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$200,000,000
FIRST AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF NOVEMBER 24, 1997
AMONG
ON COMMAND CORPORATION
AS THE BORROWER
AND
THE LENDERS NAMED HEREIN
AND
NATIONSBANK OF TEXAS, N.A.
AS THE ADMINISTRATIVE AGENT
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EXHIBITS AND SCHEDULES
EXHIBITS
Exhibit A - Form of Administrative Questionnaire
Exhibit B - Form of Assignment and Acceptance
Exhibit C - Form of Borrowing Request
Exhibit D-1 - Form of Competitive Bid Request
Exhibit D-2 - Form of Notice of Competitive Bid Request
Exhibit D-3 - Form of Competitive Bid
Exhibit D-4 - Form of Competitive Accept/Reject Letter
Exhibit E - Form of Application for a Letter of Credit
Exhibit F - Form of Compliance Certificate
SCHEDULES
Schedule 1.01 - Unrestricted Subsidiaries
Schedule 3.08 - Subsidiaries
Schedule 3.09 - Litigation
Schedule 3.10 - Restrictive Material Agreements
Schedule 3.18 - Insurance
Schedule 3.20 - Environmental Matters
Schedule 6.01 - Subsidiary Indebtedness
Schedule 6.02 - Liens
Schedule 6.04 - Investments
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TABLE OF CONTENTS
ARTICLE I
Definitions
SECTION 1.01. Defined Terms.......................................... 2
SECTION 1.02. Terms, Generally....................................... 20
ARTICLE II
The Credits
SECTION 2.01. Revolving Loans........................................ 20
SECTION 2.02. Loans.................................................. 21
SECTION 2.03. Competitive Bid Procedure.............................. 23
SECTION 2.04. Borrowing Procedure.................................... 25
SECTION 2.05. Evidence of Debt; Repayment of Loans................... 25
SECTION 2.06. Fees................................................... 26
SECTION 2.07. Interest on Loans...................................... 28
SECTION 2.08. Default Interest....................................... 29
SECTION 2.09. Alternate Rate of Interest............................. 29
SECTION 2.10. Termination and Reduction of Commitment; Extension of
the Revolving Loan Maturity Date....................... 29
SECTION 2.11. Conversion and Continuation of Borrowings.............. 31
SECTION 2.12. Prepayment............................................. 32
SECTION 2.13. Reserve Requirements; Change in Circumstances.......... 34
SECTION 2.14. Change in Legality..................................... 35
SECTION 2.15. Indemnity.............................................. 36
SECTION 2.16. Pro Rata Treatment..................................... 37
SECTION 2.17. Sharing of Setoffs..................................... 37
SECTION 2.18. Payments............................................... 38
SECTION 2.19. Taxes.................................................. 38
SECTION 2.20. Assignment of Commitment Under Certain Circumstances;
Duty to Mitigate....................................... 42
SECTION 2.21. Letters of Credit...................................... 43
ARTICLE III
Representations and Warranties
SECTION 3.01. Organization; Powers................................... 47
SECTION 3.02. Authorization.......................................... 47
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SECTION 3.03. Enforceability......................................... 48
SECTION 3.04. Governmental Approvals................................. 48
SECTION 3.05. Financial Statements................................... 48
SECTION 3.06. No Material Adverse Change............................. 48
SECTION 3.07. Title to Properties; Possession Under Leases........... 49
SECTION 3.08. Subsidiaries........................................... 49
SECTION 3.09. Litigation; Compliance with Laws....................... 49
SECTION 3.10. Agreements............................................. 50
SECTION 3.11. Federal Reserve Regulations............................ 50
SECTION 3.12. Investment Company Act; Public Utility Holding Company
Act.................................................... 50
SECTION 3.13. Use of Proceeds........................................ 50
SECTION 3.14. Tax Returns............................................ 50
SECTION 3.15. No Material Misstatements.............................. 51
SECTION 3.16. Employee Benefit Plans................................. 51
SECTION 3.17. Solvency............................................... 51
SECTION 3.18. Insurance.............................................. 51
SECTION 3.19. Labor Matters.......................................... 52
SECTION 3.20. Environmental Matters.................................. 52
SECTION 3.21. Survival of Representations and Warranties, etc........ 53
ARTICLE IV
Conditions of Lending
SECTION 4.01. All Credit Events...................................... 53
SECTION 4.02. First Credit Event..................................... 54
ARTICLE V
Affirmative Covenants
SECTION 5.01. Existence; Businesses and Properties................... 56
SECTION 5.02. Insurance.............................................. 56
SECTION 5.03. Obligations and Taxes.................................. 56
SECTION 5.04. Financial Statements, Reports, etc..................... 57
SECTION 5.05. Litigation and Other Notices........................... 58
SECTION 5.06. Employee Benefits...................................... 58
SECTION 5.07. Maintaining Records; Access to Properties and
Inspections............................................ 58
SECTION 5.08. Use of Proceeds........................................ 59
SECTION 5.09. Compliance with Environmental Laws..................... 59
SECTION 5.10. Compliance with Material Contracts..................... 59
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ARTICLE VI
Negative Covenants
SECTION 6.01. Indebtedness of the Borrower and the Restricted
Subsidiaries of the Borrower........................... 60
SECTION 6.02. Liens.................................................. 60
SECTION 6.03. Sale and Lease Back Transactions; Off-Balance Sheet
Financings............................................. 61
SECTION 6.04. Investments, Acquisitions, Loans and Advances.......... 62
SECTION 6.05. Mergers, Consolidations and Sales of Assets............ 63
SECTION 6.06. Dividends and Distributions; Restrictions on Ability of
Subsidiaries to Pay Dividends.......................... 63
SECTION 6.07. Transactions with Affiliates........................... 64
SECTION 6.08. Limitation on Restrictive Agreements................... 64
SECTION 6.09. Leverage Ratio......................................... 65
SECTION 6.10. Coverage Ratio......................................... 65
SECTION 6.11. Amendments to Organizational Documents. .............. 65
ARTICLE VII
Events of Default
ARTICLE VIII
The Administrative Agent
ARTICLE IX
Miscellaneous
SECTION 9.01. Notices................................................ 71
SECTION 9.02. Survival of Agreement.................................. 73
SECTION 9.03. Binding Effect......................................... 73
SECTION 9.04. Successors and Assigns................................. 73
SECTION 9.05. Expenses; Indemnity.................................... 77
SECTION 9.06. Right of Setoff........................................ 78
SECTION 9.07. Applicable Law......................................... 78
SECTION 9.08. Waivers; Amendment..................................... 78
SECTION 9.09. Interest Rate Limitation............................... 79
SECTION 9.10. ENTIRE AGREEMENT....................................... 79
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SECTION 9.11. WAIVER OF JURY TRIAL................................... 80
SECTION 9.12. Severability........................................... 80
SECTION 9.13. Counterparts........................................... 80
SECTION 9.14. Headings............................................... 80
SECTION 9.15. Jurisdiction; Consent to Service of Process............ 80
SECTION 9.16. Confidentiality........................................ 81
SECTION 9.17. Amendment, Restatement, Extension and Renewal.......... 82
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ON COMMAND CORPORATION
$200,000,000
FIRST AMENDED AND RESTATED CREDIT AGREEMENT
This FIRST AMENDED AND RESTATED CREDIT AGREEMENT (this "Agreement"),
dated as of November 24, 1997, among ON COMMAND CORPORATION, a Delaware
corporation (the "Borrower"), the Lenders (as defined in Article I hereof), and
NATIONSBANK OF TEXAS, N.A., a national banking association, as issuing bank (in
such capacity, the "Issuing Bank"), and as administrative agent (in such
capacity, the "Administrative Agent") for the Lenders.
WHEREAS, the Borrower and Lenders entered in to that certain Credit
Agreement dated as of October 8, 1996 in the maximum principal amount of
$125,000,000 (Credit Agreement, as amended and increased to $150,000,000 by that
certain First Amendment to Credit Agreement, dated as of March 23, 1997, and as
amended, restated or modified thereafter, the "Existing Credit Agreement");
WHEREAS, the Borrower has requested the Lenders to amend and restate the
Existing Credit Agreement to provide for a loan facility in the aggregate
maximum amount of $200,000,000, consisting of Revolving Loans (such term and
each other capitalized term used but not defined herein having the meaning given
it in Article I hereof), at any time and from time to time prior to the Maturity
Date, in an aggregate principal amount at any time outstanding not in excess of
$200,000,000 (which under certain circumstances, may be used for Competitive Bid
Loans and of which not more than $10,000,000 may be used for Letters of Credit),
the proceeds of which will be used to repay indebtedness under the Existing
Credit Agreement and otherwise in accordance with the terms and conditions of
this Agreement.
The Lenders are willing to extend a $200,000,000 aggregate credit
facility to the Borrower in the form of either Revolving Loans, Competitive Bid
Loans or Letters of Credit, as elected by the Borrower, in each case on the
terms and subject to the conditions set forth herein. Accordingly, the parties
hereto agree as follows:
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ARTICLE I
Definitions
SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms shall have the meanings specified below:
"ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.
"ABR Loan" shall mean any Loan bearing interest at the Alternate Base
Rate in accordance with the provisions of Article II hereof.
"Adjusted LIBO Rate" shall mean, with respect to any Eurodollar
Borrowing for any Interest Period, a simple per annum interest rate equal to the
lesser of (a) the Highest Lawful Rate and (b) the sum of (i) the quotient of (x)
the LIBO Rate divided by (y) one minus the LIBOR Reserve Percentage, stated as a
decimal, plus (ii) the Applicable Percentage. The Adjusted LIBO Rate shall apply
to Interest Periods of one, two, three or six months, or, if determined
available by the Administrative Agent, twelve months. The Adjusted LIBO Rate
shall be subject to availability with respect to the Lenders and to Section 2.14
hereof. Once determined, the Adjusted LIBO Rate shall remain unchanged during
the applicable Interest Period, except for changes to reflect adjustments in the
LIBOR Reserve Percentage and changes in Applicable Percentage.
"Administrative Agent Fees" shall have the meaning assigned to such term
in Section 2.06(b) hereof.
"Administrative Questionnaire" shall mean an Administrative
Questionnaire in the form of Exhibit A hereto.
"Affiliate" shall mean, when used with respect to a specified Person,
another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified.
"Alternate Base Rate" shall mean, for any day, a rate per annum (rounded
upwards, if necessary, to the next 1/100 of 1%) equal to the lesser of (a) the
Highest Lawful Rate and (b) sum of (i) the Applicable Percentage, plus (ii) the
greater of (A) the Prime Rate in effect on such day, and (B) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. 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 Federal
Funds Effective Rate for any reason, including the inability or failure of the
Administrative Agent to obtain sufficient quotations in accordance with the
terms of the definition thereof, the Alternate Base Rate shall be determined
without regard to clause (B) of the preceding sentence, 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
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Rate or the Federal Funds Effective Rate shall be effective on the effective
date of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively. The term "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 office in Dallas, Texas; each change in the Prime Rate
shall be effective on the date such change is publicly announced as being
effective. The term "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
Dallas, Texas or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for the day for such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.
"Applicable Law" shall mean (a) in respect of any Person, all provisions
of Laws of tribunals applicable to such Person, and all orders and decrees of
all courts and arbitrators in proceedings or actions to which the Person in
question is a party and (b) in respect of contracts made or performed in the
State of Texas, "Applicable Law" also means the laws of the United States of
America, including, without limiting the foregoing, 12 USC Sections 85 and 86,
as amended to the date hereof and as the same may be amended at any time and
from time to time hereafter, and any other statute of the United States of
America now or at any time hereafter prescribing the maximum rates of interest
on loans and extensions of credit, and the laws of the State of Texas,
including, without limitations, Article 5069-1H, Title 79, Revised Civil
Statutes of Texas, 1925, ("Art. 1H"), as amended, if applicable, and if Art. 1H
is not applicable, Article 5069-1D, Title 79, Revised Civil Statutes of Texas,
1925, ("Art. 1D"), as amended, and any other statute of the State of Texas now
or at any time hereafter prescribing maximum rates of interest on loans and
extensions of credit; provided however, that pursuant to Article 5069- 15.10(b),
Title 79, Revised Civil Statutes of Texas, 1925, as amended, the Borrower agrees
that the provisions of Chapter 15, Title 79, Revised Civil Statutes of Texas,
1925, as amended, shall not apply to the Loans or Competitive Bid Loans
hereunder.
"Applicable Percentage" shall mean, for any day, with respect to any
Eurodollar Loan or ABR Loan (other than any Eurodollar Competitive Loan), the
applicable percentage set forth below under the caption "Eurodollar Margin" or
"ABR Margin", as the case may be, based upon the Leverage Ratio, then in effect
for purposes hereof:
Eurodollar ABR
Leverage Ratio Margin Margin
-------------- ---------- ------
Category 1 0.750% 0%
----------
Greater than or equal
to 2.50 to 1.00
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Category 2 0.625% 0%
----------
Greater than or equal to
2.00 to 1.00 but less than
2.50 to 1.00
Category 3 0.500% 0%
----------
Greater than or equal to
1.00 to 1.00 but less than
2.00 to 1.00
Category 4 0.375% 0%
----------
Less than 1.00 to 1.00
Except as set forth below, the Leverage Ratio utilized for purposes of
determining the Eurodollar Margin and ABR Margin shall be that in effect as of
the last day of the most recent fiscal quarter of the Borrower in respect of
which financial statements have been delivered pursuant to this Agreement. From
the date hereof until the earliest to occur of the initial delivery of financial
statements pursuant to Section 5.04(a) or (b) hereof, the Borrower's failure to
timely deliver such financial statements or the occurrence of an Event of
Default, the Leverage Ratio shall be deemed to be within Category 1 above. The
Applicable Percentage from time to time in effect shall be based on the Leverage
Ratio from time to time in effect, and each change in the Applicable Percentage
resulting from a change in (or the initial establishment of) the Leverage Ratio
shall be effective with respect to all Loans, the Commitment and Letters of
Credit outstanding on and after the date of delivery to the Administrative Agent
of the financial statements and certificates required by Section 5.04(a) or (b)
hereof indicating such change to and including the date immediately preceding
the next date of delivery of such financial statements and certificates
indicating another such change. Notwithstanding the foregoing, (a) at any time
during which the Borrower has failed to deliver the financial statements and
certificates required by Section 5.04(a) or (b) hereof, or (b) at any time after
the occurrence and during the continuance of an Event of Default, the Leverage
Ratio shall be deemed to be in Category 1 above for purposes of determining the
Applicable Percentage.
"Application" shall mean any stand-by letter of credit application
delivered to the Administrative Agent for or in connection with any Letter of
Credit pursuant to Section 2.21 hereof, in the Administrative Agent's standard
form for stand-by letters of credit, the form of which, on the Closing Date, is
attached as Exhibit E hereto.
"Art. 1D" has the meaning specified in the definition herein of
"Applicable Law".
"Art. 1H" has the meaning specified in the definition herein of
"Applicable Law".
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"Ascent" shall mean Ascent Entertainment Group, Inc., a Delaware
corporation and majority owner of the Borrower.
"Ascent Agreements" shall mean the Services Agreement, the Corporate
Agreement and the Tax Sharing Agreement, in each case between the Borrower and
Ascent, in the forms delivered to the Administrative Agent, as such agreements
may hereafter be amended as permitted by, and in accordance with, the provisions
of this Agreement.
"Asset Disposition" shall have the meaning assigned to it in Section
6.05(b) hereof.
"Assignment and Acceptance" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, in the form of Exhibit B hereto or such other form as shall be approved
by the Administrative Agent.
"Attributable Debt" shall mean as of any date of determination, the
present value (discounted semiannually at the interest rate set forth or
implicit in the terms of such transaction, as determined by the principal
accounting or financial officer of the Borrower) of the obligation of a lessee
for rental payments pursuant to any Equipment Lease Transaction during the
remaining term of such Equipment Lease Transaction (including any period for
which the lease relating thereto has been extended), such rental payments not to
include amounts payable by the lessee for maintenance and repairs, insurance,
taxes, assessments and similar charges.
"Board" shall mean the Board of Governors of the Federal Reserve System
of the United States of America.
"Borrowing" shall mean Loans of a single Type made by the Lenders in
accordance with the terms hereof (or, in the case of a Competitive Borrowing, by
the Lender or Lenders whose Competitive Bids have been accepted pursuant to
Section 2.03 hereof) on a single date and as to which a single Interest Period
is in effect.
"Borrowing Request" shall mean a request by the Borrower in accordance
with the terms of Section 2.04 hereof and substantially in the form of Exhibit C
hereto.
"Business Day" shall mean any day other than a Saturday, Sunday or day
on which banks in Dallas, Texas or New York, New York are authorized or required
by Law to close; provided, however, that when used in connection with a
Eurodollar Loan, the term "Business Day" shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank
market.
"Capital Lease Obligations" of any Person shall mean the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
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accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.
"Capital Stock" shall mean, as to any Person, the equity interests in
such Person, including, without limitation, the shares of each class of capital
stock of any Person that is a corporation and each class of partnership
interests (including without limitation, general, limited and preference units)
in any Person that is a partnership.
A "Change in Control" shall be deemed to have occurred if (a) any Person
or group of affiliated Persons owns or controls in the aggregate a greater
percentage of the ordinary voting Capital Stock of the Borrower than Ascent, or
(b) Ascent shall fail to control a majority of the seats on the Board of
Directors of the Borrower.
"Closing Date" shall mean the date of the first Credit Event.
"Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time.
"Commitment" shall mean $200,000,000, (a) as the same may be reduced
from time to time pursuant to Section 2.10 hereof and (b) and with respect to
each Lender, the commitment of the Lenders to make Revolving Loans hereunder in
its Pro Rata Percentage of the Commitment as set forth next to its signature on
the signature pages of this Agreement as the same may be reduced from time to
time pursuant to Section 2.20 hereof, or in any Assignment and Acceptance
executed in accordance with this Agreement, as applicable.
"Commitment Fee" shall have the meaning assigned to such term in Section
2.06(d) hereof.
"Competitive Bid" shall mean an offer by a Lender to make a Competitive
Loan pursuant to Section 2.03(b) hereof in the form of Exhibit D-3 hereto.
"Competitive Bid Accept/Reject Letter" shall mean a notification made by
the Borrower pursuant to Section 2.03(d) hereof in the form of Exhibit D-4
hereto.
"Competitive Bid Rate" shall mean, as to any Competitive Bid, (i) in the
case of a Eurodollar Loan, the Margin, and (ii) in the case of a Fixed Rate
Loan, the fixed rate of interest offered by the Lender making such Competitive
Bid.
"Competitive Bid Request" shall mean a request made by the Borrower
pursuant to Section 2.03(a) hereof in the form of Exhibit D-1 hereto.
"Competitive Borrowing" shall mean a Borrowing consisting of a
Competitive Loan or concurrent Competitive Loans from the Lender or Lenders
whose Competitive Bids for such Borrowing have been accepted by the Borrower
under the bidding procedure described in Section
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2.03 hereof, which such Borrowings shall only be permitted to be made if, and
only for so long as, the Leverage Ratio is less than 2.50 to 1.00.
"Competitive Loan" shall mean a loan from a Lender to the Borrower
pursuant to the bidding procedure described in Section 2.03 hereof, which such
loans shall only be permitted if, and only for so long as, the Leverage Ratio is
less than 2.50 to 1.00. Each Competitive Loan shall be a Eurodollar Competitive
Loan or a Fixed Rate Loan.
"Compliance Certificate" shall mean a compliance certificate,
substantially in the form of Exhibit F hereto, and certifying that there exists
no Default or Event of Default at the time of delivery thereof.
"Consolidated Assets" shall mean, with respect to the Borrower and its
Restricted Subsidiaries, at any date, the consolidated total assets of the
Borrower and its Restricted Subsidiaries at such date, as determined in
accordance with GAAP.
"Consolidated Cash Interest Expense" shall mean, for any period of
determination, the gross interest expense of the Borrower and its Restricted
Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP, excluding any amounts paid other than in cash or not required
(whether during or after such period) to be paid in cash. For purposes of the
foregoing, gross interest expense shall be determined after giving effect to any
net cash payments made or received by the Borrower with respect to rate
protection agreements entered into as a hedge against interest rate exposure.
Gross interest expense shall be calculated in accordance with GAAP as in effect
and applied by the Borrower on the date of this Agreement and, accordingly,
shall exclude the effects of any changes in GAAP or its application by the
Borrower after the date hereof.
"Consolidated Liabilities" shall mean, with respect to the Borrower and
its Restricted Subsidiaries, at any date, the consolidated total liabilities of
the Borrower and its Restricted Subsidiaries at such date, as determined in
accordance with GAAP.
"Consolidated Tangible Assets" shall mean, at any date, with respect to
the Borrower and its Restricted Subsidiaries on a consolidated basis,
Consolidated Assets excluding all assets which would be classified as
intangibles under GAAP, including goodwill (whether representing the excess of
cost over book value of assets acquired or otherwise), organizational expenses,
trademarks, trade names, copyrights, patents, patent applications, licenses and
rights in any thereof, and treasury stock held as an asset.
"Consolidated Tangible Net Worth" shall mean, at any date, with respect
to the Borrower and its Restricted Subsidiaries on a consolidated basis, the
excess of the Consolidated Assets over Consolidated Liabilities excluding,
however, from the determination of Consolidated Assets (a) all assets which
would be classified as intangibles under GAAP, including goodwill (whether
representing the excess of cost over book value of assets acquired or
otherwise), organizational
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expenses, trademarks, trade names, copyrights, patents, patent applications,
licenses and rights in any thereof and (b) treasury stock held as an asset.
"Consolidated Total Indebtedness" shall mean, for any Person, all
Indebtedness of such Person and its consolidated subsidiaries (other than
Indebtedness referred to in clause (h) of the definition of such term, and
excluding obligations of such Person with respect to deposits with such Person
or advances to such Person of any kind, up to a maximum aggregate amount of
$2,000,000), determined on a consolidated basis in accordance with GAAP.
"Control" shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise, and "Controlling and "Controlled" shall have meanings correlative
thereto.
"Coverage Ratio" shall mean, on any date for the Borrower and its
Restricted Subsidiaries on a consolidated basis, the ratio of (a) EBITDA for the
four most recently completed consecutive fiscal quarters, to (b) Consolidated
Cash Interest Expense of the Borrower and its Restricted Subsidiaries for the
four most recently completed consecutive fiscal quarters.
"Credit Event" shall have the meaning assigned to such term in Section
4.01 hereto.
"Debtor Relief Laws" shall mean applicable bankruptcy, reorganization,
moratorium, or similar Laws, or principles of equity affecting the enforcement
of creditors' rights generally.
"Default" shall mean any event or condition which upon notice, lapse of
time or both would constitute an Event of Default.
"dollars" or "$" shall mean lawful money of the United States of
America.
"EBITDA" shall mean, with respect to any Person and its subsidiaries on
a consolidated basis for any period, the consolidated net income of such Person
and its subsidiaries for such period, computed in accordance with GAAP, plus, to
the extent deducted in computing such consolidated net income and without
duplication, the sum of (a) income tax expense, (b) interest expense, (c)
depreciation and amortization expense, (d) allocation of income to minority
interests in earnings of consolidated subsidiaries and (e) extraordinary losses
(including restructuring provisions) during such period minus, to the extent
added in computing such consolidated net income and without duplication, (y)
extraordinary gains during such period and (z) allocation of losses to minority
interests in earnings of consolidated subsidiaries. EBITDA shall be calculated
in accordance with GAAP as in effect and applied by the Borrower on the date of
this Agreement and, accordingly, shall exclude the effects of any changes in
GAAP or its application by the Borrower after the date hereof.
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"Environment" shall mean ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, the workplace or as otherwise defined in any Environmental
Law.
"Equipment Lease Transaction" shall mean any transaction or arrangement
(other than (a) a Capital Lease Obligation reflected as such on the consolidated
financial statements of the Borrower or (b) an operating lease) (i) pursuant to
which the Borrower or any of its Restricted Subsidiaries sells or transfers any
equipment or fixtures used or useful in its business, whether now owned or
hereafter acquired, to any other Person, and thereafter rents or leases such
property or other property which it intends to use for substantially the same
purpose or purposes as the property being sold or transferred or (ii) pursuant
to which the Borrower or any of its Restricted Subsidiaries rents or leases from
any other Person any equipment or fixtures used or useful in its business and
which, although not required to be accounted for as a Capital Lease Obligation,
in substance represents the financing of the acquisition of such property by the
Borrower or such Restricted Subsidiary.
"Environmental Claim" shall mean any written accusation, allegation,
notice of violation, claim, demand, order, directive, consent decree, cost
recovery action or other cause of action by, or on behalf of, any Governmental
Authority or any Person for damages, injunctive or equitable relief, personal
injury (including sickness, disease or death), Remedial Action costs, tangible
or intangible property damage, natural resource damages, nuisance, pollution,
any adverse effect on the Environment caused by any Hazardous Material, or for
fines, penalties or restrictions, resulting from or based upon: (a) the
existence, or the continuation of the existence, of a Release (including sudden
or non-sudden, accidental or non-accidental Releases); (b) exposure to any
Hazardous Material; (c) the presence, use, handling, transportation, storage,
treatment or disposal of any Hazardous Material; or (d) the violation or alleged
violation of any Environmental Law or Environmental Permit.
"Environmental Law" shall mean any and all applicable present and future
treaties, Laws, codes, judgments, injunctions, notices or binding agreements
issued, promulgated or entered into by any Governmental Authority, relating in
any way to the Environment, preservation or reclamation of natural resources,
the management, Release or threatened Release of any Hazardous Material or to
health and safety matters, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. Sections 9601 et seq. (collectively
"CERCLA"), the Solid Waste Disposal Act, as amended by the Resource Conservation
and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42
U.S.C. Sections 6901 et seq., the Federal Water Pollution Control Act, as
amended by the Clean Water Act of 1977, 33 U.S.C. Sections 1251 et seq., the
Clean Air Act of 1970, 42 U.S.C. Sections 7401 et seq., as amended, the Toxic
Substances Control Act of 1976, 15 U.S.C. Sections 2601 et seq., the
Occupational Safety and Health Act of 1970, as amended by 29 U.S.C. Sections 651
et seq., the Emergency Planning and Community Right-to-Know Act of 1986, 42
U.S.C. Sections 11001 et seq., the Safe Drinking Water Act of 1974, as amended
by 42 U.S.C. Sections 300(f) et seq., the Hazardous Materials Transportation
Act, 49 U.S.C. Sections 5101 et
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seq., and any similar or implementing state or local law, and all amendments or
regulations promulgated thereunder.
"Environmental Permit" shall mean any permit, approval, authorization,
certificate, license, variance, filing or permission required by or from any
Governmental Authority pursuant to any Environmental Law.
"ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code, or solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.
"ERISA Event" shall mean (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder, with respect to a
Plan; (b) the adoption of any amendment to a Plan that would require the
provision of security pursuant to Section 401(a)(29) of the Code or Section 307
of ERISA; (c) the existence with respect to any Plan of an "accumulated funding
deficiency" (as defined in Section 412 of the Code or Section 302 of ERISA),
whether or not waived; (d) the filing pursuant to Section 412(d) of the Code or
Section 303(d) of ERISA of an application for a waiver of the minimum funding
standard with respect to any Plan; (e) the incurrence of any liability under
Title IV of ERISA upon the termination of any Plan or the withdrawal or partial
withdrawal of the Borrower or any of its ERISA Affiliates from any Plan or
Multiemployer Plan; (f) the receipt by the Borrower or any ERISA Affiliate from
the PBGC of any notice relating to the intention to terminate any Plan or Plans
or to appoint a trustee to administer any Plan; (g) the receipt by the Borrower
or any ERISA Affiliate of any notice concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be,
insolvent or in reorganization, within the meaning of Title IV of ERISA; and (h)
the occurrence of a "prohibited transaction" with respect to which the Borrower
or any of its Restricted Subsidiaries is a "disqualified person" (within the
meaning of Section 4975 of the Code) or with respect to which the Borrower or
any such Restricted Subsidiary could otherwise be liable.
"Eurodollar Borrowing" shall mean a Borrowing comprised of Eurodollar
Loans.
"Eurodollar Competitive Borrowing" shall mean a Borrowing comprised of
Eurodollar Competitive Loans.
"Eurodollar Competitive Loan" shall mean any Competitive Loan bearing
interest at a rate determined by reference to the LIBO Rate in accordance with
the provisions of Article II.
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"Eurodollar Loan" shall mean any Eurodollar Revolving Loan or Eurodollar
Competitive Loan.
"Eurodollar Revolving Loans" shall mean Revolving Loans bearing interest
at a rate determined by reference to the Adjusted LIBO Rate in accordance with
the provisions of Article II hereof.
"Event of Default" shall have the meaning assigned to such term in
Article VII hereof.
"Existing Credit Agreement" shall have the meaning assigned to such term
in the preamble to this Agreement.
"Facility Fee" shall have the meaning assigned to such term in Section
2.06(a) hereof.
"Fee Letters" shall mean those certain Fee Letter[s] dated as of the
Closing Date between the Borrower and the Administrative Agent, and any other
fee letters executed from time to time among any of the Borrower, the
Administrative Agent and the Lenders, as each may be amended, extended,
increased, revised or substituted from time to time.
"Fees" shall mean the Facility Fees, the Commitment Fees, the
Administrative Agent Fees, the L/C Participation Fees and the Issuing Bank Fees.
"Financial Officer" of any corporation shall mean the chief financial
officer, principal accounting officer, Treasurer or Controller of such
corporation.
"Fixed Rate Borrowing" shall mean a Competitive Borrowing, comprised of
Fixed Rate Loans.
"Fixed Rate Loan" shall mean any Competitive Loan bearing interest at a
fixed percentage rate per annum (expressed in the form of a decimal to no more
than four decimal places) specified by the Lender making such Loan in its
Competitive Bid.
"Free Cash Flow" shall mean for the Borrower and its Restricted
Subsidiaries on a consolidated basis, EBITDA from the Closing Date through the
date of determination (the "Determination Period") minus the sum of Consolidated
Cash Interest Expense, plus consolidated cash taxes paid plus capital
expenditures made, in each case for the Determination Period. Notwithstanding
anything herein or in any other Loan Paper to the contrary, fiscal quarters of
the Borrower with negative Free Cash Flow shall be excluded from the calculation
of "Free Cash Flow".
"GAAP" shall mean generally accepted accounting principles.
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"Governmental Authority" shall mean any Federal, state, local or foreign
court or governmental agency, authority, instrumentality or regulatory body.
"Guarantee" of or by any Person shall mean any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness of any other Person (the "primary obligor") in any
manner, whether directly or indirectly, and including any obligation of such
Person, direct or indirect, (a) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Indebtedness or to purchase (or to advance
or supply funds for the purchase of) any security for the payment of such
Indebtedness, (b) to purchase or lease property, securities or services for the
purpose of assuring the owner of such Indebtedness of the payment of such
Indebtedness, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness or (d) to guaranty the
obligations, payments by or performance of, a Person that is not a wholly owned
direct or indirect subsidiary of the Borrower; provided, however, that the term
Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business.
"Guarantors" shall mean all Restricted Subsidiaries of the Borrower.
"Hazardous Materials" shall mean all explosive or radioactive substances
or wastes, hazardous or toxic substances or wastes, pollutants, solid, liquid or
gaseous wastes, including petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls ("PCBs") or
PCB-containing materials or equipment, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.
"Highest Lawful Rate" shall mean at the particular time in question the
maximum rate of interest which, under Applicable Law, any Lender is then
permitted to charge on the Obligations. If the maximum rate of interest which,
under Applicable Law, any Lender is permitted to charge on the Obligations shall
change after the date hereof, the Highest Lawful Rate shall be automatically
increased or decreased, as the case may be, from time to time as of the
effective time of each change in the Highest Lawful Rate without notice to the
Borrower. For purposes of determining the Highest Lawful Rate under Applicable
Law, the weekly ceiling shall be (a) the weekly ceiling described in and
computed in accordance with the provisions of Art. 1H, or (b) either the
annualized ceiling or quarterly ceiling computed pursuant to Section .008 of
Art. 1D; provided, however, that at any time the indicated rate ceiling, the
annualized ceiling or the quarterly ceiling, as applicable, shall be less than
18% per annum or more than 24% per annum, the provisions of Sections .009(a),
.009(b) or .009(c) of said Art. 1D shall control for purposes of such
determination, as applicable.
"Indebtedness" of any Person shall mean, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits with
such Person or advances to such Person of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or
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similar instruments, (c) all obligations of such Person under conditional sale
or other title retention agreements relating to property or assets purchased by
such Person, (d) all obligations of such Person issued or assumed as the
deferred purchase price of property or services (excluding trade accounts
payable and accrued obligations incurred in the ordinary course of business, and
excluding any obligations relating to operating leases), (e) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or
acquired by such Person, whether or not the obligations secured thereby have
been assumed, (f) all Guarantees by such Person, (g) all Capital Lease
Obligations of such Person, (h) all net obligations of such Person in respect of
interest rate protection agreements, foreign currency exchange agreements or
other interest or exchange rate hedging arrangements and (i) all obligations of
such Person as an account party in respect to letters of credit and bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any partnership in which such Person is a general partner.
"Interest Payment Date" shall mean the last day of the Interest Period
applicable to the Borrowing or Competitive Borrowing of which such Competitive
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months' duration, each day that would have been an
Interest Payment Date had successive Interest Periods of three months' duration
been applicable to such Borrowing, and, in addition, the date of any prepayment
of such Borrowing or conversion of such Borrowing to a Borrowing of a different
Type.
"Interest Period" shall mean (a) as to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the last
day) in the calendar month that is 1, 2, 3 or 6 months thereafter, or if
determined available by the Administrative Agent, 12 months thereafter, as the
Borrower may elect, (b) as to any ABR Borrowing, the period commencing on the
date of such Borrowing and ending on the earliest of (i) the next succeeding
March 31, June 30, September 30 or December 31, (ii) the Revolving Loan Maturity
Date, as applicable, and (iii) the date such Borrowing is converted to a
Borrowing of a different Type in accordance with Section 2.11 hereof or repaid
or prepaid in accordance with Section 2.12 hereof and (c) as to any Fixed Rate
Borrowing, the period commencing on the date of such Borrowing and ending on the
date specified in the Competitive Bids in which the offers to make the Fixed
Rate Loans comprising such Borrowing were extended, which shall not be earlier
than seven days after the date of such Borrowing or later than 360 days after
the date of such Borrowing; provided, however, that if any Interest Period would
end on a day other than a Business Day, such Interest Period shall be extended
to the next succeeding Business Day unless, in the case of a Eurodollar
Borrowing only, such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day. Interest shall accrue from and including the first day
of an Interest Period to but excluding the last day of such Interest Period.
"Issuing Bank" shall mean NationsBank (or any Affiliate thereof) or any
other Lender that may become an Issuing Bank pursuant to Section 2.21(i) hereof,
in each case with respect to Letters of Credit issued by it.
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"Issuing Bank Fees" shall have the meaning assigned to such term in
Section 2.06(c) hereof.
"Law" shall mean any constitution, statute, law, ordinance, regulation,
rule, order, writ, injunction, or decree of any tribunal.
"L/C Commitment" shall mean the commitment of the Issuing Bank to issue
Letters of Credit pursuant to Section 2.21 hereof.
"L/C Disbursement" shall mean a payment or disbursement made by the
Issuing Bank pursuant to a Letter of Credit.
"L/C Exposure" shall mean at any time the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate principal amount of all L/C Disbursements that have not yet been
reimbursed at such time. The L/C Exposure of any Lender at any time shall mean
its Pro Rata Percentage of the aggregate L/C Exposure at such time.
"L/C Participation Fee" shall have the meaning assigned to such term in
Section 2.06(c) hereof.
"Lenders" shall mean (a) the financial institutions listed on the
signature pages hereof (other than any such financial institution that has
ceased to be a party hereto pursuant to an Assignment and Acceptance) and (b)
any financial institution that has become a party hereto pursuant to an
Assignment and Acceptance.
"Letter of Credit" shall mean any letter of credit issued pursuant to
Section 2.21 hereof.
"Leverage Ratio" shall mean, on any date for the Borrower and its
Restricted Subsidiaries on a consolidated basis, the ratio of (a) the Borrower's
and its Restricted Subsidiaries' Consolidated Total Indebtedness to (b) EBITDA
of the Borrower and its consolidated Restricted Subsidiaries for the most
recently completed four fiscal quarters.
"LIBO Rate" shall mean, for any Eurodollar Borrowing for any Interest
Period therefor, the rate per annum (rounded upwards, if necessary, to the
nearest one-one hundredth (1/100th) of one percent (1%)) appearing on Telerate
Page 3750 (or any successor page) as the London interbank offered rate for
deposits in United States dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period. If for any reason
such rate is not available, the term "LIBO Rate" shall mean, for any Eurodollar
Borrowing for any Interest Period therefor, the rate per annum (rounded upwards,
if necessary, to the nearest one-one hundredth (1/100th) of one percent (1%))
appearing on Reuters Screen LIBO page as the London interbank offered rate for
deposits in United States dollars at approximately 11:00 a.m. (London time) two
Business Days prior to the first day of such Interest Period for a term
comparable to
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such Interest Period; provided, however, if more than one rate is specified on
Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of
all such rates.
"LIBOR Reserve Percentage" shall mean, with respect to any Interest
Period, the percentage which is in effect on the first day of such period under
Regulation D of the Board of Governors of the Federal Reserve System, as such
regulation may be amended from time to time, as the maximum reserve requirement
(including, without limitation, any basic, supplemental, emergency or marginal
reserves) with respect to eurocurrency liabilities (as that term is defined in
Regulation D), applicable to any Lender. The Adjusted LIBO Rate for any
Eurodollar Borrowing shall be adjusted for any change in the LIBOR Reserve
Percentage.
"Lien" shall mean, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, encumbrance, charge or security interest in or on such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing) relating
to such asset and (c) in the case of securities, any purchase option, call or
similar right of a third party with respect to such securities.
"Loans" shall mean the Revolving Loans made in accordance with the terms
of this Agreement.
"Loan Papers" shall mean this Agreement, the promissory notes evidencing
the Loans and Competitive Loans, all guaranties executed by the Guarantors, Fee
Letters, all Letters of Credit, all Applications and all other agreements
between the Borrower or any Subsidiary of the Borrower and the Administrative
Agent related to any Letter of Credit, Assignment and Acceptances, post-closing
letters, and all other documents, instruments, agreements, or certificates
executed or delivered from time to time by any Person in connection with this
Agreement or as security for the Obligations hereunder, as each such agreement
may be amended, modified, substituted, replaced or extended from time to time.
"Margin" shall mean, as to any Eurodollar Competitive Loan, the margin
(expressed as a percentage rate per annum in the form of a decimal to no more
than four decimal places) to be added to or subtracted from the LIBO Rate in
order to determine the interest rate applicable to such Competitive Loan, as
specified in the Competitive Bid relating to such Competitive Loan.
"Margin Stock" shall have the meaning assigned to such term in
Regulation U.
"Material Adverse Effect" shall mean (a) a materially adverse effect on
the business, assets, operations, or financial condition of the Borrower and its
Restricted Subsidiaries taken as a whole, (b) material impairment of the ability
of the Borrower to perform any of its obligations under this Agreement or under
any other Loan Paper or (c) material impairment of the enforceability of this
Agreement, any other Loan Paper, the Loans or the Competitive Loans.
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"Maximum Amount" means the maximum amount of interest which, under
Applicable Law, Administrative Agent or any Lender is permitted to charge on the
Obligations.
"Multiemployer Plan" shall mean a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
"NationsBank" shall mean NationsBank of Texas, N.A., a national banking
association.
"Net Cash Proceeds" shall mean with respect to any Asset Disposition the
gross amount of any cash paid to or received by the Borrower or any of its
Restricted Subsidiaries in respect of such Asset Disposition (including (a)
payments of principal or interest, or cash proceeds from the sale or other
disposition in respect of noncash consideration permitted under Section 6.05
hereof, and (b) insurance proceeds, condemnation awards and payments from time
to time in respect of installment obligations, if applicable), minus the sum of
the amount, if any, of (i) the Borrower's good faith best estimate of all taxes
attributable to such Asset Disposition which it in good faith expects to be paid
in the taxable year in which such Asset Disposition shall occur or in the next
taxable year, (ii) reasonable and customary fees, discounts, commissions, costs
and other expenses (other than those payable to the Borrower or any Affiliate of
the Borrower), which are incurred in connection with such Asset Disposition and
are payable by the Borrower or any of its Restricted Subsidiaries, (iii) in the
case of an Asset Disposition that is a sale, transfer or other disposition of
assets or properties, proceeds required to discharge Liens in respect of such
assets or properties permitted by Section 6.02 hereof, and (iv) reserves
established in connection with such Asset Disposition and in accordance with
GAAP, in each case (A) up to a maximum amount per Asset Disposition equal to 25%
of the gross proceeds from such Asset Disposition and (B) for no longer than one
year after each such Asset Disposition.
"Obligations" shall mean all present and future obligations,
indebtedness and liabilities, and all renewals and extensions of all or any part
thereof, of the Borrower and each Obligor to the Lenders and the Administrative
Agent arising from, by virtue of, or pursuant to this Agreement, any of the
other Loan Papers and any and all renewals and extensions thereof or any part
thereof, or future amendments thereto, all interest accruing on all or any part
thereof and reasonable attorneys' fees incurred by the Administrative Agent for
the preparation of this Agreement and consummation of this credit facility,
execution of waivers, amendments and consents, and in connection with the
enforcement or the collection of all or any part thereof, and reasonable
attorneys' fees incurred by the Lenders in connection with the enforcement or
the collection of all or any part of the Obligations during the continuance of
an Event of Default, in each case whether such obligations, indebtedness and
liabilities are direct, indirect, fixed, contingent, joint, several or joint and
several. Without limiting the generality of the foregoing, "Obligations"
includes all amounts which would be owed by the Borrower, each other Obligor and
any other Person (other than the Administrative Agent or the Lenders) to the
Administrative Agent or the Lenders under any Loan Paper, but for the fact that
they are unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving the Borrower, any other Obligor
or any other Person (including all such amounts which would
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become due or would be secured but for the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding of the
Borrower, any other Obligor or any other Person under any Debtor Relief Law).
"Obligor" shall mean (a) the Borrower, (b) each Guarantor, (c) each
other Person liable for performance of any of the Obligations and (d) each other
Person the property of which hereafter secures the performance of any of the
Obligations.
"PBGC" shall mean the Pension Benefit Guaranty Corporation referred to
and defined in ERISA.
"Permitted Investments" shall mean:
(a) direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States of America (or by
any agency thereof to the extent such obligations are backed by the full faith
and credit of the United States of America), in each case maturing within one
year from the date of acquisition thereof;
(b) investments in commercial paper maturing within 270 days from the
date of acquisition thereof and having, at such date of acquisition, the highest
credit rating obtainable from Standard & Poor's Ratings Group, a Division of
▇▇▇▇▇▇-▇▇▇▇, Inc. or from ▇▇▇▇▇'▇ Investors Service, Inc.;
(c) investments in certificates of deposit, banker's acceptances and
time deposits maturing within one year from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, any domestic office of any Lender or any commercial bank which
bank or office is organized under the Laws of the United States of America or
any State thereof which has a combined capital and surplus and undivided profits
of not less than $250,000,000; and
(d) fully collateralized repurchase agreements with a term of not more
than 30 days for underlying securities of the type described in clause (a) above
entered into with any institution meeting the qualifications specified in clause
(c) above.
"Person" shall mean any natural person, corporation, business trust,
joint venture, association, company, partnership or government, or any agency or
political subdivision thereof.
"Plan" shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
112 of the Code or Section 307 of ERISA and in respect of which the Borrower or
any ERISA Affiliate is (or if such plan were terminated would under Section 4069
of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.
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"Preferred Stock", as applied to the Capital Stock of any corporation,
means Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends, or as to the distribution or assets
upon any voluntary or involuntary liquidation or dissolution of any such
corporation, over shares of Capital Stock of any other class of such
corporation.
"Pro Rata Percentage" of any Lender at any time shall mean the
percentage of such Lender set forth opposite its signature line on the signature
pages hereof and designated as such, as such percentage may be hereafter be
adjusted pursuant to any Assignment and Acceptance or amendment to this
Agreement.
"Register" shall have the meaning given such term in Section 9.04(d)
hereof.
"Regulation G" shall mean Regulation G of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.
"Regulation U" shall mean Regulation U of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.
"Regulation X" shall mean Regulation X of the Board as from time to time
in effect and all official rulings and interpretations thereunder or thereof.
"Release" shall mean any spilling, leaking, pumping, pouring, emitting,
emptying, discharging, injecting, escaping, leaching, dumping, disposing,
depositing, dispersing, emanating or migrating of any Hazardous Material in,
into, onto or through the Environment.
"Remedial Action" shall mean (a) "remedial action" as such term is
defined in CERCLA, 42 U.S.C. Section 9601(24), and (b) all other actions
required by any Governmental Authority or voluntarily undertaken to: (i)
cleanup, remove, treat, ▇▇▇▇▇ or in any other way address any Hazardous Material
in the Environment; (ii) prevent the Release or threat of Release, or minimize
the further Release of any Hazardous Material so it does not migrate or endanger
or threaten to endanger public health, welfare or the Environment; or (iii)
perform studies and investigations in connection with, or as a precondition to,
(i) or (ii) above.
"Required Lenders" shall mean, at any time, (i) Lenders having Pro Rata
Percentages of the Commitment representing in the aggregate at least 51% of the
Commitment at such time, (ii) with respect to acceleration pursuant to clause
(ii) of Article VII, Lenders having Loans, Competitive Loans and L/C Exposure in
the aggregate of at least 51% of such Loans, Competitive Loans and L/C Exposure
or (iii) if the Commitment has terminated, Lenders having Loans and L/C Exposure
representing in the aggregate at least 51% of the sum of all Loans outstanding
and L/C Exposure; and, in each case, if there is more than one Lender party
hereto, at least two Lenders.
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"Responsible Officer" of any corporation shall mean any executive
officer or Financial Officer of such corporation and any other officer or
similar official thereof responsible for the administration of the obligations
of such corporation in respect of this Agreement and the other Loan Papers.
"Restricted Payment" shall have the meaning ascribed thereto in Section
6.06 hereof.
"Restricted Subsidiary" means each Subsidiary of the Borrower existing
on the Closing Date and each Subsidiary of the Borrower created or acquired from
time to time hereafter except Unrestricted Subsidiaries.
"Revolving Loan Maturity Date" shall mean November 24, 2002 or any later
date that the Revolving Loan Maturity Date is extended to in accordance with the
terms of Section 2.10(f) hereof, or, in each case, any earlier date as the
Obligations are due and payable in full (whether by scheduled reduction,
acceleration, termination or otherwise). Notwithstanding any other provision in
this Agreement or in any other Loan Paper, the Revolving Loan Maturity Date
shall never be extended beyond November 24, 2004.
"Revolving Loans" shall mean the Revolving Loans made available by the
Lenders to the Borrower pursuant to the Commitment and Section 2.01 hereof. Each
Revolving Loan shall be a Eurodollar Revolving Loan or an ABR Revolving Loan.
"Subsidiary" shall mean, with respect to any Person (herein referred to
as the "parent"), any corporation, partnership, association or other business
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or more than 50%
of the general partnership interests are, at the time any determination is being
made, owned, controlled or held, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.
"Total Exposure" shall mean, with respect to the Lenders at any time,
the aggregate principal amount at such time of the sum of (a) all outstanding
Revolving Loans, plus (b) the aggregate amount at such time of all Lenders' L/C
Exposure, plus (c) the amount by which the outstanding Competitive Borrowings
shall be deemed to have utilized the Commitment in accordance with Section 2.16
hereof.
"Transactions" shall have the meaning assigned to such term in Section
3.02 hereof.
"Type", when used in respect of any Loan or Borrowing, shall refer to
the Rate by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined. For purposes hereof, the term "Rate" shall include
the Adjusted LIBO Rate and the Alternate Base Rate.
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"Unrestricted Subsidiaries" means (a) those foreign organized
Subsidiaries of the Borrower listed on Schedule 1.01 hereto, (b) each other
foreign organized Subsidiary of the Borrower which the Borrower designates from
time to time as an "Unrestricted Subsidiary" and which the Borrower has given
prior written notice thereof to the Administrative Agent and the Lenders,
provided that, in no event may the Borrower designate any foreign Subsidiary of
the Borrower as an "Unrestricted Subsidiary" if the consolidated revenue of such
foreign Subsidiary together with the consolidated revenue of each other
Subsidiary of the Borrower which has been designated as an Unrestricted
Subsidiary represents more than 25% of consolidated revenue of the Borrower and
its Subsidiaries, and (c) each other Subsidiary of the Borrower which the
Borrower and each Lender agree from time to time shall be designated as an
"Unrestricted Subsidiary".
"Wholly Owned Subsidiary" of any Person shall mean a subsidiary of such
Person of which securities (except for directors' qualifying shares) or other
ownership interests representing 100% of the outstanding Capital Stock or
partnership interests, as the case may be, are, at the time any determination is
being made, owned by such Person or one or more Wholly Owned Subsidiaries of
such Person or by such Person and one or more Wholly Owned Subsidiaries of such
Person.
"Withdrawal Liability" shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.
SECTION 1.02. Terms, Generally. The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to,
this Agreement unless the context shall otherwise require. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided,
however, that for purposes of determining compliance with the covenants
contained in Article VI hereof, all accounting terms herein shall be interpreted
and all accounting determinations hereunder shall be made in accordance with
GAAP as in effect on the date of this Agreement and applied on a basis
consistent with the application used in the financial statements referred to in
Section 3.05 hereof.
ARTICLE II
The Credits
SECTION 2.01. Revolving Loans. Subject to the terms and conditions
and relying upon the representations and warranties herein set forth, each
Lender agrees, severally and not
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jointly, to make Revolving Loans to the Borrower, at any time and from time to
time on or after the date hereof and until the earlier of (a) the Revolving Loan
Maturity Date and (b) the termination of the Commitment in accordance with the
terms hereof, in an aggregate principal amount at any time up to such Lender's
Pro Rata Percentage of the Commitment, provided that, the Borrower agrees that,
notwithstanding anything in this Agreement or in any other Loan Paper to the
contrary, no Lender shall at any time be obligated to make any Loan if such Loan
would result in the Total Exposure exceeding the Commitment. Within the limits
set forth in the preceding sentence and subject to the terms, conditions and
limitations set forth herein, the Borrower may borrow, pay or prepay and
reborrow Revolving Loans. Competitive Loans under the Commitment shall only be
available to the Borrower and accepted by the Administrative Agent if, and only
for so long as, the Leverage Ratio is less than 2.50 to 1.00, as determined in
accordance with the most recently delivered Compliance Certificate.
SECTION 2.02. Loans.
(a) Each Loan (other than Competitive Loans) shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their respective Pro Rata Percentages; provided, however, that the failure of
any Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender shall
be responsible for the failure of any other Lender to make any Loan required to
be made by such other Lender). Each Competitive Loan shall be made in accordance
with the procedures set forth in Section 2.03 hereof, and shall reduce the
Commitment in accordance with the terms of Section 2.16 below. If the Commitment
has been reduced to zero, Competitive Loans shall not be available hereunder.
Except for Loans deemed made pursuant to Section 2.02(f) hereof, the Loans or
Competitive Loans comprising any Borrowing shall be in an aggregate principal
amount that is (i) (x) with respect to any Competitive Borrowing, an integral
multiple of $1,000,000 and not less than $3,000,000 and (y) with respect to any
other Borrowing, an integral multiple of $1,000,000 and not less than $3,000,000
or (ii) equal to the remaining available balance of the Commitment.
(b) Subject to Sections 2.09 and 2.14 hereof, each Competitive Borrowing
shall be comprised entirely of Eurodollar Competitive Loans or Fixed Rate Loans,
and each other Borrowing shall be comprised entirely of ABR Loans or Eurodollar
Loans as the Borrower may request pursuant to Section 2.03 or 2.04 hereof, as
applicable; provided, however, that Borrowings on the Closing Date shall be
comprised entirely of ABR Loans. Each Lender may at its option make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not
affect the obligation of the Borrower to repay such Loan in accordance with the
terms of this Agreement. Borrowings of more than one Type may be outstanding at
the same time; provided, however, that the Borrower shall not be entitled to
request any Borrowing that, if made, would result in more than twelve Eurodollar
Borrowings outstanding hereunder at any time. For purposes of the foregoing,
Borrowings having different Interest Periods, regardless of whether they
commence on the same date, shall be considered separate Borrowings.
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(c) Each Lender shall make each Loan to be made by it hereunder on the
proposed date thereof by wire transfer of immediately available funds to such
account in Dallas, Texas as the Administrative Agent may designate not later
than 12:00 noon, Dallas, Texas time, and the Administrative Agent shall by 3:00
p.m., Dallas, Texas time, credit the amounts so received to an account in the
name of the Borrower, maintained with the Administrative Agent and designated by
the Borrower in the applicable Borrowing Request or Competitive Bid Request or,
if a Borrowing shall not occur on such date because any condition precedent
herein specified shall not have been met, return the amounts so received to the
respective Lenders.
(d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's portion of such Borrowing,
the Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such Borrowing in
accordance with paragraph (c) above and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If the Administrative Agent shall have so made funds
available then, to the extent that such Lender shall not have made such portion
available to the Administrative Agent, such Lender and the Borrower severally
agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower until the date such amount is
repaid to the Administrative Agent at (i) in the case of the Borrower, the
interest rate applicable at the time to the Loans comprising such Borrowing and
(ii) in the case of such Lender, a rate determined by the Administrative Agent
to represent its cost of overnight or short-term funds (which determination
shall be conclusive absent manifest error). If such Lender shall repay to the
Administrative Agent such corresponding amount, such amount shall constitute
such Lender's Loan as part of such Borrowing for purposes of this Agreement.
(e) The Borrower acknowledges that if the Borrower requests any
Borrowing with an Interest Period that would end after the Revolving Loan
Maturity Date, a Breakage Event (as defined in Section 2.15 hereof) will occur
on the Revolving Loan Maturity Date, as applicable, and the Borrower will be
obligated to indemnify the Lenders in accordance with the terms of Section 2.15
hereof.
(f) If the Issuing Bank shall not have received from the Borrower the
payment required to be made by Section 2.21(e) hereof within the time specified
in such Section, the Issuing Bank will promptly notify the Administrative Agent
of the L/C Disbursement and the Administrative Agent will promptly notify each
Lender of such L/C Disbursement and its Pro Rata Percentage thereof. Each Lender
shall pay by wire transfer of immediately available funds to the Administrative
Agent not later than 2:00 p.m., Dallas, Texas time, on such date (or, if such
Lender shall have received such notice later than 12:00 (noon), Dallas, Texas
time, on any day, not later than 10:00 a.m., Dallas, Texas time, on the
immediately following Business Day), an amount equal to such Lender's Pro Rata
Percentage of such L/C Disbursement (it being understood that such amount shall
be deemed to constitute an ABR Loan of such Lender and such
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29
payment shall be deemed to have reduced the L/C Exposure), and the
Administrative Agent will promptly pay to the Issuing Bank amounts so received
by it from the Lenders. The Administrative Agent will promptly pay to the
Issuing Bank any amounts received by it from the Borrower pursuant to Section
2.21(e) hereof prior to the time that any Lender makes any payment pursuant to
this paragraph (f); any such amounts received by the Administrative Agent
thereafter will be promptly remitted by the Administrative Agent to the Lenders
that shall have made such payments and to the Issuing Bank, as their interests
may appear. If any Lender shall not have made its Pro Rata Percentage of such
L/C Disbursement available to the Administrative Agent as provided above, such
Lender and the Borrower severally agree to pay interest on such amount, for each
day from and including the date such amount is required to be paid in accordance
with this paragraph to but excluding the date such amount is paid, to the
Administrative Agent at (i) in the case of the Borrower, a rate per annum equal
to the interest rate applicable to ABR Loans pursuant to Section 2.07 hereof,
and (ii) in the case of such Lender, for the first such day, the Federal Funds
Effective Rate, and for each day thereafter, the Alternate Base Rate.
SECTION 2.03. Competitive Bid Procedure.
(a) Competitive Bids shall only be available to the Borrower and
accepted by the Administrative Agent if, and only for so long as, the Leverage
Ratio is less than 2.50 to 1.00, as determined in accordance with the most
recently delivered Compliance Certificate. In order to request Competitive Bids,
the Borrower shall hand deliver or telecopy to the Administrative Agent a duly
completed Competitive Bid Request (i) in the case of a Eurodollar Competitive
Borrowing, not later than 10:00 a.m., Dallas, Texas time, four Business Days
before the proposed date of such Borrowing and (ii) in the case of a Fixed Rate
Borrowing, not later than 10:00 a.m., Dallas, Texas time, one Business Day
before the proposed date of such Borrowing. A Competitive Bid Request shall not
be made within five Business Days after the date of any previous Competitive Bid
Request. No ABR Loan shall be requested in, or made pursuant to, a Competitive
Bid Request. A Competitive Bid Request that does not conform substantially to
the format of Exhibit D-1 hereto may be rejected by the Administrative Agent and
the Administrative Agent shall notify the Borrower of such rejection as promptly
as practicable. Each Competitive Bid Request shall refer to this Agreement and
specify (i) whether the Borrowing being requested is to be a Eurodollar
Borrowing or a Fixed Rate Borrowing; (ii) the date of such Borrowing (which
shall be a Business Day); (iii) the number and the location of the account to
which funds are to be disbursed (which shall be an account that complies with
the requirements of Section 2.02(c) hereof); (iv) the aggregate principal amount
of such Borrowing, which shall be a minimum of $3,000,000 and an integral
multiple of $1,000,000; and (v) the Interest Period with respect thereto.
Promptly after its receipt of a Competitive Bid Request that is not rejected,
the Administrative Agent shall by telecopy in the form set forth in Exhibit D-2
invite the Lenders to bid to make Competitive Loans pursuant to the Competitive
Bid Request. Each Competitive Loan may only be made in an amount equal to or
less than the lesser of (i) the amount by which the Commitment exceeds the Total
Exposure on such date and (ii) the amount by which the Commitment exceeds the
sum of (A) the aggregate outstanding Revolving Loans, (B) the L/C Exposure and
(C) the aggregate outstanding Competitive Loans.
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(b) Each Lender may make one or more Competitive Bids to the Borrower
responsive to a Competitive Bid Request. Each Competitive Bid by a Lender must
be received by the Administrative Agent by telecopy, (i) in the case of a
Eurodollar Competitive Borrowing, not later than 9:30 a.m., Dallas, Texas time,
three Business Days before the proposed date of such Competitive Borrowing, and
(ii) in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., Dallas,
Texas time, on the proposed date of such Competitive Borrowing. Competitive Bids
that do not conform substantially to the format of Exhibit D-3 may be rejected
by the Administrative Agent, and the Administrative Agent shall notify the
applicable Lender as promptly as practicable. Each Competitive Bid shall refer
to this Agreement and specify (x) the principal amount (which shall be a minimum
of $3,000,000 and an integral multiple of $1,000,000 and which may equal the
entire principal amount of the Competitive Borrowing requested by the Borrower)
of the Competitive Loan or Competitive Loans that the Lender is willing to make,
(y) the Competitive Bid Rate or Competitive Bid Rates at which the Lender is
prepared to make such Competitive Loan or Competitive Loans and (z) the Interest
Period applicable to such Competitive Loan or Competitive Loans and the last day
thereof.
(c) The Administrative Agent shall promptly notify the Borrower by
telecopy of the Competitive Bid Rate and the principal amount of each
Competitive Loan in respect of which a Competitive Bid shall have been made and
the identity of the Lender that shall have made each bid.
(d) The Borrower may, subject only to the provisions of this paragraph
(d), accept or reject any Competitive Bid. The Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopy in the form of a
Competitive Bid Accept/Reject Letter, whether and to what extent it has decided
to accept or reject each Competitive Bid, (x) in the case of a Eurodollar
Competitive Borrowing, not later than 10:30 a.m., Dallas, Texas time, three
Business Days before the date of the proposed Competitive Borrowing, and (y) in
the case of a Fixed Rate Borrowing, not later than 10:30 a.m., Dallas, Texas
time, on the proposed date of the Competitive Borrowing; provided, however, that
(i) the failure of the Borrower to give such notice shall be deemed to be a
rejection of each Competitive Bid, (ii) the Borrower shall not accept a
Competitive Bid made at a particular Competitive Bid Rate if the Borrower has
decided to reject a Competitive Bid made at a lower Competitive Bid Rate, (iii)
the aggregate amount of the Competitive Bids accepted by the Borrower shall not
exceed the principal amount specified in the Competitive Bid Request, (iv) if
the Borrower shall accept a Competitive Bid or Bids made at a particular
Competitive Bid Rate but the amount of such Competitive Bid or Bids would cause
the total amount to be accepted by the Borrower to exceed the amount specified
in the Competitive Bid Request, then the Borrower shall accept a portion of such
Competitive Bid or Bids in an amount equal to the amount specified in the
Competitive Bid Request less the amount of all other Competitive Bids so
accepted, which acceptance, in the case of multiple Competitive Bids at such
Competitive Bid Rate, shall be made pro rata in accordance with the amount of
each such Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid
shall be accepted for a Competitive Loan unless such Competitive Loan is in a
minimum principal amount of $3,000,000 and an integral multiple of $1,000,000;
provided further, however, that if a Competitive Loan must be in an amount less
than $3,000,000
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because of the provisions of clause (iv) above, such Competitive Loan may be for
a minimum of $1,000,000 or any integral multiple thereof, and in calculating the
pro rata allocation of acceptances of portions of multiple Competitive Bids at a
particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be
rounded to integral multiples of $1,000,000 in a manner determined by the
Borrower. A notice given by the Borrower pursuant to this paragraph (d) shall be
irrevocable.
(e) The Administrative Agent shall promptly notify each bidding Lender
by telecopy whether or not its Competitive Bid has been accepted (and, if so, in
what amount and at what Competitive Bid Rate), and each successful bidder will
thereupon become bound, upon the terms and subject to the conditions hereof, to
make the Competitive Loan in respect of which its Competitive Bid has been
accepted.
(f) If the Administrative Agent shall elect to submit a Competitive Bid
in its capacity as a Lender, it shall submit such Competitive Bid directly to
the Borrower at least one quarter of an hour earlier than the time by which the
other Lenders are required to submit their Competitive Bids to the
Administrative Agent pursuant to paragraph (b) above.
SECTION 2.04. Borrowing Procedure. In order to request a Borrowing
(other than a Competitive Borrowing or a deemed Borrowing pursuant to Section
2.02(f) hereof, as to which this Section 2.04 shall not apply), the Borrower
shall hand deliver or telecopy to the Administrative Agent a duly completed
Borrowing Request (a) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., Dallas, Texas time, three Business Days before a proposed Borrowing,
and (b) in the case of an ABR Borrowing, not later than 10:00 a.m., Dallas,
Texas on the date (which shall be a Business Day) of a proposed Borrowing. Each
Borrowing Request shall be irrevocable, shall be signed by or on behalf of the
Borrower and shall specify the following information: (i) whether the Borrowing
then being requested is to be a Eurodollar Borrowing or an ABR Borrowing (it
being understood that the Borrowing on the Closing Date shall be an ABR
Borrowing); (ii) the date of such Borrowing (which shall be a Business Day);
(iii) the number and location of the account to which funds are to be disbursed
(which shall be an account that complies with the requirements of Section
2.02(c)) hereof; (iv) the amount of such Borrowing; (v) if such Borrowing is to
be a Eurodollar Borrowing, the Interest Period with respect thereto; and (vi) if
the Borrower has complied with each condition set forth in Section 2.02(b)
hereof; provided, however, that, notwithstanding any contrary specification in
any Borrowing Request, each requested Competitive Borrowing shall comply with
the requirements set forth in Section 2.03 hereof. If no election as to the Type
of Borrowing is specified in any such notice, then the requested Borrowing shall
be an ABR Borrowing. If no Interest Period with respect to any Eurodollar
Borrowing is specified in any such notice, then the Borrower shall be deemed to
have selected an Interest Period of one month's duration. The Administrative
Agent shall promptly advise the Lenders of any notice given pursuant to this
Section 2.04 hereof (and the contents thereof), and of each Lender's portion of
the requested Borrowing.
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SECTION 2.05. Evidence of Debt; Repayment of Loans.
(a) The Borrower hereby unconditionally promises to pay to the
Administrative Agent for the account of the Lenders (i) the then unpaid
principal amount of each Competitive Loan, on the last day of the Interest
Period applicable to such Competitive Loan or, if earlier, on the Revolving Loan
Maturity Date and (ii) the then unpaid principal amount of each Revolving Loan
on the Revolving Loan Maturity Date.
(b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan or Competitive Loan made by such Lender from time to
time, including the amounts of principal and interest payable and paid such
Lender from time to time under this Agreement.
(c) The Administrative Agent shall maintain accounts in which it will
record (i) the amount of each Loan or Competitive Loan made hereunder, the Type
of Borrowing or type of Competitive Borrowing thereof and the Interest Period
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) the amount of any sum received by the Administrative Agent hereunder from
the Borrower and each Lender's share thereof.
(d) The entries made in the accounts maintained pursuant to paragraphs
(b) and (c) above shall be prima facie evidence of the existence and amounts of
the obligations therein recorded; provided however, that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligations of the Borrower to repay
the Loans or Competitive Loans in accordance with their terms.
(e) As evidence of the Loans and Competitive Loans hereunder, on the
Closing Date the Borrower shall deliver to each Lender (i) one promissory note
evidencing its Pro Rata Percentage of the Loans made hereunder and (b) one
promissory note in the original principal amount of $200,000,000 evidencing any
Competitive Loans made hereunder. Such promissory notes will evidence each
Lenders' Pro Rata Percentage of each Revolving Loan, L/C Exposure and each
Lenders' exposure under any Competitive Loan, if any.
SECTION 2.06. Fees.
(a) The Borrower agrees to pay to each Lender, through the
Administrative Agent, such Facility Fees as are set forth in any Fee Letters
(the "Facility Fees") in accordance with such terms set forth in the Fee
Letters.
(b) The Borrower agrees to pay to the Administrative Agent, for its own
account, the administrative fees set forth in its Fee Letter at the times and in
the amounts specified therein (the "Administrative Agent Fees").
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(c) The Borrower agrees to pay (i) to each Lender, through the
Administrative Agent, on the last day of March, June, September and December of
each year and on the date on which the Commitment shall be terminated as
applicable and as provided herein, a fee (an "L/C Participation Fee") calculated
on such Lender's Pro Rata Percentage of the average daily aggregate L/C Exposure
(excluding the portion thereof attributable to unreimbursed L/C Disbursements)
during the preceding quarter (or shorter period commencing with the date hereof
or ending with the Revolving Loan Maturity Date, or the date on which all
Letters of Credit have been canceled or have expired and the Commitment shall
have been terminated) at a rate equal to the Applicable Percentage from time to
time used to determine the interest rate on Borrowings comprised of Eurodollar
Loans pursuant to Section 2.07 hereof, and (ii) to the Issuing Bank with respect
to each Letter of Credit the standard fronting, issuance and drawing fees
specified from time to time by the Issuing Bank (the "Issuing Bank Fees").
Subject to Section 9.09 hereof and Applicable Law, all L/C Participation Fees
and Issuing Bank Fees shall be computed on the basis of the actual number of
days elapsed in a year of 365 or 366 days, as applicable.
(d) Subject to Section 9.09 hereof, commencing on December 31, 1997 and
continuing on the last day of March, June, September and December of each year
on and until the date on which the Commitment shall be terminated as provided
herein, the Borrower shall pay to the Administrative Agent for the account of
Lenders commitment fees (the "Commitment Fees") on the average daily amount of
the difference between (A) the Commitment and (B) the Total Exposure, at a per
annum rate (the "Commitment Fee Rate") based on the Leverage Ratio for the most
recently completed full fiscal quarter as set forth below:
Leverage Ratio Per Annum Commitment Fee Rate
-------------- -----------------------------
CATEGORY 1
----------
Greater than or
equal to 2.00 to 1.00 0.2500%
CATEGORY 2
----------
Less than 2.00 to 1.00 0.1875%
Notwithstanding anything in this Agreement to the contrary, in each
determination of the Commitment in connection with this Section 2.06(d), the
amount of all Competitive Loans added to Total Exposure in accordance with the
definition of the Total Exposure shall be deducted from the Total Exposure.
Except as set forth below, the Leverage Ratio utilized for purposes of
determining the Commitment Fee Rate shall be that in effect as of the last day
of the most recent fiscal quarter of the Borrower in respect of which financial
statements have been delivered pursuant to this Agreement. From the date hereof
until the earliest to occur of the initial delivery of financial statements
pursuant to Section 5.04(a) or (b) hereof, the Borrower's failure to timely
deliver such financial statements or the occurrence of an Event of Default, the
Leverage Ratio
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shall be deemed to be within Category 1 above. The Commitment Fee Rate from time
to time in effect shall be based on the Leverage Ratio from time to time in
effect, and each change in the Commitment Fee Rate resulting from a change in
(or the initial establishment of) the Leverage Ratio shall be effective with
respect to the Commitment Fee Rate outstanding on and after the date of delivery
to the Administrative Agent of the financial statements and certificates
required by Section 5.04(a) or (b) hereof indicating such change to and
including the date immediately preceding the next date of delivery of such
financial statements and certificates indicating another such change.
Notwithstanding the foregoing, (a) at any time during which the Borrower has
failed to deliver the financial statements and certificates required by Section
5.04(a) or (b) hereof, or (b) at any time after the occurrence and during the
continuance of an Event of Default, the Leverage Ratio shall be deemed to be in
Category 1 above for purposes of determining the Commitment Fee Rate. Subject to
Section 9.09 hereof and Applicable Law, all Commitment Fees shall be computed on
the basis of the actual number of days elapsed in a year of 365 or 366 days, as
applicable.
(e) All Fees shall be paid on the dates due, in immediately available
funds, to the Administrative Agent for distribution, if and as appropriate,
among the Lenders, except that the Issuing Bank Fees shall be paid directly to
the Issuing Bank. Once paid, none of the Fees shall be refundable, except in
accordance with the provisions of Section 9.09 hereof.
SECTION 2.07. Interest on Loans.
(a) Subject to the provisions of Section 2.08 hereof, the Loans
comprising each ABR Borrowing shall bear interest (computed on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as the case may
be, when the Alternate Base Rate is determined by reference to the Prime Rate
and over a year of 360 days at all other times) at a rate per annum equal to the
Alternate Base Rate. If the amount of interest payable in respect of any
interest computation period is limited to the Highest Lawful Rate in accordance
with the definition of Alternate Base Rate, and the amount of interest payable
in respect of any subsequent interest computation period would be less than the
Maximum Amount, then the amount of interest payable in respect of such
subsequent interest computation period shall be automatically increased to the
Maximum Amount; provided that at no time shall the aggregate amount by which
interest paid has been increased pursuant to this sentence exceed the aggregate
amount by which interest has been reduced had the Alternate Base Rate not been
limited to the Highest Lawful Rate.
(b) Subject to the provisions of Section 2.08 hereof, the Loans and
Competitive Loans comprising each Eurodollar Borrowing shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to (i) in the case of each Revolving Loan, the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing in
effect from time to time, and (ii) in the case of each Competitive Loan, the
LIBO Rate for the Interest Period in effect for such Competitive Borrowing plus
the Margin offered by the Lender making such Competitive Loan and accepted by
the Borrower pursuant to Section 2.03 hereof.
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(c) Subject to the provisions of Section 2.08 hereof, each Fixed Rate
Loan shall bear interest (computed on the basis of the actual number of days
elapsed over a year of 360 days) at a rate per annum equal to the fixed rate of
interest offered by the Lender making such Fixed Rate Loan and accepted by the
Borrower pursuant to Section 2.03 hereof.
(d) Interest on each Loan or Competitive Loan shall be payable on the
Interest Payment Dates applicable to such Loan or Competitive Loan except as
otherwise provided in this Agreement. The applicable Alternate Base Rate or
Adjusted LIBO Rate for each Interest Period or day within an Interest Period, as
the case may be, shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
SECTION 2.08. Default Interest. Notwithstanding any other provision
of this Agreement and the other Loan Papers except Section 9.09 hereof to the
contrary, if there shall exist any Event of Default hereunder, at the election
of the Required Lenders by written notice to the Borrower, the Borrower shall
pay interest on the Obligations to but excluding the date of actual payment
(after as well as before judgment) at a rate per annum equal to the lesser of
(a) the Highest Lawful Rate and (b) a rate per annum (computed on the basis of
the actual number of days elapsed over a year of 365 or 366 days, as the case
may be, when determined by reference to the Prime Rate and over a year of 360
days at all other times) equal to the sum of the Alternate Base Rate plus 1.00%.
SECTION 2.09. Alternate Rate of Interest. In the event, and on each
occasion, that on the day two Business Days prior to the commencement of any
Interest Period for a Eurodollar Borrowing the Administrative Agent shall have
determined that dollar deposits in the principal amounts of the Loans or
Competitive Loans comprising such Borrowing or Competitive Borrowing are not
generally available in the London interbank market, or that the rates at which
such dollar deposits are being offered will not adequately and fairly reflect
the cost to the Lenders of making or maintaining Eurodollar Loans during such
Interest Period, or that reasonable means do not exist for ascertaining the
Adjusted LIBO Rate, the Administrative Agent shall, as soon as practicable
thereafter, give written or telecopy notice of such determination to the
Borrower and the Lenders. In the event of any such determination, until the
Administrative Agent shall have advised the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, any request by the
Borrower for a Eurodollar Borrowing pursuant to Section 2.04 hereof shall be
deemed to be a request for an ABR Borrowing provided that, any request by the
Borrower for a Eurodollar Competitive Borrowing pursuant to Section 2.03 hereof
shall be of no force and effect and shall be denied by the Administrative Agent.
Each determination by the Administrative Agent hereunder shall be conclusive
absent manifest error.
SECTION 2.10. Termination and Reduction of Commitment; Extension of
the Revolving Loan Maturity Date.
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(a) Maturity Dates. The Commitment shall automatically terminate on the
Revolving Loan Maturity Date (as the same may be extended pursuant to paragraph
(f) of this Section 2.10). The L/C Commitment shall terminate upon the
termination of the Commitment.
(b) Voluntary Reduction of the Commitment. Upon at least three Business
Days' prior irrevocable written or telecopy notice to the Administrative Agent
(specifying the amount of reduction), the Borrower may at any time in whole
permanently terminate, or from time to time in part permanently reduce, the
Commitment; provided, however, that (i) each partial reduction shall be in an
integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and (ii)
the Commitment shall not be reduced to an amount that is less than the Total
Exposure.
(c) Total Exposure in Excess of Commitment. If, as a result of any
reduction of the Commitment, the Total Exposure exceeds the Commitment, then the
Borrower shall, on the date of such reduction, (a) first repay Loans, (b)
second, cash collateralize outstanding Letters of Credit, and (c) third, repay
Competitive Loans, each in accordance with this Agreement in an aggregate
principal amount sufficient to eliminate such excess.
(d) Commitment Reduction Due to Asset Dispositions. The Commitment shall
be automatically and permanently reduced by any Loan prepaid pursuant to Section
2.12(c) hereof on the date of such prepayment, in an amount equal to the amount
of such prepayment.
(e) Commitment Reduction, Generally. Each reduction in the Commitment
hereunder shall be made ratably among the Lenders in accordance with their
respective Pro Rata Percentages of the Commitment. The Borrower shall pay, to
the Administrative Agent for the account of the applicable Lenders, on the date
of each termination or reduction, the Commitment Fees on the amount of the
Commitment so terminated or reduced accrued to but excluding the date of such
termination or reduction.
(f) Extension of Commitment and Revolving Loan Maturity Date. The
Borrower may, by giving written notice to the Administrative Agent (which shall
promptly deliver a copy to each of the Lenders) not earlier than 90 days prior
to the then current Revolving Loan Maturity Date (the "Existing Maturity Date")
and not fewer than 45 days prior to the Existing Maturity Date, extend the
Revolving Loan Maturity Date to the date that occurs 364 days after the Existing
Maturity Date (or if such 364th day is not a Business Day, the immediately
preceding Business Day); provided, however, that the Borrower may effect only
two extensions pursuant to this Section 2.10(f) hereof. Notwithstanding the
foregoing, the extension of the Existing Maturity Date shall not be effective
with respect to any Lender unless (i) the Borrower has received the prior
written consent of such Lender, (ii) the Borrower has received the prior written
consent of Lenders representing not less than 66 and 2/3rds percent of the Pro
Rata Percentages of the Commitment, (iii) no Default or Event of Default shall
have occurred and be continuing on both the date of the notice requesting such
extension and on the Existing Maturity Date, (iv) each of the representations
and warranties set forth in Article III hereof (including, without limitation,
those set forth in Section 3.06 hereof and Section 3.09 hereof) shall be true
and correct in all
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material respects on and as of each of the date of the notice requesting such
extension and the Existing Maturity Date with the same force and effect as if
made on and as of each such date, except to the extent such representations and
warranties expressly relate to an earlier date, and (v) in no event shall the
Revolving Loan Maturity Date be extended past November 24, 2004.
Any Lender not consenting to any extension of the Revolving Loan
Maturity Date that satisfies each of the conditions precedent except (i) set
forth in the preceding sentence ("Non-Extending Lender"), will continue to be a
Lender hereunder and under the other Loan Papers until the expiration of the
Existing Maturity Date. The Borrower may seek additional commitments from
existing Lenders or seek new lenders in accordance with the terms of Section
9.04 hereof to replace any such Non-Extending Lender Pro Rata Percentage of the
Commitment (the "Expiring Commitment Percentage"). To the extent that none of
the existing Lenders agree to increase their existing Pro Rata Percentages of
the Commitment by the Expiring Commitment Percentage and no new lender becomes a
party hereto and a Lender hereunder in the amount of the Expiring Commitment
Percentage (or any combination of the above), the Commitment shall immediately,
automatically and irrevocably be reduced on the Existing Maturity Date by the
amount of the Expiring Commitment Percentage or any portion thereof not assumed
by any Lender.
SECTION 2.11. Conversion and Continuation of Borrowings.
(a) Provided that such conversion or continuation is not otherwise
prohibited by this Agreement, the Borrower shall have the right at any time upon
prior irrevocable notice to the Administrative Agent (x) not later than 12:00
(noon), Dallas, Texas time, one Business Day prior to conversion, to convert any
Eurodollar Borrowing into an ABR Borrowing, (y) not later than 10:00 a.m.,
Dallas, Texas time, three Business Days prior to conversion or continuation, to
convert any ABR Borrowing into a Eurodollar Borrowing or at the end of the
current Interest Period, to continue any Eurodollar Borrowing as a Eurodollar
Borrowing for an additional Interest Period, and (z) not later than 10:00 a.m.,
Dallas, Texas time, three Business Days prior to conversion, at the end of the
current Interest Period, to convert the Interest Period with respect to any
Eurodollar Borrowing to another permissible Interest Period, subject in each
case to the following:
(i) each conversion or continuation shall be made pro rata among
the Lenders in accordance with the respective principal amounts of the
Loans comprising the converted or continued Borrowing;
(ii) if less than all the outstanding principal amount of any
Borrowing shall be converted or continued, then each resulting Borrowing
shall satisfy the limitations specified in Sections 2.02(a) and 2.02(b)
hereof regarding the principal amount and maximum number of Borrowings
of the relevant Type;
(iii) each conversion shall be effected by each Lender and the
Administrative Agent by recording for the account of such Lender the new
Loan of such Lender resulting
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from such conversion and reducing the Loan (or portion thereof) of such
Lender being converted by an equivalent principal amount; accrued
interest on any Eurodollar Loan (or portion thereof) being converted
shall be paid by the Borrower at the time of conversion;
(iv) if any Eurodollar Borrowing is converted at a time other
than the end of the Interest Period applicable thereto, the Borrower
shall pay, upon demand, any amounts due to the Lenders pursuant to
Section 2.15 hereof;
(v) any portion of a Borrowing maturing or required to be repaid
in less than one month may not be converted into or continued as a
Eurodollar Borrowing;
(vi) any portion of a Eurodollar Borrowing that cannot be
converted into or continued as a Eurodollar Borrowing by reason of the
immediately preceding clause shall be automatically converted at the end
of the Interest Period in effect for such Borrowing into an ABR
Borrowing; and
(vii) after the occurrence and during the continuance of a
Default or an Event of Default, no outstanding Loan may be converted
into, or continued for an additional interest period as, a Eurodollar
Loan.
(b) Each notice pursuant to this Section 2.11 shall be irrevocable and
shall refer to this Agreement and specify (i) the identity and amount of the
Borrowing that the Borrower requests be converted or continued, (ii) whether
such Borrowing is to be converted to or continued as a Eurodollar Borrowing or
an ABR Borrowing, (iii) if such notice requests a conversion, the date of such
conversion (which shall be a Business Day) and (iv) if such Borrowing is to be
converted to or continued as a Eurodollar Borrowing, the Interest Period with
respect thereto. If no Interest Period is specified in any such notice with
respect to any conversion to or continuation as a Eurodollar Borrowing, the
Borrower shall be deemed to have selected an Interest Period of one month's
duration. The Administrative Agent shall advise the Lenders of any notice given
pursuant to this Section 2.11 and of each Lender's portion of any converted or
continued Borrowing. If the Borrower shall not have given notice in accordance
with this Section 2.11 to continue any Borrowing into a subsequent Interest
Period (and shall not otherwise have given notice in accordance with this
Section 2.11 to convert such Borrowing), such Borrowing shall, at the end of the
Interest Period applicable thereto (unless repaid pursuant to the terms hereof),
automatically be continued into a new Interest Period as an ABR Borrowing. The
Borrower shall not have the right to continue or convert the Interest Period
with respect to any Competitive Borrowing pursuant to this Section 2.11.
SECTION 2.12. Prepayment.
(a) Voluntary Prepayment. The Borrower shall have the right at any time
and from time to time to prepay any Borrowing other than a Competitive
Borrowing, in whole or in part, upon at least two Business Days' prior written
or telecopy notice (or telephone notice promptly
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confirmed by written or telecopy notice) to the Administrative Agent before
11:00 a.m., Dallas, Texas time; provided, however, that each partial prepayment
shall be in an amount that is an integral multiple of $1,000,000 and not less
than $3,000,000.
(b) Mandatory Prepayment and Cash Collateralization. In the event of any
termination of the Commitment, the Borrower shall repay or prepay all its
outstanding Loans (and irrevocably cash collateralize the L/C Exposure in the
manner contemplated by Section 2.21(j) hereof) on the date of such termination.
In the event of any partial reduction of the Commitment, then (i) at or prior to
the effective date of such reduction or termination, the Administrative Agent
shall notify the Borrower and the Lenders of the aggregate amount of outstanding
Revolving Loans or Total Exposure, as the case may be, after giving effect
thereto and (ii) if the sum of the aggregate amount of outstanding Revolving
Loans or Total Exposure, as the case may be, and the aggregate outstanding
principal amount of the Competitive Loans, at the time would exceed the
Commitment, after giving effect to such reduction or termination, then the
Borrower shall, on the date of such reduction or termination, repay or prepay
Borrowings in an amount sufficient to eliminate such excess.
(c) Asset Dispositions. Whenever and on each occasion that the Borrower
or any Restricted Subsidiary of the Borrower receives Net Cash Proceeds from an
Asset Disposition (this provision shall not in and of itself permit the Borrower
to consummate any Asset Disposition) (not including any transaction in which the
Borrower transfers control through a sale, corporate transaction or other
disposition, of the hotel contracts and related assets for its hotel customers
outside of the United States) which, when taken together with all such Net Cash
Proceeds theretofore received, exceeds 15% of the Consolidated Tangible Assets
of the Borrower and its Restricted Subsidiaries on any such date of receipt (any
such Net Cash Proceeds in excess of such amount being referred to as "Excess
Proceeds"), the Borrower will, substantially simultaneously with (and in any
event not later than the Business Day next following) the receipt of such Excess
Proceeds, pay to the Administrative Agent (for application to the prepayment of
the Revolving Loan) an amount equal to such Excess Proceeds. The Revolving Loans
so prepaid will result in an automatic and permanent reduction of the Commitment
in an amount equal to the amount of such prepayment.
(d) Escrow Amounts for Repayment of Fixed Rate Borrowings and Eurodollar
Borrowings. In the event the amount of any prepayment required to be made above
shall exceed the aggregate principal amount of the applicable outstanding ABR
Loans (the amount of any such excess being called the "Escrow Amount"), the
Borrower shall have the right, in lieu of making such prepayment in full, to
prepay all the outstanding applicable ABR Loans and to deposit an amount equal
to the Escrow Amount with the Administrative Agent in a cash collateral account
maintained by and in the sole dominion and control of the Administrative Agent.
Any amounts so deposited shall be held by the Administrative Agent as collateral
for the Obligations and applied to the prepayment of outstanding Eurodollar
Loans at the end of the current Interest Periods applicable thereto. On any
Business Day on which (x) collected amounts remain on deposit in or to the
credit of such cash collateral account after giving effect to the payments made
on such day
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and (y) the Borrower shall have delivered to the Administrative Agent a written
request or telephonic request (which shall be promptly confirmed in writing)
that such remaining collected amounts be invested in the Permitted Investments
specified in such request, the Administrative Agent shall use its reasonable
efforts to invest such remaining collected amounts in such Permitted
Investments; provided, however, that the Administrative Agent shall have
continuous dominion and full control over any such investments (and over any
interest that accrues thereon) to the same extent that it has dominion and
control over such cash collateral account and no Permitted Investment shall
mature after the end of the Interest Period for which it is to be applied. The
Borrower shall not have the right to withdraw any amount from such cash
collateral account until such Eurodollar Loans and accrued interest thereon are
paid in full or if a Default or Event of Default then exists or would result.
(e) Notice of Voluntary Prepayment. Each notice of prepayment shall
specify the prepayment date and the principal amount of each Borrowing (or
portion thereof) to be prepaid. Each such notice shall be irrevocable and shall
commit the Borrower to prepay such Borrowing by the amount stated therein on the
date stated therein. All prepayments under this Section 2.12 shall be subject to
Section 2.15 hereof but otherwise without premium or penalty. All prepayments
under this Section 2.12 shall be accompanied by accrued interest on the
principal amount being prepaid to the date of payment.
(f) Prepayment as a Result of the Total Exposure in Excess of the
Commitment. Whenever and on each occasion that the Total Exposure exceeds the
Commitment, the Borrower will immediately prepay the Revolving Loans by the
amount necessary to reduce the Total Exposure to an amount less than or equal to
the Commitment.
SECTION 2.13. Reserve Requirements; Change in Circumstances.
(a) Notwithstanding any other provision of this Agreement, if after the
date of this Agreement any change in any Law or in the interpretation or
administration thereof by any Governmental Authority charged with the
interpretation or administration thereof (whether or not having the force of
Law) shall change the basis of taxation of payments to any Lender or the Issuing
Bank of the principal of or interest on any Eurodollar Loan or Fixed Rate Loan
made by such Lender or any Fees or other amounts payable hereunder (other than
changes in respect of taxes imposed on the overall net income (including without
limitation franchise taxes on net income, branch profit taxes and alternate
minimum income taxes) of such Lender or the Issuing Bank by the jurisdiction in
which such Lender or the Issuing Bank is incorporated or has its principal
office or by any political subdivision or taxing authority therein), or shall
impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of or credit
extended by any Lender or the Issuing Bank (except any such reserve requirement
which is reflected in the Adjusted LIBO Rate) or shall impose on such Lender or
the Issuing Bank or the London interbank market any other condition affecting
this Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender or
any Letter of Credit or participation therein, and the result of any of the
foregoing shall be to increase the cost to such
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Lender or the Issuing Bank of making or maintaining any Eurodollar Loan or Fixed
Rate Loan or increase the cost to any Lender of issuing or maintaining any
Letter of Credit or purchasing or maintaining a participation therein or to
reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder whether of principal, interest or otherwise, by an amount
deemed by such Lender or the Issuing Bank to be material, then the Borrower will
pay to such Lender or the Issuing Bank, as the case may be, upon demand such
additional amount or amounts as will compensate such Lender or the Issuing Bank,
as the case may be, for such additional costs incurred or reduction suffered.
(b) If any Lender or the Issuing Bank shall have determined that the
adoption after the date hereof of any Law, agreement or guideline regarding
capital adequacy, or any change after the date hereof in any such Law, agreement
or guideline (regardless of whether the change in such Law, agreement or
guideline has been adopted) or in the interpretation or administration thereof
by any Governmental Authority charged with the interpretation or administration
thereof, or compliance by any Lender (or any lending office of such Lender) or
the Issuing Bank or any Lender's or the Issuing Bank's holding company with any
request or directive regarding capital adequacy (whether or not having the force
of Law) of any Governmental Authority has or would have the effect of reducing
the rate of return on such Lender's or the Issuing Bank's capital or on the
capital of such Lender's or the Issuing Bank's holding company, if any, as a
consequence of this Agreement or the Loans or Competitive Loans made or
participations in Letters of Credit purchased by such Lender pursuant hereto or
the Letters of Credit issued by the Issuing Bank pursuant hereto to a level
below that which such Lender or the Issuing Bank or such Lender's or the Issuing
Bank's holding company could have achieved but for such applicability, adoption,
change or compliance (taking into consideration such Lender's or the Issuing
Bank's policies and the policies of such Lender's or the Issuing Bank's holding
company with respect to capital adequacy) by an amount deemed by such Lender or
the Issuing Bank to be material, then from time to time the Borrower shall pay
to such Lender or the Issuing Bank, as the case may be, such additional amount
or amounts as will compensate such Lender or the Issuing Bank or such Lender's
or the Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or the Issuing Bank setting forth in
reasonable detail the basis for computation of the amount or amounts necessary
to compensate such Lender or the Issuing Bank or its holding company, as
applicable, as specified in paragraph (a) or (b) above shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender or the Issuing Bank the amount shown as due on any such certificate
delivered by it within 10 days after its receipt of the same.
(d) Failure or delay on the part of any Lender or the Issuing Bank to
demand compensation for any increased costs or reduction in amounts received or
receivable or reduction in return on capital shall not constitute a waiver of
such Lender's or the Issuing Bank's right to demand such compensation; provided,
however, that in no event shall the Borrower be obligated to make any payment
under this Section 2.13 in respect of increased costs incurred prior to the
period commencing 90 days prior to the date on which demand for compensation in
respect of
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such increased costs is first made. In addition, the Borrower shall not incur
liability for additional amounts with respect to changes in the basis of
taxation described above for periods of time before such Lender or Issuing Bank
becomes aware of the change in such basis except in the case of any retroactive
application of such a change. The protection of this Section shall be available
to each Lender and the Issuing Bank regardless of any possible contention of the
invalidity or inapplicability or the Law, agreement, guideline or other change
or condition that shall have occurred or been imposed. Notwithstanding any other
provision of this Section, no Lender shall be entitled to demand compensation
hereunder in respect of any Competitive Loan if it shall have been aware of the
event or circumstance giving rise to such demand at the time it submitted the
Competitive Bid pursuant to which such Competitive Loan was made.
SECTION 2.14. Change in Legality.
(a) Notwithstanding any other provision of this Agreement, if, after the
date hereof, any change in any Law or in the interpretation thereof by any
Governmental Authority charged with the administration or interpretation thereof
shall make it unlawful for any Lender to make or maintain any Eurodollar Loan or
to give effect to its obligations as contemplated hereby with respect to any
Eurodollar Loan, then, by written notice to the Borrower and to the
Administrative Agent:
(i) such Lender may declare that Eurodollar Loans will not
thereafter (for the duration of such unlawfulness) be made by such
Lender hereunder (or be continued for additional Interest Periods and
ABR Loans will not thereafter (for such duration) be converted into
Eurodollar Loans), whereupon such Lender shall not submit a Competitive
Bid in response to a request for a Eurodollar Competitive Loan and any
request for a Eurodollar Borrowing (or to convert an ABR Borrowing to a
Eurodollar Borrowing or to continue a Eurodollar Borrowing for an
additional Interest Period) shall, as to such Lender only, be deemed a
request for an ABR Loan (or a request to continue an ABR Loan as such
for an additional Interest Period or to convert a Eurodollar Loan into
an ABR Loan, as the case may be), unless such declaration shall be
subsequently withdrawn; and
(ii) such Lender may require that all outstanding Eurodollar
Loans made by it be converted to ABR Loans, in which event all such
Eurodollar Loans shall be automatically converted to ABR Loans as of the
effective date of such notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under (i) or (ii) above, all
payments and prepayments of principal that would otherwise have been applied to
repay the Eurodollar Loans that would have been made by such Lender or the
converted Eurodollar Loans of such Lender shall instead be applied to repay the
ABR Loans made by such Lender in lieu of, or resulting from the conversion of,
such Eurodollar Loans.
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(b) For purposes of this Section 2.14, a notice to the Borrower by any
Lender shall be effective as to each Eurodollar Loan made by such Lender, if
lawful, on the last day of the Interest Period currently applicable to such
Eurodollar Loan; in all other cases such notice shall be effective on the date
of receipt by the Borrower.
SECTION 2.15. Indemnity. The Borrower shall indemnify each Lender
against any loss or expense that such Lender may sustain or incur as a
consequence of (a) any event, other than a default by such Lender in the
performance of its obligations hereunder, which results in (i) such Lender
receiving or being deemed to receive any amount on account of the principal of
any Fixed Rate Loan or Eurodollar Loan prior to the end of the Interest Period
in effect therefor, (ii) the conversion of any Eurodollar Loan to an ABR Loan,
or the conversion of the Interest Period with respect to any Eurodollar Loan, in
each case other than on the last day of the Interest Period in effect therefor,
or (iii) any Fixed Rate Loan or Eurodollar Loan to be made by such Lender
(including any Eurodollar Loan to be made pursuant to a conversion or
continuation under Section 2.11 hereof) not being made after notice of such Loan
or Competitive Loan shall have been given by the Borrower hereunder for any
reason other than default by a Lender (any of the events referred to in this
clause (a) being called a "Breakage Event") or (b) any default in the making of
any payment or prepayment required to be made hereunder. In the case of any
Breakage Event, such loss shall include an amount equal to the excess, as
reasonably determined by such Lender, of (i) its cost of obtaining funds for the
Fixed Rate Loan or Eurodollar Loan that is the subject of such Breakage Event
for the period from the date of such Breakage Event to the last day of the
Interest Period in effect (or that would have been in effect) for such Loan or
Competitive Loan over (ii) the amount of interest likely to be realized by such
Lender in redeploying the funds released or not utilized by reason of such
Breakage Event for such period. A certificate of any such Lender shall be
delivered to the Borrower and shall be conclusive absent manifest error, so long
as such certificate sets forth in reasonable detail any amount or amounts which
such Lender is entitled to receive pursuant to this Section 2.15 and the basis
of computation of the amount or amounts necessary to compensate such Lender.
SECTION 2.16. Pro Rata Treatment. Except as provided below in this
Section 2.16 with respect to Competitive Borrowings and as required under
Section 2.14 hereof, each Borrowing, each payment or prepayment of principal of
any Borrowing, each payment of interest on the Loans, each payment of the
Facility Fees and Commitment Fees, each reduction of the Commitment and each
conversion of any Borrowing to or continuation of any Borrowing as a Borrowing
of any Type shall be allocated pro rata among the Lenders in accordance with
their respective Pro Rata Percentages of the Commitment (or, if the Commitment
shall have expired or been terminated, in accordance with the respective
principal amounts of their outstanding Loans). Each payment of principal of any
Competitive Borrowing shall be allocated pro rata among the Lenders
participating in such Competitive Borrowing, in accordance with the respective
principal amounts of their outstanding Competitive Loans comprising such
Competitive Borrowing. Each payment of interest on any Competitive Borrowing
shall be allocated pro rata among the Lenders participating in such Competitive
Borrowing in accordance with the respective amounts of accrued and unpaid
interest on their outstanding Competitive Loans comprising such
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Competitive Borrowing. For purposes of determining the available Commitment of
the Lenders at any time, each outstanding Competitive Borrowing shall be deemed
to have utilized the Commitment (including those Lenders which shall not have
made Loans as part of such Competitive Borrowing) in accordance with each
Lender's Pro Rata Percentage of the Commitment. Each Lender agrees that in
computing such Lender's portion of any Borrowing to be made hereunder, the
Administrative Agent may, in its discretion, round each Lender's percentage of
such Borrowing to the next higher or lower whole dollar amount.
SECTION 2.17. Sharing of Setoffs. Each Lender agrees that if it
shall, through the exercise of a right of banker's lien, setoff or counterclaim
against the Borrower, or pursuant to a secured claim under Section 506 of Title
11 of the United States Code or other security or interest arising from, or in
lieu of, such secured claim, received by such Lender under any Debtor Relief Law
or other similar Law or otherwise, or by any other means, obtain payment
(voluntary or involuntary) in respect of any Loan or Loans or L/C Disbursement
as a result of which the unpaid principal portion of its Loans and
participations in L/C Disbursements shall be proportionately less than the
unpaid principal portion of the Loans and participations in L/C Disbursements of
any other Lender, it shall be deemed simultaneously to have purchased from such
other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the Loans and L/C Exposure of such other
Lender, so that the aggregate unpaid principal amount of the Loans and L/C
Exposure and participations in Loans and L/C Exposure held by each Lender shall
be in the same proportion to the aggregate unpaid principal amount of all Loans
and L/C Exposure then outstanding as the principal amount of its Loans and L/C
Exposure prior to such exercise of banker's lien, setoff or counterclaim or
other event was to the principal amount of all Loans and L/C Exposure
outstanding prior to such exercise of banker's lien, setoff or counterclaim or
other event; provided, however, that if any such purchase or purchases or
adjustments shall be made pursuant to this Section 2.17 and the payment giving
rise thereto shall thereafter be recovered, such purchase or purchases or
adjustments shall be rescinded to the extent of such recovery and the purchase
price or prices or adjustment restored without interest. The Borrower expressly
consents to the foregoing arrangements and agrees that any Lender holding a
participation in a Loan or L/C Disbursement deemed to have been so purchased may
exercise any and all rights of banker's lien, setoff or counterclaim with
respect to any and all moneys owing by the Borrower to such Lender by reason
thereof as fully as if such Lender had made a Loan directly to the Borrower in
the amount of such participation.
SECTION 2.18. Payments.
(a) The Borrower shall make each payment (including principal of or
interest on any Borrowing or any L/C Disbursement or any Fees or other amounts)
hereunder not later than 12:00 (noon), Dallas, Texas time, on the date when due
in immediately available dollars, without setoff, defense or counterclaim. Each
such payment (other than Issuing Bank Fees, which shall be paid directly to the
Issuing Bank,) shall be made to the Administrative Agent at its offices at ▇▇▇
▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇.
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(b) Whenever any payment (including principal of or interest on any
Borrowing or Competitive Borrowing or any Fees or other amounts) hereunder shall
become due, or otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of interest or Fees, if
applicable.
SECTION 2.19. Taxes.
(a) Any and all payments by the Borrower hereunder shall be made, in
accordance with Section 2.18 hereof, free and clear of and without deduction for
any and all current or future taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto excluding (i) income
taxes imposed on the net income (including without limitation, branch profit
taxes and alternative minimum income taxes of the Administrative Agent, any
Lender or the Issuing Bank (or any transferee or assignee thereof, including a
participation holder (any such entity a "Transferee")), (ii) franchise taxes
imposed on the net income of the Administrative Agent, any Lender or the Issuing
Bank (or Transferee), in each case by the jurisdiction under the Laws of which
the Administrative Agent, such Lender or the Issuing Bank (or Transferee) is
organized or any political subdivision thereof or by the jurisdiction in which
the applicable lending or issuing office of the Administrative Agent, such
Lender, or the Issuing Bank (or Transferee) is located or any political
subdivision thereof (all such nonexcluded taxes, levies, imposts, deductions,
charge, withholdings and liabilities, collectively or individually, being called
"Taxes"). If the Borrower shall be required to deduct any Taxes from or in
respect of any sum payable hereunder to the Administrative Agent, any Lender or
the Issuing Bank (or any Transferee), (i) the sum payable shall be increased by
the amount (an "additional amount") necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.19) the Administrative Agent, such Lender or the Issuing Bank or
Transferee), as the case may be, shall receive an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower shall
make such deductions and (iii) the Borrower shall pay the full amount deducted
to the relevant Governmental Authority in accordance with Applicable Law.
(b) In addition, the Borrower agrees to pay to the relevant Governmental
Authority in accordance with Applicable Law any current or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies that arise from and payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement
("Other Taxes").
(c) The Borrower will indemnify the Administrative Agent, each Lender
and the Issuing Bank (or Transferee) for the full amount of Taxes and Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank (or
Transferee), as the case may be, and any liability, (including penalties,
interest and expenses (including reasonable attorney's fees and expenses))
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted by the relevant Governmental Authority.
A certificate as to the
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amount of such payment or liability prepared by the Administrative Agent, a
Lender or the Issuing Bank (or Transferee), or the Administrative Agent on its
behalf, absent manifest error, shall be final, conclusive and binding for all
purposes. Such indemnification shall be made within 30 days after the date the
Administrative Agent, any Lender or the Issuing Bank (or Transferee), as the
case may be, makes written demand therefor.
(d) If the Administrative Agent, a Lender or the Issuing Bank (or
Transferee) receives a refund in respect of any Taxes or Other Taxes as to which
it has been indemnified by the Borrower or with respect to which the Borrower
has paid additional amounts pursuant to this Section 2.19, it shall within 30
days from the date of such receipt pay over to the Borrower (a) such refund (but
only to the extent of indemnity payments made, or additional amounts paid, by
the Borrower under this Section 2.19 with respect to the Taxes or Other Taxes
giving rise to such refund), net of all out-of-pocket expenses of the
Administrative Agent, such Lender or the Issuing Bank (or Transferee) and (b)
interest paid by the relevant Governmental Authority with respect to such
refund; provided, however, that the Borrower, upon the request of the
Administrative Agent, such Lender or the Issuing Bank (or Transferee), shall
repay the amount paid over to the Borrower (plus penalties, interest or other
charges) to the Administrative Agent, such Lender or the Issuing Bank (or
Transferee) in the event the Administrative Agent, such Lender or the Issuing
Bank (or Transferee) is required to repay such refunds to such Governmental
Authority. If the Borrower determines in good faith that a reasonable basis
exists for contesting any Tax or Other Tax, the Administrative Agent, Lender,
Issuing Bank or Transferee, as applicable, shall cooperate with the Borrower in
challenging such Tax or Other Tax at the Borrower's expense if requested by the
Borrower (it being understood and agreed that the Administrative Agent, Lender,
Issuing Bank or Transferee, as applicable, shall have no obligation to contest
or responsibility for contesting such Tax or Other Tax).
(e) As soon as practicable after the date of any payment of Taxes or
Other Taxes by the Borrower to the relevant Governmental Authority, the Borrower
will deliver to the Administrative Agent, at its address referred to in Section
9.01 hereof, the original or a certified copy of any receipt actually issued by
such Governmental Authority evidencing payment thereof.
(f) Each Lender (or Transferee) that is organized under the Laws of a
jurisdiction other than the United States, any State thereof or the District of
Columbia (a "Non-U.S. Lender") shall deliver to the Borrower and the
Administrative Agent two copies of either United States Internal Revenue Service
Form 1001 or Form 4224, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. Federal withholding tax under Section 871(h) or 881(c) of the Code
with respect to payments of "portfolio interest", a Form W-8, or any subsequent
versions thereof or successors thereto (and, if such Non-U.S. Lender delivers a
Form W-8, a certificate containing representations regarding the status of such
Non-U.S. Lender as not being a bank for purposes of Section 881(c) of the Code,
as not being a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Code) of the Borrower and as not being a controlled foreign
corporation related to the Borrower (within the meaning of Section 864(d)(4) of
the Code)), properly completed and duly executed by such Non-U.S. Lender
claiming complete exemption
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from, or reduced rate of, U.S. Federal withholding tax on payments by the
Borrower under this Agreement. Such forms shall be delivered by each Non-U.S.
Lender on or before the date it becomes a party to this Agreement (or, in the
case of a Transferee that is a participation holder, on or before the date such
participation holder becomes a Transferee hereunder) and on or before the date,
if any, such Non-U.S. Lender changes its applicable lending office by
designating a different lending office (a "New Lending Office"). In addition,
each Non-U.S. Lender shall deliver such forms promptly upon the obsolescence or
invalidity of any form previously delivered by such Non-U S. Lender.
Notwithstanding any other provision of this Section 2.19(f), a Non-U.S. Lender
shall not be required to deliver any form pursuant to this Section 2.19(f) that
such Non-U.S. Lender is not legally able to deliver.
(g) The Borrower shall not be required to indemnify any Non-U.S. Lender
or to pay any additional amounts to any Non-U.S. Lender, in respect of United
States Federal withholding tax pursuant to paragraph (a) or (c) above to the
extent that (i) the obligation to withhold amounts with respect to United States
Federal withholding tax existed on the date such Non-U.S. Lender became a party
to this Agreement (or, in the case of a Transferee that is a participation
holder, on the date such participation holder became a Transferee hereunder) or,
with respect to payments to a New Lending Office, the date such Non-U.S. Lender
designated such New Lending Office with respect to a Loan or Competitive Loan;
provided, however, that this paragraph (g) shall not apply (x) to any Transferee
or New Lending Office that becomes a Transferee or New Lending Office as a
result of an assignment, participation, transfer or designation made at the
request of the Borrower and (y) to the extent the indemnity payment or
additional amounts any Transferee, or any Lender (or Transferee), acting through
a New Lending Office, would be entitled to receive (without regard to this
paragraph (g)) do not exceed the indemnity payment or additional amounts that
the Person making the assignment, participation or transfer to such Transferee,
or Lender (or Transferee) making the designation of such New Lending Office,
would have been entitled to receive in the absence of such assignment,
participation, transfer or designation or (ii) the obligation to pay such
additional amounts would not have arisen but for a failure by such Non-U.S.
Lender to comply with the provisions of paragraph (g) above.
(h) Nothing contained in this Section 2.19 shall require any Lender or
the Issuing Bank (or any Transferee) or the Administrative Agent to make
available any of its tax returns (or any other information that it deems to be
confidential or proprietary).
(i) Each Bank represents that, to the best of its knowledge, it is not a
party to any "conduit financing arrangement" as defined under applicable
Treasury Regulations promulgated under the Code.
(j) Any Non-U.S. Lender that could become completely exempt from
withholding of any tax, assessment or other charge or levy imposed by or on
behalf of the United States of America or any taxing authority thereof ("U.S.
Taxes") in respect of payment of any obligations due to such Non-U.S. Lender
under this Agreement ("Lender Obligations") if the Lender Obligations were in
registered form for U.S. Federal income tax purposes may request the
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Borrower (through the Administrative Agent), and the Borrower agrees thereupon,
to exchange any promissory note(s) evidencing such Lender Obligations for
promissory note(s) registered as provided in subsection (k) below (each, a
"Registered Note"). Registered Notes may not be exchanged for promissory notes
that are not Registered Notes.
(k) From and after the time, if any, when any Lender requests a
Registered Note, the Borrower shall maintain, or cause to be maintained, a
register (the "Register") on which it enters the name of each registered owner
of the Lender Obligation(s) evidenced by a Registered Note. A Registered Note
and the Lender Obligation(s) evidenced thereby may be assigned or otherwise
transferred in whole or in part only by registration of such assignment or
transfer of such Registered Note and the Lender Obligation(s) evidenced thereby
on the Register (and each Registered Note shall expressly so provide). Any
assignment or transfer of all or part of such Lender Obligation(s) and the
Registered Note(s) evidencing the same shall be registered on the Register only
upon surrender for registration of assignment or transfer of the Registered
Note(s) evidencing such Lender Obligation(s), duly endorsed by (or accompanied
by a written instrument of assignment or transfer duly executed by) the
Registered Noteholder thereof, and thereupon one or more new Registered Note(s)
in the same aggregate principal amount shall be issued to the designated
assignee(s) or transferee(s) pursuant to, in accordance with, and subject to the
restrictions of, Section 9.04 hereof). Prior to the due presentment for
registration of assignment or transfer of any Registered Note, the Borrower and
the Administrative Agent shall treat the Person in whose name such Lender
Obligation(s) and the Registered Note(s) evidencing the same is registered as
the owner thereof for the purpose of receiving all payments thereon and for all
other purposes, notwithstanding any notice to the contrary. The Register shall
be available for inspection by the Administrative Agent and any Lender at any
reasonable time upon reasonable prior notice.
SECTION 2.20. Assignment of Commitment Under Certain Circumstances;
Duty to Mitigate.
(a) In the event (i) any Lender or the Issuing Bank delivers a
certificate requesting compensation pursuant to Section 2.13 hereof, (ii) any
Lender or the Issuing Bank delivers a notice described in Section 2.14 hereof or
(iii) the Borrower is required to pay any additional amount to any Lender or the
Issuing Bank or any Governmental Authority on account of any Lender or the
Issuing Bank pursuant to Section 2.19 hereof, the Borrower may, at its sole
expense and effort (including with respect to the processing and recordation fee
referred to in Section 9.04(b) hereof), upon notice to such Lender or the
Issuing Bank and the Administrative Agent, require such Lender or the Issuing
Bank to transfer and assign, without recourse (in accordance with and subject to
the restrictions contained in Section 9.04 hereof), all of its interests, rights
and obligations under this Agreement to an assignee that shall assume such
assigned obligations which assignee may be another Lender, if a Lender accepts
such assignment); provided that (x) such assignment shall not conflict with any
Law, rule or regulation or order of any court or other Governmental Authority
having jurisdiction, (v) the Borrower shall have received the prior written
consent of the Administrative Agent (and, if a portion of the Commitment is
being assigned, of
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the Issuing Bank), which consent shall not unreasonably be withheld, and (z) the
Borrower or such assignee shall have paid to the affected Lender or the Issuing
Bank in immediately available funds an amount equal to the sum of the principal
of and interest accrued to the date of such payment on the outstanding Loans,
Competitive Loans and participations in L/C Disbursements of such Lender or the
Issuing Bank plus all Fees and other amounts accrued for the account of such
Lender or the Issuing Bank hereunder (including any amounts under Section 2.13
hereof and Section 2.15 hereof); provided further that, if prior to any such
transfer and assignment the circumstances or event that resulted in such
Lender's or the Issuing Bank's claim for compensation under Section 2.13 hereof
or notice under Section 2.14 hereof or the amounts paid pursuant to Section 2.19
hereof, as the case may be, cease to cause such Lender or the Issuing Bank to
suffer increased costs or reductions in amounts received or receivable or
reduction in return on capital, or cease to have the consequences specified in
Section 2.14, or cease to result in amounts being payable under Section 2.19
hereof, as the case may be, including as a result of any action taken by such
Lender or the Issuing Bank pursuant to paragraph (b) below), or if such Lender
or the Issuing Bank shall waive its right to claim further compensation under
Section 2.13 hereof in respect of such circumstances or event or shall withdraw
its notice under Section 2.14 hereof or shall waive its right to further
payments under Section 2.19 hereof in respect of such circumstances or event, as
the case may be, then such Lender or the Issuing Bank shall not thereafter be
required to make any such transfer and assignment hereunder.
(b) If (i) any Lender or the Issuing Bank shall request compensation
under Section 2.13 hereof, (ii) any Lender or the Issuing Bank delivers a notice
described in Section 2.14 hereof or (iii) the Borrower is required to pay any
additional amount to any Lender or the Issuing Bank or any Governmental
Authority on account of any Lender or the Issuing Bank, pursuant to Section
2.19, then such Lender or the Issuing Bank shall use reasonable efforts (which
shall not require such Lender or the Issuing Bank to incur an unreimbursed loss
or unreimbursed cost or expense or otherwise take any action inconsistent with
its internal policies or legal or regulatory restrictions or suffer any
disadvantage or burden deemed by it to be significant) (x) to file any
certificate or document reasonably requested in writing by the Borrower or (y)
to assign its rights and delegate and transfer its obligations hereunder to
another of its offices, branches or affiliates, if such filing or assignment
would reduce its claims for compensation under Section 2.13 hereof or enable it
to withdraw its notice pursuant to Section 2.14 hereof or would reduce accounts
payable pursuant to Section 2.19 hereof, as the case may be, in the future. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender or the Issuing Bank in connection with any such filing or assignment,
delegation and transfer.
SECTION 2.21. Letters of Credit.
(a) General. The Borrower may request the issuance of a Letter of
Credit, in a form reasonably acceptable to the Administrative Agent and the
Issuing Bank, appropriately completed, for the account of the Borrower, at any
time and from time to time while the Commitment remains in effect. The face
amount of each Letter of Credit may never be greater than the lesser of (i)
$10,000,000 and (ii) the amount by which the Commitment exceeds the Total
Exposure on the
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date of issuance. This Section shall not be construed to impose an obligation
upon the Issuing Bank to issue any Letter of Credit that is inconsistent with
the terms and conditions of this Agreement.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. In order to request the issuance of a Letter of Credit (or to amend,
renew or extend an existing Letter of Credit), the Borrower shall hand deliver
or telecopy to the Issuing Bank and the Administrative Agent (reasonably in
advance of the requested date of issuance, amendment, renewal or extension) a
completed Application and a notice requesting the issuance of a Letter of
Credit, or identifying the Letter of Credit to be amended, renewed or extended,
the date of issuance, amendment, renewal or extension, the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) below), the
amount of such Letter of Credit, the name and address of the beneficiary thereof
and such other information as shall be necessary to prepare such Letter of
Credit. In connection with a request for the issuance of a Letter of Credit, in
the event of any inconsistency between the terms of any Application and the
provisions of this Agreement, the provisions of this Agreement shall be
controlling. A Letter of Credit shall be issued, amended, renewed or extended
only if, and upon issuance, amendment, renewal or extension of each Letter of
Credit the Borrower shall be deemed to represent and warrant that, after giving
effect to such issuance, amendment, renewal or extension (A) the L/C Exposure
shall not exceed $10,000,000 and (B) the Total Exposure (after giving effect to
the issuance of such Letter of Credit) shall not exceed the Commitment. The
Issuing Bank shall not enter into any amendment of an outstanding Letter of
Credit which has not been requested or approved in writing by the Borrower.
(c) Expiration Date. Each Letter of Credit shall expire at the close of
business on the earlier of the date one year after the date of the issuance of
such Letter of Credit and the date that is five Business Days prior to the
Revolving Loan Maturity Date, as applicable, unless such Letter of Credit (i)
expires by its terms on an earlier date or (ii) has a one-year tenor and
provides for the renewal thereof for additional one-year periods, so long as
such periods referred to in this clause (ii) shall not in any event expire at a
date later than the date that is five Business Days prior to the Revolving Loan
Maturity Date.
(d) Participations. By the issuance of a Letter of Credit and without
any further action on the part of the Issuing Bank or the Lenders, the Issuing
Bank hereby grants to each Lender, and each such Lender hereby acquires from the
applicable Issuing Bank, a participation in such Letter of Credit equal to such
Lender's Pro Rata Percentage of the aggregate amount available to bc drawn under
such Letter of Credit, effective upon the issuance of such Letter of Credit. In
consideration and in furtherance of the foregoing, each Lender hereby absolutely
and unconditionally agrees to pay to the Administrative Agent, for the account
of the Issuing Bank, such Lender's Pro Rata Percentage of each L/C Disbursement
made by the Issuing Bank and not reimbursed by the Borrower forthwith on the
date due as provided in Section 2.02(f) hereof. Each Lender acknowledges and
agrees that its obligation to acquire participations pursuant to this paragraph
in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the occurrence and
continuance of a Default or an
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Event of Default, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever.
(e) Reimbursement. If the Issuing Bank shall make any L/C Disbursement
in respect of a Letter of Credit, the Borrower shall pay to the Administrative
Agent an amount equal to such L/C Disbursement not later than two hours after
the Borrower shall have received notice from the Issuing Bank that payment of
such draft will be made, or, if the Borrower shall have received such notice
later than 10:00 a.m., Dallas, Texas time, on any Business Day, not later than
10:00 a.m., Dallas, Texas time, on the immediately following Business Day.
(f) Obligations Absolute. The Borrower's obligations to reimburse L/C
Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:
(i) any lack of validity or enforceability of any Letter of
Credit or any other Loan Paper, or any term or provision therein;
(ii) any amendment or waiver of or any consent to departure from
all or any of the provisions of any Letter of Credit or this Agreement;
(iii) the existence of any claim, setoff, defense or other right
that the Borrower, any other party guaranteeing, or otherwise obligated
with, the Borrower, any Restricted Subsidiary of the Borrower or other
Affiliate thereof or any other Person may at any time have against the
beneficiary under any Letter of Credit, the Issuing Bank, the
Administrative Agent or any Lender or any other Person, whether in
connection with this Agreement or any other related or unrelated
agreement or transaction;
(iv) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any
respect;
(v) payment by the Issuing Bank under a Letter of Credit against
presentation of a draft or other document that does not comply with the
terms of such Letter of Credit; and
(vi) any other act or omission to act or delay of any kind of the
Issuing Bank, the Lenders, the Administrative Agent or any other Person
or any other event or circumstance whatsoever, whether or not similar to
any of the foregoing, that might, but for the provisions of this
Section, constitute a legal or equitable discharge of the Borrower's
obligations hereunder.
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The foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by Applicable Law) suffered by the Borrower
that are caused by the Issuing Bank's gross negligence or wilful misconduct in
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof; it is understood that the Issuing Bank may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit (i) the Issuing Bank's exclusive reliance on the documents presented to
it under such Letter of Credit as to any and all matters set forth therein,
including reliance on the amount of any draft presented under such Letter of
Credit, whether or not the amount due to the beneficiary thereunder equals the
amount of such draft and whether or not any document presented pursuant to such
Letter of Credit proves to be insufficient in any respect, if such document on
its face appears to be in order, and whether or not any other statement or any
other document presented pursuant to such Letter of Credit proves to be forged
or invalid or any statement therein proves to be inaccurate or untrue in any
respect whatsoever and (ii) any noncompliance in any immaterial respect of the
documents presented under such Letter of Credit with the terms thereof shall, in
each case, be deemed not to constitute wilful misconduct or gross negligence of
the Issuing Bank
(g) Disbursement Procedures. The Issuing Bank shall, promptly following
its receipt thereof, examine all documents purporting to represent a demand for
payment under a Letter of Credit. The Issuing Bank shall as promptly as possible
give telephonic notification, confirmed by telecopy, to the Administrative Agent
and the Borrower of such demand for payment and whether the Issuing Bank has
made or will make an L/C Disbursement thereunder; provided that any failure to
give or delay in giving such notice shall not relieve the Borrower of its
obligation to reimburse the Issuing Bank and the Lenders with respect to any
such L/C Disbursement. The Administrative Agent shall promptly give each Lender
notice thereof.
(h) Interim Interest. If the Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, then, unless the Borrower shall
reimburse such L/C Disbursement in full on such date, the unpaid amount thereof
shall bear interest for the account of the Issuing Bank, for each day from and
including the date of such L/C Disbursement, to but excluding the earlier of the
date of payment by the Borrower or the date on which interest shall commence to
accrue thereon as provided in Section 2.08 hereof, at the rate per annum that
would apply to such amount if such amount were an ABR Loan.
(i) Resignation or Removal of the Issuing Bank. The Issuing Bank may
resign at any time by giving 90 days' prior written notice to the Administrative
Agent, the Lenders and the Borrower, and may be removed at any time by the
Borrower by notice to the Issuing Bank, the Administrative Agent and the
Lenders. Subject to the next succeeding paragraph, upon the acceptance of any
appointment as the Issuing Bank hereunder by a Lender that shall agree to serve
as successor Issuing Bank, such successor shall succeed to and become vested
with all the interests, rights and obligations of the retiring Issuing Bank and
the retiring Issuing Bank shall be
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discharged from its obligations to issue additional Letters of Credit hereunder.
At the time such removal or resignation shall become effective, the Borrower
shall pay all accrued and unpaid fees pursuant to Section 2.06(c) hereof. The
acceptance of any appointment as the Issuing Bank hereunder by a successor
Lender shall be evidenced by an agreement entered into by such successor, in a
form satisfactory to the Borrower and the Administrative Agent, and, from and
after the effective date of such agreement, (i) such successor Lender shall have
all the rights and obligations of the previous Issuing Bank under this Agreement
and (ii) references herein to the term Issuing Bank, shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all
previous Issuing Banks, as the context shall require. After the resignation or
removal of the Issuing Bank hereunder, the retiring Issuing Bank shall remain a
party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such resignation or removal, but shall not be required to issue
additional Letters of Credit.
(j) Cash Collateralization. If any Event of Default shall occur and be
continuing, the Borrower shall, on the Business Day it receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders holding participations in outstanding Letters of
Credit representing greater than 50% of the aggregate undrawn amount of all
outstanding Letters of Credit thereof and of the amount to be deposited), or if
the maturity of the Loans has been accelerated automatically pursuant to Article
VII, as a result of the happening on an event described in paragraph (g) or (h)
thereof, forthwith, without notice of any kind, deposit in an account with the
Administrative Agent, for the benefit of the Lenders, an amount in cash equal to
the L/C Exposure as of such date. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account and, if so requested by the Borrower, shall invest
the deposits therein in Permitted Investments. Other than any interest earned on
the investment of such deposits in Permitted Investments, which investments
shall be made at the option and sole discretion of the Administrative Agent,
such deposits shall not bear interest or profits, if any, on such investments
shall accumulate in such account. Moneys in such account shall (i) automatically
be applied by the Administrative Agent to reimburse the Issuing Bank for L/C
Disbursements for which it has not been reimbursed, (ii) be held for the
satisfaction of the reimbursement obligations of the Borrower for the L/C
Exposure at such time and (iii) if the maturity of the Loans has been
accelerated (but subject to the consent of Lenders holding participations in
outstanding Letters of Credit representing greater than 50% of the aggregate
undrawn amount of all outstanding Letters of Credit), be applied to satisfy
other obligations of the Borrower under this Agreement.
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ARTICLE III
Representations and Warranties
The Borrower represents and warrants to the Administrative Agent, the
Issuing Bank and each of the Lenders that:
SECTION 3.01. Organization; Powers. The Borrower and each of its
Restricted Subsidiaries (a) is a corporation duly organized, validly existing
and in good standing under the Laws of the jurisdiction of its organization, (b)
has all requisite power and authority to own its property and assets and to
carry on its business as now conducted and as proposed to be conducted, (c) is
qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required, except where the failure so to qualify
could not reasonably be expected to result in a Material Adverse Effect, and (d)
has the corporate power and authority to execute, deliver and perform its
obligations under this Agreement, the other Loan Papers and each other agreement
or instrument contemplated thereby to which it is or will be a party and to
borrow hereunder.
SECTION 3.02. Authorization. The execution, delivery and performance
by the Borrower of this Agreement, the promissory notes, the execution of the
guaranties by the Guarantors, the execution of all other Loan Papers by the
Obligors and the borrowings hereunder (collectively, the "Transactions") (a)
have been duly authorized by all requisite corporate and, if required,
stockholder action and (b) will not (i) violate (A) any provision of Law,
statute, rule or regulation, or of the certificate or articles of incorporation
or other constitutive documents or by-laws of the Borrower or any Restricted
Subsidiary of the Borrower, (B) any order of any Governmental Authority or (C)
any provision of any indenture, material agreement or other material instrument
to which the Borrower or any Restricted Subsidiary of the Borrower is a party or
by which any of them or any of their property is or may be bound, (ii) be in
conflict with, result in a breach of or constitute (alone or with notice or
lapse of time or both) a default under, or give rise to any right to accelerate
or to require the prepayment, repurchase or redemption of any obligation under
any such indenture, agreement or other instrument or (iii) result in the
creation or imposition of any Lien upon or with respect to any property or
assets now owned or hereafter acquired by the Borrower or any Restricted
Subsidiary of the Borrower.
SECTION 3.03. Enforceability. This Agreement has been duly executed
and delivered by the Borrower and constitutes a legal, valid and binding
obligation of the Borrower enforceable against the Borrower in accordance with
its terms. All other Loan Papers have been duly executed and delivered by the
Borrower and the Obligors and each constitutes a legal, valid and binding
obligation of the Borrower and the Obligors, as appropriate, enforceable against
the Borrower and the Obligors, as appropriate, in accordance with its terms.
SECTION 3.04. Governmental Approvals. No action, consent or approval
of, registration or filing with or any other action by any Governmental
Authority is or will be
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required in connection with the Transactions, except for such as have been made
or obtained and are in full force and effect.
SECTION 3.05. Financial Statements. The Borrower has heretofore
furnished to the Lenders its balance sheets and statements of income and equity
and cash flow (a) as of and for the fiscal year ended December 31, 1996, audited
by and accompanied by the opinion of Deloitte & Touche, LLP, independent public
accountants, and (b) as of and for the fiscal quarter and the portion of the
fiscal year ended June 30, 1997. Such financial statements present fairly the
financial condition and results of operations and cash flows of the Borrower as
of such dates and for such periods. Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of such entities as of
the dates thereof. Such financial statements were prepared in accordance with
GAAP applied on a consistent basis. The operating performance projections
submitted prior to the Closing Date by the Borrower to the Administrative Agent
for the years 1997 through 2002 were prepared in good faith, and management
believes them to be based on reasonable assumptions and to fairly present the
projected financial condition and results of operations of the Borrower and its
Restricted Subsidiaries based upon management's good faith estimates about the
business, the relevant industries and the general economy as of the date of such
projections. The parties hereto understand that such projections were not
prepared as part of the Borrower's customary planning process, have not been
subject to the same level of scrutiny and review as the Borrower undertakes in
its annual business planning and budgeting process, and have not been reviewed
and approved by the Borrower's Board of Directors.
SECTION 3.06. No Material Adverse Change. There has been no material
adverse change in the business, assets, operations, financial condition, or
material agreements of the Borrower and its Restricted Subsidiaries, taken as a
whole, since June 30, 1997.
SECTION 3.07. Title to Properties; Possession Under Leases.
(a) Each of the Borrower and its Restricted Subsidiaries has good and
marketable title to, or valid leasehold interests in, all its material
properties and assets, except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize
such properties and assets for their intended purposes. All such material
properties and assets are free and clear of Liens, other than Liens expressly
permitted by Section 6.02 hereof.
(b) Each of the Borrower and its Restricted Subsidiaries has complied
with all material obligations under all material leases to which it is a party
and all such leases are in full force and effect. Each of the Borrower and its
Restricted Subsidiaries enjoys peaceful and undisturbed possession under all
such material leases.
(c) Each of the Borrower and its Restricted Subsidiaries owns or
possesses, or could obtain ownership or possession of, on terms not materially
adverse to it, all patents, trademarks, service marks, trade names, copyrights,
licenses and rights with respect thereto necessary for the present conduct of
its business, without any known conflict with the rights of others, and free
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from any burdensome restrictions, except where such conflicts and restrictions
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
SECTION 3.08. Subsidiaries. Schedule 3.08 hereto sets forth as of the
date hereof a list of all Subsidiaries of the Borrower and the percentage
ownership interest of the Borrower therein. As of the date hereof, the shares of
Capital Stock or other ownership interests so indicated on Schedule 3.08 are
fully paid and non-assessable and are owned by the Borrower, directly or
indirectly, free and clear of all Liens.
SECTION 3.09. Litigation; Compliance with Laws.
(a) Except as set forth on Schedule 3.09 hereof, there are not any
actions, suits or proceedings at Law or in equity or by or before any
Governmental Authority now pending or, to the knowledge of the Borrower,
threatened against or affecting the Borrower or any Subsidiary of the Borrower
or any business, property or rights of any such Person (i) that involve this
Agreement or the Transactions or (ii) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined, could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect.
(b) None of the Borrower or any of its Subsidiaries or any of their
respective material properties or assets is in violation of, nor will the
continued operation of their material properties and assets as currently
conducted violate, any Law, or is in default with respect to any judgment, writ,
injunction, decree or order of any Governmental Authority, where such violation
or default could reasonably be expected to result in a Material Adverse Effect.
SECTION 3.10. Agreements.
(a) Neither the Borrower nor any of its Subsidiaries is a party to any
agreement or subject to any corporate restriction that, since December 31, 1996,
has resulted or could reasonably be expected to result in a Material Adverse
Effect, except as disclosed on Schedule 3.10 hereof.
(b) Neither the Borrower nor any of its Restricted Subsidiaries is in
default in any manner under any provision of any indenture or other agreement or
instrument evidencing Indebtedness, or any other material agreement or
instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, where such default could reasonably be expected to
result in a Material Adverse Effect.
SECTION 3.11. Federal Reserve Regulations.
(a) Neither the Borrower nor any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose of buying or carrying Margin Stock.
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(b) No part of the proceeds of any Loan, Competitive Loan or any Letter
of Credit will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, for any purpose that entails a violation of, or that
is inconsistent with, the provisions of the Regulations of the Board, including
Regulation G, U or X.
SECTION 3.12. Investment Company Act; Public Utility Holding Company
Act. Neither the Borrower nor any Subsidiary of the Borrower is (a) an
"investment company" as defined in, or subject to regulation under, the
Investment Company Act of 1940 or (b) a "holding company" as defined in, or
subject to regulation under, the Public Utility Holding Company Act of 1935.
SECTION 3.13. Use of Proceeds. The Borrower will use the proceeds of
the Loans, Competitive Loans and will request the issuance of Letters of Credit
only (a) for the refinancing of existing indebtedness of the Borrower, (b) to
fund strategic acquisitions and mergers (and other similar corporate
transactions which have the same effect as a merger or acquisition) in each case
that are permitted by this Agreement and the other Loan Papers, (c) for working
capital and (d) for other general corporate purposes.
SECTION 3.14. Tax Returns. Each of the Borrower and its Restricted
Subsidiaries has filed or caused to be filed all Federal, state, and material
local and foreign tax returns or materials required to have been filed by it and
has paid or caused to be paid all taxes due and payable by it and all
assessments received by it, except taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such Restricted
Subsidiary, as applicable, shall have set aside on its books adequate reserves.
SECTION 3.15. No Material Misstatements. No written information,
report, financial statement, exhibit or schedule prepared by the Borrower and
furnished to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement and the other Loan Papers, or included herein or
delivered pursuant hereto contained, contains or will contain when furnished,
any material misstatement of fact or omitted, omits or will omit when furnished
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were, are or will be made, not
misleading.
SECTION 3.16. Employee Benefit Plans. Each of the Borrower and its
ERISA Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in liability of the Borrower or any
Subsidiary of the Borrower which would be material to the Borrower and its
Subsidiaries on a consolidated basis.
SECTION 3.17. Solvency.
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(a) Immediately after the consummation of the Transactions and the other
transactions to occur on the Closing Date and immediately following the making
of each Loan or Competitive Loan made and the issuance of each Letter of Credit
issued and after giving effect to the application of the proceeds thereof, (i)
the fair value of the assets of the Borrower and its Subsidiaries on a
consolidated basis, at a fair valuation, will exceed the debts and liabilities,
direct, subordinated, contingent or otherwise, of the Borrower and its
Subsidiaries on a consolidated basis; (ii) the present fair saleable value of
the property of the Borrower and its Subsidiaries on a consolidated basis will
be greater than the amount that will be required to pay the probable liability
of the Borrower and its Subsidiaries on a consolidated basis on their debts and
other liabilities, direct, subordinated, contingent or otherwise, as such debts
and other liabilities become absolute and matured; (iii) the Borrower and its
Subsidiaries on a consolidated basis will be able to pay their debts and
liabilities, direct, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (iv) the Borrower and its
Subsidiaries on a consolidated basis will not have unreasonably small capital
with which to conduct the businesses in which they are engaged as such
businesses are now conducted and are proposed to be conducted following the
Closing Date.
(b) The Borrower does not intend to, and does not believe that it or any
Subsidiary of the Borrower will, incur debts beyond its ability to pay such
debts as they mature, taking into account the timing and amounts of cash to be
received by it or any such Subsidiary and the timing and amounts of cash to be
payable on or in respect of its Indebtedness or the Indebtedness of any such
Subsidiary.
SECTION 3.18. Insurance. Schedule 3.18 hereto sets forth a true,
complete and correct description of all insurance maintained by or for the
Borrower or for or by its Restricted Subsidiaries as of the date hereof and the
Closing Date. As of each such date, such insurance is in full force and effect
and all premiums have been duly paid. The Borrower and its Restricted
Subsidiaries have insurance in such amounts and covering such risks and
liabilities as are in accordance with normal industry practice.
SECTION 3.19. Labor Matters. As of the date hereof and the Closing
Date, there are no strikes, lockouts or slowdowns against the Borrower or any of
its Subsidiary pending or, to the knowledge of the Borrower, threatened which
could reasonably be expected to have a Material Adverse Effect. The hours worked
by and payments made to employees of the Borrower and its Restricted
Subsidiaries have not been in violation of the Fair Labor Standards Act or any
other applicable Federal, state, local or foreign Law dealing with such matters.
All payments due from the Borrower or any Restricted Subsidiary of the Borrower,
or for which any claim may be made against the Borrower or any Restricted
Subsidiary of the Borrower, on account of wages and employee health and welfare
insurance and other benefits, have been paid or accrued as a liability on the
books of the Borrower or such Restricted Subsidiary. The consummation of the
Transactions to be consummated on or prior to the Closing Date will not give
rise to any right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which the Borrower or any
Restricted Subsidiary of the Borrower is bound.
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SECTION 3.20. Environmental Matters. Except as set forth in Schedule
3.20:
(a) The properties owned, operated or leased by the Borrower and its
Subsidiaries (the "Properties") do not contain any Hazardous Materials in
amounts or concentrations which (i) constitute, or constituted a violation of,
or (ii) could reasonably be expected to give rise to liability under,
Environmental Laws, which violations and liabilities, in the aggregate, could
reasonably be expected to result in a Material Adverse Effect;
(b) All Environmental Permits have been obtained and are in effect with
respect to the Properties and operations of the Borrower and its Subsidiaries,
and the Properties and all operations of the Borrower and its Subsidiaries are
in compliance, and in the last two years have been in compliance, with all
Environmental Laws and all necessary Environmental Permits, except to the extent
that such non-compliance or failure to obtain any necessary permits, in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect;
(c) Neither the Borrower nor any of its Subsidiaries has received any
notice of an Environmental Claim in connection with the Properties or the
operations of the Borrower or its Subsidiaries or with regard to any Person
whose liabilities for environmental matters the Borrower or any of its
Subsidiaries has retained or assumed, in whole or in part, contractually, which,
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect, nor do the Borrower or any of its Subsidiaries have knowledge that any
such notice will be received or is being threatened; and
(d) Hazardous Materials have not been transported from the Properties,
nor have Hazardous Materials been generated, treated, stored or disposed of at,
on or under any of the Properties in a manner that could reasonably be expected
to give rise to liability under any Environmental Law, nor have the Borrower or
its Subsidiaries retained or assumed any liability contractually, with respect
to the generation, treatment, storage or disposal of Hazardous Materials, which
transportation, generation, treatment, storage or disposal, or retained or
assumed liabilities, in the aggregate, could reasonably be expected to result in
a Material Adverse Effect.
SECTION 3.21. Survival of Representations and Warranties, etc. All
representations and warranties made under this Agreement and the other Loan
Papers shall be deemed to be made at and as of the Closing Date and at and as of
the date of each borrowing under either the Revolving Loans or the Competitive
Loans, and each shall be true and correct when made, except to the extent (a)
previously fulfilled in accordance with the terms hereof, (b) subsequently
inapplicable, or (c) previously waived in writing by the Administrative Agent
and Lenders with respect to any particular factual circumstance. The
representations and warranties made under this Agreement and the other Loan
Papers shall be deemed applicable to each Subsidiary of the Borrower as of the
formation or acquisition of such Subsidiary and at and as of each date the
representations and warranties are remade pursuant to this provision. All
representations and warranties made under this Agreement and the other Loan
Papers shall survive, and not be waived by, the execution hereof by the
Administrative Agent and Lenders, any investigation or inquiry
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by the Administrative Agent or any Lender, or by the making of any Loan or
Competitive Loan under this Agreement and the other Loan Papers.
ARTICLE IV
Conditions of Lending
The obligations of the Lenders to make Loans or Competitive Loans and of
the Issuing Bank to issue Letters of Credit hereunder are subject to the
satisfaction of the following conditions:
SECTION 4.01. All Credit Events. On the date of each borrowing, and
on the date of each issuance of a Letter of Credit (each such event being called
a "Credit Event"):
(a) The Administrative Agent shall have received a notice of such
Borrowing as required by Section 2.03 or 2.04 hereof, as applicable (or such
notice shall have been deemed given in accordance with Section 2.04 hereof), or,
in the case of the issuance of a Letter of Credit, the Issuing Bank and the
Administrative Agent shall have received a duly completed Application and a
notice requesting the issuance of such Letter of Credit, required by Section
2.21(b) hereof.
(b) The representations and warranties set forth in Article III hereof
shall be true and correct in all material respects on and as of the date of such
Credit Event with the same effect as though made on and as of such date, except
to the extent such representations and warranties expressly relate to an earlier
date, and there shall have occurred no event which caused a Material Adverse
Effect.
(c) The Borrower and each of its Subsidiaries shall be in compliance in
all material respects with the terms and provisions set forth herein on its part
to be observed or performed, and at the time of and immediately after such
Credit Event, no Event of Default or Default shall have occurred and be
continuing.
Each Credit Event shall be deemed to constitute a representation and
warranty by the Borrower on the date of such Credit Event as to the matters
specified in paragraphs (b) and (c) of this Section 4.01.
SECTION 4.02. First Credit Event. On the Closing Date:
(a) The Administrative Agent shall have received, on behalf of itself,
the Lenders and the Issuing Bank, a favorable written opinion of the Senior Vice
President, Legal and General Counsel of the Borrower and its Subsidiaries in
connection with the Transactions in each case (y) dated the Closing Date, and
(z) covering such other matters relating to this Agreement and the Transactions
as the Administrative Agent shall reasonably request in form reasonably
acceptable
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to the Administrative Agent and its counsel, and the Borrower hereby requests
and instructs such counsel to deliver such opinions. The opinions shall be
addressed to the Issuing Bank, the Administrative Agent and the Lenders.
(b) All legal matters incident to this Agreement, the Borrowings, the
Transaction and extensions of credit hereunder shall be reasonably satisfactory
to the Lenders, to the Issuing Bank and to the Administrative Agent.
(c) The Administrative Agent shall have received (i) a copy of the
certificate or articles of incorporation, including all amendments thereto, of
the Borrower and each of its Restricted Subsidiaries, certified as of a recent
date by the Secretary of State of the state of its organization, and a
certificate as to the good standing of the Borrower and each of its Restricted
Subsidiaries as of a recent date, from such Secretary of State; (ii) a
certificate of the Secretary or Assistant Secretary of the Borrower and each of
its Restricted Subsidiaries, dated the Closing Date and certifying (A) that
attached thereto is a true and complete copy of the by-laws of the Borrower and
each of its Restricted Subsidiaries as in effect on the Closing Date and at all
times since a date prior to the date of the resolutions described in clause (B)
below, (B) that attached thereto is a true and complete copy of resolutions duly
adopted by the Board of Directors of the Borrower and each of its Restricted
Subsidiaries authorizing the execution, delivery and performance of this
Agreement and the borrowings hereunder, as applicable, and that such resolutions
have not been modified rescinded or amended and are in full force and effect,
(C) that the certificate or articles of incorporation of the Borrower and each
of its Restricted Subsidiaries have not been amended since the date of the last
amendment thereto shown on the certificate of good standing furnished pursuant
to clause (i) above, (D) as to the incumbency and specimen signature of each
officer executing this Agreement or any other document delivered in connection
herewith on behalf of the Borrower and each of its Restricted Subsidiaries, and
(E) that attached thereto is a true and complete copy of each of the Ascent
Agreements as in effect on the Closing Date; (iii) a certificate of another
officer as to the incumbency and specimen signature of the Secretary or
Assistant Secretary executing the certificate pursuant to (ii) above; and (iv)
such other documents as the Lenders, the Issuing Bank or ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ &
▇▇▇▇▇▇▇, P.C., counsel for the Administrative Agent, may reasonably request.
(d) The Lenders shall have received a duly completed Compliance
Certificate dated the Closing Date and executed by a Financial Officer of the
Borrower, confirming compliance with the conditions precedent set forth in
paragraphs (b) and (c) of Section 4.01 hereof, with paragraphs (f), (g), (h),
(i) and (j) of this Section 4.02, and demonstrating compliance by the Borrower
with the provisions of Sections 6.09 and 6.10 hereof, and certifying to the fact
that there exists no Default or Event of Default under the terms of this
Agreement, and consummating the Agreement and making the initial Loans hereunder
would not cause a Default or Event of Default.
(e) Each Lender and the Administrative Agent shall have received payment
in full of all Fees and other amounts due and payable on or prior to the Closing
Date, including
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reimbursement or payment of all reasonable out-of-pocket expenses required to be
reimbursed or paid by the Borrower hereunder.
(f) The Borrower shall have delivered duly executed and completed copies
to each of the Lenders of each of the following documents and agreements, in
form and substance satisfactory to each Lender: this Agreement, applicable Fee
Letters and guaranties of the Obligations executed by all Guarantors. The
Borrower shall have delivered a promissory note to each Lender, in form and
substance satisfactory to each such Lender, and any other Loan Paper reasonably
required by any Lender in connection with this Agreement.
(g) All governmental and third party approvals necessary or advisable in
connection with the Transactions, and the continuing operations of the Borrower
and its Restricted Subsidiaries shall have been obtained and be in full force
and effect, and all applicable waiting periods shall have expired without any
action being taken or threatened by any Governmental Authority which would
restrain, prevent or otherwise impose adverse conditions on the Transactions.
(h) There shall not have occurred any material change in the
capitalization (whether in debt or in equity), corporate structure or assets of
the Borrower or any of its Subsidiaries.
(i) No action, suit, litigation or similar proceeding by or before any
Governmental Authority shall exist or, in the case of litigation by a
Governmental Authority, be threatened, with respect to the Transactions
contemplated thereby or otherwise, which would be likely in the reasonable
opinion of the Required Lenders to have a Material Adverse Effect.
(j) The Lenders shall have received a certification from the chief
financial officer of the Borrower, in form and substance reasonably satisfactory
to the Lenders, as to the solvency of the Borrower and its Subsidiaries on a
consolidated basis on the Closing Date after giving effect to the consummation
of this Agreement and the Loan Papers.
ARTICLE V
Affirmative Covenants
The Borrower covenants and agrees with each Lender that so long as this
Agreement shall remain in effect and until the Commitment has been terminated
and the Obligations shall have been paid in full and all Letters of Credit have
been canceled or have expired and all amounts drawn thereunder have been
reimbursed in full, the Borrower will, and will cause each of its Restricted
Subsidiaries to:
SECTION 5.01. Existence; Businesses and Properties.
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(a) Do or cause to be done all things necessary to preserve, renew and
keep in full force and effect its legal existence, except as otherwise expressly
permitted under Section 6.05 hereof.
(b) Do or cause to be done all things necessary to obtain, preserve,
renew, extend and keep in full force and effect the rights, licenses, permits,
franchises, authorizations, patents, copyrights, trademarks and trade names
material to the conduct of its business; comply in all material respects with
all applicable Laws, rules, regulations and decrees and orders of any
Governmental Authority, whether now in effect or hereafter enacted; and at all
times maintain and preserve all property material to the conduct of such
business and keep such property in good repair, working order and condition and
from time to time make, or cause to be made, all needful and proper repairs,
renewals, additions, improvements and replacements thereto necessary in order
that the business carried on in connection therewith may be properly conducted
at all times.
SECTION 5.02. Insurance. Keep its insurable properties insured in
accordance with industry standards at all times by financially sound and
reputable insurers; maintain such other insurance, to such extent and against
such risks, including fire and other risks insured against by extended coverage,
as is customary with companies in the same or similar businesses operating in
the same or similar locations, including public liability insurance against
claims for personal injury or death or property damage occurring upon, in, about
or in connection with the use of any properties owned, occupied or controlled by
it; and maintain such other insurance as may be required by Law.
SECTION 5.03. Obligations and Taxes. Pay and discharge promptly when
due all taxes, assessments and governmental charges or levies imposed upon it or
upon its income or profits or in respect of its property before the same shall
become delinquent or in default, as well as all lawful claims for labor,
materials and supplies or otherwise that, if unpaid, might give rise to a Lien
upon such properties or any part thereof; provided, however, that such payment
and discharge shall not be required with respect to any such tax, assessment,
charge, levy or claim so long as the validity or amount thereof shall be
contested in good faith by appropriate proceedings and the Borrower shall have
set aside on its books adequate reserves with respect thereto in accordance with
GAAP and such contest operates to suspend collection of the contested
obligation, tax, assessment or charge and enforcement of a Lien.
SECTION 5.04. Financial Statements, Reports, etc. In the case of the
Borrower, furnish to the Administrative Agent and each Lender:
(a) within 105 days after the end of each fiscal year, its consolidated
and consolidating balance sheet and related consolidated and consolidating
statements of income and cash flow, showing the financial condition of the
Borrower and its consolidated Restricted Subsidiaries as of the close of such
fiscal year and the results of their operations during such year, and a
comparison of such financial position and results of operations as of the
corresponding date and for the previous fiscal year, all audited (in the case of
the consolidated financial statements) by Deloitte
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& Touche, LLP or other independent public accountants of recognized national
standing acceptable to the Required Lenders and accompanied by an opinion of
such accountants (which shall not be qualified in any material respect) to the
effect that such consolidated financial statements fairly present the financial
condition and results of operations of the Borrower and its consolidated
Restricted Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;
(b) within 60 days after the end of each of the first three fiscal
quarters of each fiscal year, its consolidated balance sheet and related
consolidated statements of earnings and cash flow showing the financial
condition of the Borrower and its consolidated Restricted Subsidiaries as of the
close of such fiscal quarter and the results of their operations during such
fiscal quarter and the then elapsed portion of the fiscal year, and a comparison
of such financial position and results of operations as of the corresponding
date and for the corresponding periods in the previous fiscal year, all
certified by one of its Financial Officers as fairly presenting the financial
condition and results of operations of the Borrower and its consolidated
Restricted Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustment;
(c) (i) concurrently with any delivery of financial statements under
sub-paragraph (a) above, a certificate of the accounting firm opining on or
certifying such statements (which certificate may be limited to accounting
matters and disclaim responsibility for legal interpretations) certifying that
no Event of Default has occurred in Sections 6.01, 6.02(h), 6.03, 6.04, 6.05,
6.06, 6.09 and 6.10 hereof; and (ii) concurrently with any delivery of financial
statements under sub-paragraph (a) or (b) above, a Compliance Certificate of a
Financial Officer of the Borrower certifying that no Event of Default or Default
has occurred or, if such an Event of Default or Default has occurred, specifying
the nature and extent thereof and any corrective action taken or proposed to be
taken with respect thereto and setting forth computations demonstrating
compliance with the covenants contained in Sections 6.09 and 6.10 hereof;
(d) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements, registration statements (other
than on Form S-8) and other similar materials filed by the Borrower or any
Subsidiary of the Borrower with the Securities and Exchange Commission, or any
Governmental Authority succeeding to any or all of the function of said
Commission, or with any national securities exchange, or distributed generally
to its shareholders, as the case may be; and
(e) promptly, from time to time, such other information regarding the
operations, business affairs and financial condition of the Borrower or any
Subsidiary of the Borrower, or compliance with the terms of this Agreement and
the other Loan Papers, as the Administrative Agent or any Lender may reasonably
request.
SECTION 5.05. Litigation and Other Notices. Furnish to the
Administrative Agent, the Issuing Bank and each Lender prompt written notice of
the following:
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(a) any Event of Default or Default, specifying the nature and extent
thereof and the corrective action (if any) taken or proposed to be taken with
respect thereto;
(b) the (i) filing or commencement of, or any written threat or notice
of intention of any Person to file or commence, any action, suit or proceeding,
whether at Law or in equity or by or before any Governmental Authority, or (ii)
the making of any written claim, in either case against the Borrower or any
Affiliate thereof as to which there is a reasonable possibility of an adverse
determination and which if adversely determined, could reasonably be expected to
result in a Material Adverse Effect; and
(c) any development (including developments in pending litigation and
developments in pending or threatened labor disruption) that has resulted in, or
could reasonably be expected to result in, a Material Adverse Effect.
SECTION 5.06. Employee Benefits. (a) Comply in all material respects
with the applicable provisions of ERISA and the Code and (b) furnish to the
Administrative Agent (i) as soon as possible after, and in any event within 10
days after any Responsible Officer of the Borrower or any ERISA Affiliate knows
or has reason to know that, any ERISA Event has occurred that, alone or together
with any other ERISA Event could reasonably be expected to result in liability
of the Borrower in an aggregate amount exceeding $5,000,000, a statement of a
Financial Officer of the Borrower setting forth details as to such ERISA Event
and the action, if any, that the Borrower proposes to take with respect thereto.
SECTION 5.07. Maintaining Records; Access to Properties and
Inspections. Keep proper books of record and account in which full, true and
correct entries in conformity with GAAP and all requirements of Law are made of
all dealings and transactions in relation to its business and activities. The
Borrower will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior written notice, to visit and inspect the financial records and
the properties of the Borrower or any Subsidiary of the Borrower at reasonable
times and as often as reasonably requested and to make extracts from and copies
of such financial records, and permit any representatives designated by the
Administrative Agent or any Lender to discuss the affairs, finances and
condition of the Borrower or any Subsidiary of the Borrower with the officers
thereof and (with the concurrence of the Administrative Agent) independent
accountants therefor (provided that the Borrower has the right to have a
representative present for any meeting with the Borrower's independent
accountants).
SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans,
Competitive Loans and request the issuance of Letters of Credit only (a) for the
refinancing of existing indebtedness of the Borrower, (b) to fund strategic
acquisitions and mergers (and other similar corporate transactions which have
the same effect as a merger or acquisition) in each case that are permitted by
this Agreement and the other Loan Papers, (c) for working capital and (d) for
other general corporate purposes.
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SECTION 5.09. Compliance with Environmental Laws.
(a) Comply, and exercise best efforts to cause all lessees and other
Persons occupying its Properties to comply, in all material respects with all
Environmental Laws and Environmental Permits applicable to its operations and
Properties; and obtain and renew all material Environmental Permits necessary
for its operations and Properties; and conduct any Remedial Action to the extent
required by and in accordance with Environmental Laws; provided, however, that
none of the Borrower or any of its Subsidiaries shall be required to undertake
any Remedial Action to the extent that its obligation to do so is being
contested in good faith and by proper proceedings and appropriate reserves are
being maintained with respect to such circumstances.
(b) If a Default caused by reason of a breach of paragraph (a) above or
Section 3.20 hereof shall have occurred and be continuing, at the request of the
Required Lenders through the Administrative Agent, provide to the Lenders within
45 days after such request, at the expense of the Borrower, a "Phase 1"
environmental site assessment report for the Properties which are the subject of
such default prepared by an environmental consulting firm acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous
Materials and the estimated cost of any compliance or Remedial Action in
connection with such Properties.
SECTION 5.10. Compliance with Material Contracts. Except as set
forth in Section 6.07 hereof, maintain in full force and effect (including
exercising any available renewal option), and without amendment or modification,
each material contract, unless the failure so to maintain any such material
contract or replacement contract or contracts thereof (or any amendment or
modification thereto) could not, individually or in the aggregate, be reasonably
expected to have a Material Adverse Effect.
ARTICLE VI
Negative Covenants
The Borrower covenants and agrees with each Lender that, so long as this
Agreement shall remain in effect and until the Commitment has been terminated
and the Obligations have been paid in full and all Letters of Credit have been
canceled or have expired and all amounts drawn thereunder have been reimbursed
in full:
SECTION 6.01. Indebtedness of the Borrower and the Restricted
Subsidiaries of the Borrower. The Borrower shall not, and shall not cause or
permit any of its Restricted Subsidiaries to, issue any Preferred Stock, or to
issue, incur, create, assume or permit to exist any Indebtedness, except:
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(a) so long as there exists no Default or Event of Default immediately
prior to and after giving effect to the incurrence of any such Indebtedness or
the issuance of any such Preferred Stock, the Borrower may incur Indebtedness or
issue Preferred Stock;
(b) Indebtedness of the Borrower and any Restricted Subsidiary of the
Borrower for borrowed money existing on the date hereof and set forth in
Schedule 6.01 hereto, but not any extensions, renewals or replacements of such
Indebtedness;
(c) Indebtedness of any Restricted Subsidiary of the Borrower owed to
the Borrower or to a Wholly Owned Subsidiary that is also a Restricted
Subsidiary of the Borrower that does not otherwise violate any provision of this
Agreement or any other Loan Paper; and
(d) so long as there exists no Default or Event of Default at the time
of its incurrence, secured Indebtedness of any Restricted Subsidiary of the
Borrower up to an aggregate maximum amount outstanding at any one time for all
such Indebtedness of $10,000,000.
SECTION 6.02. Liens. The Borrower will not, and will not cause or
permit any of its Restricted Subsidiaries to, create, incur, assume or permit to
exist any Lien on any of its property or assets (including stock or other
securities of any Person, including any Restricted Subsidiary) now owned or
hereafter acquired by it or them or on any income or revenues or rights in
respect of any thereof, except:
(a) Liens on property or assets of the Borrower and its Restricted
Subsidiaries existing on the date hereof and set forth in Schedule 6.02 hereto;
provided that such Liens shall secure only those obligations which they secure
on the date hereof;
(b) any Lien existing on any property or asset prior to the acquisition
thereof by the Borrower or any Restricted Subsidiary of the Borrower; provided
that (i) such Lien is not created in contemplation of or in connection with such
acquisition and (ii) such Lien does not apply to any other property or assets of
the Borrower or any Restricted Subsidiary of the Borrower;
(c) Liens for taxes not yet due or which are being contested in
compliance with Section 5.03 hereof;
(d) carriers', warehousemen's, mechanics', materialmen's, repairmen's or
other like Liens arising in the ordinary course of business and securing
obligations that are not due and payable or which are being contested in
compliance with Section 5.03 hereof, which, in the aggregate, are not
substantial in amount and do not materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the Borrower or any of its Restricted Subsidiaries;
(e) pledges and deposits made in the ordinary course of business in
compliance with workmen's compensation, unemployment insurance and other social
security Laws or regulations;
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(f) deposits to secure the performance of bids, trade contracts (other
than for Indebtedness), leases (other than Capital Lease Obligations), statutory
obligations, surety and appeal bonds, performance bonds and other obligations of
a like nature incurred in the ordinary course or business;
(g) zoning restrictions, easements, rights-of-way, restrictions on use
of real property and other similar encumbrances incurred in the ordinary course
of business which, in the aggregate, are not substantial in amount and do not
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the Borrower or any of
its Restricted Subsidiaries; and
(h) Liens on assets of the Restricted Subsidiaries of the Borrower
securing Indebtedness of the Restricted Subsidiaries of the Borrower that is
permitted to be incurred by Section 6.01(d) hereof.
SECTION 6.03. Sale and Lease Back Transactions; Off-Balance Sheet
Financings. The Borrower will not, and will not cause or permit any of its
Restricted Subsidiaries to:
(a) Enter into any arrangement, directly or indirectly, with any person
whereby it shall sell or transfer any property, real or personal, used or useful
in its business, whether now owned or hereafter acquired, and thereafter rent or
lease such property or other property which it intends to use for substantially
the same purpose or purposes as the property being sold or transferred;
provided, however, that the Borrower or a Restricted Subsidiary of the Borrower
may enter into (i) any operating lease, (ii) Equipment Lease Transactions
permitted by paragraph (b) of this Section and (iii) Capital Lease Obligations
secured by purchase money security interests permitted by Section 6.02(h) hereof
to finance the initial acquisition of real property, equipment or other assets.
(b) Directly or indirectly enter into or be or become liable with
respect to any Equipment Lease Transactions, other than Equipment Lease
Transactions of the Borrower and all of its Restricted Subsidiaries, which do
not in the aggregate at any time have Attributable Debt in an amount in excess
of 20% of the Borrower's Consolidated Tangible Net Worth as of the last day of
the most recently ended fiscal quarter of the Borrower.
SECTION 6.04. Investments, Acquisitions, Loans and Advances. The
Borrower will not, and will not cause or permit any of its Restricted
Subsidiaries to, purchase, hold or acquire any Capital Stock, evidences of
indebtedness or other securities of, make or permit to exist any loans or
advances to, or make or permit to exist any investment or any other interest in,
or make any acquisition of assets of any other Person as a going concern (each,
an "Investment"), except:
(a) Investments existing on the date hereof in the Capital Stock set
forth on Schedule 6.04 hereto;
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(b) Permitted Investments;
(c) Investments consisting of loans or advances to (i) a Wholly Owned
Subsidiary that is a Restricted Subsidiary, provided that such loans or advances
are not subordinated to any other Indebtedness or other obligations of such
Restricted Subsidiary and rank pari passu with all senior, unsecured
Indebtedness of such Restricted Subsidiary, or (ii) employees of the Borrower or
the Wholly Owned Subsidiaries that are Restricted Subsidiaries, provided that
such loans or advances are made in the ordinary course of business and in
accordance with company policy, and provided further that the proceeds of such
loan or advance are used to finance employee related expenses (including
relocation expenses and travel and entertainment expenses);
(d) additional equity Investments in any Wholly Owned Subsidiary of the
Borrower that is also a Restricted Subsidiary, provided that, immediately after
giving effect thereto, (i) the ratio of such Restricted Subsidiary's
consolidated liabilities (less borrowings by such Restricted Subsidiary allowed
and outstanding under this Agreement, deferred compensation, deferred income and
allocation of income to minority interests in earnings of consolidated
subsidiaries) to such Restricted Subsidiary's consolidated assets (determined in
accordance with GAAP) shall be less than 1.00 to 4.00 and (ii) the ratio of
Consolidated Liabilities (less borrowings allowed and outstanding under this
Agreement, deferred compensation, deferred income and allocation of income to
minority interests in earnings of consolidated subsidiaries) to Consolidated
Assets shall be less than 1.00 to 4.00;
(e) Investments consisting of non-cash consideration received in
connection with a sale or disposition of assets permitted under Section 6.05
hereof; and
(f) so long as there exists no Default or Event of Default at the time
any such Investment is made, Investments (other than Investments described in
clauses (a) through (e) above) to the extent the aggregate amount thereof made
in any fiscal year does not exceed 10% of the Consolidated Assets as of the last
day of the immediately preceding fiscal year.
SECTION 6.05. Mergers, Consolidations and Sales of Assets. The
Borrower will not, and will not cause or permit any of its Restricted
Subsidiaries to:
(a) merge into or consolidate with any Person, or permit any other
Person to merge into or consolidate with it, provided that, if there exists no
Default or Event of Default at the time thereof or immediately after giving
effect thereto (i) any Wholly Owned Subsidiary that is also a Restricted
Subsidiary may merge into the Borrower in a transaction in which the Borrower is
the surviving corporation, (ii) any Wholly Owned Subsidiary that is also a
Restricted Subsidiary may merge into or consolidate with any other Wholly Owned
Subsidiary that is also a Restricted Subsidiary in a transaction in which the
surviving entity is a Wholly Owned Subsidiary that is also a Restricted
Subsidiary and no Person other than the Borrower or a Wholly Owned Subsidiary
that is also a Restricted Subsidiary receives any consideration; or
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(b) sell, transfer, lease or otherwise dispose of (in one transaction or
in a series of transactions) all or any substantial part of its assets (whether
now owned or hereafter acquired) or any amount of Capital Stock of any
Subsidiary of the Borrower, except that (i) the Borrower and any Subsidiary of
the Borrower may sell or dispose of inventory and obsolete equipment in the
ordinary course of business, (ii) if at the time thereof and immediately after
giving effect thereto no Event of Default or Default shall have occurred and be
continuing, the Borrower or any of its Subsidiaries may sell or dispose of
assets (not including Capital Stock owned by the Borrower or any Subsidiary of
the Borrower) for fair market value outside the ordinary course of business
(each an "Asset Disposition") so long as the cumulative aggregate noncash
consideration for all such Asset Dispositions after the date hereof shall not
exceed $10,000,000 in fair market value and provided that the aggregate Net Cash
Proceeds of all such Asset Dispositions are, to the extent they exceed 15% of
Consolidated Tangible Assets applied in accordance with the terms of Section
2.12(c) hereof to repay the Loans and reduce the Commitment, and (iii) in
addition to (i) and (ii) above, if at the time thereof and immediately after
giving effect thereto no Event of Default or Default shall have occurred and be
continuing, the Borrower may transfer control, through a sale, corporate
transaction or other disposition, of the hotel contracts and related assets for
its hotel customers outside of the United States.
SECTION 6.06. Dividends and Distributions; Restrictions on Ability of
Subsidiaries to Pay Dividends. The Borrower will not, and will not cause or
permit any of its Restricted Subsidiaries to, declare or pay, directly or
indirectly, any dividend or make any other distribution (by reduction of capital
or otherwise), whether in cash, property, securities or a combination thereof,
with respect to any shares of its Capital Stock or directly or indirectly
redeem, purchase, retire or otherwise acquire for value (or permit any
Restricted Subsidiary of the Borrower to purchase or acquire) any shares of any
class of its Capital Stock or set aside any amount for any such purpose (each, a
"Restricted Payment"); provided, however, that (a) any Restricted Subsidiary of
the Borrower may declare and pay any Restricted Payment to another Wholly Owned
Subsidiary that is also a Restricted Subsidiary or to the Borrower, (b) so long
as there exists no Default or Event of Default both before and after giving
effect to such Restricted Payment, the Borrower may make redemptions or
repurchases of its Capital Stock in connection with employee stock options upon
termination of such employment, for an aggregate amount of consideration paid
from and after the date hereof of up to $10,000,000, in connection with any
employee stock option or incentive plans, (c) until the later of (i) January 1,
1999 and (ii) such time as the Leverage Ratio is less than 2.50 to 1.00 for
three consecutive months and after giving effect to any proposed Restricted
Payment, and so long as in each case there exists no Default or Event of Default
both before and after giving effect to such Restricted Payment, the Borrower may
make Restricted Payments which, in the aggregate for all such Restricted
Payments over the term of this Agreement, do not exceed the sum of (A)
$10,000,000 plus (B) Free Cash Flow over the term of this Agreement, and (d)
after the later of (i) January 1, 1999 and (ii) such time as the Leverage Ratio
is less than 2.50 to 1.00 for three consecutive months and after giving effect
to any proposed Restricted Payment, and so long as in each case there exists no
Default or Event of Default both before and after giving effect to such
Restricted Payment, the Borrower may make Restricted Payments.
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SECTION 6.07. Transactions with Affiliates. Except in accordance with
the terms of Section 6.06 hereof, the Borrower will not, and will not cause or
permit any of its Restricted Subsidiaries to, sell or transfer any property or
assets to, or purchase or acquire any property or assets from, or otherwise
engage in any other transactions with, or permit any Restricted Subsidiary of
the Borrower to sell or transfer any property or assets to, or purchase or
acquire any property or assets from, or otherwise engage in any other
transactions with any of its Affiliates, except that the Borrower or any
Restricted Subsidiary of the Borrower may engage in any of the foregoing
transactions in the ordinary course of business at prices and on terms and
conditions not less favorable to the Borrower or such Restricted Subsidiary than
could be obtained on an arm's length basis from unrelated third parties;
provided, however, that the foregoing shall not preclude the Borrower nor any
Restricted Subsidiary of the Borrower from performing and complying with its
obligations under the Ascent Agreements in accordance with the terms thereof on
the date hereof or, so long as any such amendment (or extension to additional
services, in the case of the Services Agreement) does not materially adversely
affect the interests of the Administrative Agent, the Issuing Bank or the
Lenders, as the same may be hereafter amended (or extended to additional
services). Notwithstanding anything in this Agreement or the other Loan Papers
to the contrary, it is understood by all parties hereto that all or any of the
Ascent Agreements may be terminated by the parties thereto at any time during
the term of this Agreement.
SECTION 6.08. Limitation on Restrictive Agreements. The Borrower will
not, and will not cause or permit any of its Restricted Subsidiaries to, enter
into any indenture, agreement, instrument, financing document or other
arrangement which, directly or indirectly, prohibits or restrains, or has the
effect of prohibiting or restraining, or imposes materially adverse conditions
upon: (a) the granting of Liens, (b) the making or granting of Guarantees, (c)
the payment of dividends or distributions, (d) the purchase, redemption or
retirement of any Capital Stock, (e) the making of loans or advances or (f)
transfers or sales of property or assets (including Capital Stock) by the
Borrower or any of its Restricted Subsidiaries, other than restrictions on the
granting of Liens on, or the transfer of, assets that are encumbered by Liens
permitted under clauses (b) and (h) of Section 6.02 hereof with respect to the
property or assets covered by such Lien only.
SECTION 6.09. Leverage Ratio. The Borrower will not permit the
Leverage Ratio as of the last day of any fiscal quarter ending during any period
set forth below to be more than the ratio set forth below for such period:
Quarter Ending Ratio Ratio
-------------------- -----
From the Closing Date to
through December 31, 1999 3.00 to 1.00
January 1, 2000 and thereafter 2.50 to 1.00
In the event that the Borrower shall complete, directly or through a
Restricted Subsidiary of the Borrower, a permitted acquisition, the Leverage
Ratio shall be determined thereafter, to the
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extent necessary, by computing such ratio on a pro forma basis as if such
acquisition had been completed on the first day of the period of four
consecutive fiscal quarters ending on the dates indicated above occurring after
the date of such acquisition.
SECTION 6.10. Coverage Ratio. The Borrower will not permit the
Coverage Ratio as of the last day of any fiscal quarter to be less than 4.00 to
1.00. In the event that the Borrower shall complete, directly or through a
Restricted Subsidiary of the Borrower, a permitted acquisition, the Coverage
Ratio shall be determined thereafter, to the extent necessary, by computing such
ratio on a pro forma basis as if such acquisition had been completed on the
first day of the period of four consecutive fiscal quarters ending on the dates
indicated above occurring after the date of such acquisition.
SECTION 6.11. Amendments to Organizational Documents. The Borrower
will not, and will not cause or permit any of its Restricted Subsidiaries to,
enter into any amendment of any term or provision, or accept any consent or
waiver with respect to any such provision, of its articles of incorporation,
by-laws, or its organizational documents, as applicable, in any manner that is
material and adverse to the Lenders.
ARTICLE VII
Events of Default
In case of the happening of any of the following events ("Events of
Default"):
(a) any representation or warranty made or deemed made by the Borrower
or any of its Subsidiaries in, or in connection with, this Agreement or in any
other Loan Paper, or the borrowings or issuances of Letters of Credit hereunder,
or any representation, warranty, statement or written information contained in
any report, certificate, financial statement or other instrument prepared by the
Borrower or any Subsidiary of the Borrower and furnished by the Borrower or any
Subsidiary of the Borrower in connection with or pursuant to this Agreement or
any other Loan Paper, or in connection with any of the transactions contemplated
to occur as of the Closing Date, shall prove to have been false or misleading in
any material respect when so made, deemed made or furnished;
(b) default shall be made in the payment of any principal of any Loan or
Competitive Loan or the reimbursement of principal with respect to any L/C
Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or by acceleration
thereof or otherwise;
(c) default shall be made in the payment of any interest on any Loan or
Competitive Loan or any Fee or L/C Disbursement or any other amount (other than
an amount referred to in
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(b) above) due under this Agreement or any other Loan Paper, when and as the
same shall become due and payable, and such default shall continue unremedied
for a period of five Business Days;
(d) default shall be made in the due observance or performance by the
Borrower or any Subsidiary of the Borrower of any covenant, condition or
agreement contained in Sections 5.01(a), 5.05 or 5.08 hereof or in Article VI
hereof;
(e) default shall be made in the due observance or performance by the
Borrower or any Subsidiary of the Borrower of any covenant, condition or
agreement contained in this Agreement (other than those specified in (b), (c) or
(d) above) or in any other Loan Paper and such default shall continue unremedied
for a period of 15 days after notice thereof from the Administrative Agent or
any Lender to the Borrower;
(f) the Borrower or any Subsidiary of the Borrower shall (i) fail to pay
any principal or interest, regardless of amount, due in respect of any
Indebtedness in an aggregate principal amount in excess of $10,000,000, when and
as the same shall become due and payable, or (ii) fail to observe or perform any
other term, covenant, condition or agreement contained in any agreement or
instrument evidencing or governing any such Indebtedness if the effect of any
failure referred to in this clause (ii) is to cause, or to permit the holder or
holders of such indebtedness or a trustee on its or their behalf (with or
without the giving of notice, the lapse of time or both) to cause, such
Indebtedness to become due prior to its stated maturity;
(g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of the Borrower or any Subsidiary of the Borrower, or of a
substantial part of the property or assets of the Borrower or a Subsidiary of
the Borrower, under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other Federal, state or foreign bankruptcy,
insolvency, receivership or similar Law, (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the
Borrower or any Subsidiary of the Borrower or for a substantial part of the
property or assets of the Borrower or a Subsidiary of the Borrower or (iii) the
winding-up or liquidation of the Borrower or any Subsidiary of the Borrower; and
such proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be entered;
(h) the Borrower or any Subsidiary of the Borrower shall (i) voluntarily
commence any proceeding or file any petition seeking relief under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar Law,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or the filing of any petition described in
(g) above, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or any
Subsidiary of the Borrower, or for a substantial part of the property or assets
of the Borrower or any Subsidiary of the Borrower, (iv) file an answer admitting
the material allegations of a petition filed against it in any such proceeding,
(v) make
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a general assignment for the benefit of creditors, (vi) become unable, admit in
writing its inability or fail generally to pay its debts as they become due or
(vii) take any action for the purpose of effecting any of the foregoing;
(i) one or more judgments for the payment of money in an aggregate
amount in excess of $10,000,000 shall be rendered against the Borrower, any
Subsidiary of the Borrower or any combination thereof and the same shall remain
undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment
creditor to levy upon assets or properties of the Borrower or any Subsidiary of
the Borrower to enforce any such judgment;
(j) an ERISA Event shall have occurred that, when taken together with
all other such ERISA Events, could reasonably be expected to result in liability
of the Borrower, any Subsidiary of the Borrower, or any combination thereof, in
an aggregate amount exceeding $10,000,000;
(k) there shall have occurred a Change in Control;
(l) any of the following shall occur: (i) This Agreement, any guarantee
or promissory note executed in connection with this Agreement (collectively, the
"Material Agreements"), or any material provision of any thereof shall, for any
reason, not be valid and binding on the Obligor signatory thereto, or not be in
full force and effect, or shall be declared to be null and void; or (ii) the
validity or enforceability of any Material Agreement shall be contested by any
Obligor, the Borrower, any Subsidiary of the Borrower or any of their
Affiliates; or (iii) any Obligor shall deny in writing that it has any or
further liability or obligation under its respective Material Agreements; or
(iv) any default or breach under any provision of any Material Agreement shall
continue after the applicable grace period, if any, specified in such Material
Agreement; or
(m) the debt limitation on the Borrower in the Corporate Agreement with
Ascent operates to limit the ability of the Borrower to make a borrowing
hereunder at a time when the Borrower needs such ability to meet operating
expenses or capital requirements in each case approved by the Borrower's Board
of Directors (as such approval may be amended), provided that, no amendment to
any such approval may be made once operating expenses or capital requirements
have been incurred or made, or to avoid a Default or an Event of Default under
this subsection (m);
then, and in every such event (other than an event with respect to the Borrower
described in paragraph (g) or (h) above), and at any time thereafter during the
continuance of such event, the Administrative Agent may, and at the request of
the Required Lenders shall, by notice to the Borrower, take any one or more of
the following actions, at the same or different times: (i) terminate forthwith
the Commitment, (ii) declare the Loans or Competitive Loans then outstanding to
be forthwith due and payable in whole or in part, whereupon the principal of the
Loans or Competitive Loans so declared to be due and payable, together with
accrued interest thereon and any unpaid accrued Fees and all other liabilities
of the Borrower accrued hereunder (including,
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without limitation, the L/C Exposure), shall become forthwith due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein to
the contrary notwithstanding or (iii) require cash collateral as contemplated by
Section 2.21(j) hereof; and in any event with respect to the Borrower described
in paragraph (g) or (h) above, the Commitment shall automatically terminate and
the principal of the Loans or Competitive Loans then outstanding, together with
accrued interest hereon and any unpaid accrued Fees and all other liabilities of
the Borrower accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein to
the contrary notwithstanding. Notwithstanding anything in this Agreement or in
any Loan Paper to the contrary, to the extent any Default or Event of Default
under any of subsections (a), (d) or (e) above is due exclusively to the
actions, inactions or misrepresentations with respect to any foreign Subsidiary
of the Borrower, then such event shall not be a Default or Event of Default
unless such event could also reasonably be expected to cause a Material Adverse
Effect.
ARTICLE VIII
The Administrative Agent
In order to expedite the transactions contemplated by this Agreement and
the other Loan Papers, NationsBank is hereby appointed to act as Administrative
Agent on behalf of the Lenders and the Issuing Bank. Each of the Lenders and
each assignee of any such Lender, hereby irrevocably authorizes the
Administrative Agent to take such actions on behalf of such Lender or assignee
or the Issuing Bank and to exercise such powers as are specifically delegated to
the Administrative Agent by the terms and provisions hereof, together with such
actions and powers as are reasonably incidental thereto. The Administrative
Agent is hereby expressly authorized by the Lenders and the Issuing Bank,
without hereby limiting any implied authority, (a) to receive on behalf of the
Lenders and the Issuing Bank all payments of principal of and interest on the
Loans and Competitive Loans, all payments in respect of L/C Disbursements and
all other amounts due to the Lenders hereunder, and promptly to distribute to
each Lender or the Issuing Bank its proper share of each payment so received;
(b) to give notice on behalf of each of the Lenders to the Borrower of any Event
of Default specified in this Agreement and the other Loan Papers of which the
Administrative Agent has actual knowledge acquired in connection with its agency
hereunder; and (c) to distribute to each Lender copies of all notices, financial
statements and other materials delivered by the Borrower pursuant to this
Agreement and the other Loan Papers as received by the Administrative Agent.
Neither the Administrative Agent nor any of its directors, officers,
employees or agents shall be liable as such for any action taken or omitted by
any of them except for its or his own gross negligence or wilful misconduct, or
be responsible for any statement, warranty or representation herein or the
contents of any document delivered in connection herewith, or be
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required to ascertain or to make any inquiry concerning the performance or
observance by the Borrower of any of the terms, conditions, covenants or
agreements contained herein. The Administrative Agent shall not be responsible
to the Lenders for the due execution, genuineness, validity, enforceability or
effectiveness of this Agreement, the other Loan Papers or any other instruments
or agreements. The Administrative Agent shall in all cases be fully protected in
acting, or refraining from acting, in accordance with written instructions
signed by the Required Lenders and, except as otherwise specifically provided
herein, such instructions and any action or inaction pursuant thereto shall be
binding on all the Lenders. The Administrative Agent shall, in the absence of
knowledge to the contrary, be entitled to rely on any instrument or document
believed by it in good faith to be genuine and correct and to have been signed
or sent by the proper Person or Persons. Neither the Administrative Agent nor
any of its directors, officers, employees or agents shall have any
responsibility to the Borrower on account of the failure of or delay in
performance or breach by any Lender or the Issuing Bank of any of its
obligations hereunder or to any Lender or the Issuing Bank on account of the
failure of or delay in performance or breach by any other Lender or the issuing
Bank or the Borrower of any of their respective obligations hereunder or in
connection herewith. The Administrative Agent may execute any and all duties
hereunder by or through agents or employees and shall be entitled to rely upon
the advice of legal counsel selected by it with respect to all matters arising
hereunder and shall not be liable for any action taken or suffered in good faith
by it in accordance with the advice of such counsel.
The Lenders hereby acknowledge that the Administrative Agent shall be
under no duty to take any discretionary action permitted to be taken by it
pursuant to the provisions of this Agreement or any other Loan Paper unless it
shall be requested in writing to do so by the Required Lenders.
Subject to the appointment and acceptance of a successor Administrative
Agent as provided below, the Administrative Agent may resign at any time by
notifying the Lenders and the Borrower, and may be removed at any time with or
without cause by the action of all Lenders (other than Administrative Lender, if
it is a Lender). Upon any such resignation, the Required Lenders shall have the
right to appoint a successor. If no successor shall have been so appointed by
the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent which shall be a bank having a combined capital
and surplus of at least $500,000,000 or an Affiliate of any such bank. Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
bank, such successor shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Administrative Agent and the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After the Administrative Agent's resignation or removal
hereunder, the provisions of this Article and Section 9.05 hereof shall continue
in effect for its benefit in respect of any actions taken or omitted to be taken
by it while it was acting as Administrative Agent.
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With respect to the Loans or Competitive Loans made by it hereunder, the
Administrative Agent in its individual capacity and not as Administrative Agent
shall have the same rights and powers as any other Lender (subject to Section
2.03(f)) and may exercise the same as though it were not the Administrative
Agent, and the Administrative Agent and its Affiliates may accept deposits from,
lend money to and generally engage in any kind of business with the Borrower or
any Subsidiary of the Borrower or other Affiliate thereof as if it were not
Administrative Agent.
Each Lender agrees (a) to reimburse the Administrative Agent, on demand,
in the amount of its pro rata share (based on its Pro Rata Percentage of the
Commitment hereunder) of any expenses incurred for the benefit of the Lenders by
the Administrative Agent, including reasonable counsel fees and compensation of
agents and employees paid for services rendered on behalf of the Lenders, that
shall not have been reimbursed by the Borrower and (b) to indemnify and hold
harmless the Administrative Agent and any of its directors, officers, employees
or agents, on demand, in the amount of such pro rata share, from and against any
and all liabilities, taxes, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be Imposed on, incurred by or asserted against it in its
capacity as the Administrative Agent or any of them in any way relating to or
arising out of this Agreement or any other Loan Paper, or any action taken or
omitted by it or any of them under this Agreement or any other Loan Paper, to
the extent the same shall not have been reimbursed by the Borrower; provided
that no Lender shall be liable to the Administrative Agent or any such other
indemnified Person for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of the
Administrative Agent or any of its directors, officers, employees or agents.
Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent, or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and the other Loan Papers. Each Lender
also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement
and the other Loan Papers, or any related agreement or any document furnished
hereunder or thereunder.
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ARTICLE IX
Miscellaneous
SECTION 9.01. Notices. Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as follows:
(a) if to the Borrower, to it at:
On Command Corporation
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
On Command Corporation
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
With a copy to:
Ascent Entertainment Group., Inc.
One ▇▇▇▇▇ Center, Suite 2800
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Mr. ▇▇▇ ▇▇▇▇▇▇
Telephone:
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
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With a copy to:
Ascent Entertainment Group, Inc.
One ▇▇▇▇▇ Center, Suite 2800
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇, Esq.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇
(b) if to the Administrative Agent, to it at:
NationsBank of Texas, National Association
NationsBank Plaza
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Vice President
With a copy to:
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, P.C.
3400 Renaissance Tower
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopier No.: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇
(c) if to a Lender, to it at its address (or telecopy number) set forth
on the signature pages hereto or in the Assignment and Acceptance pursuant to
which such Lender shall have become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement and the other Loan Papers shall be deemed
to have been given on the date of receipt if delivered by hand or overnight
courier service or sent by telecopy or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent
or mailed (properly addressed) to such party as provided in this Section 9.01 or
in accordance with the latest unrevoked direction from such party given in
accordance with this Section 9.01.
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SECTION 9.02. Survival of Agreement. All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement and the other Loan Papers shall be considered to have
been relied upon by the Lenders and the Issuing Bank and shall survive the
making by the Lenders of the Loans, Competitive Loans and the issuance of
Letters of Credit by the Issuing Bank, regardless of any investigation made by
the Lenders or the Issuing Bank or on their behalf, and shall continue in full
force and effect as long as the principal of or any accrued interest on any
Loan, Competitive Loan or any Fee or any other amount payable under this
Agreement or any other Loan Paper is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitment has not been terminated. The
provisions of Sections 2.13. 2.15, 2.19 and 9.05 hereof shall remain operative
and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitment, the expiration
of any Letter of Credit, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Paper, or any investigation made
by or on behalf of the Administrative Agent, any Lender or the Issuing Bank.
SECTION 9.03. Binding Effect. This Agreement shall become effective
when it shall have been executed by the Borrower and the Administrative Agent
and when the Administrative Agent shall have received counterparts hereof which,
when taken together, bear the signatures of each of the other parties hereto,
and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective permitted successors and assigns.
SECTION 9.04. Successors and Assigns.
(a) Whenever in this Agreement or any other Loan Paper any of the
parties hereto is referred to, such reference shall be deemed to include the
permitted successors and assigns of such party, and all covenants, promises and
agreements by or on behalf of the Borrower, the Administrative Agent, the
Issuing Bank or the Lenders that are contained in this Agreement and the other
Loan Papers shall bind and inure to the benefit of their respective successors
and assigns.
(b) Each Lender may assign to one or more assignees all or a portion of
its interests, rights and obligations under this Agreement and the other Loan
Papers (including all or a portion of its Pro Rata Percentage of the Commitment
and the Loans, or the Competitive Loans at the time owing to it); provided,
however, that (i) except in the case of an assignment to a Lender or an
Affiliate of such Lender, (x) the Borrower and the Administrative Agent (and, in
the case of any assignment of a portion of the Commitment, the Issuing Bank)
must give their prior written consent to such assignment (which consent shall
not be unreasonably withheld; provided, however, that Borrower's consent shall
not be required during the continuance of an Event of Default) and (y) the
amount of the Commitment allocated to the assigning Lender that is subject to
each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $5,000,000 (or,
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if less, the entire remaining amount of such Lender's Pro Rata Percentage of the
Commitment) and will not result in the unassigned portion, if any, of the
assigning Lender's Pro Rata Percentage of the Commitment being less than
$5,000,000 (provided, however, that the $5,000,000 amounts referred to in this
clause (i) shall be reduced ratably in accordance with any reductions in the
Commitment) (ii) the parties to each such assignment shall execute and deliver
to the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500 and (iii) the assignee, if it shall not
be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Upon acceptance and recording pursuant to paragraph (e) of this
Section 9.04, from and after the effective date specified in each Assignment and
Acceptance, which effective date shall be at least five Business Days after the
execution thereof, (A) the assignee thereunder shall be a party hereto and, to
the extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under this Agreement and the other Loan
Papers and (B) the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement and the other Loan Papers (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 and the other
Loan Papers, such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 2.13, 2.15, 2.19 and 9.05 hereof, as
well as to any Fees accrued for its account and not yet paid). The Borrower
shall, at its expense, issue to the assignor and assignee new promissory notes,
as applicable, in the respective amounts of each such Lender's Pro Rata
Percentage in the Loans, or such Lender's Competitive Loans, each in the form of
the promissory notes delivered by the Borrower on the Closing Date.
(c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Pro Rata Percentage of the Commitment, and the outstanding balances of its
Revolving Loans and Competitive Loans, in each case without giving effect to
assignments thereof which have nor become effective, are as set forth in such
Assignment and Acceptance; (ii) except as set forth in (i) above, such assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with this Agreement or any other Loan Paper, or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other Loan Paper, or any other instrument or document furnished
pursuant hereto, or the financial condition of the Borrower or any Subsidiary of
the Borrower or the performance or observance by the Borrower or any Subsidiary
of the Borrower of any of its obligations under this Agreement or any other Loan
Paper or any other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is legally authorized to enter into
such Assignment and Acceptance; (iv) such assignee confirms that it has received
a copy of this Agreement, together with copies of the most recent financial
statements referred to in Section 3.05 or delivered pursuant to Section 5.04 and
such other documents and information as it has deemed appropriate to make its
own
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credit analysis and decision to enter into such Assignment and Acceptance; (v)
such assignee will independently and without reliance upon the Administrative
Agent, such assigning Lender or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and the
other Loan Papers; (vi) such assignee appoints and authorizes the Administrative
Agent to take such action as agent on its behalf and to exercise such powers
under this Agreement and the other Loan Papers as are delegated to the
Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all the obligations which by the terms of
this Agreement and the other Loan Papers are required to be performed by it as a
Lender.
(d) The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at its offices in Dallas, Texas a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Pro Rata Percentage of the
Commitment of, and principal amount of the Loans and Competitive Loans owing to,
each Lender pursuant to the terms hereof from time to time (the "Register"). The
entries in the Register shall be conclusive and the Borrower, the Administrative
Agent, the Issuing Bank and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement and the other Loan Papers, notwithstanding notice
to the contrary. The Register shall be available for inspection by the Borrower,
the Issuing Bank and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, an Administrative Questionnaire
completed in respect of the assignee (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph
(b) above and, if required, the written consent of the Borrower, the Issuing
Bank and the Administrative Agent to such assignment, the Administrative Agent
shall (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Lenders and the Issuing Bank. No assignment shall be effective unless it has
been recorded in the Register as provided in this paragraph (e).
(f) Each Lender may without the consent of the Borrower, the Issuing
Bank or the Administrative Agent sell participations to one or more banks or
other entities in all or a portion of its rights and obligations under this
Agreement and the other Loan Papers (including all or a portion of its Pro Rata
Percentage of the Commitment and the Loans or Competitive Loans owing to it);
provided, however, that (i) such Lender's obligations under this Agreement and
the other Loan Papers shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) the participating banks or other entities shall be entitled
to the benefit of the cost protection provisions contained in Sections 2.13,
2.15 and 2.19 hereof to the same extent as if they were Lenders and (iv) the
Borrower, the Administrative Agent, the Issuing Bank and the Lenders shall
continue to deal solely and directly
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with such Lender in connection with such Lender's rights and obligations under
this Agreement and the other Loan Papers, and such Lender shall retain the sole
right to enforce the obligations of the Borrower relating to the Loans,
Competitive Loans or L/C Disbursements and to approve any amendment,
modification or waiver of any provision of this Agreement and the other Loan
Papers (other than amendments, modifications or waivers decreasing any fees
payable hereunder or the amount of principal of or the rate at which interest is
payable on the Loans, extending any scheduled principal payment date or date
fixed for the payment of interest on the Loans or increasing or extending the
Commitment).
(g) Any Lender or participant may, in connection with any assignment or
participation or proposed assignment or participation pursuant to this Section
9.04. disclose to the assignee or participant or proposed assignee or
participant any information relating to the Borrower furnished to such Lender by
or on behalf of the Borrower; provided that, prior to any such disclosure of
information designated by the Borrower as confidential, each such assignee or
participant or proposed assignee or participant shall execute an agreement
whereby such assignee or participant shall agree (subject to customary
exceptions) to preserve the confidentiality of such confidential information on
terms no less restrictive than those applicable to the Lenders pursuant to
Section 9.16 hereof.
(h) Any Lender may at any time assign all or any portion of its rights
under this Agreement and the other Loan Papers to a Federal Reserve Bank to
secure extensions of credit by such Federal Reserve Bank to such Lender;
provided that no such assignment shall release a Lender from any of its
obligations hereunder or substitute any such Bank for such Lender as a party
hereto. In order to facilitate such an assignment to a Federal Reserve Bank, the
Borrower shall, at the request of the assigning Lender, duly execute and deliver
to the assigning Lender a promissory note or notes evidencing the Loans or
Competitive Loans made to the Borrower by the assigning Lender hereunder.
(i) The Borrower shall not assign or delegate any of its rights or
duties hereunder without the prior written consent of the Administrative Agent,
the Issuing Bank and each Lender, and any attempted assignment without such
consent shall be null and void.
(j) In the event that Standard & Poor's Ratings Group, a Division of
▇▇▇▇▇▇-▇▇▇▇, Inc., ▇▇▇▇▇'▇ Investors Service, Inc., and ▇▇▇▇▇▇▇▇'▇ BankWatch (or
Insurance Watch Ratings Service, in the case of Lenders that are insurance
companies (or Best's Insurance Reports, if such insurance company is not rated
by Insurance Watch Ratings Service)) shall, after the date that any Lender
becomes a Lender, downgrade the longterm certificate deposit ratings of such
Lender, and the resulting ratings shall be below BBB-, Baa3 and C (or BB, in the
case of a Lender that is an insurance company (or B, in the case of an insurance
company not rated by Insurance Watch Ratings Service)), then the Issuing Bank
shall have the right, but not the obligation, at its own expense, upon notice to
such Lender and the Administrative Agent, to replace (or to request the Borrower
to use its reasonable efforts to replace) such Lender with an assignee (in
accordance with and subject to the restrictions contained in paragraph (b)
above), and such Lender hereby
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agrees to transfer and assign without recourse (in accordance with and subject
to the restrictions contained in paragraph (b) above) all its interests, rights
and obligations in respect of its Pro Rata Percentage of the Commitment to such
assignee; provided, however, that (i) no such assignment shall conflict with any
Law, rule and regulation or order of any Governmental Authority and (ii) the
Issuing Bank or such assignee, as the case may be, shall pay to such Lender in
immediately available funds on the date of such assignment the principal of and
interest accrued to the date of payment on the Loans or Competitive Loans made
by such Lender hereunder and all other amounts accrued for such Lender's account
or owed to it hereunder.
SECTION 9.05. Expenses; Indemnity.
(a) The Borrower agrees to pay all reasonable out-of-pocket expenses
incurred by the Administrative Agent and the Issuing Bank in connection with the
syndication of the credit facilities provided for herein and the preparation and
administration of this Agreement and the other Loan Papers or in connection with
any amendments, modifications or waivers of the provisions hereof (whether or
not the transactions hereby or thereby contemplated shall be consummated) or
incurred by the Administrative Agent or any Lender in connection with the
enforcement or protection of its rights in connection with this Agreement and
the other Loan Papers, or in connection with the Loans or Competitive Loans made
or Letters of Credit issued hereunder, including the reasonable fees, charges
and disbursements of ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇, P.C., counsel for the
Administrative Agent, and, in connection with any such enforcement or
protection, the fees, charges and disbursements of any other counsel for the
Administrative Agent or any Lender.
(b) The Borrower agrees to indemnify the Administrative Agent, each
Lender and the Issuing Bank, each Affiliate of any of the foregoing Persons and
each of their respective directors, officers, employees and agents (each such
Person being called an "Indemnitee") against, and to hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses, including reasonable counsel fees, charges and disbursements, incurred
by or asserted against any Indemnitee arising out of, in any way connected with,
or as a result of (i) the execution or delivery of this Agreement and the other
Loan Papers or any agreement or instrument contemplated thereby, the performance
by the parties thereto of their respective obligations thereunder or the
consummation of the Transactions and the other transactions contemplated
thereby, (ii) the use of the proceeds of the Loans, Competitive Loans or
issuance of Lenders of Credit, or (iii) any claim, litigation, investigation or
proceeding relating to any of the foregoing, whether or not any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or
related expenses are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or wilful
misconduct of, or breach of contract by, such Indemnitee.
(c) The provisions of this Section 9.05 shall remain operative and in
full force and effect regardless of the expiration of the term of this
Agreement, the other Loan Papers, the
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consummation of the transactions contemplated hereby, the repayment of any of
the Loans or Competitive Loans, the expiration of the Commitment, the expiration
of any Letter of Credit, the invalidity or unenforceability of any term or
provision of this Agreement, any other Loan Paper, or any investigation made by
or on behalf of the Administrative Agent, any Lender or the Issuing Bank. All
amounts due under this Section 9.05 shall be payable on written demand therefor.
SECTION 9.06. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender is hereby authorized at any time and
from time to time, to the fullest extent permitted by Law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender to or
for the credit or the account of the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement and
the other Loan Papers held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section 9.06
are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.
SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN
PAPERS SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF TEXAS (EXCEPT, IN THE CASE OF CERTAIN OF THE LOAN PAPERS, TO THE EXTENT
THE LAWS OF ANOTHER JURISDICTION GOVERN THE PERFECTION AND EFFECT OF PERFECTION
OR NON-PERFECTION OF CERTAIN LIENS). EACH LETTER OF CREDIT SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OR RULES DESIGNATED IN SUCH
LETTER OF CREDIT OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS
AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL CHAMBER OF
COMMERCE, PUBLICATION NO. 500 (THE "UNIFORM CUSTOMS") AND, AS TO MATTERS NOT
GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF TEXAS.
SECTION 9.08. Waivers; Amendment.
(a) No failure or delay of the Administrative Agent, any Lender or the
Issuing Bank in exercising any power or right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any
other right or power. The rights and remedies of the Administrative Agent, the
Issuing Bank and the Lenders hereunder are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or any other Loan Paper, or consent to any departure
by the Borrower therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) below, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No
notice or demand on the
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Borrower in any case shall entitle the Borrower to any other or further notice
or demand in similar or other circumstances.
(b) Neither this Agreement nor any provision hereof or in any other Loan
Paper may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Borrower and the Required Lenders;
provided, however, that no such agreement shall (i) decrease the principal
amount of, or extend the maturity of or any scheduled principal payment date or
date for the payment of any interest on any Loan or Competitive Loan or any date
for reimbursement of an L/C Disbursement, or waive or excuse any such payment or
any part thereof, or decrease the rate of interest on any Loan, Competitive Loan
or L/C Disbursement, without the prior written consent of each Lender affected
thereby (ii) change or extend the Commitment or decrease the Commitment Fees or
the Facility Fees of any Lender without the prior written consent of such
Lender, or (iii) amend or modify the provisions of Sections 2.16 hereof, the
provisions of this Section or the definition of the term "Required Lenders",
without the prior written consent of each Lender; provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent or the Issuing Bank hereunder without the prior written
consent of the Administrative Agent or the Issuing Bank.
SECTION 9.09. Interest Rate Limitation. It is not the intention of
any party to any Loan Papers to make an agreement violative of the Laws of any
applicable jurisdiction relating to usury. In no event shall the Borrower or any
other Person be obligated to pay any amount in excess of the Maximum Amount. If
Administrative Agent or any Lender ever receives, collects or applies, as
interest, any such excess, such amount which would be excessive interest shall
be deemed a partial repayment of principal and treated hereunder as such; and if
principal is paid in full, any remaining excess shall be paid to the Borrower or
the other Person entitled thereto. In determining whether or not the interest
paid or payable, under any specific contingency, exceeds the Maximum Amount,
each Obligor, Administrative Agent and each Lender shall, to the maximum extent
permitted under Applicable Law, (a) characterize any nonprincipal payment as an
expense, fee or premium rather than as interest, (b) exclude voluntary
prepayments and the effect thereof, and (c) amortize, prorate, allocate and
spread in equal parts, the total amount of interest throughout the entire
contemplated term of the Obligation so that the interest rate is uniform
throughout the entire term of the Obligation; provided that if the Obligation is
paid and performed in full prior to the end of the full contemplated term
thereof, and if the interest received for the actual period of existence thereof
exceeds the Maximum Amount, Administrative Agent or Lenders, as appropriate,
shall refund to the Borrower the amount of such excess or credit the amount of
such excess against the total principal amount owing, and, in such event,
neither Administrative Agent nor any Lender shall be subject to any penalties
provided by any Laws for contracting for, charging or receiving interest in
excess of the Maximum Amount. This Section 9.09 shall control every other
provision of all agreements among the parties to the Loan Papers pertaining to
the transactions contemplated by or contained in the Loan Papers.
SECTION 9.10. ENTIRE AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN
PAPERS REPRESENT THE FINAL AGREEMENT BETWEEN THE
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PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENT OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.
SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN PAPER. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN PAPERS BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.
SECTION 9.12. Severability. In the event any one or more of the
provisions contained in this Agreement or in any other Loan Paper should be held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in
and of itself affect the validity of such provision in any other jurisdiction).
The parties shall endeavor in good-faith negotiations to replace the invalid,
illegal or unenforceable provisions with valid provisions the economic effect of
which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.
SECTION 9.13. Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together shall
constitute a single contract, and shall become effective as provided in Section
9.03 hereof. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.
SECTION 9.14. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
SECTION 9.15. Jurisdiction; Consent to Service of Process.
(a) The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of any Texas State
court or Federal court of the United
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States of America sitting in Dallas, Texas and any appellate court from any
thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Paper, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such Texas State or, to the extent permitted by Law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law.
Nothing in this Agreement or in any other Loan Paper shall affect any right that
the Administrative Agent, the Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Paper against the Borrower or its properties in the courts of any jurisdiction.
(b) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Loan Paper in any
Dallas, Texas State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by Law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.
(c) Each party to this Agreement and any other Loan Paper irrevocably
consents to service of process in the manner provided for notices in Section
9.01 hereof. Nothing in this Agreement or any other Loan Paper will affect the
right of any party to this Agreement or any other Loan Paper to serve process in
any other manner permitted by Law.
SECTION 9.16. Confidentiality. The Administrative Agent, the Issuing
Bank and each of the Lenders agrees to keep confidential and to use its best
efforts to cause its respective agents and representatives to keep confidential
in accordance with its customary procedures for handling confidential
information the Information (as defined below) and all copies thereof, extracts
therefrom and analyses or other materials based thereon, except that the
Administrative Agent, the Issuing Bank or any Lender shall be permitted to
disclose Information (a) to such of its respective officers, directors,
employees, agents, affiliates and representatives as need to know such
Information, (b) to the extent requested by any regulatory authority, (c) to the
extent otherwise required by Applicable Laws and regulations or by any subpoena
or similar legal process, (d) in connection with any suit, action or proceeding
relating to the enforcement of its rights hereunder or (e) to the extent such
Information (i) becomes publicly available other than as a result of a breach of
this Section 9.16 or (ii) becomes available to the Administrative Agent the
Issuing Bank or any Lender on a nonconfidential basis from a source other than
the Borrower. For the purposes of this Section, "Information" shall mean all
financial statements, certificates, reports, agreements and information
(including all analyses, compilations and studies prepared by the Administrative
Agent, the Issuing Bank or any Lender based on any of the foregoing) that are
received from the Borrower and related to the Borrower, any shareholder of the
Borrower or any employee, customer or supplier of the Borrower, other than any
of the foregoing that were available to the Administrative Agent, the Issuing
Bank or any Lender on a nonconfidential basis
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prior to its disclosure thereto by the Borrower, and which are in the case of
Information provided after the date hereof, clearly identified, in good faith at
the time of delivery as confidential. The provisions of this Section 9.16 shall
remain operative and in full force and effect regardless of the expiration and
term of this Agreement.
SECTION 9.17. Amendment, Restatement, Extension and Renewal. This
Agreement is a renewal, extension, amendment and restatement of that certain
Existing Credit Agreement, and as such, except for the "Obligations" as defined
in the Existing Credit Agreement (which shall survive, be renewed, extended and
restated by the terms of this Agreement), all other terms and provisions
supersede in their entirety the Existing Credit Agreement. All Loan Papers
executed and delivered in connection with this Agreement shall, to the extent
stated therein, supersede the Loan Papers executed and delivered in connection
with the Existing Credit Agreement (the "Original Loan Papers"), except for the
Liens created under the Original Loan Papers which shall remain valid, binding
and enforceable Liens against the Borrower and each of the Guarantors, as
applicable, and each of the other Persons which granted such Liens.
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REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.
THE BORROWER:
ON COMMAND CORPORATION
-------------------------------------
By:
--------------------------------
Its:
--------------------------------
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THE ADMINISTRATIVE AGENT:
NATIONSBANK OF TEXAS, NATIONAL
ASSOCIATION, as Administrative Agent
--------------------------------------
By: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Its: Vice President
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LENDERS:
PRO RATA PERCENTAGE: NATIONSBANK OF TEXAS, NATIONAL
ASSOCIATION, individually as a Lender
.27500000000
Address:
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇ -------------------------------------
By: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇ Its: Vice President
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: BANQUE NATIONALE DE PARIS, SAN
FRANCISCO
.07500000000
Address:
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ -------------------------------
By:
---------------------------
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ ---------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------------
By:
---------------------------
Its:
---------------------------
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PRO RATA PERCENTAGE: BANQUE PARIBAS
.12500000000
Address:
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ -------------------------------
By:
---------------------------
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ ---------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
-------------------------------
By:
---------------------------
Its:
---------------------------
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PRO RATA PERCENTAGE: THE FUJI BANK, LIMITED, LOS
ANGELES AGENCY
.10000000000
Address:
▇▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ -------------------------------
By:
---------------------------
Attn: ▇▇▇ ▇▇▇▇▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ ---------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: KEYBANK NATIONAL ASSOCIATION
.07500000000
Address:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ -----------------------------
By:
-------------------------
Attn: ▇▇▇▇ ▇▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ -------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: THE LONG-TERM CREDIT BANK OF
JAPAN, LTD., LOS ANGELES AGENCY
.07500000000
Address:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ---------------------------------
By:
-----------------------------
Attn: ▇▇▇▇▇▇▇ ▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ -----------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: THE SUMITOMO BANK, LIMITED, LOS
ANGELES BRANCH
.10000000000
Address:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ -------------------------------
By:
---------------------------
Attn: ▇▇▇▇ ▇▇▇▇▇▇▇▇ Its:
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇ ---------------------------
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: CREDIT LYONNAIS LOS ANGELES
BRANCH
.07500000000
Address:
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ -------------------------------
Suite 2200 By:
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ---------------------------
Its:
---------------------------
Attn: ▇▇▇▇▇ ▇▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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PRO RATA PERCENTAGE: BANK OF TOKYO-MITSUBISHI TRUST
COMPANY
.10000000000
Address:
1251 Avenue of the Americas, ▇▇▇▇ ▇▇▇▇▇ --------------------------------
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ By:
----------------------------
Its:
----------------------------
Attn: Emile ElNems
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy: (▇▇▇) ▇▇▇-▇▇▇▇
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