate Agreements
required pursuant to subsection 7.11 and (ii) copper hedging
arrangements in the nature of margin deposits for any such copper
hedging arrangements otherwise permitted under subsection 8.17 not
exceeding $2,500,000 in the aggregate at any one time;
(g) Indebtedness of any Domestic Subsidiary to the Borrower or
another Domestic Subsidiary from intercompany transfers of assets made
in the ordinary course of business or to the extent permitted under
subsections 8.6 and 8.9;
(h) Guarantee Obligations permitted by subsection 8.4;
(i) Indebtedness (i) of ECM to Wirekraft Industries evidenced by
the ECM Notes (provided that the ECM Notes are pledged by Wirekraft
Industries to the Administrative Agent for the ratable benefit of the
Lenders pursuant to the Wirekraft Note Pledge Agreement); (ii) of ECM
and any other Foreign Subsidiary of the Borrower to the Borrower or any
Domestic Subsidiary of the Borrower (other than Indebtedness evidenced
by the ECM Notes) (provided that any such intercompany notes are pledged
by the Borrower or any such Domestic Subsidiary of the Borrower, as the
case may be, to the Administrative Agent for the ratable benefit of the
Lenders pursuant to a pledge agreement in form and substance reasonably
satisfactory to the Administrative Agent) and (iii) of ECM and any other
Foreign Subsidiary of the Borrower to local financial institutions for
working capital purposes; provided that the aggregate principal amount
of Indebtedness described in clauses (i) and (ii) above plus
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the aggregate commitments of all working capital facilities described in
clause (iii) above shall in no event exceed $17,000,000 at any one time;
(j) Indebtedness subject to Liens permitted under subsections
8.3(b), (c), (d), (e);
(k) Indebtedness incurred in connection with the sale of the
accounts receivable of the Borrower and its Subsidiaries in connection
with a trade receivables financing transaction otherwise permitted under
subsection 8.6(i);
(l) additional Indebtedness not exceeding $8,000,000 in
aggregate principal amount at any one time outstanding;
(m) at any time following the Revolving Credit Commitment
Termination Date, Indebtedness in respect of unsecured revolving lines
of credit in an aggregate amount not exceeding $40,000,000 in aggregate
principal amount at any one time;
(n) Indebtedness under the Senior Subordinated Notes not to
exceed $150,000,000 in aggregate principal amount at any one time;
provided that such Indebtedness shall not be extended, renewed,
replaced, refinanced or otherwise amended except for amendments
otherwise permitted by subsection 8.10(b); and
(o) Indebtedness under the Exchange Notes not to exceed
$10,000,000 (as such amount may be increased due to accumulated
dividends on the Preferred Stock at the time of exchange) in aggregate
principal amount at any one time; provided that at the time the
Preferred Stock is exchanged for the Exchange Notes (the "Exchange"),
and after giving effect to the Exchange, there shall not exist a Default
or an Event of Default hereunder and the Administrative Agent shall have
received a certificate of a Responsible Officer of Holdings certifying
that after giving effect to the Exchange, Holdings and its Subsidiaries
will be in compliance with the terms and conditions of this Agreement
and the Senior Subordinated Note Indenture; and provided further that
such Indebtedness shall not be extended, renewed, replaced, refinanced
or otherwise amended except for amendments otherwise permitted by
subsection 8.10(b).
8.3 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 created by the Security Documents in favor of the
Administrative Agent for the benefit of the Lenders and the
Administrative Agent;
(b) Liens for taxes not yet due or which are being contested in
good faith by appropriate proceedings, provided that adequate reserves
with respect to contested taxes are maintained on the books of Holdings
or the Borrower or their respective 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);
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(c) carriers', landlord's, 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;
(d) pledges or deposits in connection with workers'
compensation, unemployment insurance and other social security
legislation;
(e) deposits to secure the performance of bids, trade contracts
(other than for borrowed money), leases, statutory obligations,
insurance contracts, surety and appeal bonds, performance bonds and
other obligations of a like nature incurred in the ordinary course of
business;
(f) easements, rights-of-way, zoning restrictions, restrictions
and other similar encumbrances (i) previously or hereinafter incurred in
the ordinary course of business which, in the aggregate, are not
material in amount and which, in the case of such encumbrances on any of
the Fee Properties or Leased Properties covered by a Mortgage, do not in
the aggregate materially detract from the value of such Fee Properties
or Leased Properties subject thereto or, in the case of such
encumbrances on any property, materially interfere with the
ordinary conduct of the business of the Borrower or such Subsidiary,
(ii) which are set forth in the title insurance policies delivered to
the Administrative Agent pursuant to the Existing Credit Agreement or
(iii) which are set forth in the "marked up" commitments for title
insurance delivered to the Administrative Agent on the Second Amendment
Closing Date;
(g) Liens in existence on the Second Amendment Closing Date
listed on Schedule 8.3, securing Indebtedness permitted by subsection
8.2(c) (including extensions, renewals and replacements of such
Indebtedness as permitted under subsection 8.2(c)), provided that no
such Lien is spread to cover any additional property (other than after
acquired title in or on such property and proceeds of the existing
collateral in accordance with the instrument creating such Lien) after
the Second Amendment Closing Date and that the amount of Indebtedness
secured thereby is not increased except pursuant to the instrument
creating such Lien (without any modification thereof);
(h) purchase money Liens and Liens in respect of Financing
Leases upon or in any property acquired or held by the Borrower or any
of its Subsidiaries to secure Indebtedness permitted under subsection
8.2(e) incurred solely for the purpose of financing the acquisition of
such property, and Liens existing on such property at the time of its
acquisition (other than any such Lien created in contemplation of such
acquisition);
(i) Liens on the property of the Borrower or any of its
Subsidiaries in favor of landlords securing licenses, subleases or
leases permitted hereunder;
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(j) Liens securing copper hedging arrangements in the nature of
margin deposits for any such copper hedging arrangements otherwise
permitted under subsection 8.17 not to exceed $2,500,000 in aggregate
amount at any time;
(k) licenses, leases or subleases permitted hereunder granted to
others not interfering in any material respect in the business of the
Borrower or any of its Subsidiaries;
(l) attachment or judgment Liens (other than judgment Liens paid
or fully covered by insurance which are not outstanding for more than
sixty days) in an aggregate amount outstanding at any one time not in
excess of $5,000,000;
(m) Liens arising from precautionary Uniform Commercial Code
financing statement filings with respect to operating leases or
consignment arrangements entered into by the Borrower or any of its
Subsidiaries in the ordinary course of business;
(n) Liens in favor of a banking institution arising by operation
of law encumbering deposits (including the right of set-off) held by
such banking institutions incurred in the ordinary course of business
and which are within the general parameters customary in the banking
industry;
(o) Liens arising from the sale of the accounts receivable of
the Borrower and its Subsidiaries in connection with a trade receivables
financing transaction otherwise permitted under subsection 8.6(i);
(p) Liens on property of ECM or any other Foreign Subsidiary of
the Borrower securing Indebtedness of ECM or such Foreign Subsidiary of
the Borrower, as the case may be, permitted under subsections 8.2(i)(ii)
and (iii) and Liens on property of ECM securing Indebtedness under the
ECM Notes in each case pursuant to documentation in form and substance
reasonably satisfactory to the Administrative Agent; and
(q) Liens (not otherwise permitted hereunder) which secure
obligations not exceeding (as to the Borrower and all of its
Subsidiaries) $2,000,000 in aggregate amount at any time outstanding.
8.4 Limitation on Guarantee Obligations. Create, incur, assume
or suffer to exist any Guarantee Obligation except:
(a) the Guarantees;
(b) guarantees of Indebtedness permitted pursuant to subsection
8.2(c) in existence on the Second Amendment Closing Date and set forth
on Schedule 8.4 and extensions, renewals and replacements thereof,
provided, however, that no such extension, renewal or replacement shall
(i) amend or modify the subordination provisions, if any, contained in
the original guarantee, (ii) shorten the fixed maturity or increase the
principal amount of, or increase the rate or shorten the time of
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payment of interest on, or increase the amount or shorten the time of
payment of any principal or premium payable whether at maturity, at a
date fixed for prepayment or by acceleration or otherwise of the
Indebtedness guaranteed by the original guarantee, or increase the
amount of, or accelerate the time of payment of, any fees payable in
connection therewith, (iii) make any modification relating to the
affirmative or negative covenants, events of default or remedies under
the documents or instruments evidencing the original guarantee the
effect of which is to subject the Borrower or any Subsidiary to any more
onerous or restrictive provisions, or (iv) adversely affect the
interests of the Lenders under this Agreement or any other Loan Document
in any respect;
(c) the L/C Obligations;
(d) indemnities in favor of the companies issuing title
insurance policies insuring the Mortgages to induce such issuance;
(e) surety bonds issued in respect of the type of obligations
described in subsection 8.3(e);
(f) indemnities made in the Commitment Letter, the Loan
Documents, the Acquisition Documents, the Camden Acquisition Documents
and the Transaction Documents and in the monitoring and oversight
agreement described in subsection 8.7(a)(iv) and in the corporate
charter and/or bylaws of the Borrower and its Subsidiaries;
(g) indemnities made in the ordinary course of business,
provided that such indemnities could not individually or in the
aggregate have a Material Adverse Effect;
(h) the guarantees of the Domestic Subsidiaries of the Borrower
set forth in the Senior Subordinated Notes and the Senior Subordinated
Note Documents; and
(i) obligations in the nature of indemnities of Wirekraft
Industries and WB Holdings to GE in respect of GE's obligations on
account of the Lease Contract entered into on or about August 1, 1994
between ECM, as lessee, and Parques Industriales Mexicanos, S.A. de
C.D., as lessor, in respect of property located in Ciudad ▇▇▇▇▇▇, State
of Chihuahua, Mexico.
8.5 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 (i) any Wholly Owned Subsidiary of the Borrower may
be merged or consolidated with or into the Borrower (provided that the Borrower
shall be the continuing or surviving corporation) or with or into any one or
more Wholly Owned Subsidiaries of the Borrower (provided that no Domestic
Subsidiary may be merged or consolidated with or into any Foreign Subsidiary
unless the Domestic Subsidiary shall be the surviving corporation) and (ii) any
Subsidiary of the Borrower may liquidate or dissolve if in
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connection therewith all of its assets are transferred to the Borrower or any
Wholly Owned Subsidiary of the Borrower which is a Domestic Subsidiary of the
Borrower.
8.6 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, except:
(a) obsolete or worn out property disposed of in the ordinary
course of business or property that is no longer useful in the conduct
of the Borrower's business disposed of in the ordinary course of
business;
(b) the sale, transfer or exchange of inventory in the ordinary
course of business;
(c) transfers resulting from any casualty or condemnation of
property or assets;
(d) any sale or other transfer of any property or assets
constituting fixed assets for cash, provided that the aggregate net cash
proceeds of the sales and transfers made pursuant to this paragraph (d)
in the aggregate do not exceed $2,000,000 in any fiscal year;
(e) intercompany sales or transfers of assets made in the
ordinary course of business; and
(f) licenses or sublicenses of intellectual property and general
intangibles and licenses, leases or subleases of other property in the
ordinary course of business and which do not materially interfere with
the Business.
(g) any consignment arrangements or similar arrangements for the
sale of assets in the ordinary course of business;
(h) the sale or discount of overdue accounts receivable arising
in the ordinary course of business, but only in connection with the
compromise or collection thereof; and
(i) the sale of the accounts receivable of the Borrower and its
Subsidiaries in connection with a trade receivable financing transaction
reasonably acceptable to the Administrative Agent; provided that all of
the Net Cash Proceeds of each such sale are applied to the prepayment of
the Loans as required by subsection 2.12.
8.7 Limitation on Dividends. 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 class of Capital Stock of the Borrower or any Subsidiary 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
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indirectly, whether in cash or property, obligations of the Borrower or any
Subsidiary or otherwise (such declarations, payments, setting apart, purchases,
redemptions, defeasances, retirements, acquisitions and distributions being
herein called "Restricted Payments"), except that:
(a) the Borrower may make Restricted Payments to Holdings, so
long as (except with respect to clause (iii) below) no Event of Default
(or, in the case of clause (iv) below an Event of Default which relates
to a payment default under subsection 9(a)) has occurred and is
continuing or would occur and be continuing after giving effect to any
such Restricted Payment:
(i) the proceeds of which shall be applied by Holdings
directly to pay out of pocket expenses for administrative, legal
and accounting services provided by third parties which are
reasonable and customary and incurred in the ordinary course of
business, to pay franchise fees and similar costs or to pay
filing fees in connection with the registration under the
Securities Act of 1933, as amended of securities issued in
exchange for the Senior Subordinated Notes; provided, however
that any such administrative expenses shall not exceed an
aggregate amount of $1,000,000 in fiscal year 1995 and $750,000
in each fiscal year thereafter;
(ii) the proceeds of which shall be used to repurchase
the Capital Stock or other securities of Holdings from outside
directors, employees or members of the management of Holdings,
the Borrower or any Subsidiary, at a price not in excess of fair
market value, in an aggregate amount not in excess of $3,000,000,
net of the proceeds received by the Borrower as a result of any
resales of any such Capital Stock or other securities;
(iii) the proceeds of which shall be used to pay taxes
which are due and payable of Holdings and the Borrower as part of
a consolidated group; and
(iv) the proceeds of which shall be used to pay
management fees to HMTFI in accordance with the terms of its
monitoring and oversight agreement described in Schedule 5.22;
(b) any Subsidiary of the Borrower may make Restricted Payments
to the Borrower;
(c) Permitted Issuances may be made;
(d) the Borrower may declare dividends on the Preferred Stock as
set forth in the terms of the Preferred Stock, provided that the
borrower may not pay such
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dividends in cash on or prior to March 31, 2000; and provided further
that the Borrower may pay such dividends in cash after March 31, 2000 so
long as no Default or Event of Default has occurred and is continuing or
would occur as a result of such payment; and
(e) the Borrower may exchange the Preferred Stock for the
Exchange Notes (pursuant to the terms of the Preferred Stock) and pay
accumulated dividends on the Preferred Stock at the time of the
Exchange, so long as no Default or Event of Default has occurred or
would occur as a result of the payment of such accumulated dividends.
8.8 Limitation on Capital Expenditures. (a) Make or commit to make
any Capital Expenditure, except for expenditures in the ordinary course of
business not exceeding, in the aggregate for the Borrower and its Subsidiaries
during any of the fiscal years of the Borrower set forth below (or, with
respect to the first such fiscal year only, the period from the Closing Date to
the end of such fiscal year) the amount set forth opposite such fiscal year
below:
Fiscal Year Amount
----------- ------
1996 $ 14,000,000
1997 23,000,000
1998 and thereafter 20,000,000
; provided that 100% of any amount not used in any fiscal year set forth above
may be carried forward into the next succeeding fiscal year (and any amount
allowed in the Existing Credit Agreement for fiscal year 1995 which was not
used in fiscal year 1995 may be carried forward into fiscal year 1996) and
Capital Expenditures in such next succeeding fiscal year shall be applied first
to the amount carried forward into such next succeeding fiscal year before
being applied to the yearly limit for such next succeeding fiscal year.
(b) In addition to the Capital Expenditures permitted pursuant to
paragraph (a) of this subsection 8.8, to the extent such proceeds are not
otherwise utilized pursuant to the last paragraph of subsection 8.9, the
Borrower and its Subsidiaries may make additional Capital Expenditures (which
shall not be counted in the limitations set forth in paragraph (a) of this
subsection 8.8 but shall be counted in the limitation set forth in paragraph
(c) of this subsection 8.8) as follows: (i) Capital Expenditures consisting of
the investment of Net Cash Proceeds not required to be applied to prepay the
Loans pursuant to subsection 2.12, including, (x) with respect to the
investment of proceeds of the insurance and condemnation proceeds not required
to prepay the Loans pursuant to subsection 2.12 and (y) with respect to the
investment of proceeds of the sale of assets which are permitted pursuant to
subsection 8.6 and (ii) Capital Expenditures consisting of the investment of
Excess Cash Flow generated during prior fiscal years (beginning with Excess
Cash Flow generated in the fiscal year ended in December 1995 but, in each
case, including the retained portion of Excess Cash Flow for only those periods
where the Excess Cash Flow payment has theretofore occurred) and not required
to be applied to prepay the Loans pursuant to subsection 2.12.
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(c) Notwithstanding the foregoing in no event shall Capital
Expenditures (other than Capital Expenditures permitted pursuant to paragraph
(d) below) for the Borrower and its Subsidiaries in the aggregate exceed
$27,000,000 in any one fiscal year.
(d) In addition to the Capital Expenditures permitted pursuant to
paragraphs (a) and (b) of this subsection 8.8, Wire Technologies may purchase
the real property which it is leasing under the Seller Leases pursuant to the
terms of the purchase options contained in the Seller Leases (which purchases
shall not be counted in the limitations set forth in paragraphs (a), (b) and
(c)), provided that the aggregate consideration for each such purchase shall
not exceed the fair market value of the respective property as determined in
accordance with the applicable Seller Lease at the time of such purchase.
8.9 Limitation on Investments, Loans and Advances. Make any advance,
loan, extension of credit or capital contribution to, or purchase any stock,
bonds, notes, debentures or other securities of or any assets constituting a
business unit of, or make any other investment in, any Person ("Investments"),
except:
(a) extensions of trade credit in the ordinary course of
business;
(b) Investments in Cash Equivalents;
(c) (i) Investments by the Borrower in any Subsidiary,
including any new Subsidiary, (ii) intercompany loans to the extent
permitted by subsection 8.2(b) and (iii) loans to ECM and any other
Foreign Subsidiary of the Borrower to the extent permitted by subsection
8.2(i);
(d) loans and advances by the Borrower or its Subsidiaries to
their respective directors, officers and employees in an aggregate
principal amount not exceeding $500,000 at any one time outstanding;
(e) loans, advances or Investments in existence on the Second
Amendment Closing Date and listed on Schedule 8.9, and extensions,
renewals, modifications or restatements or replacements thereof,
provided that no such extension, renewal, modification or restatement
shall (i) increase the amount of the original loan, advance or
investment, or (ii) adversely affect the interests of the Lenders with
respect to such original loan, advance or investment or the interests of
the Lenders under this Agreement or any other Loan Document in any
respect;
(f) Investments (not including copper hedging transactions)
permitted by subsection 8.8;
(g) promissory notes and other similar non-cash consideration
received by the Borrower and its Subsidiaries in connection with the
dispositions permitted by subsection 8.6;
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(h) Investments (i) required by subsection 7.11 and (ii) in the
nature of margin deposits for any copper hedging arrangements otherwise
permitted under subsection 8.17 in an aggregate amount not exceeding
$2,500,000;
(i) Investments (including debt obligations and Capital Stock)
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;
(j) in addition to the foregoing, Investments in an aggregate
amount not exceeding $7,500,000 (at cost, without regard to any write
down or write up thereof) at any one time outstanding;
(k) in addition to the foregoing, Investments in an aggregate
amount not exceeding $4,000,000 (plus purchase price adjustments and
related adjustments) in connection with the acquisition of the capital
stock of Electrol Company Inc; and
(l) the Camden Acquisition in accordance with the terms of the
Camden Acquisition Documents.
In addition to the Investments permitted pursuant to this subsection
8.9, to the extent such proceeds are not otherwise utilized pursuant to
subsection 8.8(b), the Borrower and its Subsidiaries may make additional
Investments (which shall not be counted in the limitations set forth above) as
follows: (i) Investments consisting of the investment of Net Cash Proceeds not
required to be applied to prepay the Loans pursuant to subsection 2.12,
including (x) with respect to the investment of proceeds of the insurance and
condemnation proceeds not required to prepay the Loans pursuant to subsection
2.12 and (y) with respect to the investment of proceeds of the sale of assets
which are permitted pursuant to subsection 8.6; and (ii) Investments consisting
of the investment of Excess Cash Flow generated during prior fiscal years
(beginning with Excess Cash Flow generated in the fiscal year ended in December
1995 but, in each case, including the retained portion of the Excess Cash Flow
for only those periods where the Excess Cash Flow payment has theretofore
occurred) and not required to be applied to prepay the Loans pursuant to
subsection 2.12.
8.10 Limitation on Optional Payments and Modifications of Debt
Instruments. (a) Make any optional payment or prepayment on or redemption of
any Indebtedness (other than the Loans and the Letters of Credit or
Indebtedness permitted by
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subsection 8.2(i) or the Indebtedness referred to in items IV(1) and IV(2) on
Schedule 8.2, but including, without limitation, the Senior Subordinated Notes
and the Exchange Notes) including, without limitation, any payments on account
of, or for a sinking or other analogous fund for, the redemption, repurchase,
defeasance or other acquisition thereof, except mandatory payments of
principal, interest, fees and expenses required by the terms of the agreement
governing or instrument evidencing such Indebtedness but only to the extent
permitted under the subordination provisions applicable thereto.
(b) Amend, supplement or otherwise modify any of the provisions of any
Indebtedness (other than the Loans and the Letters of Credit, Indebtedness
permitted by subsections 8.2(d), 8.2(i), 8.2(l) or 8.2(m) but including,
without limitation, the Senior Subordinated Notes, the Preferred Stock and the
Exchange Notes):
(i) which amends or modifies the subordination provisions
contained therein;
(ii) which shortens the fixed maturity or increases the
principal amount of, or increases the rate or shortens the time of
payment of interest on, or increases the amount or shortens the time of
payment of any principal or premium payable whether at maturity, at a
date fixed for prepayment or by acceleration or otherwise of such
Indebtedness, or increases the amount of, or accelerates the time of
payment of, any fees payable in connection therewith;
(iii) which relates to the affirmative or negative covenants,
events of default or remedies under the documents or instruments
evidencing such Indebtedness and the effect of which is to subject the
Borrower or any of its Subsidiaries, to any more onerous or more
restrictive provisions; or
(iv) which otherwise adversely affects the interests of the
Lenders as senior creditors with respect to any subordinated or other
Indebtedness (including, without limitation, the Senior Subordinated
Notes) or the interests of the Lenders under this Agreement or any other
Loan Document in any respect.
(c) Make any payment in cash on any equity or debt security that may be
made under the terms thereof by the issuance of any security of the same
nature.
8.11 Limitation on Transactions with Affiliates. (a) Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate (other
than a wholly owned Subsidiary) unless such transaction is (i) otherwise
permitted under this Agreement, or (ii) (x) in the ordinary course of the
Borrower's or such Subsidiary's business and (y) upon fair and reasonable terms
no less favorable to the Borrower 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.
(b) In addition, notwithstanding the foregoing, the Borrower and its
Subsidiaries shall be entitled to make the following payments and/or to enter
into the following transactions:
(i) the payment of reasonable and customary fees and
reimbursement of expenses payable to directors of the Borrower;
(ii) the payment to HMTFI of fees and expenses pursuant to a
monitoring and oversight agreement approved by the board of directors of
the Borrower and as set forth on Schedule 5.22; and
▇▇▇
▇▇▇
(▇▇▇) the employment arrangements with respect to the
procurement of services of directors, officers and employees in the
ordinary course of business and the payment of reasonable fees in
connection therewith.
8.12 Limitation on Sales and Leasebacks. Enter into any arrangement
with any Person providing for the leasing by the Borrower or any Subsidiary of
real or personal property which has been or is to be sold or transferred by the
Borrower 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 Borrower or such Subsidiary.
8.13 Limitation on Changes in Fiscal Year. Permit the fiscal year of
the Borrower to end on a day other than the Thursday of the 52nd week of each
year.
8.14 Restrictions Affecting Subsidiaries. Enter into with any Person,
or suffer to exist any agreement which prohibits or limits the ability of the
Borrower or any of its Subsidiaries to (a) create, incur, assume or suffer to
exist any Lien upon any of its property, assets or revenues, whether now owned
or hereafter acquired, other than (i) this Agreement and (ii) any industrial
revenue bonds, purchase money mortgages or Financing Leases or any other
agreement or transaction permitted by this Agreement (in which cases, any
prohibition or limitation shall only be effective against the assets financed
thereby) or (b) pay dividends or make other distributions or pay any
Indebtedness owed to the Borrower or any of its Subsidiaries except as
permitted by this Agreement.
8.15 Limitation on Lines of Business. Enter into any business, either
directly or through any Subsidiary, except for those businesses in which the
Borrower and its Subsidiaries are engaged on the date of this Agreement or
which are directly related thereto.
8.16 Amendments to Corporate Documents; Transaction Documents;
Acquisition Documents; Camden Acquisition Documents; Licenses. (a) Amend its
certificate of incorporation or by-laws unless such amendment does not
adversely affect the interests of any Lender in any material respect, (b)
amend, supplement or otherwise modify the terms and conditions of the
indemnities and licenses furnished to the Borrower or any of its Subsidiaries
pursuant to any of the Transaction Documents, Acquisition Documents or Camden
Acquisition Documents such that after giving effect thereto such indemnities or
licenses shall be materially less favorable to the interests of the Credit
Parties or the Lenders with respect thereto, (c) otherwise amend, supplement or
otherwise modify the terms and conditions of any of the Transaction Documents,
Acquisition Documents or Camden Acquisition Documents except to the extent that
any such amendment, supplement or modification could not reasonably be expected
to have a Material Adverse Effect.
8.17 Limitations on Commodity Hedging Transactions. Enter into,
purchase or otherwise acquire agreements or arrangements relating to copper or
other futures or copper or other commodities hedging except, to the extent and
only to the extent that, such agreements or arrangements are entered into,
purchased or otherwise acquired in the ordinary course of business of the
Borrower or any of its Subsidiaries with reputable financial institutions and
not for purposes of speculation.
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SECTION 9. EVENTS OF DEFAULT
If any of the following events shall occur and be continuing:
(a) The Borrower or Camden shall fail to pay any principal of
any Loan and/or Note or any L/C Obligation when due in accordance with
the terms thereof or hereof; or the Borrower shall fail to pay any
interest on any Loan and/or Note, 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
Borrower, Holdings or any of their Subsidiaries herein or in any other
Loan Document or which is contained in any certificate, document or
financial or other statement furnished at any time under or in
connection with this Agreement shall prove to have been incorrect in any
material respect on or as of the date made or deemed made; or
(c) The Borrower, Holdings or any of their Subsidiaries shall
default in the performance or observance of any agreement contained in
Section 8 or Section 11; or
(d) The Borrower shall default in the observance or performance
of any other agreement contained in this Agreement or in any other Loan
Document (other than as provided in paragraphs (a) through (c) of this
Section), and such default shall continue unremedied for a period of 30
days; or
(e) The Borrower or any of its Subsidiaries shall (i) default
(x) in any payment of principal of or interest on any Indebtedness
(other than the Loans) or (y) in the payment of any Guarantee
Obligation (other than the Guarantees), having an outstanding principal
amount individually or in the aggregate for both of clauses (x) and (y)
in excess of $2,000,000, beyond the period of grace, if any, provided in
the instrument or agreement under which such Indebtedness or Guarantee
Obligation was created; or (ii) default in the payment of any margin or
settlement payment, or in making or taking delivery, under a commodities
hedging agreement or arrangement with respect to an amount in the
aggregate of $2,000,000 or more; or (iii) 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
(f) (i) Holdings or any of its 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,
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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 any of Holdings or any of its
Subsidiaries shall make a general assignment for the benefit of its
creditors; or (ii) there shall be commenced against Holdings or any of
its 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 Holdings or any of its 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) Holdings or any of its 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) Holdings or any of its Subsidiaries shall generally not,
or shall be unable to, or shall admit in writing its inability to, pay
its debts (other than intercompany 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 Borrower 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 Borrower 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, could reasonably be expected to result in a material
liability; or
(h) One or more judgments or decrees shall be entered against
the Borrower or any of its Subsidiaries involving in the aggregate a
liability (not paid or fully covered by insurance) of $2,000,000 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
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(i) The Borrower or any of its Subsidiaries shall incur any
liability (not paid or fully covered by insurance) under any
Environmental Law in an amount which would result in a Material Adverse
Effect; or
(j) Any Loan Document shall, at any time, cease to be in full
force and effect (unless released by the Administrative Agent at the
direction of the Required Lenders or as otherwise permitted under this
Agreement or the other Loan Documents) or shall be declared null and
void (and, if such invalidity is such so as to be amenable to cure
without materially disadvantaging the position of the Administrative
Agent and the Lenders thereunder, the Credit Party shall have failed to
cure such invalidity within 30 days after notice from the Administrative
Agent or such shorter time period as is specified by the Administrative
Agent in such notice and is reasonable in the circumstances), or the
validity or enforceability thereof shall be contested by any Credit
Party, or any of the Liens intended to be created by any Security
Document shall cease to be or shall not be a valid and perfected Lien
having the priority contemplated thereby (and, if such invalidity is
such so as to be amenable to cure without materially disadvantaging the
position of the Administrative Agent and the Lenders, or the Borrower,
as the case may be, as secured parties thereunder, the Credit Party
shall have failed to cure such invalidity within 30 days after notice
from the Administrative Agent or such shorter time period as specified
by the Administrative Agent in such notice and is reasonable in the
circumstances); or
(k) A Change of Control shall occur;
then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) above with respect to the Borrower,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon), the maximum amount available to be
drawn under all outstanding Letters of Credit and all other amounts owing under
this Agreement and any Notes 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 Borrower declare the Commitments
to be terminated forthwith, whereupon the Commitments 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 Borrower, declare the Loans
hereunder (with accrued interest thereon), the maximum amount available to be
drawn under all outstanding Letters of Credit and all other amounts owing under
this Agreement and any Notes to be due and payable forthwith, whereupon the
same shall immediately become due and payable. All payments under this Section
9 on account of undrawn Letters of Credit shall be made by the Borrower and
Camden directly to a cash collateral account established for such purpose for
application to the Borrower's and Camden's obligations with respect thereto as
drafts are presented under the Letters of Credit. Any remaining amounts paid
by the Borrower or Camden in respect of such undrawn Letters of Credit shall be
returned to the Borrower or Camden, as the case may be, after the last expiry
date of the Letters of Credit and after the Obligations have been paid in full.
Except as expressly provided above in this Section, presentment, demand,
protest and all other notices of any kind are hereby expressly waived.
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SECTION 10. THE ADMINISTRATIVE AGENT
10.1 Appointment. Each Lender hereby irrevocably designates and
appoints Chase as the Administrative Agent of such Lender under this Agreement
and the other Loan Documents, and each such Lender irrevocably authorizes
Chase, as the Administrative Agent for such Lender, to take such action on its
behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
the Administrative Agent by the terms of this Agreement and the other Loan
Documents, together with such other powers as are reasonably incidental
thereto. Each Lender hereby irrevocably designates and appoints Bankers Trust
Company as the Documentation Agent of such Lender under this Agreement and the
other Loan Documents. Notwithstanding any provision to the contrary elsewhere
in this Agreement, the Administrative Agent and the Documentation Agent shall
not have any duties or responsibilities, except those expressly set forth
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 Loan Document or otherwise exist
against the Administrative Agent.
10.2 Delegation of Duties. The Administrative Agent may execute any of
its duties under this Agreement and the other Loan Documents by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel
concerning all matters pertaining to such duties. The Administrative Agent
shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.
10.3 Exculpatory Provisions. Neither the Administrative Agent, the
Documentation Agent nor any of their officers, directors, controlling persons,
employees, agents, attorneys-in-fact 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 Loan Document (except for its or
such Person's own gross negligence or willful misconduct) or (ii) responsible
in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by the Borrower or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Administrative Agent under or in connection with, this Agreement or any
other Loan Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any Notes or any other Loan
Document or for any failure of the 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, any Notes or any other Loan
Document, or to inspect the properties, books or records of the Borrower.
10.4 Reliance by Administrative Agent. The Administrative 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
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signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
Borrower), independent accountants and other experts selected by the
Administrative Agent. The Administrative 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. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Required 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. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and any Notes and
the other Loan Documents in accordance with a request of the Required Lenders,
and such request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders and all future holders of the Notes.
10.5 Notice of Default. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default hereunder unless the Administrative Agent has received written notice
from a Lender or the 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 Administrative Agent receives such a notice,
the Administrative Agent shall give notice thereof to the Lenders. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders;
provided that unless and until the Administrative Agent shall have received
such directions, the Administrative Agent 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.
10.6 Non-Reliance on Administrative Agent and Other Lenders. Each
Lender expressly acknowledges that neither the Administrative Agent or the
Documentation Agent nor any of their officers, directors, employees, agents,
attorneys-in-fact 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 the Borrower, shall
be deemed to constitute any representation or warranty by the Administrative
Agent or the Documentation Agent to any Lender. Each Lender represents to the
Administrative Agent and the Documentation Agent that it has, independently and
without reliance upon the Administrative Agent or 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,
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property, financial and other condition and creditworthiness of the Borrower
and made its own decision to make its Loans hereunder and enter into this
Agreement. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or 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
Loan 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 Borrower. Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, the Administrative Agent shall not 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 the Borrower which may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates.
10.7 Indemnification. The Lenders agree to indemnify the
Administrative Agent and the Documentation Agent in their capacities as such
(to the extent not reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so), ratably according to their respective
Commitment Percentages in effect on the date on which indemnification is sought
under this subsection, 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 this Agreement, any of the other
Loan 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 solely from the Administrative Agent's or the Documentation Agent's
gross negligence or willful misconduct or, in the case of indemnified
liabilities arising under this Agreement, any Notes and the other Loan
Documents, from material breach by the Administrative Agent or the
Documentation Agent of this Agreement, any Notes or the other Loan Documents,
as the case may be. The agreements in this subsection shall survive the
payment of the Loans and all other amounts payable hereunder.
10.8 Administrative Agent and the Documentation Agent in Their
Individual Capacity. The Administrative Agent, the Documentation Agent and
their Affiliates may make loans to, accept deposits from and generally engage
in any kind of business with the Borrower as though the Administrative Agent
and the Documentation Agent were not the Administrative Agent and the
Documentation Agent hereunder and under the other Loan Documents. With respect
to their Loans made or renewed by them and any Note issued to them, the
Administrative Agent and the Documentation Agent shall have the same rights and
powers under this Agreement and the other Loan Documents as any Lender and may
exercise the same as though it were not the Administrative Agent or the
Documentation Agent, and the terms "Lender" and "Lenders" shall include the
Administrative Agent and the Documentation Agent in its individual capacity.
10.9 Successor Administrative Agent. The Administrative Agent may
resign as Administrative Agent upon 30 days' notice to the Lenders. If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from
among the Lenders a successor agent for the Lenders, which successor agent
shall be approved by the Borrower (which approval shall not be unreasonably
withheld), whereupon such successor agent shall succeed to the rights,
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powers and duties of the Administrative Agent, and the term "Administrative
Agent" shall mean such successor agent effective upon such appointment and
approval, and the former Administrative Agent's rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or
deed on the part of such former Administrative Agent or any of the parties to
this Agreement or any holders of the Loans. After any retiring Administrative
Agent's resignation as Administrative Agent, the provisions of this subsection
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement and the other Loan
Documents.
10.10 Additional Ministerial Powers of Administrative Agent. The
Administrative Agent is hereby irrevocably authorized by each of the Lenders to
release any Lien covering any asset of the Borrower or any of its Subsidiaries
(including, without limitation, any Properties, accounts receivable or
inventory) that is the subject of a disposition, sale or assignment which is
permitted under this Agreement or, subject to subsection 12.1, which has been
consented to by the Required Lenders.
SECTION 11. GUARANTEE
11.1 Guarantee. To induce the Lenders to execute and deliver this
Agreement to make Loans and to issue and participate in Letters of Credit for
the account of the Borrower, and in consideration thereof, Holdings hereby
unconditionally and irrevocably guarantees to the Administrative Agent, the
Lenders and their successors, indorsees, transferees and assigns, the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of the Obligations, and Holdings further agrees
to pay the expenses which may be paid or incurred by the Administrative Agent
or the Lenders in collecting any or all of the Obligations and/or enforcing any
rights under this Section 11 or under the Obligations in accordance with
subsection 12.5. The guarantee contained in this Section 11 shall remain in
full force and effect until the Obligations are paid in full and the
Commitments are terminated, notwithstanding that from time to time prior
thereto the Borrower may be free from any Obligations.
11.2 Waiver of Subrogation. Notwithstanding any payment or payments
made by Holdings in respect of the Obligations or any setoff or application of
funds of Holdings by the Administrative Agent or the Lenders, Holdings shall
not be entitled to be subrogated to any of the rights of the Administrative
Agent or the Lenders against the Borrower or any collateral security or
guarantee or right of offset held by the Administrative Agent or the Lenders
for the payment of the Obligations, nor shall Holdings seek any reimbursement
from the Borrower in respect of payments made by Holdings hereunder until the
Obligations are paid in full.
11.3 Modification of Obligations. Holdings hereby consents that,
without the necessity of any reservation of rights against Holdings and without
notice to or further assent by Holdings, any demand for payment of the
Obligations made by the Administrative Agent, the Issuing Lender or the Lenders
may be rescinded by the Administrative Agent, the Issuing Lender or the Lenders
and the Obligations continued, and the Obligations, or the liability of any
other party upon or for any part thereof, or any collateral security or
guarantee therefor
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or right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Administrative Agent, the Issuing Lender
or the Lenders and that this Agreement, any Notes and the other Loan Documents,
including, without limitation, any Letter of Credit Application, any collateral
security document or other guarantee or document in connection therewith may be
amended, modified, supplemented or terminated, in whole or in part, as the
Administrative Agent, the Issuing Lender or the Lenders may deem advisable from
time to time, and, to the extent permitted by applicable law, any collateral
security or guarantee or right of offset at any time held by the Administrative
Agent, the Issuing Lender or the Lenders for the payment of the Obligations may
be sold, exchanged, waived, surrendered or released, all without the necessity
of any reservation of rights against Holdings and without notice to or further
assent by Holdings which will remain bound hereunder notwithstanding any such
renewal, extension, modification, acceleration, compromise, amendment,
supplement, termination, sale, exchange, waiver, surrender or release. The
Administrative Agent, the Issuing Lender and the Lenders shall not have any
obligation to protect, secure, perfect or insure any collateral security
document or property subject thereto at any time held as security for the
Obligations. When making any demand hereunder against Holdings, the
Administrative Agent, the Issuing Lender or the Lenders may, but shall be under
no obligation to, make a similar demand on any other party or any other
guarantor, and any failure by the Administrative Agent, the Issuing Lender or
the Lenders to make any such demand or to collect any payments from the
Borrower or any such other guarantor shall not relieve Holdings of its
obligations or liabilities hereunder, and shall not impair or affect the rights
and remedies, express or implied, or as a matter of law, of the Administrative
Agent, the Issuing Lender or the Lenders against Holdings. For the purposes of
this subsection "demand" shall include the commencement and continuance of any
legal proceedings.
11.4 Waiver by Holdings. Holdings waives any and all notice of the
creation, renewal, extension or accrual of the Obligations and notice of or
proof of reliance by the Administrative Agent, the Issuing Lender and the
Lenders upon the guarantee contained in this Section 11 or acceptance of the
guarantee contained in this Section 11, and the Obligations, and any of them,
shall conclusively be deemed to have been created, contracted, continued or
incurred in reliance upon the guarantee contained in this Section 11, and all
dealings between Holdings and the Administrative Agent, the Issuing Lender or
the Lenders shall likewise be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this Section 11.
Holdings waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrower or Holdings with respect to
any Obligations. This guarantee shall be construed as a continuing absolute
and unconditional guarantee of payment without regard to the validity,
regularity or enforceability of the Credit Agreement, any Note or any other
Loan Document, including, without limitation, any Letter of Credit Application
or any collateral security or guarantee therefor or right of offset with
respect thereto at any time or from time to time held by the Administrative
Agent, the Issuing Lender or the Lenders and without regard to any defense,
setoff or counterclaim which may at any time be available to or be asserted by
the Borrower against the Administrative Agent, the Issuing Lender, the Lenders
or any other Person, or by any other circumstance whatsoever (with or without
notice to or knowledge of the Borrower or Holdings) which constitutes, or might
be construed to constitute, an equitable or legal
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discharge of the Borrower for any of its Obligations, or of Holdings under the
guarantee contained in this Section 11 in bankruptcy or in any other instance,
and the obligations and liabilities of Holdings hereunder shall not be
conditioned or contingent upon the pursuit by the Administrative Agent, the
Issuing Lender or the Lenders or any other Person at any time of any right or
remedy against the Borrower or against any other Person which may be or become
liable in respect of any Obligations or against any collateral security or
guarantee therefor or right of offset with respect thereto. The guarantee
contained in this Section 11 shall remain in full force and effect and be
binding in accordance with and to the extent of its terms upon Holdings and the
successors and assigns thereof, and shall inure to the benefit of the Lenders
and their successors, indorsees, transferees and assigns, until the Obligations
shall have been paid in full and the Commitments shall be terminated,
notwithstanding that from time to time during the term of this Agreement the
Borrower may be free from any Obligations.
11.5 Reinstatement. The guarantee contained in this Section 11 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any Obligations is rescinded or must otherwise
be restored or returned by the Administrative Agent, the Issuing Lender or the
Lenders upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Holdings or the Borrower or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, Holdings, the Borrower or any substantial part of their respective
property, or otherwise, all as though such payments had not been made.
11.6 Negative Covenants. From and after the Closing Date until the
Obligations shall have been paid in full, the Letters of Credit shall have
expired or been terminated and the Commitments shall have been terminated,
Holdings hereby agrees that it shall not (i) assume or otherwise incur or
suffer to exist any Indebtedness (other than the Holdings Deferred Obligation
and other than Indebtedness in the nature of Indebtedness specified in
subsection 8.2(d)) or Guarantee Obligation (other than (i) the Holdings
Guarantee, (ii) Guarantee Obligations in the nature of the Guarantee
Obligations specified in subsection 8.4(f), (iii) indemnities in favor of
officers, directors and employees of Holdings in the ordinary course of
business and in the connection with the ownership of the Borrower's capital
stock or (iv) Guarantee Obligations by Holdings in respect of real property
leases and/or personal property operating leases of the Borrower and/its
Subsidiaries in the ordinary course of business but in any event not in excess
of an aggregate amount of $10,000,000 at any one time outstanding), (ii)
create, incur, assume or suffer to exist any Lien upon any of its assets (other
than pursuant to the Security Documents and other than Liens in the nature of
the Liens specified in subsection 8.3(b)), (iii) cease to own, directly or
indirectly, 100% of the Capital Stock of the Borrower, (iv) amend its
certificate of incorporation or by-laws, any of the Holdings Stock Purchase
Agreement unless such amendment does not adversely affect the interests of any
Lender in any material respect, (v) engage in any activities other than (A)
owning the stock of the Borrower, (B) its activities incident to the
performance of (x) the Loan Documents, (y) the issuance and/or sale of its
common stock or options or warrants in respect of its Capital Stock, provided
that the proceeds thereof are applied as set forth in subsection 2.12 and (z)
the Holdings Stock Purchase Agreement, (C) transactions pursuant to or in
connection with the Transactions, the Acquisition or the Camden
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Acquisition and (D) activities contemplated by this Section 11 or (vi) make any
Restricted Payment except as permitted by subsection 8.7(c).
SECTION 12. MISCELLANEOUS
12.1 Amendments and Waivers. (a) Neither this Agreement, any Note,
any other Loan Document, nor any terms hereof or thereof may be waived,
amended, supplemented or otherwise modified except in accordance with the
provisions of this subsection. The Required Lenders may, or, with the written
consent of the Required Lenders, the Administrative Agent may, from time to
time, (i) enter into with the Borrower written amendments, supplements or
modifications hereto and to any Notes and the other Loan Documents for the
purpose of adding any provisions to this Agreement or any Notes or the other
Loan Documents or changing in any manner the rights of the Lenders or of the
Borrower or Holdings or any other Person hereunder or thereunder or (ii) waive,
on such terms and conditions as the Required Lenders or the Administrative
Agent, as the case may be, may specify in such instrument, any of the
requirements of this Agreement or any Notes or the other Loan 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 (1) reduce
the aggregate amount or extend the scheduled date of maturity of any Loan or of
any installment thereof, or reduce the stated rate of any interest or fee
payable hereunder or extend the scheduled date of any payment thereof or
increase the aggregate amount or extend the expiration date of any Lender's
Commitment, in each case without the consent of each Lender affected thereby,
or (2) amend, modify or waive any provision of this subsection 12.1 or reduce
the percentage specified in the definition of Required Lenders or consent to
the assignment or transfer by the Borrower of any of its rights and obligations
under this Agreement and the other Loan Documents or release collateral having
a value in excess of $20,000,000 or release the Holdings Guarantee, in each
case, without the written consent of all the Lenders, (3) amend, modify or
waive any provision of (x) subsection 2.6 (to the extent such subsection 2.6
relates to the Tranche A Term Loans), 4.4(a) or 2.7 without the written consent
of Tranche A Term Loan Lenders the Tranche A Term Loan Percentages of which
aggregate at least a majority, or (y) subsection 2.6 (to the extent such
subsection 2.6 relates to the Tranche B Term Loans), 4.4(a) or 2.8 without the
written consent of Tranche B Term Loan Lenders the Tranche B Term Loan
Percentages of which aggregate at least a majority, (4) amend, modify or waive
any provision of subsection 2.1, 2.2, 2.3, 2.4, 2.5, 2.12(e), the definition of
"Borrowing Base" in subsection 1.1 or Section 3 without the written consent of
the Revolving Credit Lenders the Revolving Credit Commitment Percentages of
which aggregate at least a majority, (5) amend, modify or waive any provision
of Section 10 without the written consent of the Administrative Agent, (6)
amend, modify or waive any prepayment required by subsection 2.12(a), (b), (c),
(d), (f) or (g) without the consent of the (x) the Revolving Credit Lenders and
the Tranche A Term Loan Lenders the Total Credit Percentages (calculated for
this purpose without
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reference to outstanding Tranche B Term Loans) of which aggregate at least a
majority and (y) Tranche B Term Loan Lenders the Tranche B Term Loan
Percentages of which aggregate at least a majority, (7) amend, modify or waive
the order of application of prepayments specified in subsection 4.4(b) without
the consent of (x) the Revolving Credit Lenders and the Tranche A Term Loan
Lenders the Total Credit Percentages (calculated for this purpose without
reference to outstanding Tranche B Term Loans) of which aggregate at least a
majority and (y) Tranche B Term Loan Lenders the Tranche B Term Loan
Percentages of which aggregate at least a majority, (8) amend, modify or waive
any provision of subsection 2.15 or the Swing Line Note (if any) without the
written consent of the then Swing Line Lender and each other Lender, if any,
which holds a participation in the Swing Line Loan pursuant to subsection
2.15(e), (9) amend, modify or waive the provisions of Section 3, any Letter of
Credit or any L/C Obligation without the written consent of the applicable
Issuing Lender and each affected L/C Participant, or (10) amend, modify or
waive any provision of any Security Document that provides for the ratable
sharing by the Lenders of the proceeds of any realization on the security for
the Loans to provide for a non-ratable sharing thereof, without the consent of
(x) the Revolving Credit Lenders and the Tranche A Term Loan Lenders the Total
Credit Percentages (calculated for this purpose without reference to
outstanding Tranche B Term Loans) of which aggregate at least a majority and
(y) Tranche B Term Loan Lenders the Tranche B Term Loan Percentages of which
aggregate at least a majority. Any such waiver and any such amendment,
supplement or modification shall apply equally to each of the Lenders and shall
be binding upon the Borrower, the Lenders, the Administrative Agent and all
future holders of the Loans. In the case of any waiver, the Borrower, the
Lenders and the Administrative Agent shall be restored to their former position
and rights hereunder and under the outstanding Loans and the other Loan
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; but no such waiver shall extend to any subsequent or
other Default or Event of Default, or impair any right consequent thereon.
(b) Each Tranche A Term Loan Lender and each Tranche B Term Loan Lender
which executes this Agreement hereby notifies the Administrative Agent that
such Lender's consent to any waiver, amendment, supplement or modification of
the this Agreement, any Note, any other Loan Document, or any terms thereof
with respect to the following matters will not be effective unless Tranche C
Term Loan Lenders the Tranche C Term Loan Percentages of which aggregate at
least a majority have also consented to such waiver, amendment, supplement or
modification: (i) subsection 2.6 of this Agreement (to the extent such
subsection 2.6 relates to the Tranche C Term Loans), (ii) subsection 4.4(a) of
this Agreement (iii) subsection 2.9 of this Agreement, (iv) any prepayments
required by subsection 2.12(a), (b), (c), (d), (f) or (g) of this Agreement,
(v) the order of application of prepayments specified in subsection 4.4(b) of
this Agreement and (vi) any provision of any Security Document that provides
for the ratable sharing by the Lenders of the proceeds of any realization on
the security for the Loans to provide for a non-ratable sharing thereof.
12.2 Notices. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered by hand, or two days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice,
when received, addressed as follows in the case of the Borrower, Holdings and
the Administrative Agent, the Issuing Lender and the Swing Line Lender, and as
set forth in Schedule 1.1 in the case of the other parties hereto, or to such
other address as may be hereafter notified by the respective parties hereto and
any future holders of the Loans or any Notes:
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The Borrower: International Wire Group, Inc.
c/o Mills & Partners
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to: Hicks, Muse, ▇▇▇▇ & ▇▇▇▇▇ Incorporated
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
Hicks, Muse, ▇▇▇▇ & ▇▇▇▇▇ Incorporated
1325 Avenue of the ▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
Holdings: International Wire Holding Company
c/o Mills & Partners
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to: Hicks, Muse, ▇▇▇▇ & ▇▇▇▇▇ Incorporated
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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Hicks, Muse, ▇▇▇▇ & ▇▇▇▇▇ Incorporated
1325 Avenue of the ▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
The Administrative The Chase Manhattan Bank
Agent, the c/o Chase Securities Inc.
Issuing Lender ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
or the Swing 23rd Floor
Line Lender: ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
with copies to: The Chase Manhattan Bank
Loan and Agency Services Group
One Chase ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
provided that any notice, request or demand to or upon the Administrative Agent
or the Lenders pursuant to subsection 2.3, 2.5, 2.10, 2.11, 2.12, 2.13 or 4.4
shall not be effective until received.
12.3 No Waiver; Cumulative Remedies. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent or any Lender, any
right, remedy, power or privilege hereunder 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.
12.4 Survival of Representations and Warranties. All representations
and warranties made hereunder 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.
12.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or
reimburse the Administrative Agent for all its 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 any Notes and the other Loan 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 counsel to the
Administrative Agent, (b) to pay or reimburse each Lender and the
Administrative Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the enforcement or preservation of any rights under
this Agreement, any Notes, the other Loan Documents and any such other
documents, including, without limitation, the reasonable fees and disbursements
of counsel to the
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Administrative Agent and, at any time after and during the continuance of an
Event of Default, of one counsel to each Lender, and (c) to pay, indemnify, and
hold each Lender 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 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, any Notes, the
other Loan Documents and any such other documents, and (d) to pay, indemnify,
and hold each Lender and the Administrative Agent their respective officers,
directors, employees, agents and controlling persons 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, any Notes, the other Loan
Documents, the Transaction Documents, the Acquisition Documents, the Camden
Acquisition Documents or the use of the proceeds of the Loans in connection
with the Transactions, the Acquisition and/or the Camden Acquisition and any
such other documents (all the foregoing in this clause (d), collectively, the
"indemnified liabilities"), provided that the Borrower shall have no obligation
hereunder to the Administrative Agent or any Lender or their respective
officers, directors, employees, agents and controlling persons with respect to
indemnified liabilities arising from the gross negligence or willful misconduct
of the Administrative Agent or such Lender, as the case may be, or, in the case
of indemnified liabilities arising under this Agreement, any Notes and the
other Loan Documents, from material breach by the Administrative Agent or such
Lender, as the case may be, or its respective officers, directors, employees,
agents and controlling persons of this Agreement, any Notes or the other Loan
Documents, as the case may be. The agreements in this subsection shall survive
repayment of the Loans and all other amounts payable hereunder.
12.6 Successors and Assigns; Participations and Assignments. (a) This
Agreement shall be binding upon and inure to the benefit of the Borrower, the
Lenders, the Administrative Agent, all future holders of the Loans and their
respective successors and assigns, except that the Borrower may not assign or
transfer any of its rights or obligations under this Agreement without the
prior written consent of each Lender.
(b) Any Lender may, in the ordinary course of its commercial lending or
investing business and in accordance with applicable law, at any time sell to
one or more banks, insurance companies or other financial institutions or other
entities ("Participants") participating interests in any Loan owing to such
Lender, any Note held by such Lender, any Commitment of such Lender or any
other interest of such Lender hereunder and under the other Loan Documents. In
the event of any such sale by a Lender of a participating interest to a
Participant, 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 for all purposes
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under this Agreement and the other Loan Documents, and the Borrower 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 Loan Documents. No Lender shall permit any Participant
to have the right to consent to any amendment or waiver in respect of this
Agreement or any of the other Loan Documents, except that such Lender may grant
such Participant the right to consent to any amendment or waiver in respect of
this Agreement or the other Loan Documents that would, directly or indirectly,
(i) reduce the aggregate amount or extend the final maturity of any Loan, or
reduce the stated rate of any interest or fee payable hereunder or extend the
scheduled date of any payment thereof or (ii) consent to the assignment or
transfer by the Borrower of any of its rights and obligations under this
Agreement or any of the other Loan Documents. The Borrower agrees that if
amounts outstanding under this Agreement and the Loans 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 be deemed to have the
right of setoff in respect of its participating interest in amounts owing under
this Agreement and any Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement or any Note, 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 12.7(a) as fully as if it were a
Lender hereunder. The Borrower also agrees that each Participant shall be
entitled to the benefits of subsections 4.6, 4.7 and 4.8 with respect to its
participation in the Commitments and the Loans and Letters of Credit
outstanding from time to time as if it was a Lender; provided that in the case
of subsection 4.7 or 4.8, such Participant shall have complied with the
requirements of such 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 or investing business and in accordance with applicable law, at any
time and from time to time assign to any Lender or any affiliate thereof or,
with the consent of the Administrative Agent (such consent not to be
unreasonably withheld), to an additional bank or financial or lending
institution or other entity (an "Assignee") all or any part of its rights and
obligations under this Agreement and any Notes pursuant to an Assignment and
Acceptance, executed by such Assignee, such assigning Lender (and, in the case
of an Assignee that is not then a Lender or an affiliate thereof, by the
Administrative Agent) and delivered to the Administrative Agent for its
acceptance and recording in the Register; provided that (x) each such transfer
(if such transfer relates to less than all of such Lenders' rights and
obligations under this Agreement and any Notes) shall be in respect of a
portion of its rights and obligations under this Agreement and any Notes not
less than $5,000,000 if such assignment is to a bank or financial or lending
institution or other entity that is not then a Lender or an affiliate thereof
and (y) the Swing Line Lender may not transfer any portion of the Swing Line
Commitment without the consent of the Borrower (such consent not to be
unreasonably withheld). 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 Commitments as set forth therein,
and (y)
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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; provided
that such assigning Lender shall continue to have the benefit of subsections
4.6, 4.7, 4.8 and 12.5(a), (b) and (c) (to the extent of rights accruing prior
to the date of such assignment only) and 12.5(d).
(d) The Administrative Agent, acting for this purpose as agent for the
Borrower, shall maintain at its address referred to in subsection 12.2 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 amount of the Loans owing to, each Lender
from time to time. The entries in the Register shall be conclusive, in the
absence of manifest error, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register as the
owner of the Loan recorded therein for all purposes of this Agreement. No
assignment or transfer of a Note and the obligation(s) evidenced thereby shall
be effective unless it has been recorded in the Register as provided in this
subsection 12.6(d). The Register shall be available for inspection by the
Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.
(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 thereof, by the Administrative Agent) together
with payment, by the Assignee, to the Administrative Agent of a registration
and processing fee of $4,000 if the Assignee is not a Lender or affiliate of a
Lender prior to the execution of the Assignment and Acceptance and $1,000
otherwise, 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 and the Borrower. On or prior
to such effective date, the Borrower, at its own expense, shall execute and
deliver to the Administrative Agent (in exchange for any Revolving Credit Note,
Swing Line Note or Term Note of the assigning Lender) a new Revolving Credit
Note, Swing Line Note or Term Note, as the case may be, to the order of such
Assignee in an amount equal to the Revolving Credit Commitment, Swing Line
Commitment or portion of the Term Loan, as the case may be, assumed by it
pursuant to such Assignment and Acceptance and, if the assigning Lender has
retained a Revolving Credit Commitment, Swing Line Commitment or portion of a
Term Loan hereunder, a new Revolving Credit Note, Swing Line Note or Term Note,
as the case may be, to the order of the assigning Lender in an amount equal to
the Revolving Credit Commitment, Swing Line Commitment or Term Loan, as the
case may be, retained by it hereunder. Such new Notes shall be dated the
Closing Date and shall otherwise be in the form of the Note replaced thereby.
(f) The Borrower authorizes each Lender to disclose to any Participant
or Assignee (each, a "Transferee") and any prospective Transferee any and all
information in such Lender's possession concerning the Borrower and its
Affiliates which has been
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delivered to such Lender by or on behalf of the Borrower pursuant to this
Agreement or which has been delivered to such Lender by or on behalf of the
Borrower in connection with such Lender's credit evaluation of the Borrower and
its Affiliates prior to becoming a party to this Agreement, under the condition
such Transferee or prospective Transferee agrees to comply with the provisions
of subsection 12.15.
(g) For avoidance of doubt, the parties to this Agreement acknowledge
that the provisions of this subsection 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.
12.7 Adjustments; Set-off. (a) If any Lender (a "benefitted Lender")
shall at any time receive any payment of all or part of the Obligations owing
to it or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in subsection 9(f), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect
of the Obligations owing to such other Lender, such benefitted Lender shall
purchase for cash from the other Lenders an interest in such portion of the
Obligations owing to each such other Lender, 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;
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.
(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 Borrower,
any such notice being expressly waived by the Borrower to the extent permitted
by applicable law, upon any amount becoming due and payable by the Borrower
hereunder or under any Notes (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 agency
thereof to or for the credit or the account of the Borrower. Each Lender
agrees promptly to notify the 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.
12.8 Counterparts. This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts, 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 Borrower and the Administrative Agent.
12.9 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 prohibition or unenforceability without
invalidating the remaining provisions hereof, and
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any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.
12.10 Integration. This Agreement and the other Loan Documents
represent the agreement of the Credit Parties, the Administrative Agent and the
Lenders with respect to the subject matter hereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent or any
Lender relative to the subject matter hereof not expressly set forth or
referred to herein or in the other Loan Documents.
12.11 GOVERNING LAW. THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.
12.12 Submission To Jurisdiction; Waivers. Each of Holdings and the
Borrower hereby irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to
which it is a party, or for recognition and enforcement of any judgement
in respect thereof, to the non-exclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of
America for the Southern District of New York, and appellate courts from
any thereof;
(b) consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter
have to the venue of any such action or proceeding in any such court or
that such action or proceeding was brought in an inconvenient court and
agrees not to plead or claim the same;
(c) agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or
certified mail (or any substantially similar form of mail), postage
prepaid, to the Credit Parties at their respective addresses set forth
in subsection 12.2 or at such other address of which the Administrative
Agent shall have been notified pursuant thereto;
(d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit
the right to ▇▇▇ in any other jurisdiction; and
(e) 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 any special, exemplary, punitive or
consequential damages.
12.13 Acknowledgements. Each of Holdings and the Borrower hereby
acknowledges that:
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121
(a) it has been advised by counsel in the negotiation, execution
and delivery of this Agreement and any Notes and the other Loan
Documents;
(b) neither the Administrative Agent nor any Lender has any
fiduciary relationship with or duty to the Credit Parties arising out of
or in connection with this Agreement or any of the other Loan Documents,
and the relationship between Administrative Agent and Lenders, on one
hand, and the Credit Parties, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor; and
(c) no joint venture exists among the Lenders or among the
Credit Parties and the Lenders.
12.14 WAIVERS OF JURY TRIAL. HOLDINGS, THE BORROWER, THE
ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY NOTES OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM
THEREIN.
12.15 Confidentiality. Each Lender agrees to keep information obtained
by it pursuant hereto and the other Loan Documents identified as confidential
in writing at the time of delivery confidential in accordance with such
Lender's customary practices and agrees that it will only use such information
in connection with the transactions contemplated by this Agreement and not
disclose any of such information other than (a) to such Lender's employees,
representatives, directors, attorneys, auditors, agents, professional advisors
or affiliates who are advised of the confidential nature of such information,
(b) to the extent such information presently is or hereafter becomes available
to such Lender on a non-confidential basis from any source or such information
that is in the public domain at the time of disclosure, (c) to the extent
disclosure is required by law (including applicable securities laws),
regulation, subpoena or judicial order or process (provided that notice of such
requirement or order shall be promptly furnished to the Borrower unless such
notice is legally prohibited) or requested or required by bank, securities or
investment company regulations or auditors or any administrative body or
commission to whose jurisdiction such Lender may be subject, (d) to
Transferees, or to prospective Transferees or direct or indirect contractual
counterparties in swap agreements, who agree to be bound by the provisions of
this subsection 12.15, (e) to the extent required in connection with any
litigation between any Credit Party and any Lender with respect to the Loans or
this Agreement and the other Loan Documents or (f) with the Borrower's prior
written consent. The agreements in this subsection shall survive repayment of
the Loans and all other amounts payable hereunder.
12.16 Indiana Property Transfer Laws. The Administrative Agent and the
Borrower acknowledge that in order to secure the obligations hereunder, the
Lenders may take a mortgage or a deed of trust on one or more pieces of real
property owned or operated by the Borrower or its Subsidiaries and that such
action may be a "transfer" of real property within the meaning of the Indiana
Responsible Transfer Property Law, triggering an obligation on the part of the
Borrower to deliver to the Administrative Agent 30 days prior to the transfer a
disclosure document revealing potential environmental defects. The
Administrative Agent
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122
is aware of the purpose and intent of the disclosure document and hereby
knowingly waives on behalf of itself and all other Lenders this 30 day
deadline.
12.17 Consent to Camden Acquisition. Each Lender executing this
Agreement hereby consents to the Camden Acquisition in accordance with the
terms of the Camden Acquisition Documents.
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.
INTERNATIONAL WIRE GROUP, INC.,
as Borrower
By:
---------------------------------------
Name:
Title:
INTERNATIONAL WIRE HOLDING
COMPANY, as Guarantor
By:
---------------------------------------
Name:
Title:
CAMDEN WIRE CO., INC.
By:
---------------------------------------
Name:
Title:
THE CHASE MANHATTAN BANK, as
Administrative Agent and as a Lender,
as Swing Line Lender and as Issuing
Lender
By:
---------------------------------------
Name:
Title:
BANKERS TRUST COMPANY
By:
---------------------------------------
Name:
Title:
129
AERIES FINANCE LTD.
By:
---------------------------------------
Name:
Title:
THE BANK OF NEW YORK
By:
---------------------------------------
Name:
Title:
BANK OF SCOTLAND
By:
---------------------------------------
Name:
Title:
BANQUE FRANCAISE DU COMMERCE
EXTERIEUR
By:
---------------------------------------
Name:
Title:
By:
---------------------------------------
Name:
Title:
BANQUE PARIBAS
By:
---------------------------------------
Name:
Title:
By:
---------------------------------------
Name:
Title:
130
CAISSE NATIONALE DE CREDIT AGRICOLE
By:
---------------------------------------
Name:
Title:
CERES FINANCE LTD.
By:
---------------------------------------
Name:
Title:
THE FIRST NATIONAL BANK OF CHICAGO
By:
---------------------------------------
Name:
Title:
GENERAL ELECTRIC CAPITAL CORPORATION
By:
---------------------------------------
Name:
Title:
▇▇▇▇▇▇ FINANCIAL, INC.
By:
---------------------------------------
Name:
Title:
THE INDUSTRIAL BANK OF JAPAN,
LIMITED
By:
---------------------------------------
Name:
Title:
131
KZH HOLDING CORPORATION
By:
---------------------------------------
Name:
Title:
THE LONG-TERM CREDIT BANK OF JAPAN,
LIMITED, NEW YORK BRANCH
By:
---------------------------------------
Name:
Title:
MEDICAL LIABILITY MUTUAL INSURANCE
CO.
By:
---------------------------------------
Name:
Title:
▇▇▇▇▇▇▇ ▇▇▇▇▇ SENIOR FLOATING RATE
FUND, INC.
By:
---------------------------------------
Name:
Title:
▇▇▇▇▇▇▇ ▇▇▇▇▇ SENIOR HIGH INCOME
PORTFOLIO
By:
---------------------------------------
Name:
Title:
THE MITSUBISHI TRUST AND BANKING
CORPORATION
By:
---------------------------------------
Name:
Title:
132
BANK OF TOKYO-MITSUBISHI TRUST
COMPANY
By:
---------------------------------------
Name:
Title:
NATIONAL CITY BANK
By:
---------------------------------------
Name:
Title:
NATIONSBANK CAPITAL MARKETS INC., as
Agent for NATIONSBANK OF TEXAS,
N.A.
By:
---------------------------------------
Name:
Title:
THE NIPPON CREDIT BANK, LTD.
By:
---------------------------------------
Name:
Title:
PRIME INCOME TRUST
By:
---------------------------------------
Name:
Title:
ML CBO IV (CAYMAN) LTD.
By: PROTECTIVE ASSET MANAGEMENT,
L.L.C. as Collateral Manager
By:
---------------------------------------
Name:
Title:
133
RESTRUCTURED OBLIGATION BACKED BY
SENIOR ASSETS B.V.
By: ABN TRUST COMPANY
(NEDERLAND) B.V, its Managing
Director
By:
---------------------------------------
Name:
Title:
By:
---------------------------------------
Name:
Title:
SENIOR DEBT PORTFOLIO
By: BOSTON MANAGEMENT &
RESEARCH, as Investment Advisor
By:
---------------------------------------
Name:
Title:
SENIOR HIGH INCOME PORTFOLIO, INC.
By:
---------------------------------------
Name:
Title:
STRATA FUNDING LTD.
By:
---------------------------------------
Name:
Title:
TCW ASSET MANAGEMENT COMPANY, as
Attorney-in-Fact for Integon Life
Insurance Corporation
By:
---------------------------------------
Name:
Title:
134
TCW ASSET MANAGEMENT COMPANY, as
Attorney-in-Fact for Occidental Life
Insurance Company of North Carolina
By:
---------------------------------------
Name:
Title:
TCW ASSET MANAGEMENT COMPANY, as
Attorney-in-Fact for Pennsylvania Life
Insurance Company
By:
---------------------------------------
Name:
Title:
TCW ASSET MANAGEMENT COMPANY, as
Attorney-in-Fact for United Companies
Life Insurance Company
By:
---------------------------------------
Name:
Title:
THOROUGHBRED LIMITED PARTNERSHIP I,
by Appaloosa Management L.P., its
General Partner,
by Appaloosa Partners Inc.,
its General Partner
By:
---------------------------------------
Name:
Title:
▇▇▇ ▇▇▇▇▇▇ AMERICAN CAPITAL PRIME
RATE INCOME TRUST
By:
---------------------------------------
Name:
Title: