EXHIBIT 10.1
[FIRST LIEN CREDIT AGREEMENT]
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$235,000,000
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF FEBRUARY 14, 2006
AMONG
PGT INDUSTRIES, INC.,
AS BORROWER,
JLL WINDOW HOLDINGS, INC.
AND
THE OTHER GUARANTORS PARTY HERETO,
AS GUARANTORS,
THE LENDERS PARTY HERETO
AND
UBS SECURITIES LLC,
AS ARRANGER, BOOKMANAGER, CO-DOCUMENTATION AGENT AND SYNDICATION AGENT,
AND
UBS AG, STAMFORD BRANCH,
AS ISSUING BANK, ADMINISTRATIVE AGENT AND COLLATERAL AGENT,
AND
UBS LOAN FINANCE LLC,
AS SWINGLINE LENDER,
AND
GENERAL ELECTRIC CAPITAL CORPORATION,
AS CO-DOCUMENTATION AGENT
▇▇▇▇▇▇ ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP
▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
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TABLE OF CONTENTS
Section Page
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ARTICLE I
DEFINITIONS
SECTION 1.01 Defined Terms...................................................................... 3
SECTION 1.02 Classification of Loans and Borrowings............................................. 39
SECTION 1.03 Terms Generally.................................................................... 39
SECTION 1.04 Accounting Terms; GAAP............................................................. 40
SECTION 1.05 Resolution of Drafting Ambiguities................................................. 40
ARTICLE II
THE CREDITS
SECTION 2.01 Commitments........................................................................ 40
SECTION 2.02 Loans.............................................................................. 41
SECTION 2.03 Borrowing Procedure................................................................ 42
SECTION 2.04 Evidence of Debt; Repayment of Loans............................................... 43
SECTION 2.05 Fees............................................................................... 43
SECTION 2.06 Interest on Loans.................................................................. 44
SECTION 2.07 Termination and Reduction of Commitments........................................... 45
SECTION 2.08 Interest Elections................................................................. 45
SECTION 2.09 Amortization of Term Borrowings.................................................... 47
SECTION 2.10 Optional and Mandatory Prepayments of Loans........................................ 47
SECTION 2.11 Alternate Rate of Interest......................................................... 50
SECTION 2.12 Increased Costs.................................................................... 51
SECTION 2.13 Breakage Payments.................................................................. 52
SECTION 2.14 Payments Generally; Pro Rata Treatment; Sharing of Setoffs......................... 52
SECTION 2.15 Taxes.............................................................................. 54
SECTION 2.16 Mitigation Obligations; Replacement of Lenders..................................... 55
SECTION 2.17 Swingline Loans.................................................................... 56
SECTION 2.18 Letters of Credit.................................................................. 57
ARTICLE III
REPRESENTATIONS AND WARRANTIES
SECTION 3.01 Organization; Powers............................................................... 63
SECTION 3.02 Authorization; Enforceability...................................................... 63
SECTION 3.03 No Conflicts....................................................................... 63
SECTION 3.04 Financial Statements; Projections.................................................. 64
SECTION 3.05 Properties......................................................................... 64
SECTION 3.06 Intellectual Property.............................................................. 65
SECTION 3.07 Equity Interests and Subsidiaries.................................................. 66
SECTION 3.08 Litigation; Compliance with Laws................................................... 67
SECTION 3.09 Agreements......................................................................... 67
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Section Page
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SECTION 3.10 Federal Reserve Regulations........................................................ 67
SECTION 3.11 Investment Company Act............................................................. 68
SECTION 3.12 Use of Proceeds.................................................................... 68
SECTION 3.13 Taxes.............................................................................. 68
SECTION 3.14 No Material Misstatements.......................................................... 68
SECTION 3.15 Labor Matters...................................................................... 68
SECTION 3.16 Solvency........................................................................... 69
SECTION 3.17 Employee Benefit Plans............................................................. 69
SECTION 3.18 Environmental Matters.............................................................. 69
SECTION 3.19 Insurance.......................................................................... 71
SECTION 3.20 Security Documents................................................................. 71
SECTION 3.21 Acquisition Documents; Representations and Warranties in Acquisition Agreement..... 72
SECTION 3.22 Anti-Terrorism Law................................................................. 72
SECTION 3.23 Second Lien Documents.............................................................. 73
ARTICLE IV
CONDITIONS TO CREDIT EXTENSIONS
SECTION 4.01 Conditions to Initial Credit Extension............................................. 73
SECTION 4.02 Conditions to All Credit Extensions................................................ 77
ARTICLE V
AFFIRMATIVE COVENANTS
SECTION 5.01 Financial Statements, Reports, etc................................................. 78
SECTION 5.02 Litigation and Other Notices....................................................... 80
SECTION 5.03 Existence; Businesses and Properties............................................... 80
SECTION 5.04 Insurance.......................................................................... 81
SECTION 5.05 Obligations and Taxes.............................................................. 82
SECTION 5.06 Employee Benefits.................................................................. 82
SECTION 5.07 Maintaining Records; Access to Properties and Inspections; Annual Meetings......... 83
SECTION 5.08 Use of Proceeds.................................................................... 83
SECTION 5.09 Compliance with Environmental Laws; Environmental Reports.......................... 83
SECTION 5.10 Interest Rate Protection........................................................... 84
SECTION 5.11 Additional Collateral; Additional Guarantors....................................... 84
SECTION 5.12 Security Interests; Further Assurances............................................. 86
SECTION 5.13 Information Regarding Collateral................................................... 86
SECTION 5.14 Post-Closing Matters............................................................... 87
SECTION 5.15 Ratings............................................................................ 87
ARTICLE VI
NEGATIVE COVENANTS
SECTION 6.01 Indebtedness....................................................................... 87
SECTION 6.02 Liens.............................................................................. 88
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Section Page
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SECTION 6.03 Sale and Leaseback Transactions.................................................... 91
SECTION 6.04 Investment, Loan and Advances...................................................... 91
SECTION 6.05 Mergers and Consolidations......................................................... 92
SECTION 6.06 Asset Sales........................................................................ 93
SECTION 6.07 Acquisitions....................................................................... 93
SECTION 6.08 Dividends.......................................................................... 94
SECTION 6.09 Transactions with Affiliates....................................................... 95
SECTION 6.10 Financial Covenants................................................................ 96
SECTION 6.11 Prepayments of Other Indebtedness; Modifications of Organizational Documents and
Other Documents, etc............................................................. 98
SECTION 6.12 Limitation on Certain Restrictions on Subsidiaries................................. 98
SECTION 6.13 Limitation on Issuance of Capital Stock............................................ 99
SECTION 6.14 Limitation on Creation of Subsidiaries............................................. 99
SECTION 6.15 Business........................................................................... 100
SECTION 6.16 Limitation on Accounting Changes................................................... 100
SECTION 6.17 Fiscal Year........................................................................ 100
SECTION 6.18 Embargoed Person................................................................... 100
SECTION 6.19 No Further Negative Pledge......................................................... 100
SECTION 6.20 Anti-Terrorism Law; Anti-Money Laundering.......................................... 101
ARTICLE VII
GUARANTEE
SECTION 7.01 The Guarantee...................................................................... 101
SECTION 7.02 Obligations Unconditional.......................................................... 101
SECTION 7.03 Reinstatement...................................................................... 103
SECTION 7.04 Subrogation; Subordination......................................................... 103
SECTION 7.05 Remedies........................................................................... 103
SECTION 7.06 Instrument for the Payment of Money................................................ 103
SECTION 7.07 Continuing Guarantee............................................................... 103
SECTION 7.08 General Limitation on Guarantee Obligations........................................ 103
SECTION 7.09 Release of Guarantors.............................................................. 103
ARTICLE VIII
EVENTS OF DEFAULT
SECTION 8.01 Events of Default.................................................................. 104
ARTICLE IX
APPLICATION OF COLLATERAL PROCEEDS
SECTION 9.01 [Intentionally Omitted]............................................................ 106
SECTION 9.02 [Intentionally Omitted]............................................................ 106
SECTION 9.03 Application of Proceeds............................................................ 106
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Section Page
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ARTICLE X
THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT
SECTION 10.01 Appointment........................................................................ 107
SECTION 10.02 Agent in Its Individual Capacity................................................... 108
SECTION 10.03 Exculpatory Provisions............................................................. 108
SECTION 10.04 Reliance by Agent.................................................................. 108
SECTION 10.05 Delegation of Duties............................................................... 108
SECTION 10.06 Successor Agent.................................................................... 109
SECTION 10.07 Non-Reliance on Agent and Other Lenders............................................ 109
SECTION 10.08 Name Agents........................................................................ 109
SECTION 10.09 Indemnification.................................................................... 109
ARTICLE XI
MISCELLANEOUS
SECTION 11.01 Notices............................................................................ 110
SECTION 11.02 Waivers; Amendment................................................................. 112
SECTION 11.03 Expenses; Indemnity................................................................ 115
SECTION 11.04 Successors and Assigns............................................................. 116
SECTION 11.05 Survival of Agreement.............................................................. 119
SECTION 11.06 Counterparts; Integration; Effectiveness; Electronic Execution of Assignments...... 119
SECTION 11.07 Severability....................................................................... 120
SECTION 11.08 Right of Setoff.................................................................... 120
SECTION 11.09 Governing Law; Jurisdiction; Consent to Service of Process......................... 120
SECTION 11.10 Waiver of Jury Trial............................................................... 121
SECTION 11.11 Headings........................................................................... 121
SECTION 11.12 Confidentiality.................................................................... 121
SECTION 11.13 Interest Rate Limitation........................................................... 121
SECTION 11.14 Lender Addendum.................................................................... 122
SECTION 11.15 Obligations Absolute............................................................... 122
SECTION 11.16 USA PATRIOT Act Notice............................................................. 122
ARTICLE XII
[INTENTIONALLY OMITTED]
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SECOND AMENDED AND RESTATED CREDIT AGREEMENT
This SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this "AGREEMENT")
dated as of February 14, 2006, amends and restates the certain Credit Agreement
originally dated as of January 29, 2004, as amended and restated by the Amended
and Restated Credit Agreement dated as of February 9, 2004, as amended by
Amendment No. 1 thereto and Amendment No. 2 thereto, dated as of May 25, 2005
and September 19, 2005, respectively, among PGT INDUSTRIES, INC., a Florida
corporation ("PGT INDUSTRIES"), JLL Window Holdings, Inc., a Delaware
corporation and the direct parent company of PGT Industries ("WINDOW HOLDINGS"
or "HOLDINGS"), the Subsidiary Guarantors (such term and each other capitalized
term used but not defined herein having the meaning given to it in Article I),
the Lenders, UBS LOAN FINANCE LLC, as swingline lender (in such capacity,
"SWINGLINE LENDER"), and UBS AG, STAMFORD BRANCH, as issuing bank (in such
capacity, "ISSUING BANK"), as administrative agent (in such capacity,
"ADMINISTRATIVE AGENT") for the Lenders and as collateral agent (in such
capacity, "COLLATERAL AGENT") for the Secured Parties and the Issuing Bank.
WITNESSETH:
WHEREAS, Window Holdings and JLL Window Company, a Delaware
corporation ("WINDOW COMPANY"), a direct Wholly Owned Subsidiary of Window
Holdings, entered into a securities purchase agreement, dated as of December 18,
2003 (as amended, supplemented or otherwise modified from time to time in
accordance with the provisions hereof and thereof, the "ACQUISITION AGREEMENT"),
with the stockholders, warrant holders and option holders of PGT Holding and FNL
MANAGEMENT CORP., an Ohio corporation, to effect the acquisition of PGT Holding
(the "ACQUISITION") by Window Holdings.
WHEREAS, Borrower, Window Holdings, PGT Holding Company, a Delaware
corporation and a direct parent of PGT Industries ("PGT HOLDING"), the lenders
identified therein, the Arranger, the Swingline Lender, the Administrative
Agent, UBS AG, Stamford Branch, in its capacity as the first lien collateral
agent and in its capacity as the second lien collateral agent, and in its
capacity as issuing bank thereunder originally entered into that certain Credit
Agreement (the "FIRST CREDIT AGREEMENT") dated as of January 29, 2004, as
amended and restated by the Amended and Restated Credit Agreement, dated as of
February 9, 2004 (the "FIRST AMENDMENT AND RESTATEMENT"), as amended by
Amendment No. 1 thereto dated May 25, 2005 (the "FIRST AMENDMENT") and as
further amended by Amendment No. 2 thereto (the "SECOND AMENDMENT", and together
with the First Credit Agreement, the First Amendment and Restatement and the
First Amendment, the "ORIGINAL CREDIT AGREEMENT").
WHEREAS, on the Closing Date, the initial Credit Extension to
Borrower under the First Credit Agreement was consummated.
WHEREAS, on the Closing Date, Borrower certified that in connection
with the Acquisition, Window Company loaned the net proceeds of its initial
borrowings under the First Credit Agreement to Window Holdings (the
"INTERCOMPANY LOAN") pursuant to a note to finance a portion of the Acquisition.
WHEREAS, immediately following the Acquisition, PGT Holding became a
Guarantor under the First Credit Agreement by executing and delivering a joinder
agreement.
WHEREAS, (a) on the Closing Date Borrower certified that, pursuant
to the Acquisition Agreement, following the Intercompany Loan and the
Acquisition, (i) Window Company merged with and into PGT Industries, with PGT
Industries continuing as the corporation surviving such merger and
(ii) all of the outstanding securities of Window Company were cancelled and (b)
PGT Industries became a party to the First Credit Agreement by executing and
delivering a joinder agreement and assumed Window Company's obligations
thereunder ((a)(i) and (ii) and (b), the "MERGER").
WHEREAS, on the Closing Date Borrower certified that the Rollover
Equity exchange was consummated prior to the consummation of the Intercompany
Loan and that the Equity Financing was consummated prior to or simultaneously
with the initial borrowings under the First Credit Agreement.
WHEREAS, on the Closing Date Borrower requested the Lenders to
extend credit in the form of (a) term loans on the Closing Date, in an aggregate
principal amount of $170.0 million and (b) Revolving Loans at any time and from
time to time prior to the Revolving Maturity Date, in an aggregate principal
amount at any time outstanding not in excess of $25.0 million, of which no more
than $5.0 million were available to be drawn on the Closing Date.
WHEREAS, on the Closing Date Borrower requested the Swingline Lender
to make Swingline Loans, at any time and from time to time prior to the
Revolving Maturity Date, in an aggregate principal amount at any time
outstanding not in excess of $5.0 million.
WHEREAS, on the Closing Date Borrower requested the Issuing Bank to
issue letters of credit, in an aggregate face amount at any time outstanding not
in excess of $7.5 million, to support payment obligations incurred in the
ordinary course of business by Borrower and its Subsidiaries.
WHEREAS, PGT Industries, PGT Holding, Window Holdings, the
Subsidiary Guarantors, the lenders party thereto, the Administrative Agent, the
Arranger, the Syndication Agent, the Swingline Lender, UBS AG, Stamford Branch,
in the capacities of first lien collateral agent and second lien collateral
agent, and the Co-Documentation Agents entered into the First Amendment and
Restatement, to amend, among other things, certain pricing terms with respect to
the Loans.
WHEREAS, PGT Industries, PGT Holding, Window Holdings, the
Administrative Agent and the lenders party thereto entered into the First
Amendment to, among other things, amend certain definitions contained in the
First Amendment and Restatement to provide for the intercompany merger of Window
Holdings with and into its Wholly Owned Subsidiary, PGT Holding, with Window
Holdings surviving such merger (the "HOLDINGS INTERCOMPANY MERGER").
WHEREAS, PGT Industries, Window Holdings, the Administrative Agent,
UBS AG, Stamford Branch, in the capacity as first lien collateral agent and its
capacity as second lien collateral agent, and the lenders party thereto entered
into the Second Amendment, to provide for, among other things, (a) the
prepayment of all outstanding Tranche A Loans, (b) the creation of a new Class
of Tranche A-1 Loans in aggregate principal amount of $190.0 million, (c) the
prepayment of all outstanding Tranche B Loans and the termination of all
obligations with respect thereto, (d) the deletion of the Consolidated Fixed
Charge Coverage Ratio and (e) the payment of a Dividend of up to $20 million to
equity holders of Window Holdings (such Dividend payment, the "SEPTEMBER 2005
DIVIDEND").
WHEREAS, PGT Industries, Window Holdings, the Subsidiary Guarantors,
the Lenders party hereto, the Administrative Agent, the Arranger, the
Syndication Agent, the Swingline Lender, the Collateral Agent, the Issuing Bank
and the Co-Documentation Agents wish to enter into the Amendment Agreement dated
the Amendment and Restatement Effective Date (the "AMENDMENT AGREEMENT") and to
amend and restate the Original Credit Agreement, to provide for, among other
things, the creation of a new tranche of Term Loans hereby designated as
"Tranche A-2," the repayment in full of the Tranche A-
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1 Term Loans (as defined in the Second Amendment), a Credit Extension from the
Tranche A-2 Term Loan Lenders of Tranche A-2 Term Loans in an aggregate
principal amount not to exceed $205.0 million, the creation of a new tranche of
Revolving Commitments hereby designated as "Tranche A-1", the repayment in full
of the Revolving Commitments (as defined in the Original Credit Agreement), the
incurrence by Borrower on the Amendment and Restatement Effective Dates of
Second Lien Term Loans pursuant to a Second Lien Credit Agreement in an
aggregate principal amount of up to $115.0 million and the making of a Dividend
payment of up to $130.0 million to equity holders and option holders of Window
Holdings payable on the Amendment and Restatement Effective Date, or at the
option of Borrower, within 30 days thereof (such Dividend payment, the "2006
DIVIDEND").
WHEREAS, the proceeds of the Loans are to be used in accordance with
Section 3.12.
WHEREAS, the Obligations (as defined in the Original Credit
Agreement) of the Borrower and the other Loan Parties under the Original Credit
Agreement and the Security Documents (as defined in the Original Credit
Agreement, such Security Documents hereinafter the "ORIGINAL SECURITY
DOCUMENTS") are secured by certain Collateral (as defined in the Original Credit
Agreement) and are guaranteed or supported or otherwise benefited by the
Original Security Documents.
WHEREAS, Borrower, Window Holdings, the Subsidiary Guarantors, the
Lenders, the Arranger, the Bookmanager, the Co-Documentation Agents, the
Syndication Agent, the Swingline Lender, the Administrative Agent, the
Collateral Agent and the Issuing Bank intend that (a) all obligations under the
Original Credit Agreement of the parties shall continue to exist under and be
evidenced by this Agreement and the other Loan Documents; and (b) except as
expressly amended hereby, the Original Credit Agreement and the other Loan
Documents (including the Security Documents) are ratified and confirmed as
remaining unmodified and in full force and effect with respect to all
Obligations; it being understood that it is the intent of the parties hereto
that this Agreement does not constitute a novation of rights, obligations and
liabilities of the respective parties (including the Obligations) existing under
the Original Credit Agreement or evidence payment of all or any of such
obligations and liabilities and such rights, obligation and liabilities shall
continue and remain outstanding, and that this Agreement amends and restates in
its entirety the Original Credit Agreement.
WHEREAS, the Lenders are willing to amend and restate the Original
Credit Agreement and are willing to continue and extend such credit to Borrower,
and the Issuing Bank is willing to issue letters of credit for the account of
Borrower and the other parties hereto are willing to amend and restate the
Original Credit Agreement, in each case upon the terms and subject to the
conditions set forth herein. Accordingly, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01 DEFINED TERMS. As used in this Agreement, the following
terms shall have the meanings specified below:
"ABR," when used in reference to any Loan or Borrowing, is used when
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.
"ABR BORROWING" shall mean a Borrowing comprised of ABR Loans.
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"ABR LOAN" shall mean any ABR Term Loan or ABR Revolving Loan.
"ABR REVOLVING LOAN" shall mean any Revolving Loan bearing interest
at a rate determined by reference to the Alternate Base Rate in accordance with
the provisions of Article II.
"ABR TERM LOAN" shall mean any Term Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.
"ACQUIRED BUSINESS" shall mean, collectively, PGT Holdings
(subsequently merged with and into Window Holdings) and PGT Industries.
"ACQUISITION" shall have the meaning assigned to such term in the
recitals hereto.
"ACQUISITION AGREEMENT" shall have the meaning assigned to such term
in the recitals hereto.
"ACQUISITION CONSIDERATION" shall mean the purchase consideration
for any Permitted Acquisition and all other payments by Holdings or any of its
Subsidiaries in exchange for, or as part of, or in connection with, any
Permitted Acquisition, whether paid in cash or by exchange of Equity Interests
or of properties or otherwise and whether payable at or prior to the
consummation of such Permitted Acquisition or deferred for payment at any future
time, whether or not any such future payment is subject to the occurrence of any
contingency, and includes any and all payments representing the purchase price
and any assumptions of Indebtedness, "earn-outs" and other agreements to make
any payment the amount of which is, or the terms of payment of which are, in any
respect subject to or contingent upon the revenues, income, cash flow or profits
(or the like) of any person or business; provided that any such future payment
that is subject to a contingency shall be considered Acquisition Consideration
only to the extent of the reserve, if any, required under GAAP at the time of
such sale to be established in respect thereof by Holdings or any of its
Subsidiaries.
"ACQUISITION DOCUMENTS" shall mean the collective reference to the
Acquisition Agreement and the other documents listed on Schedule 3.21.
"ADDITIONAL EQUITY PARTNER" shall have the meaning set forth in the
definition of "Qualified Contribution Transaction."
"ADJUSTED LIBOR RATE" shall mean, with respect to any Eurodollar
Borrowing for any Interest Period, (a) an interest rate per annum (rounded
upward, if necessary, to the next 1/100th of 1%) determined by the
Administrative Agent at the start of the applicable Interest Period to be equal
to the LIBOR Rate for such Eurodollar Borrowing in effect for such Interest
Period divided by (b) 1 minus the Statutory Reserves (if any) for such
Eurodollar Borrowing for such Interest Period.
"ADMINISTRATIVE AGENT" shall have the meaning assigned to such term
in the preamble hereto and includes each other person appointed as the successor
pursuant to Article X.
"ADMINISTRATIVE AGENT FEES" shall have the meaning assigned to such
term in Section 2.05(b).
"ADMINISTRATIVE QUESTIONNAIRE" shall mean an Administrative
Questionnaire in the form of Exhibit A, or such other form as may be supplied
from time to time by the Administrative Agent.
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"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; provided, however, that, for purposes of Section 6.09, the
term "Affiliate" shall also include (i) any person that directly or indirectly
owns more than 10% of any class of Equity Interests of the person specified or
(ii) any person that is an executive officer or director of the person
specified.
"AGENTS" shall mean the Arranger, the Co-Documentation Agents, the
Syndication Agent, the Administrative Agent and the Collateral Agent; and
"AGENT" shall mean any of them.
"AGREEMENT" shall have the meaning assigned to such term in the
preamble hereto.
"ALTERNATE BASE RATE" shall mean, for any day, a rate per annum
(rounded upward, if necessary, to the next 1/100th of 1%) equal to the greater
of (a) the Base Rate in effect on such day and (b) the Federal Funds Effective
Rate in effect on such day plus 0.50%. If 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 Base
Rate or the Federal Funds Effective Rate shall be effective on the effective
date of such change in the Base Rate or the Federal Funds Effective Rate,
respectively.
"AMENDED AND RESTATED SECURITY AGREEMENT" shall mean the Amended and
Restated Pledge and Security Agreement substantially in the form of Exhibit M
hereto among the Loan Parties and the Collateral Agent for the benefit of the
Secured Parties.
"AMENDMENT AGREEMENT" has the meaning set forth in the recitals
hereto.
"AMENDMENT AND RESTATEMENT EFFECTIVE DATE" shall mean the date, not
later than February 14, 2006, that the conditions precedent set forth in Section
4.01(B) have been satisfied.
"ANTI-TERRORISM LAWS" shall have the meaning assigned to such term
in Section 3.22.
"APPLICABLE MARGIN" shall mean, for any day, with respect to any
Tranche A-1 Revolving Loan or Term Loan, as the case may be, the applicable
percentage set forth in the table below under the appropriate caption:
EURODOLLAR ABR
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TRANCHE A-1 REVOLVING LOANS........... 2.75% 1.75%
TERM LOANS............................ 3.00% 2.00%
; provided, however, that, with respect to Tranche A-1 Revolving Loans only,
after the date on which Holdings shall have delivered financial statements for
the fiscal quarter ending at least six months of the Closing Date, the
Applicable Margin shall mean the applicable percentage set forth in the table
below under the appropriate caption:
-▇-
▇▇▇▇▇▇▇ ▇-▇ REVOLVING LOANS
TOTAL ---------------------------
LEVERAGE RATIO EURODOLLAR ABR
-------------- ---------- -----
LEVEL I
> or = 3.5:1.0 2.75% 1.75%
LEVEL II
<3.5:1.0 BUT
> or = 3.0:1.0 2.50% 1.50%
LEVEL III
<3.0:1.0 BUT
> or = 2.5:1.0 2.25% 1.25%
LEVEL IV
<2.5:1.0 2.00% 1.00%
Each change in the Applicable Margin resulting from a change in the
Total Leverage Ratio shall be effective with respect to all Tranche A-1
Revolving Loans 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 5.01(a) or (b), respectively, indicating such
change until the date immediately preceding the next date of delivery of such
financial statements and certificates indicating another such change.
Notwithstanding the foregoing, the Leverage Ratio shall be deemed to be in Level
I (i) from the Closing Date to the date of delivery to the Administrative Agent
of the financial statements and certificates required by Section 5.01(a) or (b)
for the fiscal period ended at least six months after the Closing Date, (ii) at
any time during which Window Holdings has failed to deliver the financial
statements and certificates required by Section 5.01(a) or (b), respectively,
and (iii) at any time during the continuance of an Event of Default.
"ARRANGER" means UBS SECURITIES LLC.
"ASSET SALE" shall mean (a) any conveyance, sale, lease, sublease,
assignment, transfer or other disposition (including by way of merger or
consolidation and including any Sale and Leaseback Transaction) of any property
excluding sales of inventory and dispositions of cash equivalents, in each case,
in the ordinary course of business, by Holdings or any of its Subsidiaries and
(b) any issuance or sale of any Equity Interests of any Subsidiary of Holdings
(other than issuances or sales of Equity Interests of Borrower to Additional
Equity Partners in Qualified Contribution Transactions, to the extent permitted
by Section 6.13), in each case, to any person other than (i) Borrower, (ii) any
Subsidiary Guarantor or Holdings or (iii) other than for purposes of Section
6.06, any other Subsidiary.
"ASSIGNMENT AND ACCEPTANCE" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, substantially in the form of Exhibit B, or such other form as shall be
approved by the Administrative Agent.
"AUTO-RENEWAL LETTER OF CREDIT" shall have the meaning assigned to
such term in Section 3.18.
"BAILEE LETTER" shall have the meaning assigned thereto in the
Security Agreement.
"BANKRUPTCY CODE" shall mean Title 11 of the United States Code, as
now constituted or hereafter amended.
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"BASE RATE" shall mean, for any day, a rate per annum that is equal
to the corporate base rate of interest established by the Administrative Agent
from time to time; each change in the Base Rate shall be effective on the date
such change is effective. The corporate base rate is not necessarily the lowest
rate charged by the Administrative Agent to its customers.
"BOARD" shall mean the Board of Governors of the Federal Reserve
System of the United States.
"BOARD OF DIRECTORS" shall mean, with respect to any person, (i) in
the case of any corporation, the board of directors of such person, (ii) in the
case of any limited liability company, the board of managers of such person,
(iii) in the case of any partnership, the Board of Directors of the general
partner of such person and (iv) in any other case, the functional equivalent of
the foregoing.
"BORROWER" means, prior to the consummation of the Merger, Window
Company, and, at and subsequent to the consummation of the Merger and the
delivery of an executed Borrower Joinder Agreement, PGT Industries.
"BORROWING" shall mean (a) Loans of the same Class and Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect, or (b) a Swingline Loan.
"BORROWING REQUEST" shall mean a request by Borrower in accordance
with the terms of Section 2.03 and substantially in the form of Exhibit C, or
such other form as shall be approved by the Administrative Agent.
"BUSINESS DAY" shall mean any day other than a Saturday, Sunday or
other day on which banks in New York City are authorized or required by law to
close; provided that when used in connection with a Eurodollar Loan, the term
"Business Day" shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.
"CAPITAL EXPENDITURES" shall mean, for any period, capital
expenditures, as determined in accordance with GAAP, of Window Holdings and its
Subsidiaries, but excluding (i) proceeds of Asset Sales applied towards the
purchase of any property or expenditures made in connection with the
replacement, substitution or restoration of property pursuant to Section 2.10(e)
and (ii) any portion of such increase attributable solely to acquisitions of
property, plant and equipment resulting from Permitted Acquisitions.
"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
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.
"CASH EQUIVALENTS" shall mean, as to any person, (a) securities
issued, or directly, unconditionally and fully guaranteed or insured, by the
United States or any agency or instrumentality thereof (provided that the full
faith and credit of the United States is pledged in support thereof) having
maturities of not more than one year from the date of acquisition by such
person; (b) time deposits and certificates of deposit of any Lender or any
commercial bank having, or which is the principal banking subsidiary of a bank
holding company organized under the laws of the United States, any state thereof
or the District of Columbia having, capital and surplus aggregating in excess of
$500.0 million and a rating
-7-
of "A" (or such other similar equivalent rating) or higher by at least one
nationally recognized statistical rating organization (as defined in Rule 436
under the Securities Act) with maturities of not more than one year from the
date of acquisition by such person; (c) repurchase obligations with a term of
not more than 30 days for underlying securities of the types described in clause
(a) above entered into with any bank meeting the qualifications specified in
clause (b) above, which repurchase obligations are secured by a valid perfected
security interest in the underlying securities; (d) commercial paper issued by
any person incorporated in the United States rated at least A-1 or the
equivalent thereof by S&P or at least P-1 or the equivalent thereof by ▇▇▇▇▇'▇,
and in each case maturing not more than one year after the date of acquisition
by such person; (e) investments in money market funds substantially all of whose
assets are comprised of securities of the types described in clauses (a) through
(d) above; and (f) demand deposit accounts maintained in the ordinary course of
business.
"CASH INTEREST EXPENSE" shall mean, for any period, Consolidated
Interest Expense for such period, to the extent paid or payable in cash, net of
net cash payments received under all interest rate Hedging Obligations (taken
together) of such person.
Notwithstanding the foregoing, for the purposes of calculating Cash
Interest Expense:
(i) for the fiscal quarter ended March 31, 2006, Cash Interest
Expense shall be deemed to equal the product of (a) Cash Interest Expense
for the period from the Amendment and Restatement Effective Date through
March 31, 2006, as determined in accordance with the preceding paragraph
of this definition of "Cash Interest Expense," multiplied by (b) a
fraction, the numerator of which is 90 and the denominator of which is the
number of days from the Amendment and Restatement Effective Date through
and including March 31, 2006 (the product thereof, the "DEEMED Q-1 CASH
INTEREST EXPENSE");
(ii) for the four fiscal quarters ended June 30, 2006, Cash
Interest Expense shall be deemed to equal the product of (a) the sum of
(x) Cash Interest Expense for the quarter ended June 30, 2006, as
determined in accordance with the preceding paragraph of this definition
of "Cash Interest Expense," plus (y) the Deemed Q-1 Cash Interest Expense,
multiplied by (b) 2;
(iii) for the four fiscal quarters ended September 30, 2006, Cash
Interest Expense shall be deemed to equal the product of (a) the sum of
(x) Cash Interest Expense for the two quarters ended September 30, 2006,
as determined in accordance with the preceding paragraph of this
definition of "Cash Interest Expense," plus (y) the Deemed Q-1 Cash
Interest Expense, multiplied by (b) 4/3; and
(iv) for the four fiscal quarters ended December 31, 2006, Cash
Interest Expense shall be deemed to equal the sum of (x) Cash Interest
Expense for the three quarters ended December 31, 2006, as determined in
accordance with the preceding paragraph of this definition of "Cash
Interest Expense," plus (y) the Deemed Q-1 Cash Interest Expense.
"CASUALTY EVENT" shall mean any loss of title or any loss of or
damage to or destruction of, or any condemnation or other taking (including by
any Governmental Authority) of, any property of Holdings or any of its
Subsidiaries. "Casualty Event" shall include but not be limited to any taking of
all or any part of any Real Property of any person or any part thereof, in or by
condemnation or other eminent domain proceedings pursuant to any law, or by
reason of the temporary requisition of the use or occupancy of all or any part
of any Real Property of any person or any part thereof by any Governmental
Authority, civil or military, or any settlement in lieu thereof.
-8-
"CERCLA" shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et
seq.
A "CHANGE IN CONTROL" shall be deemed to have occurred if:
(a) Window Holdings at any time ceases to own 100% of the Equity
Interests of Borrower (other than Equity Interests owned by Additional
Equity Partners acquired in one or more Qualified Contribution
Transactions);
(b) prior to an IPO, (i) the Permitted Holders cease to own, or to
have the power to vote or direct the voting of, directly or indirectly,
Voting Stock of Window Holdings representing a majority of the voting
power of the total outstanding Voting Stock of Window Holdings or Borrower
or (ii) the Permitted Holders cease to own, directly or indirectly, Equity
Interests representing a majority of the total economic interests of the
Equity Interests of Window Holdings or Borrower;
(c) following an IPO, any "person" or "group" (as such terms are
used in Sections 13(d) and 14(d) of the Exchange Act), other than one or
more Permitted Holders, is or becomes the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of
this clause such person or group shall be deemed to have "beneficial
ownership" of all securities that such person or group has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of Voting Stock of Window
Holdings or Borrower representing 50% or more of the voting power of the
total outstanding Voting Stock of such Company; or
(d) following an IPO, during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of
Directors of Window Holdings (together with any new directors whose
election to such Board of Directors or whose nomination for election was
approved by a vote of a majority of the members of the Board of Directors
of Window Holdings, which members comprising such majority are then still
in office and were either directors at the beginning of such period or
whose election or nomination for election was previously so approved)
cease for any reason to constitute a majority of the Board of Directors of
Window Holdings.
"CHANGE IN LAW" shall mean (a) the adoption of any law, treaty,
order, rule or regulation after the date of this Agreement, (b) any change in
any law, treaty, order, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this
Agreement or (c) compliance by any Lender or Issuing Bank (or for purposes of
Section 2.12(b), by any lending office of such Lender or by such Lender's or
Issuing Bank's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.
"CHARGES" shall have the meaning assigned to such term in Section
11.13.
"CLASS," when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans,
Term Loans or Swingline Loans and, when used in reference to any Commitment,
refers to whether such Commitment is a Tranche A-1 Revolving Commitment, Tranche
A-2 Term Loan Commitment or Swingline Commitment, in each case, under this
Agreement as originally in effect, of which such Loan, Borrowing or Commitment
shall be a part.
-9-
"CLOSING DATE" shall mean January 29, 2004.
"CODE" shall mean the Internal Revenue Code of 1986, as amended from
time to time.
"CO-DOCUMENTATION AGENTS" means, collectively, GENERAL ELECTRIC
CAPITAL CORPORATION and UBS SECURITIES LLC.
"COLLATERAL" shall mean, collectively, all of the Security Agreement
Collateral, the Mortgaged Property and all other property of whatever kind and
nature pledged as collateral under any Security Document.
"COLLATERAL AGENT" shall have the meaning assigned to such term in
the preamble hereto, and any successor thereto pursuant to this Agreement.
"COMMERCIAL LETTER OF CREDIT" shall mean any letter of credit or
similar instrument issued for the purpose of providing credit support in
connection with the purchase of materials, goods or services by Borrower or any
of its Subsidiaries in the ordinary course of their businesses.
"COMMITMENT" shall mean, with respect to any Lender, such Lender's
Tranche A-1 Revolving Commitment, Tranche A-2 Term Loan Commitment or Swingline
Commitment.
"COMMITMENT FEE" shall have the meaning assigned to such term in
Section 2.05(a).
"COMPANIES" shall mean Holdings, Borrower and their respective
Subsidiaries; and "COMPANY" shall mean any one of them.
"COMPLIANCE CERTIFICATE" shall mean a certificate of a Financial
Officer substantially in the form of Exhibit D.
"CONFIDENTIAL INFORMATION MEMORANDUM" shall mean that certain
confidential information memorandum dated as of January 2004.
"CONSOLIDATED AMORTIZATION EXPENSE" shall mean, for any period, the
amortization expense of Window Holdings and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.
"CONSOLIDATED CURRENT ASSETS" shall mean, as at any date of
determination, the total assets of Window Holdings and its Subsidiaries which
may properly be classified as current assets on a consolidated balance sheet of
Window Holdings and its Subsidiaries in accordance with GAAP, excluding cash and
Cash Equivalents, but including cash or Cash Equivalents that could be deemed
"restricted cash" or cash required to be set aside, segregated or pledged in
support of bidding procedures.
"CONSOLIDATED CURRENT LIABILITIES" shall mean, as at any date of
determination, the total liabilities of Window Holdings and its Subsidiaries
which may properly be classified as current liabilities (other than the current
portion of any Loans) on a consolidated balance sheet of Window Holdings and its
Subsidiaries in accordance with GAAP.
"CONSOLIDATED DEPRECIATION EXPENSE" shall mean, for any period, the
depreciation expense of Window Holdings and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.
-10-
"CONSOLIDATED EBITDA" shall mean, for any period, Consolidated Net
Income for such period, adjusted by (x) adding thereto, in each case only to the
extent (and in the same proportion) deducted in determining such Consolidated
Net Income (and with respect to the portion of Consolidated Net Income
attributable to any Subsidiary of Window Holdings only if a corresponding amount
would be permitted at the date of determination to be distributed to Window
Holdings by such Subsidiary without prior approval (that has not been obtained),
pursuant to the terms of its Organizational Documents and all agreements,
instruments, judgments, decrees, orders, statutes, rules and regulations
applicable to such Subsidiary or its equityholders):
(a) Consolidated Interest Expense for such period,
(b) Consolidated Amortization Expense for such period,
(c) Consolidated Depreciation Expense for such period,
(d) Consolidated Tax Expense for such period,
(e) (i) fees and expenses directly incurred in connection with the
January 2004 Transactions and (ii) fees and expenses directly incurred in
connection with the 2006 Transactions, in an amount not to exceed $3.0
million,
(f) the aggregate amount of all other non-cash items reducing
Consolidated Net Income (excluding any non-cash charge that results in an
accrual of a reserve for cash charges in any future period) for such
period,
(g) all other reasonable non-recurring cash items reducing the
Consolidated Net Income for such period (for the avoidance of doubt,
including without limitation any portion of the 2006 Dividend reducing
Consolidated Net Income for such period to the extent not otherwise added
back for purposes of Consolidated EBITDA), and
(h) Management Fees in the amounts and at the times specified in the
Management Services Agreement, as in effect on the Closing Date or as
thereafter amended or replaced in any manner, that, taken as a whole, is
not more adverse to the interests of the Lenders in any material respect
than such agreement as it was in effect on the Closing Date in an amount
not to exceed the amount for such period set forth in such Management
Services Agreement, as in effect on the Closing Date, and
(y) subtracting therefrom the aggregate amount of all non-cash items increasing
Consolidated Net Income (other than the accrual of revenue or recording of
receivables in the ordinary course of business) for such period.
Other than for purposes of calculating Excess Cash Flow,
Consolidated EBITDA shall be calculated on a Pro Forma Basis to give effect to
the January 2004 Transactions, the 2006 Transactions, any Permitted Acquisition
and Asset Sales (other than any dispositions in the ordinary course of business)
consummated at any time on or after the first day of the Test Period thereof as
if the Acquisition and each such Permitted Acquisition had been effected on the
first day of such period and as if each such Asset Sale had been consummated on
the day prior to the first day of such period.
"CONSOLIDATED FIRST LIEN SECURED INDEBTEDNESS" means at any date of
determination, Consolidated Indebtedness that is not Subordinated Indebtedness
and that is secured by a Lien on any as-
-11-
sets of Borrower or any of its Subsidiaries that ranks equally with the Lien
granted under the Security Documents to the Collateral Agent for the benefit of
the Secured Parties in all respects.
"CONSOLIDATED INDEBTEDNESS" shall mean, as at any date of
determination, the aggregate amount, without duplication, of all (i)
Indebtedness, (ii) obligations evidenced by bonds, debentures, notes or similar
instruments issued as "pay-in-kind" interest payments, (iii) the then accreted
amount of obligations evidenced by bonds, debentures, notes or similar
instruments issued at any original issue discount, and (iv) all LC Exposure, in
each case, of Window Holdings and its Subsidiaries, determined on a consolidated
basis in accordance with GAAP, excluding liabilities incurred in connection with
Hedging Agreements of the type described in Section 6.01(c) (other than the
termination value thereof to the extent such termination value is then due and
payable).
"CONSOLIDATED INTEREST COVERAGE RATIO" shall mean, for any Test
Period, the ratio of (x) Consolidated EBITDA for such Test Period to (y) Cash
Interest Expense for such Test Period.
"CONSOLIDATED INTEREST EXPENSE" shall mean, for any period, the
total consolidated interest expense of Window Holdings and its Subsidiaries (net
of interest income) for such period determined on a consolidated basis in
accordance with GAAP plus, without duplication:
(a) without duplication, imputed interest on Capital Lease
Obligations and the interest component of all lease obligations with
respect to Sale and Leaseback Transactions of Window Holdings and its
Subsidiaries for such period (other than to the extent such leases are
properly treated as operating leases in accordance with GAAP);
(b) commissions, discounts and other fees and charges owed by Window
Holdings or any of its Subsidiaries with respect to letters of credit
securing financial obligations, bankers' acceptance financing and
receivables financings for such period;
(c) amortization of debt issuance costs, debt discount or premium
and other financing fees and expenses incurred by Window Holdings or any
of its Subsidiaries for such period;
(d) cash contributions to any employee stock ownership plan or
similar trust made by Window Holdings or any of its Subsidiaries to the
extent such contributions are used by such plan or trust to pay interest
or fees to any person (other than Window Holdings or a Wholly Owned
Subsidiary) in connection with Indebtedness incurred by such plan or trust
for such period;
(e) all interest paid or payable with respect to discontinued
operations of Window Holdings or any of its Subsidiaries for such period,
(f) the interest portion of any deferred payment obligations of
Window Holdings or any of its Subsidiaries for such period;
(g) all interest on any Indebtedness of Window Holdings or any of
its Subsidiaries of the type described in clause (f) or (j) of the
definition of "Indebtedness" for such period;
provided that (a) to the extent directly related to the January 2004
Transactions or the 2006 Transactions, debt issuance costs, debt discount or
premium and other financing fees and expenses shall be excluded from the
calculation of Consolidated Interest Expense and (b) Consolidated Interest
Expense shall be calculated after giving effect to Hedging Agreements (including
associated costs), but excluding unrealized gains and losses with respect to
Hedging Agreements.
-12-
Consolidated Interest Expense shall be calculated on a Pro Forma
Basis to give effect to any Indebtedness incurred, assumed or permanently repaid
or extinguished during the relevant Test Period in connection with the
Acquisition, any Permitted Acquisitions and Asset Sales (other than any
dispositions in the ordinary course of business) as if such incurrence,
assumption, repayment or extinguishing had been effected on the first day of
such period.
"CONSOLIDATED NET INCOME" shall mean, for any period, the
consolidated net income (or loss) of Window Holdings and its Subsidiaries
determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included
therein), without duplication:
(a) the net income (or loss) of any person (other than a Subsidiary
of Window Holdings) in which any person other than Window Holdings and its
Subsidiaries has an ownership interest, except to the extent that cash in
an amount equal to any such income has actually been received by Window
Holdings or (subject to clause (b) below) any of its Subsidiaries during
such period;
(b) the net income of any Subsidiary of Window Holdings during such
period to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary of that income is not permitted
by operation of the terms of its Organizational Documents or any
agreement, instrument, judgment, decree, order, statute, rule or
regulation applicable to that Subsidiary during such period, except that
Window Holdings' equity in net loss of any such Subsidiary for such period
shall be included in determining Consolidated Net Income;
(c) any gain (or loss), together with any related provisions for
taxes on any such gain (or the tax effect of any such loss), realized
during such period by Window Holdings or any of its Subsidiaries upon any
Asset Sale (other than any dispositions in the ordinary course of
business) by Window Holdings or any of its Subsidiaries;
(d) gains and losses due solely to fluctuations in currency values
and the related tax effects determined in accordance with GAAP for such
period;
(e) earnings or losses resulting from any reappraisal, revaluation,
write-up or write-down of assets;
(f) unrealized gains and losses with respect to Hedging Obligations
for such period; and
(g) any extraordinary gain (or extraordinary loss), together with
any related provision for taxes on any such gain (or the tax effect of any
such loss), recorded or recognized by Window Holdings or any of its
Subsidiaries during such period.
"CONSOLIDATED TAX EXPENSE" shall mean, for any period, the tax
expense of Window Holdings and its Subsidiaries, for such period, determined on
a consolidated basis in accordance with GAAP.
-13-
"CONTESTED COLLATERAL LIEN CONDITIONS" shall mean, with respect to
any Permitted Lien of the type described in clauses (a), (b), (e) and (f) of
Section 6.02, the following conditions:
(a) Borrower shall cause any proceeding instituted contesting such
Lien to stay the sale or forfeiture of any portion of the Collateral on
account of such Lien;
(b) at the option and at the request of the Administrative Agent, to
the extent such Lien is in an amount in excess of $100,000, the
appropriate Loan Party shall maintain cash reserves in an amount
sufficient to pay and discharge such Lien and the Administrative Agent's
reasonable estimate of all interest and penalties related thereto; and
(c) such Lien shall in all respects be subject and subordinate in
priority to the Lien and security interest created and evidenced by the
Security Documents, except if and to the extent that the law or regulation
creating, permitting or authorizing such Lien provides that such Lien is
or must be superior to the Lien and security interest created and
evidenced by the Security Documents.
"CONTINGENT OBLIGATION" shall mean, as to any person, any
obligation, agreement, understanding or arrangement of such person guaranteeing
or intended to guarantee any Indebtedness, leases, dividends or other
obligations ("PRIMARY OBLIGATIONS") of any other person (the "PRIMARY OBLIGOR")
in any manner, whether directly or indirectly, including any obligation of such
person, whether or not contingent, (a) to purchase any such primary obligation
or any property constituting direct or indirect security therefor; (b) to
advance or supply funds (i) for the purchase or payment of any such primary
obligation or (ii) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor; (c) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation; (d) with respect
to bankers' acceptances, letters of credit and similar credit arrangements,
until a reimbursement obligation arises (which reimbursement obligation shall
constitute Indebtedness); or (e) otherwise to assure or hold harmless the holder
of such primary obligation against loss in respect thereof; provided that the
term "Contingent Obligation" shall not include endorsements of instruments for
deposit or collection in the ordinary course of business or any product
warranties. The amount of any Contingent Obligation shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Contingent Obligation is made (or, if less, the maximum
amount of such primary obligation for which such person may be liable, whether
singly or jointly, pursuant to the terms of the instrument evidencing such
Contingent Obligation) or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such person is required to
perform thereunder) as determined by such person in good faith.
"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 the terms "CONTROLLING" and "CONTROLLED" shall have meanings
correlative thereto.
"CONTROL AGREEMENT" shall have the meaning assigned to such term in
the Security Agreement.
"CONTROLLED INVESTMENT AFFILIATE" means, as to any person, any other
person which directly or indirectly is in Control of, is Controlled by, or is
under common Control with, such person and is organized by such person (or any
person Controlling such person) primarily for making equity or debt investments
in Holdings or other portfolio companies.
-14-
"CREDIT EXTENSION" shall mean, as the context may require, (i) the
making of a Loan by a Lender or (ii) the issuance of any Letter of Credit, or
the amendment, extension or renewal of any existing Letter of Credit, by the
Issuing Bank.
"DEBT ISSUANCE" shall mean the incurrence by Holdings or any of its
Subsidiaries of any Indebtedness after the Amendment and Restatement Effective
Date (other than as permitted by Section 6.01).
"DEFAULT" shall mean any event, occurrence or condition which is, or
upon notice, lapse of time or both would constitute, an Event of Default.
"DEFAULT RATE" shall have the meaning assigned to such term in
Section 2.06(c).
"DISQUALIFIED CAPITAL STOCK" shall mean any Equity Interest which,
by its terms (or by the terms of any security into which it is convertible or
for which it is exchangeable), or upon the happening of any event, (a) matures
(excluding any maturity as the result of an optional redemption by the issuer
thereof) or is mandatorily redeemable, pursuant to a sinking fund obligation or
otherwise, or is redeemable at the option of the holder thereof, in whole or in
part, on or prior to the first anniversary of the Final Maturity Date, (b) is
convertible into or exchangeable (unless at the sole option of the issuer
thereof) for (i) debt securities or (ii) any Equity Interests referred to in (a)
above, in each case at any time on or prior to the first anniversary of the
Final Maturity Date, or (c) contains any repurchase obligation (other than
customary change of control or asset sale proceeds repurchase obligations) which
may come into effect prior to payment in full of all Obligations.
"DIVIDEND" with respect to any person shall mean that such person
has declared or paid a dividend or returned any equity capital to the holders of
its Equity Interests or authorized or made any other distribution, payment or
delivery of property (other than Qualified Capital Stock of such person) or cash
to the holders of its Equity Interests as such, or redeemed, retired, purchased
or otherwise acquired, directly or indirectly, for consideration any of its
Equity Interests outstanding (or any options or warrants issued by such person
with respect to its Equity Interests), or set aside any funds for any of the
foregoing purposes, or shall have permitted any of its Subsidiaries to purchase
or otherwise acquire for consideration any of the Equity Interests of such
person outstanding (or any options or warrants issued by such person with
respect to its Equity Interests). Without limiting the foregoing, "Dividends"
with respect to any person shall also include all payments made or required to
be made by such person with respect to any stock appreciation rights, plans,
equity incentive or achievement plans or any similar plans or setting aside of
any funds for the foregoing purposes.
"DOLLARS" or "$" shall mean lawful money of the United States.
"ECF PERCENTAGE" shall mean, with respect to any fiscal year, the
applicable percentage set forth below across from the applicable First Lien
Secured Leverage Ratio as of the last day of such fiscal year:
First Lien Secured Leverage Ratio Applicable Percentage
--------------------------------- ---------------------
> 3.0:1.0................................... 75%
> 1.5:1.0 and < or = 3.0:1.0................ 50%
< or = 1.5:1.0............................... 25%
-15-
"EMBARGOED PERSON" shall have the meaning assigned to such term in
Section 6.18.
"ENVIRONMENT" shall mean ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, natural resources, the workplace or as otherwise defined in
any Environmental Law.
"ENVIRONMENTAL CLAIM" shall mean any claim, notice, demand, order,
action, suit, proceeding or other communication alleging liability for
investigation, remediation, removal, cleanup, response, corrective action,
damages to natural resources, personal injury, property damage, fines, penalties
or other costs resulting from, related to or arising out of (i) the presence,
Release or threatened Release in or into the Environment of Hazardous Material
at any location or (ii) any violation of Environmental Law, and shall include
any claim seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from, related to or arising out of
the presence, Release or threatened Release of Hazardous Material or alleged
injury or threat of injury to health, safety or the Environment.
"ENVIRONMENTAL LAW" shall mean any and all applicable present and
future treaties, laws, statutes, ordinances, regulations, rules, decrees,
orders, judgments, consent orders, consent decrees or other binding
requirements, and the common law, relating to protection of public health or the
Environment, the Release or threatened Release of Hazardous Material, natural
resources or natural resource damages, or occupational safety or health.
"ENVIRONMENTAL PERMIT" shall mean any permit, license, approval,
consent or other authorization required by or from a Governmental Authority
under Environmental Law.
"EQUIPMENT" shall have the meaning assigned to such term in the
Security Agreement.
"EQUITY FINANCING" shall mean the cash equity investment in PGT
Holding, which, when taken together with the Rollover Equity, shall be not less
than $155.0 million, by the Equity Investors, on terms and conditions reasonably
satisfactory to the Administrative Agent as the same (other than the portion
constituting Rollover Equity) is further invested in cash equity in Borrower on
or prior to the Closing Date.
"EQUITY INTEREST" shall mean, with respect to any person, any and
all shares, interests, participations or other equivalents, including membership
interests (however designated, whether voting or nonvoting), of equity of such
person, including, if such person is a partnership, partnership interests
(whether general or limited) and any other interest or participation that
confers on a person the right to receive a share of the profits and losses of,
or distributions of property of, such partnership, whether outstanding on the
date hereof or issued after the Closing Date, but excluding debt securities
convertible or exchangeable into such equity.
"EQUITY INVESTORS" shall mean Sponsor, its Controlled Investment
Affiliates and one or more investors reasonably satisfactory to the
Administrative Agent and the Arranger.
"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, with respect to any person, any trade
or business (whether or not incorporated) that, together with such person, is
treated as a single employer under Section 414 of the Code.
-16-
"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 (other than an event for which the 30-day notice period is waived by
regulation); (b) 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; (c) the failure to make by its due date a
required installment under Section 412(m) of the Code with respect to any Plan
or the failure to make any required contribution to a Multiemployer Plan; (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 by any Company or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(f) the receipt by any Company or any of its ERISA Affiliates from the PBGC or a
plan administrator of any notice relating to the intention to terminate any Plan
or Plans or to appoint a trustee to administer any Plan, or the occurrence of
any event or condition which could reasonably be expected to constitute grounds
under ERISA for the termination of, or the appointment of a trustee to
administer, any Plan; (g) the incurrence by any Company or any of its ERISA
Affiliates of any liability with respect to the withdrawal from any Plan or
Multiemployer Plan; (h) the receipt by any Company or its ERISA Affiliates 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; (i) the "substantial
cessation of operations" within the meaning of Section 4062(e) of ERISA with
respect to a Plan; (j) the making of any amendment to any Plan which could
result in the imposition of a lien or the posting of a bond or other security
and (k) the occurrence of a nonexempt prohibited transaction (within the meaning
of Section 4975 of the Code or Section 406 of ERISA) which could reasonably be
expected to result in liability to any Company.
"EURODOLLAR BORROWING" shall mean a Borrowing comprised of
Eurodollar Loans.
"EURODOLLAR LOAN" shall mean any Eurodollar Revolving Loan or
Eurodollar Term Loan.
"EURODOLLAR REVOLVING BORROWING" shall mean a Borrowing comprised of
Eurodollar Revolving Loans.
"EURODOLLAR REVOLVING LOAN" shall mean any Revolving Loan bearing
interest at a rate determined by reference to the Adjusted LIBOR Rate in
accordance with the provisions of Article II.
"EURODOLLAR TERM LOAN" shall mean any Term Loan bearing interest at
a rate determined by reference to the Adjusted LIBOR Rate in accordance with the
provisions of Article II.
"EVENT OF DEFAULT" shall have the meaning assigned to such term in
Article VIII.
"EXCESS AMOUNT" shall have the meaning assigned to such term in
Section 2.10(h)(ii).
"EXCESS CASH FLOW" shall mean, for any Excess Cash Flow Period, the
sum, without duplication, of
(a) Consolidated EBITDA for such period, minus
(b) increases to Net Working Capital for such period (other than to
the extent attributable to deferred taxes and/or Hedging Agreements), plus
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(c) decreases to Net Working Capital for such period (other than to
the extent attributable to deferred taxes and/or Hedging Agreements),
minus
(d) cash interest (including, without limitation, cash payments made
under Hedging Agreements during such period), commitment fees, Letter of
Credit fees and other fees associated with any Loan Document or any other
Indebtedness paid by Window Holdings and its Subsidiaries during such
period, minus
(e) permanent repayments and prepayments of Indebtedness by Window
Holdings and its Subsidiaries during such period (except to the extent
such repayments or prepayments were made in connection with a
refinancing), minus
(f) fees and expenses directly incurred in connection with the 2006
Transactions to the extent increasing Consolidated EBITDA during such
period pursuant to clause (e)(ii) of the definition thereof, minus
(g) Capital Expenditures made in cash in accordance with Section
6.10(d) during such period (other than Capital Expenditures funded by
Excluded Issuances), minus
(h) aggregate amount of Investments made in cash during such period
pursuant to Sections 6.04(e), (i) and (j) (other than Investments made
with Excluded Issuances), minus
(i) taxes of Window Holdings and its Subsidiaries that were paid in
cash (less any tax refunds) during such period or will be paid within six
months after the end of such period for which reserves have been
established, minus
(j) if not deducted in determining Consolidated EBITDA, the
Management Fees paid during such period in compliance with Section
6.09(e), plus
(k) to the extent not included in the calculation of Consolidated
EBITDA, cash received under Hedging Agreements, plus
(l) the net effect of all other cash items that were excluded from
the calculation of Consolidated EBITDA and/or Consolidated Net Income, by
operation of the respective definitions thereof,
provided that, to the extent otherwise included therein, the Net Cash Proceeds
of Asset Sales (other than under Section 6.06(b)) and Casualty Events, in each
case, to the extent applied in accordance with the applicable provisions of
Section 2.10 shall be deducted in calculating Excess Cash Flow.
"EXCESS CASH FLOW PERIOD" shall mean (i) the fiscal year of Borrower
ending December 30, 2006 and (ii) each fiscal year of Borrower thereafter.
"EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.
"EXCLUDED ISSUANCE" shall mean an issuance and sale of Qualified
Capital Stock of Holdings to the Equity Investors, to the extent such Qualified
Capital Stock is used, or the Net Cash Proceeds thereof shall be, within 45 days
of the consummation of such issuance and sale, used, without duplication, to
finance Capital Expenditures or one or more Permitted Acquisitions or Permitted
Investments.
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"EXCLUDED TAXES" shall mean, with respect to the Administrative
Agent, any Lender, the Issuing Bank or any other recipient of any payment to be
made by or on account of any obligation of Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income or net profits
(however denominated) by the United States, or by the jurisdiction (or any
political subdivision thereof) under the laws of which such recipient is
organized, conducts business (other than a business deemed to arise by virtue of
the transactions contemplated by this Agreement) or in which its principal
office is located or, in the case of any Lender, in which its applicable lending
office is located, (b) any branch profit taxes imposed by the United States or
any similar tax imposed by any other jurisdiction and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by Borrower under
Section 2.16), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement
(or designates a new lending office) or is attributable to such Foreign Lender's
failure to comply with Section 2.15(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a
new lending office (or assignment), to receive additional amounts from Borrower
with respect to such withholding tax pursuant to Section 2.15(a) (it being
understood and agreed, for the avoidance of doubt, that any withholding tax
imposed on a Foreign Lender as a result of a Change in Law or regulation or
interpretation thereof occurring after the time such Foreign Lender became a
party to this Agreement shall not be an Excluded Tax).
"EXECUTIVE ORDER" shall have the meaning assigned to such term in
Section 3.22.
"EXECUTIVE ORDERS" shall have the meaning assigned to such term in
Section 6.18.
"EXISTING LIEN" shall have the meaning assigned to such term in
Section 6.02(c).
"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 of the United States arranged by federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day 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.
"FEE LETTER" shall mean the confidential Fee Letter, dated December
18, 2003, among Window Holdings, UBS Loan Finance LLC and UBS Securities LLC.
"FEES" shall mean the Commitment Fees, the Administrative Agent
Fees, the LC Participation Fees and the Fronting Fees.
"FINAL MATURITY DATE" shall mean the later of the Revolving Maturity
Date and the Term Loan Maturity Date.
"FINANCIAL OFFICER" of any person shall mean the chief financial
officer, principal accounting officer, treasurer or controller of such person.
"FIRREA" shall mean the Federal Institutions Reform, Recovery and
Enforcement Act of 1989, as amended.
"FIRST AMENDMENT" shall have the meaning assigned to such term in
the recitals hereto.
"FIRST AMENDMENT AND RESTATEMENT" shall have the meaning assigned to
such term in the recitals hereto.
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"FIRST CREDIT AGREEMENT" shall have the meaning assigned to such
term in the recitals hereto.
"FIRST LIEN SECURED LEVERAGE RATIO" means, at any date of
determination, the ratio of Consolidated First Lien Secured Indebtedness on such
date to Consolidated EBITDA for the Test Period then most recently ended.
"FIRST PRIORITY" shall mean with respect to any Lien purported to be
created in any Collateral pursuant to any Security Document, that such Lien is
the most senior Lien to which such Collateral is subject.
"FOREIGN LENDER" shall mean any Lender that is not, for United
States federal income tax purposes, (i) a citizen or resident of the United
States, (ii) a corporation or entity treated as a corporation created or
organized in or under the laws of the United States, or any political
subdivision thereof, (iii) an estate whose income is subject to U.S. federal
income taxation regardless of its source or (iv) a trust if a court within the
United States is able to exercise primary supervision over the administration of
such trust and one or more United States persons have the authority to control
all substantial decisions of such trust.
"FOREIGN SUBSIDIARY" shall mean a Subsidiary that is organized under
the laws of, and conducts substantially all of its business in, a jurisdiction
other than the United States or any state thereof or the District of Columbia.
"FRONTING FEE" shall have the meaning assigned to such term in
Section 2.05(c).
"GAAP" shall mean generally accepted accounting principles in the
United States applied on a consistent basis.
"GLASS PLANT PURCHASE" shall mean the one time acquisition by
Borrower of the plant and related land currently leased pursuant to a lease
dated January 29, 2001 between P.E.H. Investments L.L.C. and PGT Industries for
premises at ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, which occurred on March 5,
2004.
"GOVERNMENTAL AUTHORITY" shall mean any federal, state, local or
foreign court, central bank or governmental agency, authority, instrumentality
or regulatory body or any subdivision thereof.
"GOVERNMENTAL REAL PROPERTY DISCLOSURE REQUIREMENTS" shall mean any
Requirement of Law of any Governmental Authority requiring notification of the
buyer, lessee, mortgagee, assignee or other transferee of any Real Property,
facility, establishment or business, or notification, registration or filing to
or with any Governmental Authority, in connection with the sale, lease,
mortgage, assignment or other transfer (including any transfer of control) of
any Real Property, facility, establishment or business, of the actual or
threatened presence or Release in or into the Environment, or the use, disposal
or handling of Hazardous Material on, at, under or near the Real Property,
facility, establishment or business to be sold, leased, mortgaged, assigned or
transferred.
"GUARANTEED OBLIGATIONS" shall have the meaning assigned to such
term in Section 7.01.
"GUARANTEES" shall mean the guarantees issued pursuant to Article
VII by Holdings, the Subsidiary Guarantors and each Additional Equity Partner.
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"GUARANTORS" shall mean Holdings, the Subsidiary Guarantors and each
Additional Equity Partner that becomes a party hereto.
"HAZARDOUS MATERIALS" shall mean the following: hazardous
substances; hazardous wastes; polychlorinated biphenyls ("PCBS") or any
substance or compound containing PCBs; asbestos or any asbestos-containing
materials in any form or condition; radon or any other radioactive materials
including any source, special nuclear or by-product material; petroleum, crude
oil or any fraction thereof; and any other pollutant or contaminant or
chemicals, wastes, materials, compounds, constituents or substances, subject to
regulation or which can give rise to liability under any Environmental Laws.
"HEDGING AGREEMENT" shall mean any swap, cap, collar, forward
purchase or similar agreements or arrangements dealing with interest rates,
currency exchange rates or commodity prices, either generally or under specific
contingencies.
"HEDGING OBLIGATIONS" shall mean obligations under or with respect
to Hedging Agreements.
"HOLDINGS" shall have the meaning assigned to such term in the
preamble hereto.
"HOLDINGS INTERCOMPANY MERGER" shall have the meaning assigned to
such term in the recitals hereto.
"INDEBTEDNESS" of any person shall mean, without duplication, (a)
all obligations of such person for borrowed money or advances; (b) all
obligations of such person evidenced by bonds, debentures, notes or similar
instruments; (c) all obligations of such person upon which interest charges are
customarily paid or accrued; (d) all obligations of such person under
conditional sale or other title retention agreements relating to property
purchased by such person; (e) 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 on
normal trade terms and (i) not overdue by more than 90 days or (ii) if so
overdue, are being contested in good faith); (f) all Indebtedness of others
secured by any Lien on property owned or acquired by such person, whether or not
the obligations secured thereby have been assumed, but limited to the fair
market value of such property; (g) all Capital Lease Obligations, Purchase Money
Obligations and synthetic lease obligations of such person; (h) all Hedging
Obligations to the extent required to be reflected on a balance sheet of such
person; (i) all obligations of such person for the reimbursement of any obligor
in respect of letters of credit, letters of guaranty, bankers' acceptances and
similar credit transactions; and (j) all Contingent Obligations of such person
in respect of Indebtedness or obligations of others of the kinds referred to in
clauses (a) through (i) above. The Indebtedness of any person shall include the
Indebtedness of any other entity (including any partnership in which such person
is a general partner) to the extent such person is liable therefor as a result
of such person's ownership interest in or other relationship with such entity,
except (other than in the case of general partner liability) to the extent that
terms of such Indebtedness expressly provide that such person is not liable
therefor.
"INDEMNIFIED TAXES" shall mean Taxes other than Excluded Taxes.
"INDEMNITEE" shall have the meaning assigned to such term in Section
11.03(b).
"INFORMATION" shall have the meaning assigned to such term in
Section 11.12.
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"INSURANCE POLICIES" shall mean the insurance policies and coverages
required to be maintained by each Loan Party which is an owner of Mortgaged
Property with respect to the applicable Mortgaged Property pursuant to Section
5.04 and all renewals and extensions thereof.
"INSURANCE REQUIREMENTS" shall mean, collectively, all provisions of
the Insurance Policies, all requirements of the issuer of any of the Insurance
Policies and all orders, rules, regulations and any other requirements of the
National Board of Fire Underwriters (or any other body exercising similar
functions) binding upon each Loan Party which is an owner of Mortgaged Property
and applicable to the Mortgaged Property or any use or condition thereof.
"INTELLECTUAL PROPERTY" shall have the meaning assigned to such term
in Section 3.06(a).
"INTERCREDITOR AGREEMENT" shall mean that certain Intercreditor
Agreement dated as of the Amendment and Restatement Effective Date among the
Collateral Agent and the Second Lien Collateral Agent, and consented to by the
Loan Parties, substantially in the form of Exhibit R.
"INTERCOMPANY LOAN" shall have the meaning assigned to such term in
the recitals hereto.
"INTERCOMPANY NOTE" shall mean a promissory note substantially in
the form of Exhibit P.
"INTEREST ELECTION REQUEST" shall mean a request by Borrower to
convert or continue a Revolving Borrowing or Term Borrowing in accordance with
Section 2.08(b), substantially in the form of Exhibit E.
"INTEREST PAYMENT DATE" shall mean (a) with respect to any ABR Loan
(including Swingline Loans), the last Business Day of each March, June,
September and December to occur during any period in which such Loan is
outstanding, (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a part and, in
the case of a Eurodollar Loan with an Interest Period of more than three months'
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months' duration after the first day of such Interest Period,
(c) with respect to any Tranche A-1 Revolving Loan or Swingline Loan, the
Revolving Maturity Date or such earlier date on which the Tranche A-1 Revolving
Commitments are terminated and (d) with respect to any Term Loan, the Term Loan
Maturity Date.
"INTEREST PERIOD" shall mean, with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as Borrower may elect; provided that (a) 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 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, and (b) any Interest Period
that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of
such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period. For purposes hereof, the date of a Borrowing
initially shall be the date on which such Borrowing is made and thereafter shall
be the effective date of the most recent conversion or continuation of such
Borrowing; provided that an Interest Period shall be limited to the extent
required under Section 2.03(e).
"INVESTMENTS" shall have the meaning assigned to such term in
Section 6.04.
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"IPO" shall mean the first underwritten public offering by Holdings
of its Equity Interests after the Closing Date pursuant to a registration
statement filed with the Securities and Exchange Commission in accordance with
the Securities Act.
"ISSUING BANK" shall mean, as the context may require, (a) UBS AG,
Stamford Branch, with respect to Letters of Credit issued by it; (b) any other
Lender that may become an Issuing Bank pursuant to Sections 2.18(j) and (k) with
respect to Letters of Credit issued by such Lender; or (c) collectively, all of
the foregoing.
"JANUARY 2004 TRANSACTIONS" shall mean, collectively, the
transactions to occur on or prior to the Closing Date pursuant to the
Acquisition Documents and the Original Credit Agreement, including (a) the
consummation of the Acquisition; (b) the execution, delivery and performance of
the Loan Documents and the initial borrowings hereunder; (c) the Refinancing;
(d) the Equity Financing; (e) the issuance of the Rollover Equity (f) the
placement of the Intercompany Loan; (g) the consummation of the Merger; and (h)
the payment of all fees and expenses to be paid on or prior to the Closing Date
and owing in connection with the foregoing.
"LANDLORD ACCESS AGREEMENT" shall mean a Landlord Access Agreement,
substantially in the form of Exhibit G, or such other form as may reasonably be
acceptable to the Administrative Agent.
"LC COMMITMENT" shall mean the commitment of the Issuing Bank to
issue Letters of Credit pursuant to Section 2.18. The amount of the LC
Commitment shall initially be $10.0 million, but in no event exceed the Tranche
A-1 Revolving Commitment.
"LC DISBURSEMENT" shall mean a payment or disbursement made by the
Issuing Bank pursuant to a Letter of Credit.
"LC 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 Reimbursement Obligations outstanding at such
time. The LC Exposure of any Tranche A-1 Revolving Lender at any time shall mean
its Pro Rata Percentage of the aggregate LC Exposure at such time.
"LC PARTICIPATION FEE" shall have the meaning assigned to such term
in Section 2.05(c).
"LC REQUEST" shall mean a request by Borrower in accordance with the
terms of Section 2.18(b) and substantially in the form of Exhibit H, or such
other form as shall be approved by the Administrative Agent.
"LEASES" shall mean any and all leases, subleases, tenancies,
options, concession agreements, rental agreements, occupancy agreements,
franchise agreements, access agreements and any other agreements (including all
amendments, extensions, replacements, renewals, modifications and/or guarantees
thereof), whether or not of record and whether now in existence or hereafter
entered into, affecting the use or occupancy of all or any portion of any Real
Property.
"LENDER ADDENDUM" shall mean with respect to any Lender on the
Closing Date, a lender addendum in the form of Exhibit I, attached to the First
Credit Agreement executed and delivered by such Lender on the Closing Date, and
with respect to any Tranche A-2 Term Loan Lender and any Tranche A-1 Revolving
Lender on the Amendment and Restatement Effective Date, a lender addendum
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in the form of Exhibit I attached hereto to be executed and delivered by such
Lender on the Amendment and Restatement Effective Date as provided in Section
11.14.
"LENDERS" shall mean (a) the financial institutions and investment
funds that have become a party hereto pursuant to a Lender Addendum and (b) any
financial institution or investment fund that has become a party hereto pursuant
to an Assignment and Acceptance, other than, in each case, any such financial
institution that has ceased to be a party hereto pursuant to an Assignment and
Acceptance. Unless the context clearly indicates otherwise, the term "Lenders"
shall include the Swingline Lender.
"LETTER OF CREDIT" shall mean any (i) Standby Letter of Credit and
(ii) Commercial Letter of Credit, in each case, issued or to be issued by an
Issuing Bank for the account of Borrower pursuant to Section 2.18.
"LETTER OF CREDIT EXPIRATION DATE" shall mean the date which is
fifteen days prior to the Revolving Maturity Date.
"LIBOR RATE" shall mean, with respect to any Eurodollar Borrowing
for any Interest Period therefor, the rate per annum determined by the
Administrative Agent to be the arithmetic mean (rounded to the nearest 1/100th
of 1%) of the offered rates for deposits in dollars with a term comparable to
such Interest Period that appears on the Telerate British Bankers Assoc.
Interest Settlement Rates Page (as defined below) at approximately 11:00 a.m.,
London, England time, on the second full Business Day preceding the first day of
such Interest Period; provided, however, that (i) if no comparable term for an
Interest Period is available, the LIBOR Rate shall be determined using the
weighted average of the offered rates for the two terms most nearly
corresponding to such Interest Period and (ii) if there shall at any time no
longer exist a Telerate British Bankers Assoc. Interest Settlement Rates Page,
"LIBOR Rate" shall mean, with respect to each day during each Interest Period
pertaining to Eurodollar Borrowings comprising part of the same Borrowing, the
rate per annum equal to the rate at which the Administrative Agent is offered
deposits in dollars at approximately 11:00 a.m., London, England time, two
Business Days prior to the first day of such Interest Period in the London
interbank market for delivery on the first day of such Interest Period for the
number of days comprised therein and in an amount comparable to its portion of
the amount of such Eurodollar Borrowing to be outstanding during such Interest
Period. "TELERATE BRITISH BANKERS ASSOC. INTEREST SETTLEMENT RATES PAGE" shall
mean the display designated as Page 3750 on the Telerate System Incorporated
Service (or such other page as may replace such page on such service for the
purpose of displaying the rates at which dollar deposits are offered by leading
banks in the London interbank deposit market).
"LIEN" shall mean, with respect to any property, (a) any mortgage,
deed of trust, lien, pledge, encumbrance, claim, charge, assignment,
hypothecation, security interest or encumbrance of any kind or any filing of any
financing statement under the UCC or any other similar notice of Lien under any
similar notice or recording statute of any Governmental Authority, including any
easement, right-of-way or other encumbrance on title to Real Property, in each
of the foregoing cases whether voluntary or imposed by law, and any agreement to
give any of the foregoing; (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 property; and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.
"LOAN DOCUMENTS" shall mean this Agreement (including the Original
Credit Agreement), the Amendment Agreement, the Letters of Credit, the Notes (if
any), the Security Documents, the Intercreditor Agreement, each Hedging
Obligation relating to the Loans entered into with any counter-
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party that was a Lender or an Affiliate of a Lender at the time such Hedging
Obligation was entered into and, solely for purposes of paragraph (e) of Article
VIII hereof, the Fee Letter.
"LOAN PARTIES" shall mean Holdings, Borrower and the Subsidiary
Guarantors.
"LOANS" shall mean, as the context may require, a Revolving Loan, a
Term Loan or a Swingline Loan (and shall include any Replacement Term Loans (as
defined in Section 11.02(d)).
"MANAGEMENT FEES" shall have the meaning set forth in Section
6.09(e).
"MANAGEMENT SERVICES AGREEMENT" shall have the meaning set forth in
Section 6.09.
"MARGIN STOCK" shall have the meaning assigned to such term in
Regulation U.
"MATERIAL ADVERSE EFFECT" shall mean (a) a material adverse effect
on the business, property, assets, results of operations, condition (financial
or otherwise), liabilities or material agreements of Borrower and its
Subsidiaries, taken as a whole; (b) material impairment of the ability of the
Loan Parties to fully and timely perform any of their obligations under any Loan
Document; (c) material impairment of the rights of or benefits or remedies
available to the Lenders or the Collateral Agent under any Loan Document; or (d)
a material adverse effect on the Collateral or the Liens in favor of the
Collateral Agent (for its benefit and for the benefit of the other Secured
Parties) on the Collateral or the priority of such Liens.
"MATERIAL CASUALTY EVENT" shall have the meaning assigned to such
term in Section 3.05(c).
"MAXIMUM RATE" shall have the meaning assigned to such term in
Section 11.13.
"MERGER" shall have the meaning assigned to such term in the
recitals hereto.
"MOODY'S" means ▇▇▇▇▇'▇ Investors Service Inc. or any successor
thereto.
"MORTGAGE" shall mean an agreement, including, but not limited to, a
mortgage, deed of trust or any other document, creating and evidencing a Lien on
a Mortgaged Property (including as amended by any Mortgage Amendment with
respect thereto, if any), which shall be substantially in the form of Exhibit I
or other form reasonably satisfactory to the Collateral Agent with such
schedules and including such provisions as shall be necessary to conform such
document to applicable local or foreign law or as shall be customary under
applicable local or foreign law and, in each case, which Mortgage shall be
subject to the Intercreditor Agreement.
"MORTGAGE AMENDMENT" shall have the meaning assigned to such term in
Section 4.01(B)(o)(i).
"MORTGAGED PROPERTY" shall mean (a) each Real Property identified on
Schedule 1.01(a) hereto, which shall be subject to a Mortgage hereunder and (b)
each Real Property, if any, which shall be subject to a Mortgage delivered after
the Closing Date pursuant to Section 5.11(c).
"MULTIEMPLOYER PLAN" shall mean a multiemployer plan within the
meaning of Section 4001(a)(3) of ERISA (a) to which any Company or any ERISA
Affiliate is then making or accruing an obligation to make contributions; (b) to
which any Company or any ERISA Affiliate has within the
-25-
preceding five plan years made contributions; or (c) with respect to which any
Company could incur liability.
"NET CASH PROCEEDS" shall mean:
(a) with respect to any Asset Sale (other than any issuance or sale
of Equity Interests), the cash proceeds received by Holdings or any of its
Subsidiaries (including cash proceeds subsequently received (as and when
received by Holdings or any of its Subsidiaries) in respect of non-cash
consideration initially received) net of (i) selling expenses (including
reasonable brokers' fees or commissions, legal, accounting and other
professional and transactional fees, transfer and similar taxes and
Borrower's good faith estimate of income taxes paid or payable in
connection with such sale); (ii) amounts provided as a reserve, in
accordance with GAAP, against (x) any liabilities under any
indemnification obligations associated with such Asset Sale or (y) any
other liabilities retained by Holdings or any of its Subsidiaries
associated with the properties sold in such Asset Sale (provided that, to
the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Cash Proceeds); (iii)
Borrower's good faith estimate of payments required to be made with
respect to unassumed liabilities relating to the properties sold within 90
days of such Asset Sale (provided that, to the extent such cash proceeds
are not used to make payments in respect of such unassumed liabilities
within 90 days of such Asset Sale, such cash proceeds shall constitute Net
Cash Proceeds); and (iv) the principal amount, premium or penalty, if any,
interest and other amounts on any Indebtedness (including Capital Leases)
for borrowed money which is secured by a Lien on the properties sold in
such Asset Sale (so long as such Lien was permitted to encumber such
properties under the Loan Documents at the time of such sale) and which is
repaid with such proceeds (other than any such Indebtedness assumed by the
purchaser of such properties);
(b) with respect to any Debt Issuance or issuance or sale of Equity
Interests by Holdings or any of its Subsidiaries, the cash proceeds
thereof, net of customary fees, commissions, costs and other expenses
incurred in connection therewith; and
(c) with respect to any Casualty Event, the cash insurance proceeds,
condemnation awards and other compensation received in respect thereof
(other than proceeds from customary business interruption insurance), net
of all reasonable costs and expenses incurred in connection with the
collection of such proceeds, awards or other compensation in respect of
such Casualty Event.
"NET WORKING CAPITAL" shall mean, at any time, Consolidated Current
Assets at such time minus Consolidated Current Liabilities at such time.
"NEW NORTH CAROLINA PLANT" shall mean the proposed new manufacturing
facility anticipated to be located in North Carolina.
"NEW SECURITY DOCUMENTS" shall mean the Amended and Restated
Security Agreement and the Mortgage Amendments and each other amendment to any
Security Document delivered in accordance with applicable local or foreign law
to grant a valid, perfected security interest in any property as collateral for
the Obligations, and all UCC or other financing statements or instruments of
perfection required by this Agreement, the Amended and Restated Security
Agreement, any Mortgage Amendments or any other such security document or pledge
agreement to be filed with respect to the security interests in property and
fixtures created pursuant to the Amended and Restated Security Agreement or any
Mortgage Amendment.
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"NOTES" shall mean any notes evidencing the Term Loans, Revolving
Loans or Swingline Loans issued pursuant to this Agreement, if any,
substantially in the form of Exhibit K-1, K-2 or K-3.
"OBLIGATIONS" shall mean (a) obligations of Borrower and the other
Loan Parties from time to time arising under or in respect of the due and
punctual payment of (i) the principal of and premium, if any, and interest
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by Borrower and the other Loan
Parties under this Agreement in respect of any Letter of Credit, when and as
due, including payments in respect of Reimbursement Obligations, interest
thereon and obligations to provide cash collateral and (iii) all other monetary
obligations, including fees, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), of Borrower and the other Loan Parties under this
Agreement and the other Loan Documents owing to the Secured Parties (in their
capacity as such), (b) the due and punctual performance of all covenants,
agreements, obligations and liabilities of Borrower and the other Loan Parties
under or pursuant to this Agreement and the other Loan Documents owing to the
Secured Parties (in their capacity as such), (c) the due and punctual payment
and performance of all obligations of Borrower and the other Loan Parties under
each Hedging Agreement relating to the Loans entered into with any counterparty
that was a Lender or Affiliate of a Lender at the time such Hedging Agreement
was entered into and (d) the due and punctual payment and performance of all
obligations in respect of overdrafts and related liabilities owed to any Lender,
any Affiliate of a Lender, the Administrative Agent or the Collateral Agent
arising from treasury, depositary and cash management services or in connection
with any automated clearinghouse transfer of funds.
"OFAC" shall have the meaning assigned to such term in Section 3.22.
"OFFICERS' CERTIFICATE" shall mean a certificate executed by (i) the
chairman of the Board of Directors (if an officer), the chief executive officer,
chief operating officer or the president and (ii) one of the Financial Officers,
each in his or her official (and not individual) capacity.
"ORGANIZATIONAL DOCUMENTS" shall mean, with respect to any person,
(i) in the case of any corporation, the certificate of incorporation and by-laws
(or similar documents) of such person, (ii) in the case of any limited liability
company, the certificate of formation and operating agreement (or similar
documents) of such person, (iii) in the case of any limited partnership, the
certificate of formation and limited partnership agreement (or similar
documents) of such person, (iv) in the case of any general partnership, the
partnership agreement (or similar document) of such person and (v) in any other
case, the functional equivalent of the foregoing.
"ORIGINAL CREDIT AGREEMENT" shall have the meaning assigned to such
term in the recitals hereto.
"ORIGINAL SECURITY AGREEMENT" shall have the meaning assigned to
such term in the definition of "Security Agreement."
"ORIGINAL SECURITY DOCUMENTS" shall have the meaning assigned to
such term in the recitals hereto.
"OTHER LIST" shall have the meaning assigned to such term in Section
6.18.
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"OTHER TAXES" shall mean any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies (including interest, fines, penalties and additions to tax) arising from
any payment made or required to be made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.
"OVERDRAFT OBLIGATIONS" shall mean the obligations described in
clause (d) of the definition of "Obligations."
"PARTICIPANT" shall have the meaning assigned to such term in
Section 11.04(e).
"PBGC" shall mean the Pension Benefit Guaranty Corporation referred
to and defined in ERISA.
"PERFECTION CERTIFICATE" shall mean a certificate in the form of
Exhibit L-1 or any other form approved by the Collateral Agent, as the same
shall be supplemented from time to time by a Perfection Certificate Supplement
or otherwise.
"PERFECTION CERTIFICATE SUPPLEMENT" shall mean a certificate
supplement in the form of Exhibit L-2 or any other form approved by the
Collateral Agent.
"PERMITTED ACQUISITION" shall mean any transaction or series of
related transactions for the direct or indirect (a) acquisition of all or
substantially all of the property of any person, or of any business or division
of any person; (b) acquisition of in excess of 50% of the Equity Interests of
any person, and otherwise causing such person to become a Subsidiary of such
person; or (c) merger or consolidation or any other combination with any person,
if each of the following conditions is met:
(i) no Default is continuing or would result therefrom;
(ii) after giving effect to such transaction on a Pro Forma Basis,
Window Holdings shall be in compliance with all covenants set forth in
Section 6.10 as of the most recent Test Period (assuming, for purposes of
Section 6.10, that such transaction, and all other Permitted Acquisitions
consummated since the first day of the relevant Test Period for each of
the covenants set forth in Section 6.10 ending on or prior to the date of
such transaction, had occurred on the first day of such relevant Test
Period);
(iii) no Company shall, in connection with any such transaction,
assume or remain liable with respect to any Indebtedness or other
liability (including any material tax or ERISA liability) of the related
seller or the business, person or properties acquired, except (A) to the
extent permitted under Section 6.01 and (B) obligations not constituting
Indebtedness incurred in the ordinary course of business, and any other
such liabilities or obligations not permitted to be assumed or otherwise
supported by any Company hereunder shall be paid in full or released as to
the business, persons or properties being so acquired on or before the
consummation of such acquisition;
(iv) the person or business to be acquired shall be, or shall be
engaged in, a business of the type that Borrower and the Subsidiaries are
permitted to be engaged in under Section 6.15 and the property acquired in
connection with any such transaction shall be made subject to the Lien of
the Security Documents and shall be free and clear of any Liens, other
than Permitted Collateral Liens;
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(v) the Board of Directors of the person to be acquired shall not
have indicated publicly its opposition to the consummation of such
acquisition (which opposition has not been publicly withdrawn);
(vi) all transactions in connection therewith shall be consummated
in accordance with all applicable laws of all applicable Governmental
Authorities;
(vii) with respect to any transaction involving Acquisition
Consideration of more than $10.0 million, unless the Administrative Agent
shall otherwise agree, Borrower shall have provided the Administrative
Agent and the Lenders with (A) historical financial statements for the
last three fiscal years of the person or business to be acquired (audited
if available without undue cost or delay) and unaudited financial
statements thereof for the most recent interim period which are available,
(B) reasonably detailed projections for the succeeding five years
pertaining to the person or business to be acquired and updated
projections for Borrower after giving effect to such transaction, (C) a
reasonably detailed description of all material information relating
thereto and copies of all material documentation pertaining to such
transaction, and (D) all such other information and data relating to such
transaction or the person or business to be acquired as may be reasonably
requested by the Administrative Agent or the Required Lenders;
(viii) at least 5 Business Days prior to the proposed date of
consummation of the transaction, Borrower shall have delivered to the
Agents and the Lenders an Officers' Certificate certifying that (A) such
transaction complies with this definition (which shall have attached
thereto reasonably detailed backup data and calculations showing such
compliance), and (B) such transaction could not reasonably be expected to
result in a Material Adverse Effect; and
(ix) the Acquisition Consideration (exclusive of any amounts
financed by Excluded Issuances) for such acquisition shall not exceed
$25.0 million (other than in connection with the Glass Plant Purchase,
which occurred on March 5, 2004) and the aggregate amount of the
Acquisition Consideration (exclusive of any amounts financed by Excluded
Issuances) for all Permitted Acquisitions (other than the Glass Plant
Purchase, which occurred on March 5, 2004) since the Closing Date shall
not exceed $45.0 million; provided that any Equity Interests constituting
all or a portion of such Acquisition Consideration shall not have a cash
dividend requirement on or prior to the Final Maturity Date.
"PERMITTED COLLATERAL LIENS" means (i) Contested Liens (as defined
in the Security Agreement), (ii) the Liens described in clauses (a), (b), (c),
(d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) of Section
6.02 and (iii) in the case of Mortgaged Property, "Permitted Collateral Liens"
shall mean the Liens described in clauses (a), (b), (d), (e), (g) and (l) of
Section 6.02; provided, however upon the Closing Date or upon the date of
delivery of each additional Mortgage under Section 5.11 or 5.12, Permitted
Collateral Liens shall mean only those Liens set forth in Schedule B to the
applicable Mortgage.
"PERMITTED HOLDERS" shall mean (a) Sponsor and (b) its Controlled
Investment Affiliates.
"PERMITTED LIENS" shall have the meaning assigned to such term in
Section 6.02.
"PERMITTED NORTH CAROLINA SALE AND LEASEBACK TRANSACTION" shall mean
a Sale and Leaseback Transaction entered into in connection with the New North
Carolina Plant, provided that (i) all of the assets sold or transferred in such
transaction are leased or rented back by the party selling or trans-
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ferring such assets and (ii) the lease and rental of such assets occurs
substantially currently with the sale thereof.
"PERSON" shall mean any natural person, corporation, business trust,
joint venture, association, company, limited liability company, partnership or
government, or any agency or political subdivision thereof, in any case, whether
acting in a personal, fiduciary or other capacity.
"PGT HOLDING" shall have the meaning assigned to such term in the
recitals hereto.
"PGT INDUSTRIES" shall have the meaning assigned to such term in the
preamble hereto.
"PLAN" shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA which is maintained or contributed to by
any Company or its ERISA Affiliate or with respect to which any Company could
incur liability (including under Section 4069 of ERISA).
"PREFERRED STOCK" shall mean, with respect to any person, any and
all preferred or preference Equity Interests (however designated) of such person
whether now outstanding or issued after the Closing Date.
"PREFERRED STOCK ISSUANCE" shall mean the issuance or sale by
Holdings or any of its Subsidiaries of any Preferred Stock after the Closing
Date (other than (x) as permitted by Section 6.01 or (y) any Excluded Issuance).
"PREMISES" shall have the meaning assigned thereto in the applicable
Mortgage.
"PRO FORMA BASIS" shall mean on a basis in accordance with GAAP and
Regulation S-X and otherwise reasonably satisfactory to the Administrative
Agent.
"PRO RATA PERCENTAGE" of any Tranche A-1 Revolving Lender at any
time shall mean the percentage of the total Revolving Commitments of all Tranche
A-1 Revolving Lenders represented by such Lender's Revolving Commitment.
"PROCEEDING" shall mean, with respect to any person, any (a)
insolvency, bankruptcy, receivership, reorganization, readjustment, composition
or other similar proceeding relating to such person or its property or creditors
in such capacity, (b) proceeding for any liquidation, dissolution or other
winding-up of such person, voluntary or involuntary, whether or not involving
insolvency or proceedings under the Bankruptcy Code, whether partial or complete
and whether by operation of law or otherwise, (c) assignment for the benefit of
creditors of such person or (d) other marshalling of the assets of such person.
"PROPERTY" shall mean any right, title or interest in or to property
or assets of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible and including Equity Interests or other ownership
interests of any person and whether now in existence or owned or hereafter
entered into or acquired, including all Real Property.
"PURCHASE MONEY OBLIGATION" shall mean, for any person, the
obligations of such person in respect of Indebtedness (including Capital Lease
Obligations) incurred for the purpose of financing all or any part of the
purchase price of any property (including Equity Interests of any person) or the
cost of installation, construction or improvement of any property and any
refinancing thereof; provided that (i)
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such Indebtedness is incurred within 90 days after such acquisition of such
property by such person and (ii) the amount of such Indebtedness does not exceed
100% of the cost of such acquisition, installation, construction or improvement,
as the case may be.
"QUALIFIED CAPITAL STOCK" of any person shall mean any Equity
Interests of such person that are not Disqualified Capital Stock.
"QUALIFIED CONTRIBUTION TRANSACTION" shall mean the issuance or sale
by PGT Industries of Equity Interests in PGT Industries to a person (an
"ADDITIONAL EQUITY PARTNER"), if each of the following conditions is met:
(i) the Equity Interests issued or sold are Qualified Capital
Stock;
(ii) the Additional Equity Partner shall be a corporation or a
limited liability company organized under the laws of the United States or
any state thereof or the District of Columbia who shall have provided to
the Administrative Agent such documents, instruments and other information
as may be necessary or desirable in order to enable the Administrative
Agent to comply with applicable Anti-Terrorism Laws;
(iii) contemporaneously with its acquisition of such Equity
Interests, the Additional Equity Partner shall duly execute and deliver a
joinder agreement (in form and substance reasonably satisfactory to the
Administrative Agent) pursuant to which it shall become a Guarantor
hereunder and be subject to Article VII hereto and be bound as if it were
a Loan Party by the covenants set forth in Section 5.11(d), 6.14, the
first sentence of Section 6.15(a) (substituting the words "Window
Holdings" with "the Additional Equity Partner") and Sections 6.18, 6.19
and 6.20 and shall duly execute a joinder agreement (in form and substance
reasonably satisfactory to the Collateral Agent) to the applicable
Security Documents in accordance with Section 5.11(d) and take all other
actions set forth therein;
(iv) not less than 5 Business Days prior to the consummation of the
issuance or sale, Borrower shall provide written notice to the
Administrative Agent identifying the Additional Equity Partner, the
Company which will be issuing or selling the Equity Interests and setting
forth the contribution to be received; and
(v) upon the consummation of such sale or issuance, Borrower shall
deliver to the Administrative Agent an opinion of counsel (in form and
substance satisfactory to Administrative Agent), as to the enforceability
of the Additional Equity Partner's Guarantee and as to the enforceability,
validity and existence of a perfected and valid security interest in the
Collateral of the Additional Equity Partner required to be pledged
pursuant to Section 5.11(d).
"REAL PROPERTY" shall mean, collectively, all right, title and
interest (including any leasehold estate) in and to any and all parcels of or
interests in real property owned, leased or operated by any person, whether by
lease, license or other means, together with, in each case, all easements,
hereditaments and appurtenances relating thereto, all improvements and
appurtenant fixtures and equipment, all general intangibles and contract rights
and other property and rights incidental to the ownership, lease or operation
thereof.
"REFINANCING" shall mean the repayment in full and the termination
of any commitment to make extensions of credit under all of the outstanding
indebtedness of Holdings or any of its Subsidiaries listed on Schedule 1.01(b),
which occurred at the Closing Date.
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"REGISTER" shall have the meaning assigned to such term in Section
11.04(c).
"REGULATION D" shall mean Regulation D of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"REGULATION S-X" shall mean Regulation S-X promulgated under the
Securities Act.
"REGULATION T" shall mean Regulation T 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.
"REIMBURSEMENT OBLIGATIONS" shall mean Borrower's obligations under
Section 2.18(e) to reimburse LC Disbursements.
"RELATED FUND" shall mean with respect to any Lender that is a fund
that buys or invests in bank loans, any other fund that buys or invests in
commercial loans or investments and is managed, administered or advised by the
same investment advisor as such Lender or by an Affiliate of such advisor, or an
entity or an Affiliate of an entity which manages, administers or advises such
Lender.
"RELATED HEDGING OBLIGATIONS" shall mean the obligations described
in clause (c) of the definition of "Obligations."
"RELEASE" shall mean any spilling, leaking, seepage, 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.
"REQUIRED LENDERS" shall mean, at any time, Lenders having Loans, LC
Exposure and unused Tranche A-1 Revolving Commitments and Tranche A-2 Term Loan
Commitments representing more than 50% of the sum of all Loans outstanding, LC
Exposure and unused Tranche A-1 Revolving Commitments and Tranche A-2 Term Loan
Commitments at such time.
"REQUIREMENTS OF LAW" shall mean, collectively, any and all
requirements of any Governmental Authority including any and all laws,
ordinances, rules, regulations or similar statutes or case law.
"RESPONSE" shall mean (a) "response" 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) clean up, 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; or (iii) perform studies and investigations in
connection with, or as a precondition to, clause (i) or (ii) above.
"RESPONSIBLE OFFICER" of any person shall mean any executive officer
or Financial Officer of such person and any other officer or similar official
thereof with responsibility for the administration of the obligations of such
person in respect of this Agreement.
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"REVOLVING AVAILABILITY PERIOD" shall mean the period from and
including the Closing Date to but excluding the earlier of (i) the Business Day
preceding the Revolving Maturity Date and (ii) the date of termination of the
Revolving Commitments.
"REVOLVING BORROWING" shall mean a Borrowing comprised of Revolving
Loans.
"REVOLVING LOANS" shall mean the Revolving Loans (as defined in the
Original Credit Agreement) and the Tranche A-1 Revolving Loans, collectively.
"REVOLVING EXPOSURE" shall mean, with respect to any Lender at any
time, the aggregate principal amount at such time of all outstanding Tranche A-1
Revolving Loans of such Lender, plus the aggregate amount at such time of such
Lender's LC Exposure, plus the aggregate amount at such time of such Lender's
Swingline Exposure.
"REVOLVING MATURITY DATE" shall mean February 14, 2011 or, if such
date is not a Business Day, the first Business Day thereafter.
"ROLLOVER EQUITY" shall mean the common equity interest of certain
existing stockholders of PGT Holding exchanged for common equity interest in
Window Holdings in an amount not less than $25.0 million on the terms and
conditions satisfactory to the Administrative Agent in its reasonable judgment.
"SALE AND LEASEBACK TRANSACTION" has the meaning assigned to such
term in Section 6.03.
"S&P" means Standard & Poor's Ratings Services, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc., or any successor thereto.
"SDN LIST" shall have the meaning assigned to such term in Section
6.18.
"SECOND AMENDMENT" shall have the meaning assigned to such term in
the recitals hereto.
"SECOND AMENDMENT EFFECTIVE DATE" shall have the meaning assigned to
such term in Section 2.01.
"SECOND LIEN ADMINISTRATIVE AGENT" means UBS AG, Stamford Branch, in
its capacity as administrative agent under the Second Lien Credit Agreement, and
its successors and assigns.
"SECOND LIEN COLLATERAL AGENT" means UBS AG, Stamford Branch, in its
capacity as collateral agent under the Second Lien Credit Agreement, and its
successors and assigns.
"SECOND LIEN COMMITMENTS" shall have the meaning assigned to such
term in the Second Lien Credit Agreement.
"SECOND LIEN CREDIT AGREEMENT" means (i) that certain credit
agreement dated as of the Amendment and Restatement Effective Date among the
Borrower, Holdings, the Guarantors identified therein, the lenders party
thereto, UBS Securities LLC, as joint lead arranger, as co-documentation agent
and as syndication agent, and UBS AG, Stamford Branch, as administrative agent
and as collateral agent for the Second Lien Secured Parties, as amended,
restated, supplemented or modified from time to time to
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the extent permitted by this Agreement and the Intercreditor Agreement, and (ii)
any other credit agreement, loan agreement, note agreement, promissory note,
indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation that has been incurred to
extend (subject to the limitations set forth herein and in the Intercreditor
Agreement) or refinance in whole or in part the indebtedness and other
obligations outstanding under (x) the credit agreement referred to in clause (i)
or (y) any subsequent Second Lien Credit Agreement, unless such agreement or
instrument expressly provides that it is not intended to be and is not a Second
Lien Credit Agreement hereunder. Any reference to the Second Lien Credit
Agreement hereunder shall be deemed a reference to any Second Lien Credit
Agreement then in existence.
"SECOND LIEN LOAN DOCUMENTS" means the Second Lien Credit Agreement
and the Loan Documents (as defined in the Second Lien Credit Agreement),
including each mortgage and other security documents, guaranties and the notes
issued thereunder.
"SECOND LIEN LOANS" means the senior secured second lien loans under
the Second Lien Credit Agreement.
"SECOND LIEN MATURITY DATE" shall have the meaning assigned to such
term in the Second Lien Credit Agreement.
"SECOND LIEN OBLIGATIONS" shall mean (a) obligations of Borrower and
the other Loan Parties from time to time arising under or in respect of the due
and punctual payment of (i) the principal of and premium, if any, and interest
(including interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Second Lien Loans, when and as due, whether
at maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, and (ii) all other monetary obligations, including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding), of Borrower and the other Loan
Parties under the Second Lien Credit Agreement and the other Second Lien Loan
Documents owing to the Second Lien Secured Parties (in their capacity as such)
and (b) the due and punctual performance of all covenants, agreements,
obligations and liabilities of Borrower and the other Loan Parties under or
pursuant to the Second Lien Credit Agreement and the other Second Lien Loan
Documents owing to the Second Lien Secured Parties (in their capacity as such).
"SECOND LIEN SECURED PARTIES" shall mean the Second Lien Collateral
Agent and each person that holds Second Lien Loans or has Second Lien
Commitments (in its capacity as such) pursuant to the Second Lien Credit
Agreement.
"SECOND LIEN SECURITY DOCUMENTS" shall have the meaning assigned to
the term "Security Documents" in the Second Lien Credit Agreement.
"SECURED PARTIES" shall mean the Agents, each Lender that holds
Loans or has Commitments (in its capacity as such), each Issuing Bank (in its
capacity as such), each holder of any Related Hedging Obligations (in its
capacity as such) and each person holding Overdraft Obligations (in its capacity
as such).
"SECURITIES ACT" shall mean the Securities Act of 1933.
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"SECURITIES COLLATERAL" shall have the meaning assigned to such term
in the Security Agreement.
"SECURITY AGREEMENT" shall mean the Pledge and Security Agreement
substantially in the form of Exhibit M to the Original Credit Agreement dated as
of the Closing Date (the "ORIGINAL SECURITY AGREEMENT"), as amended and restated
by the Amended and Restated Security Agreement among the Loan Parties and
Collateral Agent for the benefit of the Secured Parties.
"SECURITY AGREEMENT COLLATERAL" shall mean all property pledged or
granted as collateral pursuant to the Security Agreement delivered on the
Closing Date or thereafter pursuant to Section 5.11.
"SECURITY DOCUMENTS" shall mean the Security Agreement, the
Mortgages and each other security document or pledge agreement delivered in
accordance with applicable local or foreign law to grant a valid, perfected
security interest in any property as collateral for the Obligations, and all UCC
or other financing statements or instruments of perfection required by this
Agreement, the Security Agreement, any Mortgage or any other such security
document or pledge agreement to be filed with respect to the security interests
in property and fixtures created pursuant to the Security Agreement or any
Mortgage and any other document or instrument utilized to pledge as collateral
for the Obligations any property.
"SELLERS" shall have the meaning assigned to such term in the
recitals hereto.
"SELLERS' REPRESENTATIVE" shall have the meaning assigned to such
term in the recitals hereto.
"SEPTEMBER 2005 DIVIDEND" shall have the meaning assigned to such
term in the recitals hereto.
"SPONSOR" shall mean JLL Partners Fund IV L.P.
"STANDBY LETTER OF CREDIT" shall mean any standby letter of credit
or similar instrument issued for the purpose of supporting (a) workers'
compensation liabilities of Borrower or any of its Subsidiaries, (b) the
obligations of third-party insurers of Borrower or any of its Subsidiaries
arising by virtue of the laws of any jurisdiction requiring third-party insurers
to obtain such letters of credit, (c) performance, payment, deposit or surety
obligations of Borrower or any of its Subsidiaries if required by law or
governmental rule or regulation or in accordance with custom and practice in the
industry or (d) Indebtedness of Borrower or any of its Subsidiaries permitted to
be incurred under Section 6.01.
"STATUTORY RESERVES" shall mean for any Interest Period for any
Eurodollar Borrowing, the average maximum rate at which reserves (including any
marginal, supplemental or emergency reserves) are required to be maintained
during such Interest Period under Regulation D by member banks of the United
States Federal Reserve System in New York City with deposits exceeding one
billion dollars against "Eurodollar liabilities" (as such term is used in
Regulation D). Eurodollar Borrowings shall be deemed to constitute Eurodollar
liabilities and to be subject to such reserve requirements without benefit of or
credit for proration, exceptions or offsets which may be available from time to
time to any Lender under Regulation D.
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"SUBORDINATED INDEBTEDNESS" shall mean Indebtedness of Borrower or
any Guarantor that is by its terms subordinated in right of payment to the
Obligations of Borrower and such Guarantor, as applicable.
"SUBSIDIARY" shall mean, with respect to any person (the "PARENT")
at any date, (i) any person the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, (ii)
any other corporation, limited liability company, association or other business
entity of which securities or other ownership interests representing more than
50% of the voting power of all Equity Interests entitled (without regard to the
occurrence of any contingency) to vote in the election of the Board of Directors
thereof are, as of such date, owned, controlled or held by the parent and/or one
or more subsidiaries of the parent, (iii) any partnership (a) the sole general
partner or the managing general partner of which is the parent and/or one or
more subsidiaries of the parent or (b) the only general partners of which are
the parent and/or one or more subsidiaries of the parent and (iv) any other
person that is otherwise Controlled by the parent and/or one or more
subsidiaries of the parent. Unless the context requires otherwise, "Subsidiary"
refers to a Subsidiary of Borrower.
"SUBSIDIARY GUARANTOR" shall mean each Subsidiary that becomes a
party to this Agreement after the date hereof pursuant to Section 5.11.
"SUBSIDIARY JOINDER AGREEMENT" shall mean a joinder agreement
substantially in the form of Exhibit F-1.
"SUCCESSFUL SYNDICATION" shall mean the successful syndication of
the Tranche A-2 Term Loans and the Commitments by the Arranger, as reasonably
determined by the Arranger.
"SUPERMAJORITY LENDERS" shall mean at any time, Lenders having
Loans, LC Exposure and unused Tranche A-1 Revolving Commitments and Tranche A-2
Term Loan Commitments representing at least 66 2/3% of the sum of all Loans
outstanding, LC Exposure and unused Tranche A-1 Revolving Commitments and
Tranche A-2 Term Loan Commitments at such time.
"SURVEY" shall mean a survey of any Mortgaged Property (and all
improvements thereon) which is (a) (i) prepared by a surveyor or engineer
licensed to perform surveys in the state where such Mortgaged Property is
located and sufficient for the Title Company to remove all standard survey
exceptions from the title insurance policy (or commitment) relating to such
Mortgaged Property and issue the endorsements of the type set forth in clauses
(C) and (D) of the definition of "Title Policy" or (b) otherwise acceptable to
the Collateral Agent.
"SWINGLINE COMMITMENT" shall mean the commitment of the Swingline
Lender to make loans pursuant to Section 2.17, as the same may be reduced from
time to time pursuant to Section 2.07 or Section 2.17. The amount of the
Swingline Commitment shall initially be $5.0 million, but in no event exceed the
Tranche A-1 Revolving Commitment.
"SWINGLINE EXPOSURE" shall mean at any time the aggregate principal
amount at such time of all outstanding Swingline Loans. The Swingline Exposure
of any Tranche A-1 Revolving Lender at any time shall equal its Pro Rata
Percentage of the aggregate Swingline Exposure at such time.
"SWINGLINE LENDER" shall have the meaning assigned to such term in
the preamble hereto.
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"SWINGLINE LOAN" shall mean any loan made by the Swingline Lender
pursuant to Section 2.17.
"SYNDICATION AGENT" means UBS Securities LLC.
"TAX RETURN" shall mean all returns, statements, filings,
attachments and other documents or certifications required to be filed in
respect of Taxes.
"TAXES" shall mean (i) any and all present or future taxes, duties,
levies, imposts, assessments, deductions, withholdings or other similar charges,
whether computed on a separate, consolidated, unitary, combined or other basis
and any and all liabilities (including interest, fines, penalties or additions
to tax) with respect to the foregoing, and (ii) any transferee, successor, joint
and several, contractual or other liability (including liability pursuant to
Treasury Regulation Section 1.1502-6 (or any similar provision of state, local
or non-U.S. law)) in respect of any item described in clause (i).
"TERM BORROWING" shall mean a Borrowing comprised of Term Loans.
"TERM LOAN MATURITY DATE" shall mean February 14, 2012 or, if such
date is not a Business Day, the first Business Day thereafter.
"TERM LOAN REPAYMENT DATE" shall have the meaning assigned to such
term in Section 2.09(a).
"TERM LOANS" shall mean the Tranche A Loans (as defined in the First
Credit Agreement) (as repaid in full on September 25, 2005 pursuant to the
Second Amendment), the Tranche A1 Loans (as defined in the Second Amendment) and
the Tranche A-2 Term Loans, collectively. Each Term Loan shall either be an ABR
Term Loan or a Eurodollar Term Loan.
"TEST PERIOD" shall mean, at any time, the four consecutive fiscal
quarters of Window Holdings then last ended (in each case taken as one
accounting period) for which financial statements have been or are required to
be delivered pursuant to Section 5.01(a) or (b).
"TITLE COMPANY" shall mean any title insurance company as shall be
retained by Borrower and reasonably acceptable to the Administrative Agent.
"TITLE POLICY" shall mean a policy of title insurance (or marked up
title insurance commitment having the effect of a policy of title insurance)
insuring the Lien of each Mortgage as a valid first mortgage lien on the
Mortgaged Property and fixtures described therein in favor of the Collateral
Agent for the benefit of the Secured Parties in the amount set forth on Schedule
4.01(B)(o)(iii), which policy (or such marked-up commitment) shall (A) be issued
by the Title Company, (B) to the extent necessary, include such reinsurance
arrangements (with provisions for direct access, if necessary) as shall be
reasonably acceptable to the Collateral Agent, (C) contain a "tie-in" or
"cluster" endorsement, if available under applicable law (i.e., policies which
insure against losses regardless of location or allocated value of the insured
property up to a stated maximum coverage amount), (D) have been supplemented by
such endorsements (or where such endorsements are not available, opinions of
special counsel, architects or other professionals reasonably acceptable to the
Collateral Agent) as shall be reasonably requested by the Collateral Agent
(including endorsements on matters relating to usury, first loss, last dollar,
zoning, contiguity, revolving credit, doing business, non-imputation, public
road access, survey, variable rate, environmental lien, subdivision, separate
tax lot, revolving credit and so-called comprehensive coverage over
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covenants and restrictions, in each case to the extent available) and (E)
contain no exceptions to title other than Permitted Collateral Liens and
exceptions acceptable to the Collateral Agent.
"TOTAL LEVERAGE RATIO" shall mean, at any date of determination, the
ratio of Consolidated Indebtedness on such date to Consolidated EBITDA for the
Test Period then most recently ended.
"TRANCHE A-1 REVOLVING COMMITMENT" shall mean, with respect to each
Tranche A-1 Revolving Lender, the commitment, if any, of such Lender to make
Tranche A-1 Revolving Loans hereunder up to the amount set forth on Schedule I
to the Lender Addendum executed and delivered by such Lender or in the
Assignment and Acceptance pursuant to which such Lender assumed its Tranche A-1
Revolving Commitment, as applicable, as the same may be (a) reduced from time to
time pursuant to Section 2.07 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 11.04. The
aggregate amount of the Tranche A-1 Revolving Lenders' Tranche A-1 Revolving
Commitments on the Amendment and Restatement Effective Date is $30.0 million, of
which no more than $5.0 million (excluding any outstanding Letters of Credit)
may be drawn on the Amendment and Restatement Effective Date.
"TRANCHE A-1 REVOLVING LENDER" shall means a Lender with a Tranche
A-1 Revolving Commitment.
"TRANCHE A-1 REVOLVING LOAN" shall mean a Loan made by the Lenders
to Borrower pursuant to Section 2.01(b). Each Tranche A-1 Revolving Loan shall
either be an ABR Revolving Loan or a Eurodollar Revolving Loan.
"TRANCHE A-2 TERM LOAN" shall mean the Term Loans made by the
Lenders to Borrower pursuant to Section 2.01(a). Each Tranche A-2 Term Loan
shall be either an ABR Term Loan or a Eurodollar Term Loan.
"TRANCHE A-2 TERM LOAN COMMITMENT" shall mean, with respect to each
Lender, the commitment, if any, of such Lender to make a Tranche A-2 Term Loan
hereunder on the Amendment and Restatement Effective Date in the amount set
forth on Schedule 3 to the Lender Addendum executed and delivered by such
Lender. The aggregate amount of the Lenders' Tranche A-2 Term Loan Commitments
is $205.0 million.
"TRANCHE A-2 TERM LOAN LENDER" means a Lender with a Tranche A-2
Term Loan commitment or an outstanding Tranche A-2 Term Loan.
"TRANSACTION DOCUMENTS" shall mean the Acquisition Documents and the
Loan Documents.
"TRANSACTIONS" shall mean the January 2004 Transactions and the 2006
Transactions, collectively.
"TRANSFERRED GUARANTOR" shall have the meaning assigned to such term
in Section 7.09.
"2006 DIVIDEND" shall have the meaning assigned to such term in the
recitals hereto.
"2006 TRANSACTIONS" shall mean, collectively, the making of the 2006
Dividend and the transactions to occur substantially concurrently with the
effectiveness of this Agreement on the Amendment and Restatement Effective Date
as contemplated hereunder, including (a) the execution and delivery
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of this Agreement and the New Security Documents and the borrowing of the
Tranche A-2 Term Loans, (b) the execution and delivery of the Second Lien Credit
Agreement and the other Second Lien Loan Documents and the borrowing of amounts
as contemplated thereunder and (c) the payment of all fees and expenses to be
paid on or prior to the Amendment and Restatement Effective Date and owing in
connection with the foregoing.
"TYPE," when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBOR Rate or the
Alternate Base Rate.
"UCC" shall mean the Uniform Commercial Code as in effect from time
to time (except as otherwise specified) in any applicable state or jurisdiction.
"UNITED STATES" shall mean the United States of America.
"VOTING STOCK" shall mean, with respect to any person, any class or
classes of Equity Interests pursuant to which the holders thereof have the
general voting power under ordinary circumstances to elect at least a majority
of the Board of Directors of such person.
"WHOLLY OWNED SUBSIDIARY" shall mean, as to any person, (a) any
corporation 100% of whose capital stock (other than directors' qualifying
shares) is at the time owned by such person and/or one or more Wholly Owned
Subsidiaries of such person and (b) any partnership, association, joint venture,
limited liability company or other entity in which such person and/or one or
more Wholly Owned Subsidiaries of such person have a 100% equity interest at
such time.
"WINDOW COMPANY" shall have the meaning assigned to such term in the
preamble hereto.
"WINDOW HOLDINGS" shall have the meaning assigned to such term in
the preamble hereto.
"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 CLASSIFICATION OF LOANS AND BORROWINGS. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing," "Borrowing of Term Loans"
or "Tranche A-2 Term Loans") or by Type (e.g., a "Eurodollar Borrowing") or by
Class and Type (e.g., a "Eurodollar Revolving Borrowing").
SECTION 1.03 TERMS GENERALLY. The definitions of terms herein shall
apply equally to 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." The word "will"
shall be construed to have the same meaning and effect as the word "shall."
Unless the context requires otherwise (a) any definition of or reference to any
Loan Document, agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified (subject to any restrictions on
such
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amendments, supplements or modifications set forth herein), (b) any reference
herein to any person shall be construed to include such person's successors and
assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof and (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement, unless otherwise
indicated.
SECTION 1.04 ACCOUNTING TERMS; GAAP. Except as otherwise expressly
provided herein, all financial statements to be delivered pursuant to this
Agreement shall be prepared in accordance with GAAP as in effect from time to
time and all terms of an accounting or financial nature shall be construed and
interpreted in accordance with GAAP, as in effect on the date hereof unless
otherwise agreed to by Borrower and the Required Lenders.
SECTION 1.05 RESOLUTION OF DRAFTING AMBIGUITIES. Each Loan Party
acknowledges and agrees that it was represented by counsel in connection with
the execution and delivery of the Loan Documents to which it is a party, that it
and its counsel reviewed and participated in the preparation and negotiation
hereof and thereof and that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation hereof or thereof.
ARTICLE II
THE CREDITS
SECTION 2.01 COMMITMENTS. Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, each Lender
agrees, severally and not jointly:
(a) with respect to Tranche A-2 Term Loan Lenders, to make a Tranche
A-2 Term Loan to Borrower on the Amendment and Restatement Effective Date
in the principal amount not to exceed its Tranche A-2 Term Loan
Commitment; and
(b) to make Tranche A-1 Revolving Loans to Borrower, at any time and
from time to time after the Amendment and Restatement Effective Date until
the earlier of the Revolving Maturity Date and the termination of the
Tranche A-1 Revolving Commitment of such Lender in accordance with the
terms hereof, in an aggregate principal amount at any time outstanding
that will not result in such Lender's Revolving Exposure exceeding such
Lender's Tranche A-1 Revolving Commitment.
Amounts paid or prepaid in respect of Term Loans may not be
reborrowed. Within the limits set forth in clause (b) above and subject to the
terms, conditions and limitations set forth herein, Borrower may borrow, pay or
prepay and reborrow Tranche A-1 Revolving Loans.
Except as otherwise expressly provided herein, from and after the
Amendment and Restatement Effective Date, for all purposes under each Loan
Document, each Tranche A-2 Term Loan shall be deemed to be a Term Loan and each
Tranche A-2 Term Loan Lender shall be deemed to be a Term Loan Lender. For the
avoidance of doubt, the Tranche A-2 Term Loans shall constitute "Loans" and
"Obligations" hereunder and under the other Loan Documents (and "First Lien
Loans" and "First Lien Obligations" under the Original Credit Agreement and the
Original Security Documents), and the Tranche A-2 Term Loan Lenders shall
constitute "Secured Parties" hereunder and under the other Loan Documents (and
"First Lien Secured Parties" under the Original Credit Agreement and the
Original Security Documents). Except as otherwise expressly provided herein,
from and after the Amendment and Re-
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statement Effective Date, for all purposes under each Loan Document, each
Tranche A-1 Revolving Loan shall be deemed to be a Revolving Loan and each
Tranche A-1 Revolving Lender shall be deemed to be a Revolving Lender. For the
avoidance of doubt, the Tranche A-1 Revolving Loans shall constitute "Loans" and
"Obligations" hereunder and under the other Loan Documents (and "First Lien
Loans" and "First Lien Obligations" under the Original Credit Agreement and the
Original Security Documents), and the Tranche A-1 Revolving Lenders shall
constitute "Secured Parties" hereunder and under the other Loan Documents (and
"First Lien Secured Parties" under the Original Credit Agreement and the
Original Security Documents).
SECTION 2.02 LOANS.
(a) Each Loan (other than Swingline Loans) shall be made as part of
a Borrowing consisting of Loans made by the Lenders ratably in accordance with
their applicable Commitments; provided 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). Except for Loans deemed made pursuant to Section 2.18(e)(ii), ABR
Loans comprising any Borrowing shall be in an aggregate principal amount that is
(i) an integral multiple of $250,000 and not less than $1,000,000 or (ii) equal
to the remaining available balance of the applicable Commitments and (y) the
Eurodollar Loans comprising any Borrowing shall be in an aggregate principal
amount that is (i) an integral multiple of $250,000 and not less than $1,000,000
or (ii) equal to the remaining available balance of the applicable Commitments.
(b) Subject to Sections 2.11 and 2.12, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as Borrower may request
pursuant to Section 2.03. 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 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 that Borrower shall not be entitled to request any Borrowing that, if
made, would result in more than five Eurodollar Borrowings outstanding hereunder
at any one 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.
(c) Except with respect to Loans made pursuant to Section
2.18(e)(ii), 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 as the Administrative Agent may designate not later than (x) with
respect to ABR Loans, 2:00 p.m., New York City time, and (y) with respect to
Eurodollar Loans, 11:00 a.m., New York City time, and the Administrative Agent
shall promptly credit the amounts so received to an account as directed by
Borrower in the applicable Borrowing Request maintained with the Administrative
Agent 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 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, each of such Lender and Borrower
severally agrees to repay to the Administrative
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Agent forthwith on demand such corresponding amount together with interest
thereon, for each day from the date such amount is made available to Borrower
until the date such amount is repaid to the Administrative Agent at (i) in the
case of Borrower, the interest rate applicable at the time to the Loans
comprising such Borrowing and (ii) in the case of such Lender, the greater of
the Federal Funds Effective Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation. 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, and Borrower's obligation to repay the
Administrative Agent such corresponding amount pursuant to this Section 2.02(d)
shall cease.
(e) Notwithstanding any other provision of this Agreement, Borrower
shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Maturity Date or Term Loan Maturity Date, as applicable.
SECTION 2.03 BORROWING PROCEDURE. To request a Revolving Borrowing
or Term Borrowing, Borrower shall deliver, by hand delivery or telecopy, a duly
completed and executed Borrowing Request to the Administrative Agent (i) in the
case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time,
three Business Days before the date of the proposed Borrowing or (ii) in the
case of an ABR Borrowing, not later than 11:00 a.m., New York City time, on the
date of the proposed Borrowing. Each Borrowing Request shall be irrevocable and
shall specify the following information in compliance with Section 2.02:
(a) whether the requested Borrowing is to be a Borrowing of Tranche
A-1 Revolving Loans or Term Loans;
(b) the aggregate amount of such Borrowing;
(c) the date of such Borrowing, which shall be a Business Day;
(d) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;
(e) in the case of a Eurodollar Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated by
the definition of the term "Interest Period"; provided that until the date
on which the Syndication Agent shall have notified Borrower that a
Successful Syndication has been achieved, the Interest Period shall be
seven days;
(f) the location and number of Borrower's account to which funds are
to be disbursed, which shall comply with the requirements of Section
2.02(c); and
(g) that the conditions set forth in Sections 4.02(b)-(d) have been
satisfied as of the date of the notice.
If no election as to the Type of Borrowing is specified, then the
requested Borrowing shall be an ABR Borrowing. If no Interest Period is
specified with respect to any requested Eurodollar Revolving Borrowing, then
Borrower shall be deemed to have selected an Interest Period of one month's
duration (subject to the proviso in clause (e) above). Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.
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SECTION 2.04 EVIDENCE OF DEBT; REPAYMENT OF LOANS.
(a) Borrower hereby unconditionally promises to pay (i) to the
Administrative Agent for the account of each Tranche A-2 Term Loan Lender, the
principal amount of each Term Loan of such Tranche A-2 Term Loan Lender as
provided in Section 2.09, (ii) to the Administrative Agent for the account of
each Tranche A-1 Revolving Lender, the then unpaid principal amount of each
Tranche A-1 Revolving Loan of such Tranche A-1 Revolving Lender on the Revolving
Maturity Date and (iii) to the Swingline Lender, the then unpaid principal
amount of each Swingline Loan on the earlier of the Revolving Maturity Date and
the first date after such Swingline Loan is made that is the 15th or last day of
a calendar month and is at least two Business Days after such Swingline Loan is
made; provided that on each date that a Revolving Borrowing is made, Borrower
shall repay all Swingline Loans that were outstanding on the date such Borrowing
was requested.
(b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of Borrower to such Lender
resulting from each Loan made by such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.
(c) The Administrative Agent shall maintain accounts in which it
will record (i) the amount of each Loan made hereunder, the Type and Class
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 Borrower
to each Lender hereunder; and (iii) the amount of any sum received by the
Administrative Agent hereunder for the account of the Lenders 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 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 Borrower to repay the
Loans in accordance with their terms.
(e) Any Lender by written notice to Borrower (with a copy to the
Administrative Agent) may request that Loans of any Class made by it be
evidenced by a promissory note. In such event, Borrower shall prepare, execute
and deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) in
the form of Exhibit K-I, K-2 or K-3, as the case may be. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times
(including after assignment pursuant to Section 11.04) be represented by one or
more promissory notes in such form payable to the order of the payee named
therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).
SECTION 2.05 FEES.
(a) Commitment Fee. Borrower agrees to pay to the Administrative
Agent for the account of each Lender a commitment fee (a "COMMITMENT FEE") equal
to 0.5% per annum on the average daily unused amount of each Commitment of such
Lender during the period from and including the date hereof to but excluding the
date on which such Commitment terminates. Accrued Commitment Fees shall be
payable in arrears (A) on the last Business Day of March, June, September and
December of each year, commencing on the first such date to occur after the date
hereof, and (B) on the date on which such Commitment terminates. Commitment Fees
shall be computed on the basis of a year of 360 days and shall be payable for
the actual number of days elapsed (including the first day but excluding the
last day). For purposes of computing Commitment Fees with respect to Tranche A-1
Revolving Commitments, a
-▇▇-
▇▇▇▇▇▇▇ ▇-▇ Revolving Commitment of a Lender shall be deemed to be used to the
extent of the outstanding Tranche A-1 Revolving Loans and LC Exposure of such
Lender (and the Swingline Exposure of such Lender shall be disregarded for such
purpose).
(b) Administrative Agent Fees. Borrower agrees to pay to the
Administrative Agent, for its own account, the administrative fees set forth in
the Fee Letter or such other fees payable in the amounts and at the times
separately agreed upon between Borrower and the Administrative Agent (the
"ADMINISTRATIVE AGENT FEES").
(c) LC and Fronting Fees. Borrower agrees to pay (i) to the
Administrative Agent for the account of each Tranche A-1 Revolving Lender a
participation fee ("LC PARTICIPATION FEE") with respect to its participations in
Letters of Credit, which shall accrue at a rate equal to the Applicable Margin
from time to time used to determine the interest rate on Eurodollar Revolving
Loans pursuant to Section 2.06 on the average daily amount of such Lender's LC
Exposure (excluding any portion thereof attributable to Reimbursement
Obligations) during the period from and including the Closing Date to but
excluding the later of the date on which such Lender's Tranche A-1 Revolving
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to the Issuing Bank a fronting fee ("FRONTING FEE"), which
shall accrue at the rate of 0.25% per annum on the average daily amount of the
LC Exposure (excluding any portion thereof attributable to Reimbursement
Obligations) during the period from and including the Closing Date to but
excluding the later of the date of termination of the Tranche A-1 Revolving
Commitments and the date on which there ceases to be any LC Exposure, as well as
the Issuing Bank's customary fees with respect to the issuance, amendment,
renewal or extension of any Letter of Credit or processing of drawings
thereunder. Accrued LC Participation Fees and Fronting Fees shall be payable in
arrears (i) on the last Business Day of March, June, September and December of
each year, commencing on the first such date to occur after the Closing Date,
and (ii) on the date on which the Tranche A-1 Revolving Commitments terminate.
Any such fees accruing after the date on which the Tranche A-1 Revolving
Commitments terminate shall be payable on demand. Any other fees payable to the
Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand therefor. All LC Participation Fees and Fronting Fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).
(d) All Fees shall be paid on the dates due, in immediately
available funds in dollars, to the Administrative Agent for distribution, if and
as appropriate, among the Lenders, except that Borrower shall pay the Fronting
Fees directly to the Issuing Bank. Once paid, none of the Fees shall be
refundable under any circumstances.
SECTION 2.06 INTEREST ON LOANS.
(a) Subject to the provisions of Section 2.06(c), the Loans
comprising each ABR Borrowing, including each Swingline Loan, shall bear
interest at a rate per annum equal to the Alternate Base Rate plus the
Applicable Margin in effect from time to time.
(b) Subject to the provisions of Section 2.06(c), the Loans
comprising each Eurodollar Borrowing shall bear interest at a rate per annum
equal to the Adjusted LIBOR Rate for the Interest Period in effect for such
Borrowing plus the Applicable Margin in effect from time to time.
(c) Notwithstanding the foregoing, during an Event of Default, all
Obligations shall, to the extent permitted by applicable law, bear interest,
after as well as before judgment, at a per annum rate equal to (i) in the case
of principal and premium, if any, of or interest on any Loan, 2% plus the
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higher of (I) the Alternate Base Rate plus the Applicable Margin and (II) the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section 2.06 or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Revolving Loans as provided in Section 2.06(a) (in either
case, the "DEFAULT RATE").
(d) Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan; provided that (i) interest accrued
pursuant to Section 2.06(c) shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving
Loan or a Swingline Loan), accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion.
(e) All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). The applicable Alternate
Base Rate or Adjusted LIBOR Rate shall be determined by the Administrative Agent
in accordance with the provisions of this Agreement and such determination shall
be conclusive absent manifest error.
SECTION 2.07 TERMINATION AND REDUCTION OF COMMITMENTS.
(a) The Tranche A-2 Term Loan Commitments shall automatically
terminate at 5:00 p.m., New York City time, on the Amendment and Restatement
Effective Date. The Tranche A-1 Revolving Commitments, the Swingline Commitment
and the LC Commitment shall automatically terminate on the Revolving Maturity
Date.
(b) At its option, Borrower may at any time terminate, or from time
to time permanently reduce, the Commitments of any Class; provided that (i) each
reduction of the Commitments of any Class shall be in an amount that is an
integral multiple of $250,000 and not less than $1,000,000 and (ii) the Tranche
A-1 Revolving Commitments shall not be terminated or reduced if, after giving
effect to any concurrent prepayment of the Tranche A-1 Revolving Loans in
accordance with Section 2.10, the aggregate amount of Revolving Exposures would
exceed the aggregate amount of Tranche A-1 Revolving Commitments.
(c) Borrower shall notify the Administrative Agent in writing of any
election to terminate or reduce the Commitments under Section 2.07(b) at least
three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by Borrower pursuant to
this Section shall be irrevocable. Any termination or reduction of the
Commitments of any Class shall be permanent. Each reduction of the Commitments
of any Class shall be made ratably among the Lenders in accordance with their
respective Commitments of such Class.
SECTION 2.08 INTEREST ELECTIONS.
(a) Each Revolving Borrowing and Term Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a
Eurodollar Borrowing, shall have an initial Interest Period as specified in such
Borrowing Request. Thereafter, Borrower may elect to convert such Borrowing to a
different Type or to continue such Borrowing and, in the case of a Eurodollar
Bor-
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rowing, may elect Interest Periods therefor, all as provided in this Section
2.08. Borrower may elect different options with respect to different portions of
the affected Borrowing, in which case each such portion shall be allocated
ratably among the Lenders holding the Loans comprising such Borrowing, and the
Loans comprising each such portion shall be considered a separate Borrowing.
Notwithstanding anything to the contrary, Borrower shall not be entitled to
request any conversion or continuation that, if made, would result in more than
five Eurodollar Borrowings outstanding hereunder at any one time. This Section
shall not apply to Swingline Borrowings, which may not be converted or
continued.
(b) To make an election pursuant to this Section 2.08, Borrower
shall deliver, by hand delivery or telecopy, a duly completed and executed
Interest Election Request to the Administrative Agent not later than the time
that a Borrowing Request would be required under Section 2.03 if Borrower were
requesting a Revolving Borrowing or Term Borrowing of the Type resulting from
such election to be made on the effective date of such election. Each Interest
Election Request shall be irrevocable.
(c) Each Interest Election Request shall specify the following
information in compliance with Section 2.02:
(i) the Borrowing to which such Interest Election Request applies
and, if different options are being elected with respect to different
portions thereof, or if outstanding Borrowings are being combined,
allocation to each resulting Borrowing (in which case the information to
be specified pursuant to clauses (iii) and (iv) below shall be specified
for each resulting Borrowing);
(ii) the effective date of the election made pursuant to such
Interest Election Request, which shall be a Business Day;
(iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and
(iv) if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term "Interest Period"; provided that until the date on which the
Syndication Agent shall have notified Borrower that a Successful
Syndication has been achieved, the Interest Period shall be seven days.
If any such Interest Election Request requests a Eurodollar
Borrowing but does not specify an Interest Period, then Borrower shall be deemed
to have selected an Interest Period of one month's duration (subject to the
proviso in clause (iv) above).
(d) Promptly following receipt of an Interest Election Request,
the Administrative Agent shall advise each Lender of the details thereof and of
such Lender's portion of each resulting Borrowing.
(e) If an Interest Election Request with respect to a Eurodollar
Borrowing is not timely delivered prior to the end of the Interest Period
applicable thereto, then, unless such Borrowing is repaid as provided herein, at
the end of such Interest Period such Borrowing shall be converted to an ABR
Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default
has occurred and is continuing, the Administrative Agent or the Required Lenders
may require, by notice to Borrower, that (i) no outstanding Borrowing may be
converted to or continued as a Eurodollar Borrowing and (ii) unless repaid, each
Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the
Interest Period applicable thereto.
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SECTION 2.09 AMORTIZATION OF TERM BORROWINGS.
(a) Borrower shall pay to the Administrative Agent, for the
account of the Lenders, on the dates set forth on Annex I, or if any such date
is not a Business Day, on the immediately preceding Business Day (each such
date, a "TERM LOAN REPAYMENT DATE"), a principal amount of the Term Loans equal
to the amount set forth on Annex I for such date (as adjusted from time to time
pursuant to Section 2.10(h)), together in each case with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of such
payment.
(b) To the extent not previously paid, all Term Loans shall be due
and payable on the Term Loan Maturity Date.
SECTION 2.10 OPTIONAL AND MANDATORY PREPAYMENTS OF LOANS.
(a) Optional Prepayments. Borrower shall have the right at any
time and from time to time to prepay any Borrowing, in whole or in part, subject
to the requirements of this Section 2.10; provided that each partial prepayment
of Term Loans shall be in an amount that is an integral multiple of $250,000 and
not less than $1.0 million and each partial prepayment of Tranche A-1 Revolving
Loans shall be in an amount that is an integral multiple of $100,000 and not
less than $500,000.
(b) Tranche A-1 Revolving Loan Prepayments.
(i) In the event of the termination of all the Tranche A-1
Revolving Commitments, Borrower shall, on the date of such termination, repay or
prepay all its outstanding Revolving Borrowings and all outstanding Swingline
Loans and replace all outstanding Letters of Credit or cash collateralize all
outstanding Letter of Credit in accordance with the procedures set forth in
Section 2.18(i).
(ii) In the event of any partial reduction of the Tranche A-1
Revolving Commitments, then (x) at or prior to the effective date of such
reduction, the Administrative Agent shall notify Borrower and the Tranche A-1
Revolving Lenders of the sum of the Revolving Exposures after giving effect
thereto and (y) if the sum of the Revolving Exposures would exceed the aggregate
amount of Tranche A-1 Revolving Commitments after giving effect to such
reduction, then Borrower shall, on the date of such reduction, first, repay or
prepay Swingline Loans, second, repay or prepay Revolving Borrowings and third,
replace outstanding Letters of Credit or cash collateralize outstanding Letters
of Credit in accordance with the procedures set forth in Section 2.18(i), in an
aggregate amount sufficient to eliminate such excess.
(iii) In the event that the sum of all Lenders' Revolving Exposures
exceeds the Tranche A-1 Revolving Commitments then in effect, Borrower shall,
without notice or demand, immediately first, repay or prepay Swingline Loans,
second, repay or prepay Revolving Borrowings, and third, replace outstanding
Letters of Credit or cash collateralize outstanding Letters of Credit in
accordance with the procedures set forth in Section 2.18(i), in an aggregate
amount sufficient to eliminate such excess.
(iv) In the event that the aggregate LC Exposure exceeds the LC
Commitment then in effect, Borrower shall, without notice or demand, immediately
replace outstanding Letters of Credit or cash collateralize outstanding Letters
of Credit in accordance with the procedures set forth in Section 2.18(i), in an
aggregate amount sufficient to eliminate such excess.
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(c) Asset Sales. Not later than one Business Day following the
receipt of any Net Cash Proceeds of any Asset Sale by Holdings or any of its
Subsidiaries, Borrower shall apply 100% of such Net Cash Proceeds to make
prepayments in accordance with Sections 2.10(h) and (i); provided that:
(i) so long as no Default is then continuing or would arise
therefrom, no such prepayment shall be required under this Section
2.10(c)(i) with respect to (A) any Asset Sale permitted by Section
6.06(a), (B) the disposition of property which constitutes a Casualty
Event, or (C) Asset Sales for fair market value resulting in no more than
$500,000 in Net Cash Proceeds per Asset Sale (or series of related Asset
Sales) and less than $1.0 million in aggregate Net Cash Proceeds in any
fiscal year; provided that clause (C) shall not apply in the case of any
Asset Sale described in clause (b) of the definition thereof; and
(ii) so long as no Default is then continuing or would arise
therefrom and the aggregate of such Net Cash Proceeds of Asset Sales shall
not exceed $5.0 million in any fiscal year of Borrower, such proceeds
shall not be required to be so applied on such date to the extent that
Borrower shall have delivered an Officers' Certificate to the
Administrative Agent on or prior to such date stating that such Net Cash
Proceeds are expected to be reinvested in fixed or capital assets within
180 days following the date of such Asset Sale (which Officers'
Certificate shall set forth the estimates of the proceeds to be so
expended); provided that if all or any portion of such Net Cash Proceeds
is not so reinvested within such 180-day period, such unused portion shall
be applied on the last day of such period as a mandatory prepayment as
provided in this Section 2.10(c); and provided, further, that if the
property subject to such Asset Sale constituted Collateral, then all
property purchased with the Net Cash Proceeds thereof pursuant to this
subsection shall be made subject to the Lien of the applicable Security
Documents in favor of the Collateral Agent, for its benefit and for the
benefit of the other Secured Parties in accordance with Sections 5.11 and
5.12.
(d) Debt Issuance or Preferred Stock Issuance. Not later than one
Business Day following the receipt of any Net Cash Proceeds of any Debt Issuance
or Preferred Stock Issuance by Holdings or any of its Subsidiaries, Borrower
shall make prepayments in accordance with Sections 2.10(h) and (i) in an
aggregate principal amount equal to 100% of such Net Cash Proceeds.
(e) Casualty Events. Not later than one Business Day following the
receipt of any Net Cash Proceeds from a Casualty Event by Holdings or any of its
Subsidiaries, Borrower shall apply an amount equal to 100% of such Net Cash
Proceeds to make prepayments in accordance with Sections 2.10(h) and (i);
provided that:
(i) so long as no Default is then continuing or would arise
therefrom, such proceeds shall not be required to be so applied on such
date to the extent that Borrower shall have delivered an Officers'
Certificate to the Administrative Agent on or prior to such date stating
that such proceeds are expected to be used to repair, replace or restore
any property in respect of which such Net Cash Proceeds were paid, no
later than 365 days following the date of receipt of such proceeds;
provided that if the property subject to such Casualty Event constituted
Collateral under the Security Documents, then all property purchased with
the Net Cash Proceeds thereof pursuant to this subsection shall be made
subject to the Lien of the applicable Security Documents in favor of the
Collateral Agent, for its benefit and for the benefit of the other Secured
Parties in accordance with Sections 5.11 and 5.12; and
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(ii) if any portion of such Net Cash Proceeds shall not be so
applied within such 365-day period, such unused portion shall be applied
on the last day of such period as a mandatory prepayment as provided in
this Section 2.10(e).
(f) Excess Cash Flow. No later than the earlier of (i) 90 days
after the end of each Excess Cash Flow Period and (ii) the date on which the
financial statements with respect to such fiscal year in which such Excess Cash
Flow Period occurs are delivered pursuant to Section 5.01(a), Borrower shall
make prepayments in accordance with Sections 2.10(h) and (i) in an aggregate
principal amount equal to the ECF Percentage of Excess Cash Flow for the Excess
Cash Flow Period then ended.
(g) [Intentionally Omitted].
(h) Application of Prepayments.
(i) Prior to any optional or mandatory prepayment hereunder,
Borrower shall select the Borrowing or Borrowings to be prepaid and shall
specify such selection in the notice of such prepayment pursuant to Section
2.10(i), subject to the provisions of this Section 2.10(h). Mandatory
prepayments will first be applied to the then outstanding Term Loans to reduce
scheduled prepayments with respect thereto required under Section 2.09(a),
first, to such scheduled prepayments with respect thereto due on the Term Loan
Repayment Date occurring within the 12 months following such prepayment and,
second, on a pro rata basis among the prepayments with respect thereto remaining
to be made on each other Term Loan Repayment Date. Optional prepayments will be
applied, at the option of the Borrower (which option shall be set forth in the
notice referred to in the first sentence of this paragraph), to (a) repay then
outstanding Tranche A-1 Revolving Loans or (b) the then outstanding Term Loans
to reduce scheduled prepayments with respect thereto required under Section
2.09(a), first, to such scheduled prepayments with respect thereto due on the
Term Loan Repayment Date occurring within the 12 months following such
prepayment and, second, on a pro rata basis among the prepayments with respect
thereto remaining to be made on each other Term Loan Repayment Date. If the then
outstanding Term Loans have been repaid in full, mandatory and optional
prepayments made shall be applied to repay then outstanding Tranche A-1
Revolving Loans and following such repayment, at the option of Borrower, which
option shall be specified in the notice referred to in the first sentence of
this paragraph, to repay Second Lien Loans. If the then outstanding Term Loans
and Second Lien Loans have been repaid in full in accordance with the prepayment
priorities set forth above in the immediately preceding sentence, mandatory and
optional prepayments made shall be applied to repay then outstanding Tranche A-1
Revolving Loans, which repayment, in the case of a mandatory prepayment only,
shall also result in Tranche A-1 Revolving Commitments being reduced ratably
among the Tranche A-1 Revolving Lenders in accordance with their applicable
Tranche A-1 Revolving Commitments in an aggregate amount equal to the amount
applied toward such prepayment and to repay Loans thereunder and/or cash
collateralize Letters of Credit in accordance with Section 2.18(i), in each
case, in an amount equal to the excess of the aggregate amount of such Loans and
Letters of Credit over the Commitment thereunder as so reduced.
(ii) Amounts to be applied pursuant to this Section 2.10 to the
prepayment of Tranche A-2 Term Loans and Tranche A-1 Revolving Loans shall be
applied, as applicable, first to reduce outstanding ABR Term Loans and ABR
Revolving Loans, respectively. Any amounts remaining after each such application
shall be applied to prepay Eurodollar Term Loans or Eurodollar Revolving Loans,
as applicable. Notwithstanding the foregoing, if the amount of any prepayment of
Loans under this Section 2.10 shall be in excess of the amount of the ABR Loans
at the time outstanding (an "EXCESS AMOUNT"), only the portion of the amount of
such prepayment as is equal to the amount of such outstanding ABR Loans shall be
immediately prepaid and, at the election of Borrower, the balance of such
prepayment shall be either (A) deposited in an escrow account on terms
reasonably satisfactory to the
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Collateral Agent and applied to the prepayment of Eurodollar Loans on the last
day of the then next-expiring Interest Period for Eurodollar Loans; provided
that (i) interest in respect of such Excess Amount shall continue to accrue
thereon at the rate provided hereunder for the Loans which such Excess Amount is
intended to repay until such Excess Amount shall have been used in full to repay
such Loans and (ii) at any time while an Event of Default has occurred and is
continuing, the Administrative Agent may, and upon written direction from the
Required Lenders shall, apply any or all proceeds then on deposit to the payment
of such Loans in an amount equal to such Excess Amount or (B) prepaid
immediately, together with any amounts owing to the Lenders under Section 2.13.
(i) Notice of Prepayment. Borrower shall notify the Administrative
Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender)
by written notice of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of prepayment, (ii) in the case of prepayment of
an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business
Day before the date of prepayment and (iii) in the case of prepayment of a
Swingline Loan, not later than 11:00 a.m., New York City time, on the date of
prepayment. Each such notice shall be irrevocable. Each such notice shall
specify the prepayment date, the principal amount of each Borrowing or portion
thereof to be prepaid and, in the case of a mandatory prepayment, a reasonably
detailed calculation of the amount of such prepayment. Promptly following
receipt of any such notice (other than a notice relating solely to Swingline
Loans), the Administrative Agent shall advise the Lenders of the contents
thereof. Such notice to the Lenders may be by electronic communication. Each
partial prepayment of any Borrowing shall be in an amount that would be
permitted in the case of a Credit Extension of the same Type as provided in
Section 2.02, except as necessary to apply fully the required amount of a
mandatory prepayment. Each prepayment of a Borrowing shall be applied ratably to
the Loans included in the prepaid Borrowing and otherwise in accordance with
this Section 2.10. Prepayments shall be accompanied by accrued interest to the
extent required by Section 2.06.
SECTION 2.11 ALTERNATE RATE OF INTEREST. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:
(a) the Administrative Agent determines (which determination shall
be final and conclusive absent manifest error) that adequate and reasonable
means do not exist for ascertaining the Adjusted LIBOR Rate for such Interest
Period; or
(b) the Administrative Agent is advised in writing by the Required
Lenders that the Adjusted LIBOR Rate for such Interest Period will not
adequately and fairly reflect the cost to such Lenders of making or maintaining
their Loans included in such Borrowing for such Interest Period;
then the Administrative Agent shall give written notice thereof to Borrower and
the Lenders as promptly as practicable thereafter and, until the Administrative
Agent notifies Borrower and the Lenders that the circumstances giving rise to
such notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Borrowing to, or continuation of any Borrowing as, a
Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request
requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR
Borrowing.
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SECTION 2.12 INCREASED COSTS.
(a) If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit
or similar requirement against property of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve
requirement reflected in the Adjusted LIBOR Rate) or the Issuing Bank; or
(ii) impose on any Lender or the Issuing Bank or the London
interbank market any other condition affecting this Agreement or
Eurodollar Loans made by such Lender or any Letter of Credit or
participation therein;
and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender, the
Issuing Bank or such Lender's or the Issuing Bank's holding company, if any, of
participating in, issuing or maintaining any Letter of Credit 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), then Borrower will 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, as the case may
be, for such additional costs incurred or reduction suffered, it being
understood that, to the extent duplicative of the provisions of Section 2.15,
this Section 2.12 shall not apply to Taxes.
(b) If any Lender or the Issuing Bank determines (in good faith,
but in its sole absolute discretion) that any Change in Law regarding capital
requirements 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 made by, or participations in Letters of Credit held by, such Lender,
or the Letters of Credit issued by the Issuing Bank, 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 Change in Law (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), then from time to time Borrower will 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 amount or amounts necessary to compensate such Lender or
the Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section 2.12 shall be delivered to Borrower (with a
copy to the Administrative Agent) and shall be conclusive and binding absent
manifest error. Borrower shall pay such Lender or the Issuing Bank, as the case
may be, the amount shown as due on any such certificate within 5 days after
receipt thereof.
(d) Failure or delay on the part of any Lender or the Issuing Bank
to demand compensation pursuant to this Section 2.12 shall not constitute a
waiver of such Lender's or the Issuing Bank's right to demand such compensation;
provided that Borrower shall not be required to compensate a Lender or the
Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 180 days prior to the date that such Lender or the Issuing
Bank, as the case may be, notifies Borrower of the Change in Law giving rise to
such increased costs or reductions and of such Lender's or the Issuing Bank's
intention to claim compensation therefor; provided, further, that, if the Change
in Law
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giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall not begin earlier than the date of
effectiveness of the Change in Law.
SECTION 2.13 BREAKAGE PAYMENTS. In the event of (a) the payment or
prepayment, whether optional or mandatory, of any principal of any Eurodollar
Loan earlier than the last day of an Interest Period applicable thereto
(including as a result of an Event of Default), (b) the conversion of any
Eurodollar Loan earlier than the last day of the Interest Period applicable
thereto, (c) the failure to borrow, convert, continue or prepay any Revolving
Loan or Term Loan on the date specified in any notice delivered pursuant hereto
or (d) the assignment of any Eurodollar Loan earlier than the last day of the
Interest Period applicable thereto as a result of a request by Borrower pursuant
to Section 2.16, then, in any such event, Borrower shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the
amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBOR Rate that would have been
applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure
to borrow, convert or continue, for the period that would have been the Interest
Period for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid, were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the Eurodollar
market. A certificate of any Lender setting forth in reasonable detail any
amount or amounts that such Lender is entitled to receive pursuant to this
Section 2.13 shall be delivered to Borrower (with a copy to the Administrative
Agent) and shall be conclusive and binding absent manifest error. Borrower shall
pay such Lender the amount shown as due on any such certificate within 5 days
after receipt thereof.
SECTION 2.14 PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF
SETOFFS.
(a) Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees
or Reimbursement Obligations, or of amounts payable under Section 2.12, 2.13 or
2.15, or otherwise) on or before the time expressly required hereunder or under
such other Loan Document for such payment (or, if no such time is expressly
required, prior to 2:00 p.m., New York City time), on the date when due, in
immediately available funds, without setoff, deduction or counterclaim. Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at ▇▇▇ ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇, except payments to be made directly to the
Issuing Bank or Swingline Lender as expressly provided herein and except that
payments pursuant to Sections 2.12, 2.13, 2.15 and 11.03 shall be made directly
to the persons entitled thereto and payments pursuant to other Loan Documents
shall be made to the persons specified therein. The Administrative Agent shall
distribute any such payments received by it for the account of any other person
to the appropriate recipient promptly following receipt thereof. If any payment
under any Loan Document shall be due on a day that is not a Business Day, unless
specified otherwise, the date for payment shall be extended to the next
succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
under each Loan Document shall be made in dollars, except as expressly specified
otherwise.
(b) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, Reimbursement
Obligations, interest and fees then due hereunder, such funds shall be applied
(i) first, towards payment of interest and fees then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of interest
and fees then due to
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such parties, and (ii) second, towards payment of principal and Reimbursement
Obligations then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and Reimbursement Obligations then due
to such parties.
(c) Subject to the terms of the Intercreditor Agreement, if any
Lender shall, by exercising any right of setoff or counterclaim or otherwise
(including by exercise of its rights under Section 9.1 of the Security
Agreement), obtain payment in respect of any principal of or interest on any of
its Revolving Loans, Term Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans, Term Loans and
participations in LC Disbursements and Swingline Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Revolving Loans, Term Loans and participations in LC
Disbursements and Swingline Loans of other Lenders to the extent necessary so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans, Term Loans and participations in LC
Disbursements and Swingline Loans; provided that (i) if any such participations
are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to Borrower or
any of its Subsidiaries or Affiliates (as to which the provisions of this
paragraph shall apply). Each Loan Party consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Loan Party rights of setoff and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Loan
Party in the amount of such participation. If under applicable bankruptcy,
insolvency or any similar law any Secured Party receives a secured claim in lieu
of a setoff or counterclaim to which this Section 2.14(c) applies, such Secured
Party shall to the extent practicable, exercise its rights in respect of such
secured claim in a manner consistent with the rights to which the Secured Party
is entitled under this Section 2.14(c) to share in the benefits of the recovery
of such secured claim.
(d) Unless the Administrative Agent shall have received notice from
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or Issuing Bank hereunder that Borrower
will not make such payment, the Administrative Agent may assume that Borrower
has made such payment on such date in accordance herewith and may, in reliance
upon such assumption, distribute to the Lenders or Issuing Bank the amount due.
In such event, if Borrower has not in fact made such payment, then each of the
Lenders or Issuing Bank severally agrees to repay to the Administrative Agent
forthwith on demand the amount so distributed to such Lender or Issuing Bank
with interest thereon, for each day from and including the date such amount is
distributed to it to but excluding the date of payment to the Administrative
Agent, at the greater of the Federal Funds Effective Rate and a rate determined
by the Administrative Agent in accordance with banking industry rules on
interbank compensation.
(e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.02(c), 2.14(d), 2.17(d), 2.18(d), 2.18(e) or
11.03(d), then the Administrative Agent may, in its discretion (notwithstanding
any contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations under such Sections until all such unsatisfied obligations are fully
paid.
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SECTION 2.15 TAXES.
(a) Any and all payments by or on account of any obligation of
Borrower hereunder or under any other Loan Document shall be made without
setoff, counterclaim or other defense and free and clear of and without
deduction or withholding for any and all Indemnified Taxes; provided that if
Borrower shall be required by law to deduct any Indemnified Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions or withholdings applicable
to additional sums payable under this Section 2.15) the Administrative Agent,
any Lender or the Issuing Bank, as the case may be, receives an amount equal to
the sum it would have received had no such deductions or withholdings been made,
(ii) Borrower shall make such deductions or withholdings and (iii) Borrower
shall pay the full amount deducted or withheld to the relevant Governmental
Authority in accordance with applicable law.
(b) In addition, Borrower shall pay any Other Taxes to each relevant
Governmental Authority in accordance with applicable law.
(c) Borrower shall indemnify the Administrative Agent, each Lender
and the Issuing Bank, within 10 Business Days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of Borrower
hereunder or under any other Loan Document (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section 2.15) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. The written demand shall include the original or a copy
of a receipt issued by the relevant Governmental Authority evidencing such
payment or other evidence of such payment, together with a certificate setting
forth the amount of such Indemnified Taxes or Other Taxes and, in reasonable
detail, the calculation of such Indemnified Taxes or Other Taxes.
(d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes and in any event within 30 days of any such payment being due, by
Borrower to a Governmental Authority, Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory
to the Administrative Agent.
(e) (x) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which Borrower
is located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by Borrower or the Administrative Agent as will permit such
payments to be made without withholding or at a reduced rate. Each Foreign
Lender shall (i) furnish either (a) two accurate and complete originally
executed U.S. Internal Revenue Service Form W-8BEN or W-8IMY (or successor form)
or (b) an accurate and complete U.S. Internal Revenue Service Form W-8ECI (or
successor form), certifying, in either case, to such Foreign Lender's legal
entitlement to an exemption or reduction from U.S. federal withholding tax with
respect to all interest payments hereunder, and (ii) to the extent it may
lawfully do so at such times, upon reasonable request by Borrower or the
Administrative Agent, provide a new Form W-8BEN (or successor form) or Form
W-8ECI (or successor form) upon the expiration or obsolescence of any previously
delivered form to reconfirm any complete exemption from, or any entitlement to a
reduction in, U.S. federal withholding tax with respect to any interest payment
hereunder; provided that any Foreign
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Lender that is not a "bank" within the meaning of Section 881(c)(3)(A) of the
Code shall also furnish a "Non-Bank Certificate" in the form of Exhibit Q if it
is furnishing a Form W-8BEN.
(y) Each Lender that is not a Foreign Lender (other than any
such Lender which may be treated as an exempt recipient based on the
indicators described in Treasury Regulation 1.6049-4(c)(1)(ii)) shall, to
the extent legally able to do so, provide two properly completed and duly
executed copies of U.S. Internal Revenue Service Form W-9 (or any
successor or other applicable form) to the Borrower (with copy to the
Administrative Agent) certifying that such Lender is exempt from United
States backup withholding tax. To the extent that a form provided pursuant
hereto and is rendered obsolete or inaccurate in any material respects as
result of change in circumstances with respect to the status of a Lender,
such Lender shall, to the extent permitted by applicable law, deliver to
the Borrower and the Agent revised forms necessary to confirm or establish
the entitlement to such Lender's exemption from United States backup
withholding tax.
(f) If the Administrative Agent or a Lender (or an assignee)
determines in its reasonable discretion that it has received a refund of any
Indemnified Taxes or Other Taxes as to which it has been indemnified by Borrower
or with respect to which Borrower has paid additional amounts pursuant to this
Section 2.15, it shall pay over such refund to Borrower (but only to the extent
of indemnity payments made, or additional amounts paid, by Borrower under this
Section 2.15 with respect to the Indemnified Taxes or the Other Taxes giving
rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender (or assignee) and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund);
provided that Borrower, upon the request of the Administrative Agent or such
Lender (or assignee), agrees to repay the amount paid over to Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender (or assignee) within a
reasonable time (not to exceed 20 days) after receipt of written notice that the
Administrative Agent or such Lender (or assignee) is required to repay such
refund to such Governmental Authority. Nothing contained in this Section 2.15(f)
shall require the Administrative Agent or any Lender (or assignee) to make
available its Tax Returns or any other information which it deems confidential
to Borrower or any other person. Notwithstanding anything to the contrary, in no
event will any Lender be required to pay any amount to Borrower the payment of
which would place such Lender in a less favorable net after-tax position than
such Lender would have been in if the additional amounts giving rise to such
refund of any Indemnified Taxes or Other Taxes had never been paid.
SECTION 2.16 MITIGATION OBLIGATIONS; REPLACEMENT OF LENDERS.
(a) Mitigation of Obligations. If any Lender requests compensation
under Section 2.12, or if Borrower is required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant
to Section 2.15, then such Lender shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to assign
its rights and obligations hereunder to another of its offices, branches or
affiliates, if, in the reasonable judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section
2.12 or 2.15, as the case may be, in the future and (ii) would not subject such
Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such
designation or assignment. A certificate setting forth such costs and expenses
in reasonable detail submitted by such Lender to the Administrative Agent shall
be conclusive absent manifest error.
(b) Replacement of Lenders. If any Lender requests compensation
under Section 2.12, or if Borrower is required to pay any additional amount to
any Lender or any Governmental
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Authority for the account of any Lender pursuant to Section 2.15, or if any
Lender defaults in its obligation to fund Loans hereunder, then Borrower may, at
its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in
accordance with and subject to the restrictions contained in Section 11.04), all
of its interests, rights and obligations under this Agreement to an assignee
selected by Borrower that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) Borrower
shall have received the prior written consent of the Administrative Agent (and,
if a Tranche A-1 Revolving Commitment is being assigned, the Issuing Bank and
Swingline Lender), which consents shall not unreasonably be withheld, (ii) such
Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swingline
Loans, accrued interest thereon, accrued fees and all other amounts payable to
it hereunder (assuming for this purpose that the Loans of such Lender were being
prepaid) from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or Borrower (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation
under Section 2.12 or payments required to be made pursuant to Section 2.15,
such assignment will result in a material reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling Borrower to require such assignment and
delegation cease to apply.
SECTION 2.17 SWINGLINE LOANS.
(a) Swingline Commitment. Subject to the terms and conditions set
forth herein, the Swingline Lender agrees to make Swingline Loans to Borrower
from time to time during the Revolving Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the
aggregate principal amount of outstanding Swingline Loans exceeding $5.0 million
or (ii) the sum of the total Revolving Exposures exceeding the total Tranche A-1
Revolving Commitments; provided that the Swingline Lender shall not be required
to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the
foregoing limits and subject to the terms and conditions set forth herein,
Borrower may borrow, repay and reborrow Swingline Loans.
(b) Swingline Loans. To request a Swingline Loan, Borrower shall
deliver, by hand delivery or telecopy, a duly completed and executed Borrowing
Request to the Administrative Agent and the Swingline Lender, not later than
2:00 p.m., New York City time, on the day of a proposed Swingline Loan. Each
such notice shall be irrevocable and shall specify the requested date (which
shall be a Business Day) and the amount of the requested Swingline Loan. Each
Swingline Loan shall be an ABR Loan. The Swingline Lender shall make each
Swingline Loan available to Borrower by means of a credit to the general deposit
account of Borrower with the Swingline Lender (or, in the case of a Swingline
Loan made to finance the reimbursement of an LC Disbursement as provided in
Section 2.18(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City
time, on the requested date of such Swingline Loan. Borrower shall not request a
Swingline Loan if at the time of or immediately after giving effect to the
Credit Extensions contemplated by such request a Default has occurred and is
continuing or would result therefrom. Swingline Loans shall be made in minimum
amounts of $100,000 and integral multiples of $100,000 above such amount.
(c) Prepayment. Borrower shall have the right at any time and from
time to time to repay any Swingline Loan, in whole or in part, upon giving
written notice to the Swingline Lender and the Administrative Agent before 12:00
(noon), New York City time, on the proposed date of repayment.
(d) Participations. The Swingline Lender may at any time in its
discretion by written notice given to the Administrative Agent (provided such
notice requirement shall not apply if the
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Swingline Lender and the Administrative Agent are the same entity) not later
than 11:00 A.M., New York City time, on the next succeeding Business Day
following such notice require the Tranche A-1 Revolving Lenders to acquire
participations on such Business Day in all or a portion of the Swingline Loans
then outstanding. Such notice shall specify the aggregate amount of Swingline
Loans in which Tranche A-1 Revolving Lenders will participate. Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to
each Tranche A-1 Revolving Lender, specifying in such notice such Lender's Pro
Rata Percentage of such Swingline Loan or Loans. Each Tranche A-1 Revolving
Lender hereby absolutely and unconditionally agrees, upon receipt of notice as
provided above, to pay to the Administrative Agent, for the account of the
Swingline Lender, such Lender's Pro Rata Percentage of such Swingline Loan or
Loans. Each Tranche A-1 Revolving Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this
paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever (so
long as such payment shall not cause such Lender's Revolving Exposure to exceed
such Lender's Tranche A-1 Revolving Commitment). Each Tranche A-1 Revolving
Lender shall comply with its obligation under this paragraph by wire transfer of
immediately available funds, in the same manner as provided in Section 2.02(c)
with respect to Loans made by such Lender (and Section 2.02 shall apply, mutatis
mutandis, to the payment obligations of the Tranche A-1 Revolving Lenders), and
the Administrative Agent shall promptly pay to the Swingline Lender the amounts
so received by it from the Tranche A-1 Revolving Lenders. The Administrative
Agent shall notify Borrower of any participations in any Swingline Loan acquired
by the Tranche A-1 Revolving Lenders pursuant to this paragraph, and thereafter
payments in respect of such Swingline Loan shall be made to the Administrative
Agent and not to the Swingline Lender. Any amounts received by the Swingline
Lender from Borrower (or other party on behalf of Borrower) in respect of a
Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale
of participations therein shall be promptly remitted to the Administrative
Agent. Any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Tranche A-1 Revolving Lenders that
shall have made their payments pursuant to this paragraph, as their interests
may appear. The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve Borrower of any default in the payment thereof.
SECTION 2.18 LETTERS OF CREDIT.
(a) General. Subject to the terms and conditions set forth herein,
Borrower may request the Issuing Bank, and the Issuing Bank agrees, to issue
Letters of Credit for its own account or the account of a Subsidiary (subject to
such Subsidiary's compliance with all reasonable requests made by the LC Issuer
or the Administrative Agent pursuant to Section 11.16) in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank, at any time and
from time to time during the Revolving Availability Period (provided that
Borrower shall be a co-applicant, and be jointly and severally liable, with
respect to each Letter of Credit issued for the account of a Subsidiary). The
Issuing Bank shall have no obligation to issue, and Borrower shall not request
the issuance of, any Letter of Credit at any time if after giving effect to such
issuance, the LC Exposure would exceed the LC Commitment or the total Revolving
Exposure would exceed the total Tranche A-1 Revolving Commitments. In the event
of any inconsistency between the terms and conditions of this Agreement and the
terms and conditions of any form of letter of credit application or other
agreement submitted by Borrower to, or entered into by Borrower with, the
Issuing Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.
(b) Request for Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit or the amendment,
renewal or extension of an outstanding Letter
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of Credit, Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing
Bank) an LC Request to the Issuing Bank and the Administrative Agent not later
than 11:00 a.m. on the third Business Day preceding the requested date of
issuance, amendment, renewal or extension (or such later date and time as is
acceptable to the Issuing Bank).
A request for an initial issuance of a Letter of Credit shall
specify in form and detail satisfactory to the Issuing Bank:
(i) the proposed issuance date of the requested Letter of Credit
(which shall be a Business Day);
(ii) the amount thereof;
(iii) the expiry date thereof (which shall not be later than the
close of business on the Letter of Credit Expiration Date);
(iv) the name and address of the beneficiary thereof;
(v) whether the Letter of Credit is to be issued for its own
account or for the account of one of its Subsidiaries (provided that
Borrower shall be a co-applicant, and therefore jointly and severally
liable, with respect to each Letter of Credit issued for the account of a
Subsidiary);
(vi) the documents to be presented by such beneficiary in
connection with any drawing thereunder;
(vii) the full text of any certificate to be presented by such
beneficiary in connection with any drawing thereunder; and
(viii) such other matters as the Issuing Bank may require.
A request for an amendment, renewal or extension of any
outstanding Letter of Credit shall specify in form and detail satisfactory to
the Issuing Bank:
(i) the Letter of Credit to be amended, renewed or extended;
(ii) the proposed date of amendment, renewal or extension thereof
(which shall be a Business Day);
(iii) the nature of the proposed amendment, renewal or extension;
and
(iv) such other matters as the Issuing Bank may require.
If requested by the Issuing Bank, Borrower also shall submit a letter of credit
application on the Issuing Bank's standard form in connection with any request
for a Letter of Credit. 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, Borrower shall be deemed to represent and warrant that), after
giving effect to such issuance, amendment, renewal or extension, (i) the LC
Exposure shall not exceed the LC Commitment, (ii) the total Revolving Exposures
shall not exceed the total Tranche A-1 Revolving Commitments and (iii) the
conditions set forth in Article IV in respect of such issuance, amendment,
renewal or extension
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shall have been satisfied. Unless the Issuing Bank shall agree otherwise, no
Letter of Credit shall be in an initial amount less than $100,000, in the case
of a Commercial Letter of Credit, or $100,000, in the case of a Standby Letter
of Credit.
(c) Expiration Date.
(i) Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) in the case of a Standby Letter of Credit, (x)
the date which is one year after the date of the issuance of such Standby Letter
of Credit (or, in the case of any renewal or extension thereof, one year after
such renewal or extension) and (y) the Letter of Credit Expiration Date and (ii)
in the case of a Commercial Letter of Credit, (x) the date that is 180 days
after the date of issuance of such Commercial Letter of Credit (or, in the case
of any renewal or extension thereof, 180 days after such renewal or extension)
and (y) the Letter of Credit Expiration Date.
(ii) If Borrower so requests in any LC Request, the Issuing Bank
may, in its sole and absolute discretion, agree to issue a Letter of Credit that
has automatic renewal provisions (each, an "AUTO-RENEWAL LETTER OF CREDIT");
provided that any such Auto-Renewal Letter of Credit must permit the Issuing
Bank to prevent any such renewal at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day in each such twelve-month
period to be agreed upon at the time such Letter of Credit is issued. Unless
otherwise directed by the Issuing Bank, Borrower shall not be required to make a
specific request to the Issuing Bank for any such renewal. Once an Auto-Renewal
Letter of Credit has been issued, the Tranche A-1 Revolving Lenders shall be
deemed to have authorized (but may not require) the Issuing Bank to permit the
renewal of such Letter of Credit at any time to an expiry date not later than
the earlier of (i) one year from the date of such renewal and (ii) the Letter of
Credit Expiration Date; provided that the Issuing Bank shall not permit any such
renewal if (x) the Issuing Bank has determined that it would have no obligation
at such time to issue such Letter of Credit in its renewed form under the terms
hereof (by reason of the provisions of Section 2.18(l) or otherwise), or (y) it
has received notice on or before the day that is two Business Days before the
date which has been agreed upon pursuant to the proviso of the first sentence of
this paragraph, (1) from the Administrative Agent that it has elected not to
permit such renewal or (2) from the Administrative Agent or Borrower that one or
more of the applicable conditions specified in Section 4.02 are not then
satisfied.
(d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank
hereby irrevocably grants to each Tranche A-1 Revolving Lender, and each Tranche
A-1 Revolving Lender hereby acquires from the Issuing Bank, a participation in
such Letter of Credit equal to such Tranche A-1 Revolving Lender's Pro Rata
Percentage of the aggregate amount available to be drawn under such Letter of
Credit. In consideration and in furtherance of the foregoing, each Tranche A-1
Revolving Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of the Issuing Bank, such Tranche A-1
Revolving Lender's Pro Rata Percentage of each LC Disbursement made by the
Issuing Bank and not reimbursed by Borrower on the date due as provided in
Section 2.18(e), or of any reimbursement payment required to be refunded to
Borrower for any reason. Each Tranche A-1 Revolving 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 any amendment, renewal or
extension of any Letter of Credit or the occurrence and continuance of a Default
or reduction or termination of the Commitments, and that each such payment shall
be made without any offset, abatement, withholding or reduction whatsoever.
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(e) Reimbursement.
(i) If the Issuing Bank shall make any LC Disbursement in respect
of a Letter of Credit, Borrower shall reimburse such LC Disbursement by paying
to the Issuing Bank an amount equal to such LC Disbursement not later than 3:00
p.m., New York City time, on the date that such LC Disbursement is made if
Borrower shall have received notice of such LC Disbursement prior to 11:00 a.m.,
New York City time, on such date, or, if such notice has not been received by
Borrower prior to such time on such date, then not later than 3:00 p.m., New
York City time, on the Business Day immediately following the day that Borrower
receives such notice; provided that Borrower may, subject to the conditions to
borrowing set forth herein, request in accordance with Section 2.03 that such
payment be financed with ABR Revolving Loans in an equivalent amount and, to the
extent so financed, Borrower's obligation to make such payment shall be
discharged and replaced by the resulting ABR Revolving Loans.
(ii) If Borrower fails to make such payment when due, the Issuing
Bank shall notify the Administrative Agent and the Administrative Agent shall
notify each Tranche A-1 Revolving Lender of the applicable LC Disbursement, the
payment then due from Borrower in respect thereof and such Tranche A-1 Revolving
Lender's Pro Rata Percentage thereof. Promptly following receipt of such notice,
each Tranche A-1 Revolving Lender shall pay by wire transfer of immediately
available funds to the Administrative Agent not later than 2:00 p.m., New York
City time, on such date (or, if such Tranche A-1 Revolving Lender shall have
received such notice later than 12:00 noon, New York City time, on any day, not
later than 2:00 p.m., New York City time, on the immediately following Business
Day), an amount equal to such Tranche A-1 Revolving Lender's Pro Rata Percentage
of the unreimbursed LC Disbursement in the same manner as provided in Section
2.02(c) with respect to Tranche A-1 Revolving Loans made by such Tranche A-1
Revolving Lender, and the Administrative Agent will promptly pay to the Issuing
Bank the amounts so received by it from the Tranche A-1 Revolving Lenders. The
Administrative Agent will promptly pay to the Issuing Bank any amounts received
by it from Borrower pursuant to the above paragraph prior to the time that any
Tranche A-1 Revolving Lender makes any payment pursuant to the preceding
sentence and any such amounts received by the Administrative Agent from Borrower
thereafter will be promptly remitted by the Administrative Agent to the Tranche
A-1 Revolving Lenders that shall have made such payments and to the Issuing
Bank, as appropriate.
(iii) If any Tranche A-1 Revolving Lender shall not have made its
Pro Rata Percentage of such LC Disbursement available to the Administrative
Agent as provided above, each of such Tranche A-1 Revolving Lender and Borrower
severally agrees to pay interest on such amount, for each day from and including
the date such amount is required to be paid in accordance with the foregoing to
but excluding the date such amount is paid, to the Administrative Agent for the
account of the Issuing Bank at (i) in the case of Borrower, the rate per annum
set forth in Section 2.18(h) and (ii) in the case of such Lender, at a rate
determined by the Administrative Agent in accordance with banking industry rules
or practices on interbank compensation.
(f) Obligations Absolute. The Reimbursement Obligation of Borrower
as provided in Section 2.18(e) shall be absolute, unconditional and irrevocable,
and shall be paid and 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 this Agreement, or
any term or provision therein; (ii) any draft or other document presented under
a Letter of Credit being proved to be forged, fraudulent, invalid or
insufficient in any respect or any statement therein being untrue or inaccurate
in any respect; (iii) payment by the Issuing Bank under a Letter of Credit
against presentation of a draft or other document that fails to comply with the
terms of such Letter of Credit; (iv) any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the
provisions of this Section 2.18, constitute a legal or equitable discharge of,
or provide a right of setoff against,
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the obligations of Borrower hereunder; (v) the fact that a Default shall have
occurred and be continuing; or (vi) any material adverse change in the business,
property, results of operations, prospects or condition, financial or otherwise,
of Borrower and its Subsidiaries. None of the Agents, the Lenders, the Issuing
Bank or any of their Affiliates shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit
or any payment or failure to make any payment thereunder (irrespective of any of
the circumstances referred to in the preceding sentence), or any error,
omission, interruption, loss or delay in transmission or delivery of any draft,
notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in
interpretation of technical terms or any consequence arising from causes beyond
the control of the Issuing Bank; provided that the foregoing shall not be
construed to excuse the Issuing Bank from liability to Borrower to the extent of
any direct damages (as opposed to consequential damages, claims in respect of
which are hereby waived by Borrower to the extent permitted by applicable law)
suffered by Borrower that are caused by the Issuing Bank's failure to exercise
care when determining whether drafts and other documents presented under a
Letter of Credit comply with the terms thereof. The parties hereto expressly
agree that, in the absence of gross negligence or willful misconduct on the part
of the Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each
such determination. In furtherance of the foregoing and without limiting the
generality thereof, the parties agree that, with respect to documents presented
which appear on their face to be in substantial compliance with the terms of a
Letter of Credit, the Issuing Bank may, in its sole discretion, either accept
and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or
refuse to accept and make payment upon such documents if such documents are not
in strict compliance with the terms of such Letter of Credit.
(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 promptly
give written notice to the Administrative Agent and Borrower of such demand for
payment and whether the Issuing Bank has made or will make an LC Disbursement
thereunder; provided that any failure to give or delay in giving such notice
shall not relieve Borrower of its Reimbursement Obligation to the Issuing Bank
and the Tranche A-1 Revolving Lenders with respect to any such LC Disbursement
(other than with respect to the timing of such Reimbursement Obligation set
forth in Section 2.18(e)).
(h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless Borrower shall reimburse such LC Disbursement in full
on the date such LC Disbursement is made, the unpaid amount thereof shall bear
interest payable on demand, for each day from and including the date such LC
Disbursement is made to but excluding the date that Borrower reimburses such LC
Disbursement, at the rate per annum determined pursuant to Section 2.06(c).
Interest accrued pursuant to this paragraph shall be for the account of the
Issuing Bank, except that interest accrued on and after the date of payment by
any Tranche A-1 Revolving Lender pursuant to Section 2.18(e) to reimburse the
Issuing Bank shall be for the account of such Lender to the extent of such
payment.
(i) Cash Collateralization. If any Event of Default shall occur and
be continuing, on the Business Day that Borrower receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Tranche A-1 Revolving Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of
cash collateral pursuant to this paragraph, Borrower shall deposit on terms
reasonably satisfactory to the Collateral Agent, in the name of the Collateral
Agent and for the benefit of the Tranche A-1 Revolving Lenders, an amount in
cash equal to the LC Exposure as of such date plus any accrued and unpaid
interest thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or other notice of any kind, upon the occurrence
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of any Event of Default with respect to Borrower described in Section 8.01 (g)
or (h). Funds so deposited shall be applied by the Collateral Agent to reimburse
the Issuing Bank for LC Disbursements for which it has not been reimbursed and,
to the extent not so applied, shall be held for the satisfaction of outstanding
Reimbursement Obligations or, if the maturity of the Loans has been accelerated
(but subject to the consent of Tranche A-1 Revolving Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other Obligations of Borrower under this Agreement. If Borrower is required to
provide an amount of cash collateral hereunder as a result of the occurrence of
an Event of Default, such amount plus any accrued interest or realized profits
with respect to such amounts (to the extent not applied as aforesaid) shall be
returned to Borrower within three Business Days after all Events of Default have
been cured or waived.
(j) Additional Issuing Banks. Borrower may, at any time and from
time to time, designate one or more additional Tranche A-1 Revolving Lenders to
act as an issuing bank under the terms of this Agreement, with the consent of
the Administrative Agent (which consent shall not be unreasonably withheld), the
Issuing Bank and such Tranche A-1 Revolving Lender(s). Any Lender designated as
an issuing bank pursuant to this paragraph (j) shall be deemed (in addition to
being a Tranche A-1 Revolving Lender) to be the Issuing Bank with respect to
Letters of Credit issued or to be issued by such Tranche A-1 Revolving Lender,
and all references herein and in the other Loan Documents to the term "Issuing
Bank" shall, with respect to such Letters of Credit, be deemed to refer to such
Tranche A-1 Revolving Lender in its capacity as Issuing Bank, as the context
shall require.
(k) Resignation or Removal of the Issuing Bank. The Issuing Bank
may resign as Issuing Bank hereunder at any time upon at least 30 days' prior
notice to the Lenders, the Administrative Agent and Borrower. The Issuing Bank
may be replaced at any time by written agreement among Borrower, each Agent, the
replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent
shall notify the Lenders of any such replacement of the Issuing Bank or any such
additional Issuing Bank. At the time any such resignation or replacement shall
become effective, Borrower shall pay all unpaid fees accrued for the account of
the replaced Issuing Bank pursuant to Section 2.05(c). From and after the
effective date of any such resignation or replacement or addition, as
applicable, (i) the successor or additional Issuing Bank shall have all the
rights and obligations of the Issuing Bank under this Agreement with respect to
Letters of Credit to be issued by it thereafter and (ii) references herein to
the term "Issuing Bank" shall be deemed to refer to such successor or such
addition or to any previous Issuing Bank, or to such successor or such addition
and all previous Issuing Banks, as the context shall require. After the
resignation or replacement of an Issuing Bank hereunder, the replaced 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 replacement, but shall not be
required to issue additional Letters of Credit. If at any time there is more
than one Issuing Bank hereunder, Borrower may, in its discretion, select which
Issuing Bank is to issue any particular Letter of Credit.
(l) Other. The Issuing Bank shall be under no obligation to issue
any Letter of Credit if
(i) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the Issuing
Bank from issuing such Letter of Credit, or any law applicable to the
Issuing Bank or any request or directive (whether or not having the force
of law) from any Governmental Authority with jurisdiction over the Issuing
Bank shall prohibit, or request that the Issuing Bank refrain from, the
issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon the Issuing Bank with respect to such
Letter of Credit any restriction, reserve or capital requirement (for
which the Issu-
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ing Bank is not otherwise compensated hereunder) not in effect on the
Closing Date, or shall impose upon the Issuing Bank any unreimbursed loss,
cost or expense which was not applicable on the Closing Date and which the
Issuing Bank in good ▇▇▇▇▇ ▇▇▇▇▇ material to it; or
(ii) the issuance of such Letter of Credit would violate one or
more policies of the Issuing Bank.
The Issuing Bank shall be under no obligation to amend any Letter of Credit if
(A) the Issuing Bank would have no obligation at such time to issue such Letter
of Credit in its amended form under the terms hereof, or (B) the beneficiary of
such Letter of Credit does not accept the proposed amendment to such Letter of
Credit.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
Each Loan Party represents and warrants to the Administrative Agent,
the Collateral Agent, the Issuing Bank and each of the Lenders (with references
to the Companies being references thereto after giving effect to the
Transactions unless otherwise expressly stated) that:
SECTION 3.01 ORGANIZATION; POWERS. Each Company (a) is duly
organized and validly existing under the laws of the jurisdiction of its
organization, (b) has all requisite power and authority to carry on its business
as now conducted and to own and lease its property and (c) is qualified and in
good standing (to the extent such concept is applicable in the applicable
jurisdiction) to do business in every jurisdiction where such qualification is
required, except in such jurisdictions where the failure to so qualify or be in
good standing, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. There is no existing default
under any Organizational Document of any Company or any event which, with the
giving of notice or passage of time or both, would constitute a default by any
party thereunder.
SECTION 3.02 AUTHORIZATION; ENFORCEABILITY. The Transactions entered
or to be entered into by each Loan Party are within such Loan Party's powers and
have been duly authorized by all necessary action on the part of such Loan
Party. This Agreement has been duly executed and delivered by each Loan Party
and constitutes, and each other Loan Document to which any Loan Party is to be a
party, when executed and delivered by such Loan Party, will constitute, a legal,
valid and binding obligation of such Loan Party, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors' rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding
in equity or at law.
SECTION 3.03 NO CONFLICTS. Except as set forth on Schedule 3.03, the
Transactions (a) do not and did not require any consent or approval of,
registration or filing with, or any other action by, any Governmental Authority,
except (i) such as have been obtained or made and are in full force and effect,
(ii) filings necessary to perfect Liens created by the Loan Documents and (iii)
consents, approvals, registrations, filings, permits or actions the failure to
obtain or perform which could not reasonably be expected to result in a Material
Adverse Effect, (b) will not and did not violate the Organizational Documents of
any Company or any judgment, decree or order of any Governmental Authority, (c)
will not and did not violate or result in a default or require any consent or
approval under any indenture, agreement, Organizational Document or other
instrument binding upon any Company or its property, or give rise to a right
thereunder to require any payment to be made by any Company, except for
violations, defaults or the creation of such rights that could not reasonably be
expected to result in a Material
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Adverse Effect, and (d) will not and did not result in the creation or
imposition of any Lien on any property of any Company, except Liens created by
the Loan Documents and Permitted Liens.
SECTION 3.04 FINANCIAL STATEMENTS; PROJECTIONS.
(a) Borrower has heretofore delivered to the Lenders the
consolidated balance sheets and related statements of income, stockholders'
equity and cash flows of the Acquired Business (i) as of and for the fiscal
years ended December 30, 2000, December 29, 2001, December 28, 2002, December
27, 2003 and January 1, 2005 audited by and accompanied by the unqualified
opinion of Ernst & Young, LLP, independent public accountants, and (ii) as of
and for the nine-month periods ended September 30, 2003 and September 30, 2005
and for the comparable period of the preceding fiscal years (which, in the case
of the financial statements dated September 30, 2003, shall have been subject to
a SAS 100 review), in each case, certified by the chief financial officer of
Borrower. Such financial statements and all financial statements delivered
pursuant to Sections 5.01(a), and (b) have been prepared in accordance with GAAP
(except, in the case of Sections 5.01(b), for the absence of notes thereto) and
present fairly and accurately the financial condition and results of operations
and cash flows of the Acquired Business as of the dates and for the periods to
which they relate. Except as set forth in such financial statements, there are
no liabilities of any Company of any kind, whether accrued, contingent,
absolute, determined, determinable or otherwise, which could reasonably be
expected to result in a Material Adverse Effect.
(b) Borrower has heretofore delivered to the Lenders the Acquired
Business's unaudited and estimated pro forma consolidated balance sheet and
statements of income and cash flows and estimated pro forma EBITDA for the
fiscal year ended December 27, 2003, after giving effect to the January 2004
Transactions as if they had occurred on such date in the case of the balance
sheet and as of the beginning of all periods presented in the case of the
statements of income and cash flows. Such estimated pro forma financial
statements have been prepared in good faith by the Loan Parties, based on the
assumptions stated therein (which assumptions are believed by the Loan Parties
on the date hereof and on the Closing Date to be reasonable), are based on the
best information available to the Loan Parties as of the date of delivery
thereof, accurately reflect all adjustments required to be made to give effect
to the January 2004 Transactions, and present fairly the estimated pro forma
consolidated financial position and results of operations of the Acquired
Business as of such date and for such periods, assuming that the January 2004
Transactions had occurred at such dates.
(c) The forecasts of financial performance of Holdings and its
subsidiaries furnished to the Lenders have been prepared in good faith by
Borrower and based on assumptions believed by Borrower to reasonable.
(d) Since December 28, 2002 there has been no event, change,
circumstance or occurrence that, individually or in the aggregate, has had or
could reasonably be expected to result in a Material Adverse Effect.
SECTION 3.05 PROPERTIES.
(a) Each Company has good title to, or valid leasehold interests in,
all its property material to its business, free and clear of all Liens except
for, in the case of Collateral, Permitted Collateral Liens (which for purposes
hereof, in the case of judgment liens, shall mean judgment liens imposed or
created after the date of the initial Credit Extension) and, in the case of all
other material property, Permitted Liens and minor irregularities or
deficiencies in title that, individually or in the aggregate, do not interfere
with its ability to conduct its business as currently conducted or to utilize
such property for
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its intended purpose. The property of the Companies, taken as a whole, (i) is in
good operating order, condition and repair (ordinary wear and tear excepted),
except to the extent that the failure to be in such condition could not
reasonably be expected to result in a Material Adverse Effect, and (ii)
constitutes all the property which is required for the business and operations
of the Companies as presently conducted.
(b) Schedule 3.05(b) contains a true and complete list of each
interest in Real Property (i) owned by any Company as of the date hereof and
describes the type of interest therein held by such Company and (ii) leased,
subleased or otherwise occupied or utilized by any Company, as lessee,
sublessee, franchisee or licensee, as of the date hereof and describes the type
of interest therein held by such Company and whether such lease, sublease or
other instrument requires the consent of the landlord thereunder or other
parties thereto to the Transactions.
(c) No Company has received any notice of, nor has any knowledge of,
the occurrence or pendency or contemplation of any Casualty Event occurring or
deemed to have occurred after the Closing Date affecting all or any portion of
its property (i) with respect to which it has not applied the Net Cash Proceeds
thereof in accordance with Section 2.10(e) hereof or (ii) which Casualty Event
could reasonably be expected to have a Material Adverse Effect (any Casualty
Event of the type described in clause (ii), a "MATERIAL CASUALTY EVENT"). On and
as of the Amendment and Restatement Effective Date, no Company has received any
notice of, nor has any knowledge of, the occurrence or pendency or contemplation
of any Casualty Event affecting all or any portion of its property. No Mortgage
encumbers improved Real Property that is located in an area that has been
identified by the Secretary of Housing and Urban Development as an area having
special flood hazards within the meaning of the National Flood Insurance Act of
1968 unless flood insurance available under such Act has been obtained in
accordance with Section 5.04.
(d) Each Company owns or has rights to use all of the Collateral and
all rights with respect to any of the foregoing used in, necessary for or
material to each Company's business as currently conducted. The use by each
Company of such Collateral and all such rights with respect to the foregoing do
not infringe on the rights of any person other than such infringement which
could not, individually or in the aggregate, reasonably be expected to result in
a Material Adverse Effect. No claim has been made and remains outstanding that
any Company's use of any Collateral does or may violate the rights of any third
party that could, individually or in the aggregate, reasonably be expected to
result in a Material Adverse Effect.
(e) The Equipment of each Company is in good repair, working order
and condition, reasonable wear and tear excepted. Each Company shall cause the
Equipment to be maintained and preserved in good repair, working order and
condition, reasonable wear and tear excepted, and shall as quickly as
commercially practicable make or cause to be made all repairs, replacements and
other improvements which are necessary or appropriate in the conduct of each
Company's business.
SECTION 3.06 INTELLECTUAL PROPERTY.
(a) Ownership/No Claims. Each Loan Party owns, or is licensed to
use, all patents, patent applications, trademarks, trade names, servicemarks,
copyrights, technology, trade secrets, proprietary information, domain names,
know-how and processes necessary for the conduct of its business as currently
conducted (the "INTELLECTUAL PROPERTY"), except for those the failure to own or
license which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No claim has been asserted and
is pending by any person challenging or questioning the use of any such
Intellectual Property or the validity or effectiveness of any such Intellectual
Property, nor does any Loan Party know of any valid basis for any such claim
that could reasonably be expected to result in a Material
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Adverse Effect. The use of such Intellectual Property by each Loan Party does
not infringe the rights of any person, except for such claims and infringements
that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.
(b) Registrations. Except pursuant to licenses and other user
agreements entered into by each Loan Party in the ordinary course of business
that are listed in Schedules 14(a) and 14(b) to the Perfection Certificate, on
and as of the date hereof (i) each Loan Party owns and possesses the right to
use, and has done nothing to authorize or enable any other person to use, any
copyright, patent or trademark (as such terms are defined in the Security
Agreement) listed in Schedules 13(a) and 13(b) to the Perfection Certificate and
(ii) all registrations listed in Schedules 13(a) and 13(b) to the Perfection
Certificate are valid and in full force and effect.
(c) No Violations or Proceedings. To each Loan Party's knowledge, on
and as of the date hereof, (i) there is no material violation by others of any
right of such Loan Party with respect to any copyright, patent or trademark
listed in Schedules 13(a) and 13(b) to the Perfection Certificate, respectively,
pledged by it under the name of such Loan Party, (ii) such Loan Party is not
infringing upon any copyright, patent or trademark of any other person other
than such infringement that, individually or in the aggregate, could not
reasonably be expected to materially adversely affect the value or utility of
the Intellectual Property or any portion thereof material to the use and
operation of the Collateral, and (iii) no proceedings have been instituted or
are pending against such Loan Party or threatened, and no claim against such
Loan Party has been received by such Loan Party, alleging any such violation,
except as may be set forth in Schedule 3.06(c).
SECTION 3.07 EQUITY INTERESTS AND SUBSIDIARIES.
(a) Schedule 3.07(a) sets forth a list of (i) all the Subsidiaries
of Holdings and their jurisdiction of organization as of the Amendment and
Restatement Effective Date and (ii) the number of each class of its Equity
Interests authorized, and the number outstanding, on the Amendment and
Restatement Effective Date and the number of shares covered by all outstanding
options, warrants, rights of conversion or purchase and similar rights at the
Amendment and Restatement Effective Date, respectively. All Equity Interests of
each Company are duly and validly issued and are fully paid and non-assessable,
and, other than the Equity Interests of Borrower and Holdings, are owned by
Borrower, directly or indirectly through Wholly Owned Subsidiaries. All Equity
Interests of PGT Industries are owned directly by Holdings (other than Equity
Interests issued in connection with a Qualified Contribution Transaction, of
which there are none on the Closing Date or on the Amendment and Restatement
Effective Date). Each Loan Party is the record and beneficial owner of, and has
good and marketable title to, the Equity Interests pledged by it under the
Security Agreement, free of any and all Liens, rights or claims of other
persons, except the security interest created by the Security Documents and the
security interest created by the Second Lien Security Documents, and there are
no outstanding warrants, options or other rights to purchase, or shareholder,
voting trust or similar agreements outstanding with respect to, or property that
is convertible into, or that requires the issuance or sale of, any such Equity
Interests.
(b) No consent of any person including any other general or limited
partner, any other member of a limited liability company, any other shareholder
or any other trust beneficiary is necessary or reasonably desirable (from the
perspective of a secured party) in connection with the creation, perfection or
First Priority status of the security interests of the Collateral Agent in any
Equity Interests pledged to the Collateral Agent for the benefit of the Secured
Parties under the Security Agreement or the exercise by the Collateral Agent of
the voting or other rights provided for in the Security Agreement or the
exercise of remedies in respect thereof.
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(c) An accurate organization chart, showing the ownership structure
of Holdings, Borrower and each Subsidiary on the Amendment and Restatement
Effective Date, and after giving effect to the Transactions, is set forth on
Schedule 3.07(c).
SECTION 3.08 LITIGATION; COMPLIANCE WITH LAWS.
(a) There are no actions, suits or proceedings at law or in equity
by or before any Governmental Authority now pending or, to the knowledge of any
Company, threatened against or affecting any Company or any business, property
or rights of any Company (i) that involve any Loan Document or any of 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) Except for matters covered by Section 3.18, no Company or any of
its property is in violation of, nor will the continued operation of its
property as currently conducted violate, any Requirements of Law (including any
zoning or building ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting any Company's Real Property or is
in default with respect to any judgment, writ, injunction, decree, rule or order
of any Governmental Authority, where such violation or default, individually or
in the aggregate, could reasonably be expected to result in a Material Adverse
Effect.
SECTION 3.09 AGREEMENTS.
(a) No Company is a party to any agreement or instrument or subject
to any corporate or other constitutional restriction that has resulted or could
reasonably be expected to result in a Material Adverse Effect.
(b) No Company is in default in any manner under any provision of
any indenture or other agreement or instrument evidencing Indebtedness, or any
other agreement or instrument to which it is a party or by which it or any of
its property is or may be bound, where such default could reasonably be expected
to result in a Material Adverse Effect, and no condition exists which, with the
giving of notice or the lapse of time or both, would constitute such a default.
(c) Schedule 3.09(c) accurately and completely lists all material
agreements (other than leases of Real Property set forth on Schedule 3.05(b)) to
which any Company is a party which are in effect on the date hereof in
connection with the operation of the business conducted thereby and Borrower has
delivered to the Administrative Agent, upon request, complete and correct copies
of all such material agreements, including any amendments, supplements or
modifications with respect thereto, and all such agreements are in full force
and effect.
SECTION 3.10 FEDERAL RESERVE REGULATIONS.
(a) No Company 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.
(b) No part of the proceeds of any 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 T, U or X. The pledge of the Securities Collateral pursuant to the
Security Agreement does not violate such regulations.
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SECTION 3.11 INVESTMENT COMPANY ACT. No Company is an "investment
company" or a company "controlled" by an "investment company," as defined in, or
subject to regulation under, the Investment Company Act of 1940, as amended.
SECTION 3.12 USE OF PROCEEDS. Borrower (a) will use the proceeds
from borrowings of the Tranche A-2 Term Loans to refinance the outstanding
Tranche A-1 Loans (as defined in the Second Amendment) and to make the 2006
Dividend and pay related fees and expenses on the Amendment and Restatement
Effective Date and for working capital and general corporate purposes and (b)
will use the Tranche A-1 Revolving Loans to refinance the outstanding Revolving
Loans (as defined in the Original Credit Agreement) and proceeds from Borrowings
of Tranche A-1 Revolving Loans after the Amendment and Restatement Effective
Date for working capital and general corporate purposes (including to effect
Permitted Acquisitions). For the avoidance of doubt, Tranche A-1 Revolving Loans
shall not be used to prepay Second Lien Loans.
SECTION 3.13 TAXES. Each Company has (a) timely filed or caused to
be timely filed all federal Tax Returns and all material state, local and
foreign Tax Returns or materials required to have been filed by it and all such
Tax Returns are true and correct in all material respects and (b) duly and
timely paid or caused to be duly and timely paid all Taxes (whether or not shown
on any Tax Return) due and payable by it and all assessments received by it,
except Taxes (i) that are being contested in good faith by appropriate
proceedings and for which such Company has set aside on its books adequate
reserves in accordance with GAAP or (ii) which could not, individually or in the
aggregate, have a Material Adverse Effect. Each Company has made adequate
provision in accordance with GAAP for all Taxes not yet due and payable. Each
Company is unaware of any proposed or pending tax assessments, deficiencies or
audits that could be reasonably expected to, individually or in the aggregate,
result in a Material Adverse Effect. No Company has ever been a party to any
understanding or arrangement constituting a "tax shelter" within the meaning of
Section 6111(c), Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, or
has ever "participated" in a "reportable transaction" within the meaning of
Treasury Regulation Section 1.6011-4, except as could not be reasonably expected
to, individually or in the aggregate, result in a Material Adverse Effect.
SECTION 3.14 NO MATERIAL MISSTATEMENTS. No written information,
report, financial statement, certificate, Borrowing Request, LC Request, exhibit
or schedule furnished by or on behalf of any Company to the Administrative Agent
or any Lender in connection with the negotiation of any Loan Document or
included therein or delivered pursuant thereto (including the Confidential
Information Memorandum), taken as a whole, contained or contains any material
misstatement of fact or omitted or omits to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were or are made, not misleading as of the date such information is dated or
certified; provided that to the extent any such information, report, financial
statement, exhibit or schedule was based upon or constitutes a forecast or
projection, each Company represents only that it acted in good faith and
utilized reasonable assumptions and due care in the preparation of such
information, report, financial statement, exhibit or schedule.
SECTION 3.15 LABOR MATTERS. As of the date hereof and the Amendment
and Restatement Effective Date, there are no strikes, lockouts or slowdowns
against any Company pending or, to the knowledge of any Company, threatened. The
hours worked by and payments made to employees of any Company have not been in
violation of the Fair Labor Standards Act of 1938, as amended, or any other
applicable federal, state, local or foreign law dealing with such matters in any
manner which could reasonably be expected to result in a Material Adverse
Effect. All payments due from any Company, or for which any claim may be made
against any Company, 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 such Com-
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pany except where the failure to do so could not reasonably be expected to
result in a Material Adverse Effect. The consummation of the Transactions 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 any Company is
bound.
SECTION 3.16 SOLVENCY. Immediately after the consummation of the
January 2004 Transactions that occurred on the Closing Date, immediately after
the consummation of the 2006 Transaction to occur on the Amendment and
Restatement Effective Date and immediately following the making of each Loan and
after giving effect to the application of the proceeds of each Loan, (a) the
fair value of the properties of each Loan Party (individually and on a
consolidated basis with its Subsidiaries) did and will exceed its debts and
liabilities, subordinated, contingent or otherwise; (b) the present fair
saleable value of the property of each Loan Party (individually and on a
consolidated basis with its Subsidiaries) was and will be greater than the
amount that will be required to pay the probable liability of its debts and
other liabilities, subordinated, contingent or otherwise, as such debts and
other liabilities become absolute and matured; (c) each Loan Party (individually
and on a consolidated basis with its Subsidiaries) was and will be able to pay
its debts and liabilities, subordinated, contingent or otherwise, as such debts
and liabilities become absolute and matured; and (d) each Loan Party
(individually and on a consolidated basis with its Subsidiaries) did not and
will not have unreasonably small capital with which to conduct its business in
which it is engaged as such business is now conducted and is proposed to be
conducted following the Closing Date or following the Amendment and Restatement
Effective Date.
SECTION 3.17 EMPLOYEE BENEFIT PLANS. Each Company 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 a Material Adverse Effect. The present
value of all accumulated benefit obligations of all underfunded Plans (based on
the assumptions used for purposes of Statement of Financial Accounting Standards
No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed by more than $250,000 the fair market value of
the property of all such underfunded Plans. Using actuarial assumptions and
computation methods consistent with subpart I of subtitle E of Title IV of
ERISA, the aggregate liabilities of each Company or its ERISA Affiliates to all
Multiemployer Plans in the event of a complete withdrawal therefrom, as of the
close of the most recent fiscal year of each such Multiemployer Plan, could not
reasonably be expected to result in a Material Adverse Effect. The Borrower and
its Subsidiaries do not maintain or contribute to any plan, program, policy,
arrangement or agreement with respect to employees (or former employees)
employed outside the United States.
SECTION 3.18 ENVIRONMENTAL MATTERS.
(a) Except as set forth in Schedule 3.18 and except as,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect:
(i) The Companies and their businesses, operations and Real
Property are and in the last six years have been in compliance with, and
the Companies have no liability under, Environmental Law;
(ii) The Companies have obtained all Environmental Permits required
for the conduct of their businesses and operations, and the ownership,
operation and use of their property, under Environmental Law, all such
Environmental Permits are valid and in good standing and, under the
currently effective business plan of the Companies, no expenditures or
operational adjustments will be required in order to renew or modify such
Environmental Permits during the
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next five years, the failure of which to obtain could reasonably be
expected to have a Material Adverse Effect;
(iii) There has been no Release or threatened Release of Hazardous
Material on, at, under or from any Real Property or facility presently or
formerly owned, leased or operated by the Companies or their predecessors
in interest that could result in liability by the Companies under
Environmental Law;
(iv) There is no Environmental Claim pending or, to the knowledge
of the Companies, threatened against the Companies, or relating to the
Real Property currently or formerly owned, leased or operated by the
Companies or relating to the operations of the Companies, and there are no
actions, activities, circumstances, conditions, events or incidents that
could form the basis of such an Environmental Claim; and
(v) No person with an indemnity or contribution obligation to the
Companies relating to compliance with or liability under Environmental Law
is in default with respect to such obligation.
(b) Except as set forth in Schedule 3.18:
(i) Except where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect, no Company is obligated
to perform any action or otherwise incur any expense under Environmental
Law pursuant to any order, decree, judgment or agreement by which it is
bound or has assumed by contract or agreement and no Company is conducting
or financing any Response pursuant to any Environmental Law with respect
to any Real Property or any other location;
(ii) No Real Property or facility owned, operated or leased by the
Companies and, to the knowledge of the Companies, no Real Property or
facility formerly owned, operated or leased by the Companies or any of
their predecessors in interest is (i) listed or proposed for listing on
the National Priorities List promulgated pursuant to CERCLA or (ii) listed
on the Comprehensive Environmental Response, Compensation and Liability
Information System promulgated pursuant to CERCLA or (iii) included on any
similar list maintained by any Governmental Authority including any such
list relating to petroleum;
(iii) No Lien has been recorded or, to the knowledge of any Company,
threatened under any Environmental Law with respect to any Real Property
or property of the Companies;
(iv) The execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby will not require
any notification, registration, filing, reporting, disclosure,
investigation, remediation or cleanup pursuant to any Governmental Real
Property Disclosure Requirements or any other Environmental Law; and
(v) The Companies have made available to the Lenders all material
records and files in the possession, custody or control of, or otherwise
reasonably available to, the Companies concerning compliance with or
liability under Environmental Law, including those concerning the
existence of Hazardous Material at Real Property or facilities currently
or formerly owned, operated, leased or used by the Companies.
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SECTION 3.19 INSURANCE. Schedule 3.19 sets forth a true, complete
and correct description of all insurance maintained by each Company as the
Amendment and Restatement Effective Date. All insurance maintained by the
Companies is in full force and effect, all premiums have been duly paid, no
Company has received notice of violation or cancellation thereof, the Premises,
and the use, occupancy and operation thereof, comply in all material respects
with all Insurance Requirements, and there exists no default under any Insurance
Requirement. Each Company has insurance in such amounts and covering such risks
and liabilities as are customary for companies of a similar size engaged in
similar businesses in similar locations.
SECTION 3.20 SECURITY DOCUMENTS.
(a) The Security Agreement is (and, after giving effect to the 2006
Transactions, continues to be) effective to create in favor of the Collateral
Agent for the benefit of the Secured Parties, legal, valid and enforceable First
Priority Liens (subject to Permitted Collateral Liens) on, and security
interests in, the Security Agreement Collateral of the Security Agreement and,
(i) assuming the financing statements and other filings in appropriate form have
been filed in the offices specified on Schedule 6 to the Perfection Certificate
dated as of the Closing Date and (ii) assuming the taking of possession or
control by the Collateral Agent of the Security Agreement Collateral with
respect to which a security interest may be perfected only by possession or
control (which possession or control shall be given to the Collateral Agent to
the extent possession or control by the Collateral Agent is required by the
Security Agreement), the Liens created by the Security Agreement constitute
(and, after giving effect to the 2006 Transactions, continue to constitute)
fully perfected First Priority Liens (subject to any Permitted Collateral Liens)
on, and security interests in, all right, title and interest of the grantors
thereunder in the Security Agreement Collateral (other than the Security
Agreement Collateral set forth on Schedule 3.20(a) in which a security interest
cannot be perfected under the UCC as in effect at the relevant time in the
relevant jurisdiction), in each case subject to no Liens other than Permitted
Collateral Liens.
(b) Assuming the Original Security Agreement or a short form thereof
has been filed in the United States Patent and Trademark Office and the United
States Copyright Office, the Liens created by the Security Agreement constitute
(and, after giving effect to the 2006 Transactions, continue to constitute)
fully perfected First Priority Liens (subject to any Permitted Collateral Liens)
on, and security interests in, all right, title and interest of the grantors
thereunder in the Intellectual Property Collateral (as defined in the Security
Agreement), in each case subject to no Liens other than Permitted Collateral
Liens.
(c) Each Mortgage is (and, after giving effect to the 2006
Transactions, continues to be) effective to create, in favor of the Collateral
Agent, for its benefit and the benefit of the Secured Parties, legal, valid and
enforceable First Priority Liens on, and security interests in, all of the Loan
Parties' right, title and interest in and to the Mortgaged Properties thereunder
and the proceeds thereof, subject only to Permitted Collateral Liens or other
Liens acceptable to the Collateral Agent, and assuming the filing of the
Mortgages in the offices specified on Schedule 1.01(a) (or, in the case of any
Mortgage executed and delivered after the date thereof in accordance with the
provisions of Sections 5.11 and 5.12, when such Mortgage is filed in the offices
specified in the local counsel opinion delivered with respect thereto in
accordance with the provisions of Sections 5.11 and 5.12), the Mortgages (and,
after giving effect to the 2006 Transactions, continue to) constitute fully
perfected First Priority Liens on, and security interests in, all right, title
and interest of the Loan Parties in the Mortgaged Properties and the proceeds
thereof, in each case prior and superior in right to any other person, other
than Liens permitted by such Mortgage.
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(d) Each Security Document delivered after the Closing Date
pursuant to Sections 5.11 and 5.12 will, upon execution and delivery thereof, be
(including after giving effect to the 2006 Transactions) effective to create in
favor of the Collateral Agent, for the benefit of the Secured Parties, legal,
valid and enforceable First Priority Liens (subject to any Permitted Collateral
Liens) on, and security interests in, all of the Loan Parties' right, title and
interest in and to the Collateral thereunder, and when all appropriate filings
or recordings are made in the appropriate offices as may be required under
applicable law, such Security Document will (including after giving effect to
the 2006 Transactions) constitute fully perfected First Priority Liens (subject
to any Permitted Collateral Liens) on, and security interests in, all right,
title and interest of the Loan Parties in such Collateral other than Collateral
of the type listed on Schedule 3.20(a), in each case subject to no Liens other
than the applicable Permitted Collateral Liens.
SECTION 3.21 ACQUISITION DOCUMENTS; REPRESENTATIONS AND WARRANTIES
IN ACQUISITION AGREEMENT.
(a) Schedule 3.21 lists (i) each exhibit, schedule, annex or other
attachment to the Acquisition Agreement and (ii) each agreement, certificate,
instrument, letter or other document contemplated by the Acquisition Agreement
or any item referred to in clause (i) to be entered into, executed or delivered
or to become effective in connection with the Acquisition or otherwise entered
into, executed or delivered in connection with the Acquisition. The Lenders have
been furnished true and complete copies of each Acquisition Document to the
extent executed and delivered on or prior to the Closing Date.
(b) All representations and warranties of each Company set forth
in the Acquisition Agreement were true and correct in all material respects as
of the time such representations and warranties were made and were true and
correct in all material respects as of the Closing Date as if such
representations and warranties were made on and as of such date, unless stated
to relate to a specific earlier date, in which case such representations and
warranties shall be true and correct in all material respects as of such earlier
date.
SECTION 3.22 ANTI-TERRORISM LAW.
(a) No Loan Party and, to the knowledge of the Loan Parties, none
of its Affiliates is in violation of any laws relating to terrorism or money
laundering ("ANTI-TERRORISM LAWS"), including Executive Order No. 13224 on
Terrorist Financing, effective September 24, 2001 (the "EXECUTIVE ORDER"), and
the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.
(b) No Loan Party and to the knowledge of the Loan Parties, no
Affiliate or broker or other agent of any Loan Party acting or benefiting in any
capacity in connection with the Loans is any of the following:
(i) a person that is listed in the annex to, or is otherwise
subject to the provisions of, the Executive Order;
(ii) a person owned or controlled by, or acting for or on behalf
of, any person that is listed in the annex to, or is otherwise subject to
the provisions of, the Executive Order;
(iii) a person with which any Lender is prohibited from dealing or
otherwise engaging in any transaction by any Anti-Terrorism Law;
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(iv) a person that commits, threatens or conspires to commit or
supports "terrorism" as defined in the Executive Order; or
(v) a person that is named as a "specially designated national and
blocked person" on the most current list published by the U.S. Treasury
Department Office of Foreign Assets Control ("OFAC") at its official
website or any replacement website or other replacement official
publication of such list.
(c) No Loan Party and, to the knowledge of the Loan Parties, no
broker or other agent of any Loan Party acting in any capacity in connection
with the Loans (i) conducts any business or engages in making or receiving any
contribution of funds, goods or services to or for the benefit of any person
described in paragraph (b) above, (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order, or (iii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.
SECTION 3.23 SECOND LIEN DOCUMENTS.
(a) The Loan Parties have the corporate power and authority to
incur the Second Lien Term Loans. The Second Lien Term Loans, when incurred,
will be the legally valid and binding obligations of the Loan Parties,
enforceable against the Loan Parties in accordance with their terms, except as
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or limiting creditors' rights generally or by equitable
principles relating to enforceability.
(b) The Borrower has delivered to Administrative Agent complete
and correct copies of the Second Lien Documents as in effect on the Amendment
and Restatement Effective Date. Subject to the qualifications set forth therein,
each of the representations and warranties given by any Loan Party in the Second
Lien Credit Agreement and the Second Lien Documents is true and correct in all
material respects as of the Amendment and Restatement Effective Date (or as of
any earlier date to which such representation and warranty specifically
relates).
ARTICLE IV
CONDITIONS TO CREDIT EXTENSIONS
SECTION 4.01 CONDITIONS TO INITIAL CREDIT EXTENSION.
(A) Closing Date and Second Amendment Effective Date. The
obligation of each Lender and, if applicable, each Issuing Bank to fund the
initial Credit Extension requested to be made by it on the Closing Date was
subject to the satisfaction of all of the conditions precedent set forth in
Section 4.01 of the First Credit Agreement and the obligation of each Lender to
fund the initial Credit Extension of Tranche A1 Loans on the Second Amendment
Effective Date pursuant to the Second Amendment was subject to the satisfaction
of all the conditions precedent set forth in Section Three of the Second
Amendment.
(B) Amendment and Restatement Effectiveness. The obligation of
each Tranche A-2 Term Loan Lender to fund a Tranche A-2 Term Loan and the
obligation of each Tranche A-1 Revolving Lender to fund a Tranche A-1 Revolving
Loan requested to be made by it on the Amendment and Restatement Effective Date
shall be subject to the prior or concurrent satisfaction of each of the
conditions precedent set forth in this Section 4.01(B).
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(a) Loan Documents. All legal matters incident to this Agreement,
the Credit Extensions hereunder and the other Loan Documents shall be
satisfactory to the Required Lenders and to the Administrative Agent and
there shall have been delivered to the Administrative Agent an executed
counterpart of each of this Agreement, the New Security Documents and a
Perfection Certificate Supplement dated as of the Amendment and
Restatement Effective Date. The Administrative Agent shall have also
received (i) executed Lender Addenda from Tranche A-2 Term Loan Lenders
for not less than $205.0 million in Tranche A-2 Term Loan Commitments in
the aggregate and executed Lender Addenda from Tranche A-1 Revolving
Lenders for not less than $30.0 million in Tranche A-1 Revolving
Commitments in the aggregate and (ii) executed counterparts to this
Agreement and the Amendment Agreement by Lenders sufficient to constitute
the Required Lenders, by the Swingline Lender and by the Issuing Bank.
(b) Corporate Documents. The Administrative Agent shall have
received:
(i) a certificate of the secretary or assistant secretary of
each Loan Party dated the Amendment and Restatement Effective Date,
certifying (A) that attached thereto is a true and complete copy of
each Organizational Document of such Loan Party certified (to the
extent applicable) as of a recent date by the Secretary of State of
the state of its organization, (B) that attached thereto is a true
and complete copy of resolutions duly adopted by the Board of
Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party
and, in the case of Borrower, the borrowings hereunder, and that
such resolutions have not been modified, rescinded or amended and
are in full force and effect and (C) as to the incumbency and
specimen signature of each officer executing any Loan Document or
any other document delivered in connection herewith on behalf of
such Loan Party (together with a certificate of another officer as
to the incumbency and specimen signature of the secretary or
assistant secretary executing the certificate in this clause (i));
(ii) a certificate as to the good standing of each Loan Party
(in so-called "long-form" if available) as of a recent date, from
such Secretary of State; and
(iii) such other documents as the Lenders, the Issuing Bank or
the Administrative Agent may reasonably request.
(c) Officers' Certificate. The Administrative Agent shall have
received a certificate, dated the Amendment and Restatement Effective Date
and signed by the chief executive officer and the chief financial officer
of Borrower, confirming compliance with the conditions precedent set forth
in this Section 4.01(B) and Sections 4.02(b), (c) and (d).
(d) Second Lien Financing. Borrower shall have received not less
than $115.0 million in gross cash proceeds from borrowings under the
Second Lien Credit Agreement, in accordance with the terms of the Second
Lien Loan Documents, without material waiver or modification thereof.
(e) [Intentionally Omitted].
(f) Indebtedness and Minority Interests. After giving effect to
the 2006 Transactions and the other transactions contemplated hereby, no
Company shall have outstanding any Indebtedness or preferred stock other
than (i) the Loans and Credit Extensions hereunder and Indebted-
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ness under the Second Lien Credit Agreement, (ii) the Indebtedness listed
on Schedule 6.01(b) and (iii) Indebtedness owed to Borrower or any
Guarantor.
(g) Opinions of Counsel. The Administrative Agent shall have
received, on behalf of itself, the other Agents, the Arranger, the Lenders
and the Issuing Bank, a favorable written opinion of (i) Skadden, Arps,
Slate, ▇▇▇▇▇▇▇ & ▇▇▇▇ LLP, special counsel for the Loan Parties,
substantially to the effect set forth in Exhibit N-I, and (ii) each local
counsel listed on Schedule 4.01(B)(g), substantially to the effect set
forth in Exhibit N-2, in each case (A) dated the Amendment and Restatement
Effective Date and (B) addressed to the Agents, the Issuing Bank and the
Lenders.
(h) Solvency Certificate. The Lenders shall have received a
solvency certificate in the form of Exhibit O, dated the Amendment and
Restatement Effective Date and signed by the chief financial officer of
Borrower not in his individual capacity but in his capacity as an officer
of Borrower.
(i) Requirements of Law. The Required Lenders shall be satisfied
that Holdings, its Subsidiaries and the Transactions shall be in full
compliance with all material Requirements of Law, including Regulations T,
U and X of the Board, and shall have received satisfactory evidence of
such compliance reasonably requested by them.
(j) Consents. The Required Lenders shall be satisfied that all
requisite Governmental Authorities and third parties shall have approved
or consented to the 2006 Transactions, and there shall be no governmental
or judicial action, actual or threatened, that has or would have, singly
or in the aggregate, a reasonable likelihood of restraining, preventing or
imposing burdensome conditions on the 2006 Transactions or the other
transactions contemplated hereby.
(k) Litigation. There shall be no litigation, public or private,
or administrative proceedings, governmental investigation or other legal
or regulatory developments, actual or threatened, that, singly or in the
aggregate, could reasonably be expected to result in a Material Adverse
Effect, or could materially and adversely affect the ability of Holdings
or the ability of the parties to consummate the financings contemplated
hereby or the other 2006 Transactions.
(l) Sources and Uses. The sources and uses of the Loans shall be
as set forth in Section 3.12.
(m) Fees. The Arranger and Administrative Agent shall have
received all Fees and other amounts due and payable on or prior to the
Amendment and Restatement Effective Date, including, to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses
(including the legal fees and expenses of ▇▇▇▇▇▇ ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP,
special counsel to the Agents, and the fees and expenses of any local
counsel, foreign counsel, appraisers, consultants and other advisors)
required to be reimbursed or paid by Borrower hereunder or under any other
Loan Document.
(n) Personal Property Requirements. The Collateral Agent:
(i) shall be satisfied that all certificates, agreements or
instruments representing or evidencing the Securities Collateral
accompanied by instruments of transfer and stock powers undated and
endorsed in blank have been delivered to it;
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(ii) shall have received an Intercompany Note executed by and
among Holdings and each of its Subsidiaries, accompanied by an
instrument of transfer undated and endorsed in blank;
(iii) shall be satisfied that all other certificates,
agreements, including control agreements, or instruments necessary
to perfect the Collateral Agent's security interest in all Chattel
Paper, all Instruments, all Deposit Accounts and all Investment
Property of each Loan Party (as each such term is defined in the
Security Agreement and to the extent required by the Security
Agreement) have been delivered to it and shall have received
satisfactory amendments to the control agreements identified on
Schedule 4.01(B)(n)(iii);
(iv) UCC financing statements in appropriate form for filing
under the UCC, filings with the United States Patent and Trademark
Office and United States Copyright Office and such other documents
under applicable Requirements of Law in each jurisdiction as may be
necessary or appropriate or, in the opinion of the Collateral Agent,
desirable to perfect the Liens created, or purported to be created,
by the Security Documents and, with respect to all UCC financing
statements required to be filed pursuant to the Loan Documents,
evidence satisfactory to the Administrative Agent that Borrower has
retained, at its sole cost and expense, a service provider
acceptable to the Administrative Agent for the tracking of all such
financing statements and notification to the Administrative Agent,
of, among other things, the upcoming lapse or expiration thereof;
(v) certified copies of UCC, United States Patent and
Trademark Office and United States Copyright Office, tax and
judgment lien searches, bankruptcy and pending lawsuit searches or
equivalent reports or searches, each of a recent date listing all
effective financing statements, lien notices or comparable documents
that name any Loan Party as debtor and that are filed in those state
and county jurisdictions in which any property of any Loan Party is
located and the state and county jurisdictions in which any Loan
Party is organized or maintains its principal place of business and
such other searches that the Collateral Agent deems necessary or
appropriate, none of which encumber the Collateral covered or
intended to be covered by the Security Documents (other than
Permitted Collateral Liens or any other Liens acceptable to the
Collateral Agent); and
(vi) evidence acceptable to the Collateral Agent of payment
or arrangements for payment by the Loan Parties of all applicable
recording taxes, fees, charges, costs and expenses required for the
recording of the New Security Documents.
(o) Real Property Requirements. The Collateral Agent shall have
received:
(i) with respect to each Mortgage encumbering a Mortgaged
Property, an amendment thereof (each a "MORTGAGE AMENDMENT") duly
executed and acknowledged by the applicable Loan Party, and in form
for recording in the recording office where each such Mortgage was
recorded, together with such certificates, affidavits,
questionnaires or returns as shall be reasonably required in
connection with the recording or filing thereof under applicable
law, in each case in form and substance reasonably satisfactory to
the Collateral Agent;
(ii) with respect to each Mortgage Amendment, a copy of the
existing mortgage Title Policy relating to the Mortgage encumbering
such Mortgaged Property assur-
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ing the Collateral Agent that the Mortgage, as amended by the
Mortgage Amendment, is a valid and enforceable first priority Lien
on such Mortgaged Property in favor of the Collateral Agent for the
benefit of the Secured Parties free and clear of all defects and
encumbrances and Liens, other than Permitted Collateral Liens, and
such Title Policy shall otherwise be in form and substance
reasonably satisfactory to the Collateral Agent.
(p) Insurance. The Administrative Agent shall have received a copy
of, or a certificate as to coverage under, the insurance policies required
by Section 5.04 and the applicable provisions of the Security Documents,
each of which shall be endorsed or otherwise amended to include a
"standard" or "New York" lender's loss payable or mortgagee endorsement
(as applicable) and shall name the Collateral Agent, on behalf of the
Secured Parties, as additional insured, in form and substance satisfactory
to the Administrative Agent.
(q) [Intentionally Omitted].
(r) Intercreditor Agreement. The Intercreditor Agreement, in form
and substance satisfactory to the Secured Parties, shall have been
executed and delivered by the parties thereto.
(s) Ratings. Borrower shall have received secured debt ratings on
the Loans from each of ▇▇▇▇▇'▇ and S&P (which ratings need not be
monitored public ratings).
SECTION 4.02 CONDITIONS TO ALL CREDIT EXTENSIONS. The obligation of
each Lender and each Issuing Bank to make any Credit Extension (including the
initial Credit Extension) shall be subject to, and to the satisfaction of, each
of the conditions precedent set forth below.
(a) Notice. The Administrative Agent shall have received a Borrowing
Request as required by Section 2.03 (or such notice shall have been deemed
given in accordance with Section 2.03) if Loans are being requested or, in
the case of the issuance, amendment, extension or renewal of a Letter of
Credit, the Issuing Bank and the Administrative Agent shall have received
a notice requesting the issuance, amendment, extension or renewal of such
Letter of Credit as required by Section 2.18(b) or, in the case of the
Borrowing of a Swingline Loan, the Swingline Lender and the Administrative
Agent shall have received a Borrowing Request as required by Section
2.17(b).
(b) No Default. Borrower and each other Loan Party shall be in
compliance in all material respects with all the terms and provisions set
forth herein and in each other Loan Document on its part to be observed or
performed, and, at the time of and immediately after giving effect to such
Credit Extension and the application of the proceeds thereof, no Default
shall have occurred and be continuing on such date.
(c) Representations and Warranties. Each of the representations and
warranties made by any Loan Party (which for purposes of the
representations and warranties set forth in Sections 3.02 and 3.20,
respectively, shall include any Additional Equity Partner holding any
Equity Interests of Borrower at the time of such Credit Extension) set
forth in Article III hereof or in any other Loan Document shall be true
and correct in all material respects (except that any representation and
warranty that is qualified as to "materiality" or "Material Adverse
Effect" shall be true and correct in all respects) on and as of the date
of such Credit Extension 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.
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(d) No Legal Bar. No order, judgment or decree of any Governmental
Authority shall purport to restrain any Lender from making any Loans to be
made by it. No injunction or other restraining order shall have been
issued, shall be pending or noticed with respect to any action, suit or
proceeding seeking to enjoin or otherwise prevent the consummation of, or
to recover any damages or obtain relief as a result of, the transactions
contemplated by this Agreement or the making of Loans hereunder.
Each of the delivery of a Borrowing Request or notice requesting the
issuance, amendment, extension or renewal of a Letter of Credit and the
acceptance by Borrower of the proceeds of such Credit Extension shall constitute
a representation and warranty by Borrower and each other Loan Party that on the
date of such Credit Extension (both immediately before and after giving effect
to such Credit Extension and the application of the proceeds thereof) the
conditions contained in this Section 4.02 have been satisfied. Borrower shall
provide such information (including calculations in reasonable detail of the
covenants in Section 6.10) as the Administrative Agent may reasonably request to
confirm that the conditions in this Section 4.02 have been satisfied.
ARTICLE V
AFFIRMATIVE COVENANTS
Each Loan Party warrants, covenants and agrees with each Lender that
so long as this Agreement shall remain in effect and until the Commitments have
been terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document 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, unless the Required
Lenders shall otherwise consent in writing, each Loan Party will, and will cause
each of its Subsidiaries to:
SECTION 5.01 FINANCIAL STATEMENTS, REPORTS, ETC. Furnish to the
Administrative Agent and each Lender:
(a) Annual Reports. As soon as available and in any event within 90
days after the end of each fiscal year, the consolidated balance sheet of
Window Holdings as of the end of such fiscal year and related consolidated
statements of income, cash flows and stockholders' equity for such fiscal
year, in comparative form with such financial statements as of the end of,
and for, the preceding fiscal year, and notes thereto, accompanied by an
opinion of Ernst & Young, LLP or other independent public accountants of
recognized national standing satisfactory to the Administrative Agent
(which opinion shall not be qualified as to scope or contain any going
concern or other qualification), stating that such financial statements
fairly present, in all material respects, the consolidated financial
condition, results of operations and cash flows of Window Holdings as of
the dates and for the periods specified in accordance with GAAP;
(b) Quarterly Reports. As soon as available and in any event within
45 days after the end of each of the first three fiscal quarters of each
fiscal year, the consolidated balance sheet of Window Holdings as of the
end of such fiscal quarter and related consolidated statements of income
and cash flows for such fiscal quarter and for the then elapsed portion of
the fiscal year, in comparative form with the consolidated statements of
income and cash flows for the comparable periods in the previous fiscal
year, accompanied by a certificate of a Financial Officer stating that
such financial statements fairly present, in all material respects, the
consolidated financial condition, results of operations and cash flows of
Window Holdings as of the date and for the periods specified in accordance
with GAAP consistently applied (except for the absence of notes thereto)
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and on a basis consistent with audited financial statements referred to in
clause (a) of this Section, subject to normal year-end audit adjustments;
(c) [Intentionally omitted];
(d) Financial Officer's Certificate. (i) Concurrently with any
delivery of financial statements under Section 5.01(a) or (b) above, a
Compliance Certificate certifying that no Default has occurred or, if such
a Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto; (ii)
concurrently with any delivery of financial statements under Section
5.01(a) or (b) above, a Compliance Certificate setting forth computations
in reasonable detail satisfactory to the Administrative Agent
demonstrating compliance with the covenants contained in Sections 6.07(f)
and 6.10 (including the aggregate amount of Excluded Issuances for such
period and the uses therefor) and, in the case of Section 5.01(a) above,
setting forth Borrower's calculation of Excess Cash Flow; and (iii) in the
case of Section 5.01(a) above, a report of the accounting firm opining on
or certifying such financial statements stating that in the course of its
regular audit of the financial statements of Window Holdings and its
Subsidiaries, which audit was conducted in accordance with GAAP, such
accounting firm obtained no knowledge that any Default (as it relates to
accounting matters or financial covenants) has occurred or, if in the
opinion of such accounting firm such a Default has occurred, specifying
the nature and extent thereof;
(e) Financial Officer's Certificate Regarding Collateral.
Concurrently with any delivery of financial statements under Section
5.01(a) above, a certificate of a Financial Officer setting forth the
information required pursuant to the Perfection Certificate Supplement or
confirming that there has been no change in such information since the
date of the Perfection Certificate or latest Perfection Certificate
Supplement;
(f) Public Reports. Promptly after the same become publicly
available, copies of all periodic and other reports, proxy statements and
other materials filed by any Company with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, or
distributed to holders of its Indebtedness pursuant to the terms of the
documentation governing such Indebtedness (or any trustee, agent or other
representative therefor), as the case may be;
(g) Management Letters. Promptly after the receipt thereof by any
Company, a copy of any "management letter" received by any such person
from its certified public accountants and the management's responses
thereto;
(h) Budgets. No later than 30 days after the first day of each
fiscal year of Window Holdings, a budget in form reasonably satisfactory
to the Administrative Agent (including budgeted statements of income for
Borrower's business units and sources and uses of cash and balance sheets)
prepared by Window Holdings for (i) each fiscal quarter of such fiscal
year prepared in detail and (ii) after the occurrence and during the
continuance of an Event of Default, each fiscal year in the four years
immediately following such fiscal year prepared in summary form, in each
case, of Window Holdings and its subsidiaries, with appropriate
presentation and discussion of the principal assumptions upon which such
budgets are based, accompanied by the statement of a Financial Officer of
Window Holdings to the effect that the budget of Window Holdings is a
reasonable estimate for the period covered thereby;
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(i) Organization. Within 30 days after the close of each fiscal year
of Window Holdings, it shall deliver an accurate organization chart as
required by Section 3.07(c), or confirm that there are no changes to
Schedule 3.07(c);
(j) Organizational Documents. Promptly provide copies of any
Organizational Documents that have been amended or modified in accordance
with the terms hereof and deliver a copy of any notice of default given or
received by any Company under any Organizational Document within 15 days
after such Company gives or receives such notice; and
(k) Other Information. Promptly, from time to time, such other
information regarding the operations, business affairs and financial
condition of any Company, or compliance with the terms of any Loan
Document, as the Administrative Agent or any Lender may reasonably
request.
SECTION 5.02 LITIGATION AND OTHER NOTICES. Furnish to the
Administrative Agent and each Lender written notice of the following promptly
(and, in any event, within three Business Days of the occurrence thereof):
(a) any Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect
thereto;
(b) the filing or commencement of, or any written threat or notice
of intention of any person to file or commence, any action, suit,
litigation or proceeding, whether at law or in equity by or before any
Governmental Authority, (i) against any Company or any Affiliate thereof
that could reasonably be expected to result in a Material Adverse Effect
or (ii) with respect to any Loan Document;
(c) any development that has resulted in, or could reasonably be
expected to result in a Material Adverse Effect;
(d) the occurrence of a Material Casualty Event; and
(e) (i) the incurrence of any material Lien (other than Permitted
Collateral Liens) on, or claim asserted against any of the Collateral or
(ii) the occurrence of any other event which could materially affect the
value of the Collateral.
SECTION 5.03 EXISTENCE; BUSINESSES AND PROPERTIES.
(a) Do or cause to be done all things necessary to preserve, renew
and maintain in full force and effect its legal existence, except as
otherwise expressly permitted under Section 6.05 or Section 6.06 or, in
the case of any Subsidiary, where the failure to perform such obligations,
individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.
(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, privileges, franchises, authorizations, patents, copyrights,
trademarks and trade names material to the conduct of its business;
maintain and operate such business in substantially the manner in which it
is presently conducted and operated; comply with all applicable
Requirements of Law (including any and all zoning, building, Environmental
Law, ordinance, code or approval or any building permits or any
restrictions of record or agreements affecting the Real Property) and
decrees and orders of any Governmental Authority, whether now in effect or
hereafter en-
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acted, except where the failure to comply, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect; pay and
perform its obligations under all Leases (except where the failure to do so
could not reasonably be expected to result in a Material Adverse Effect) and
Transaction Documents; and at all times maintain, preserve and protect all
property material to the conduct of such business and keep such property in good
repair, working order and condition (other than wear and tear occurring in the
ordinary course of business) 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; provided that
nothing in this Section 5.03(b) shall prevent (i) sales of property,
consolidations or mergers by or involving any Company in accordance with Section
6.05 or Section 6.06; (ii) the withdrawal by any Company of its qualification as
a foreign corporation in any jurisdiction where such withdrawal, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect; or (iii) the abandonment by any Company of any rights,
franchises, licenses, trademarks, trade names, copyrights or patents that such
person reasonably determines are not useful to its business or no longer
commercially desirable.
SECTION 5.04 INSURANCE.
(a) Keep its insurable property adequately insured at all times by
financially sound and reputable insurers; maintain such other insurance, to such
extent and against such risks as is customary with companies in the same or
similar businesses operating in the same or similar locations, including
insurance with respect to Mortgaged Properties and other properties material to
the business of the Companies against such casualties and contingencies and of
such types and in such amounts with such deductibles as is customary in the case
of similar businesses operating in the same or similar locations, including (i)
physical hazard insurance on an "all risk" basis, (ii) commercial general
liability against claims for bodily injury, death or property damage covering
any and all insurable claims, (iii) explosion insurance in respect of any
boilers, machinery or similar apparatus constituting Collateral, (iv) business
interruption insurance, (v) worker's compensation insurance and such other
insurance as may be required by any Requirement of Law and (vi) such other
insurance against risks as the Administrative Agent may from time to time
reasonably require (such policies to be in such form and amounts and having such
coverage as may be reasonably satisfactory to the Administrative Agent and the
Collateral Agent); provided that with respect to physical hazard insurance,
neither the Collateral Agent nor the applicable Company shall agree to the
adjustment of any claim thereunder without the consent of the other (such
consent not to be unreasonably withheld or delayed); provided, further, that no
consent of any Company shall be required during an Event of Default.
(b) All such insurance shall (i) provide that no cancellation,
material reduction in amount or material change in coverage thereof shall be
effective until at least 30 days after receipt by the Collateral Agent of
written notice thereof, (ii) name the Collateral Agent as mortgagee (in the case
of property insurance) or additional insured on behalf of the Secured Parties
(in the case of liability insurance) or loss payee (in the case of property
insurance), as applicable, (iii) if reasonably requested by the Collateral
Agent, include a breach of warranty clause and (iv) be reasonably satisfactory
in all other respects to the Collateral Agent.
(c) Notify the Administrative Agent and the Collateral Agent
immediately whenever any separate insurance concurrent in form or contributing
in the event of loss with that required to be maintained under this Section 5.04
is taken out by any Company; and promptly deliver to the Administrative Agent
and the Collateral Agent a duplicate original copy of such policy or policies.
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(d) With respect to each Mortgaged Property, obtain flood insurance
in such total amount as the Administrative Agent or the Required Lenders may
from time to time require, if at any time the area in which any improvements
located on any Mortgaged Property is designated a "flood hazard area" in any
Flood Insurance Rate Map published by the Federal Emergency Management Agency
(or any successor agency), and otherwise comply with the National Flood
Insurance Program as set forth in the Flood Disaster Protection Act of 1973, as
amended from time to time.
(e) Deliver to the Administrative Agent and the Collateral Agent and
the Lenders a report of a reputable insurance broker with respect to such
insurance and such supplemental reports with respect thereto as the
Administrative Agent or the Collateral Agent may from time to time reasonably
request.
(f) No Loan Party that is an owner of Mortgaged Property shall take
any action that is reasonably likely to be the basis for termination, revocation
or denial of any insurance coverage required to be maintained under such Loan
Party's respective Mortgage or that could be the basis for a defense to any
claim under any Insurance Policy maintained in respect of the Premises, and each
Loan Party shall otherwise comply in all material respects with all Insurance
Requirements in respect of the Premises; provided that each Loan Party may, at
its own expense and after written notice to the Administrative Agent, (i)
contest the applicability or enforceability of any such Insurance Requirements
by appropriate legal proceedings, the prosecution of which does not constitute a
basis for cancellation or revocation of any insurance coverage required under
this Section 5.04 or (ii) cause the Insurance Policy containing any such
Insurance Requirement to be replaced by a new policy complying with the
provisions of this Section 5.04.
SECTION 5.05 OBLIGATIONS AND TAXES.
(a) Pay its Indebtedness and other obligations promptly and in
accordance with their terms, except where the failure to do so would not
reasonably be expected to result in a Material Adverse Effect, and 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, services, materials and supplies or otherwise that, if
unpaid, might give rise to a Lien other than a Permitted Lien upon such
properties or any part thereof; provided that such payment and discharge shall
not be required with respect to any such Tax, assessment, charge, levy or claim
so long as (i) the validity or amount thereof shall be contested in good faith
by appropriate proceedings timely instituted and diligently conducted and the
applicable Company shall have set aside on its books adequate reserves or other
appropriate provisions with respect thereto in accordance with GAAP, (ii) such
contest operates to suspend collection of the contested obligation, Tax,
assessment or charge and enforcement of a Lien other than a Permitted Lien and
(iii) in the case of Collateral, the applicable Company shall have otherwise
complied with the Contested Collateral Lien Conditions.
(b) Timely and correctly file all material Tax Returns required to
be filed by it.
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 (x) as soon as practicable after, and in any event within 5
days after any Responsible Officer of any Company or any ERISA Affiliates of any
Company 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 Companies or any of their ERISA Affiliates in an
aggregate amount exceeding $500,000 or the imposition of a Lien, a statement of
a Financial Officer of Borrower setting forth details as to such ERISA Event
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and the action, if any, that the Companies propose to take with respect thereto,
and (y) upon request by the Administrative Agent, copies of (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by any
Company or any ERISA Affiliate with the Internal Revenue Service with respect to
each Plan; (ii) the most recent actuarial valuation report for each Plan; (iii)
all notices received by any Company or any ERISA Affiliate from a Multiemployer
Plan sponsor or any governmental agency concerning an ERISA Event; and (iv) such
other documents or governmental reports or filings relating to any Plan (or
employee benefit plan sponsored or contributed to by any Company) as the
Administrative Agent shall reasonably request.
SECTION 5.07 MAINTAINING RECORDS; ACCESS TO PROPERTIES AND
INSPECTIONS; ANNUAL MEETINGS.
(a) 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. Each
Company will permit any representatives designated by the Administrative Agent
or any Lender to visit and inspect the financial records and the property of
such Company 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, accounts and condition of any Company with the officers
and employees thereof and advisors therefor (including independent accountants).
(b) Within 120 days after the close of each fiscal year of the
Companies, at the request of the Administrative Agent or Required Lenders, hold
a meeting (at a mutually agreeable location and time or, at the option of the
Administrative Agent, by conference call) with all Lenders who choose to attend
such meeting at which meeting shall be reviewed the financial results of the
previous fiscal year and the financial condition of the Companies and the
budgets presented for the current fiscal year of the Companies.
SECTION 5.08 USE OF PROCEEDS. Use the proceeds of the Loans only for
the purposes set forth in Section 3.12 and request the issuance of Letters of
Credit only for the purposes set forth in the definition of Commercial Letter of
Credit or Standby Letter of Credit, as the case may be.
SECTION 5.09 COMPLIANCE WITH ENVIRONMENTAL LAWS; ENVIRONMENTAL
REPORTS.
(a) Comply, and cause all lessees and other persons occupying Real
Property owned, operated or leased by any Company to comply, in all material
respects with all Environmental Laws and Environmental Permits applicable to its
operations and Real Property; obtain and renew all material Environmental
Permits applicable to its operations and Real Property; and conduct all
Responses required by, and in accordance with, Environmental Laws; provided that
no Company shall be required to undertake any Response 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
in accordance with GAAP.
(b) If a Default caused by reason of a breach of Section 3.18 or
Section 5.09(a) shall have occurred and be continuing for more than 20 days
without the Companies commencing activities reasonably likely to cure such
Default, at the written request of the Administrative Agent or the Required
Lenders through the Administrative Agent, provide to the Lenders within 45 days
after such request, at the expense of Borrower, an environmental assessment
report regarding the matters which are the subject of such Default, including,
where appropriate, any soil and/or groundwater sampling, prepared by an
environmental consulting firm and, in the form and substance, reasonably
acceptable to the Administrative
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Agent and indicating the presence or absence of Hazardous Materials and the
estimated cost of any compliance or Response to address them.
(c) Each Loan Party that is an owner of Mortgaged Property shall not
install nor permit to be installed in the Mortgaged Property any Hazardous
Materials, other than in compliance with applicable Environmental Laws.
SECTION 5.10 INTEREST RATE PROTECTION. No later than the 60th day
after the Amendment and Restatement Effective Date, Borrower shall enter into,
and for a minimum of two years thereafter maintain, Hedging Agreements with
terms and conditions reasonably acceptable to the Administrative Agent that
result in at least 40% of the aggregate principal amount of the outstanding Term
Loans and Second Lien Loans being effectively subject to a fixed or maximum
interest rate reasonably acceptable to the Administrative Agent.
SECTION 5.11 ADDITIONAL COLLATERAL; ADDITIONAL GUARANTORS.
(a) Subject to the terms of the Intercreditor Agreement and this
Section 5.11, with respect to any property acquired after the Closing Date by
any Loan Party that is intended to be subject to the Lien created by any of the
Security Documents but is not so subject (but, in any event, excluding any
Equity Interest of a Foreign Subsidiary created, acquired or established in
accordance with a waiver received under Section 6.14 not required to be pledged
pursuant to the last sentence of Section 5.11(b)), promptly (and in any event
within 30 days after the acquisition thereof) (i) execute and deliver to the
Administrative Agent and the Collateral Agent such amendments or supplements to
the relevant Security Documents or such other documents as the Administrative
Agent or the Collateral Agent shall deem necessary or advisable to grant to the
Collateral Agent, for its benefit and for the benefit of the other applicable
Secured Parties, a First Priority Lien (subject to any Permitted Collateral
Liens) on such property subject to no Liens other than Permitted Collateral
Liens, and (ii) take all actions necessary to cause each such Lien to be duly
perfected to the extent required by such Security Document in accordance with
all applicable Requirements of Law, including the filing of financing statements
in such jurisdictions as may be reasonably requested by the Administrative
Agent. Borrower shall otherwise take such actions and execute and/or deliver to
the Collateral Agent such documents as the Administrative Agent or the
Collateral Agent shall require to confirm the validity, perfection and priority
of the Lien of the Security Documents against such after-acquired properties.
(b) Subject to the terms of the Intercreditor Agreement, with
respect to any person that is or becomes a Subsidiary after the Closing Date,
promptly (and in any event within 30 days after such person becomes a
Subsidiary) (i) deliver to the Collateral Agent the certificates, if any,
representing all of the Equity Interests of such Subsidiary owned by a Loan
Party, together with undated stock powers or other appropriate instruments of
transfer executed and delivered in blank by a duly authorized officer of the
holder(s) of such Equity Interests, and all intercompany notes owing from such
Subsidiary to any Loan Party together with instruments of transfer executed and
delivered in blank by a duly authorized officer of such Loan Party and (ii)
cause such new Subsidiary (A) to execute a Subsidiary Joinder Agreement or such
comparable documentation to become a Subsidiary Guarantor and a joinder
agreement to the Security Agreement, substantially in the form annexed thereto
or, in the case of a Foreign Subsidiary, created, acquired or established in
accordance with a waiver received under Section 6.14, execute a security
agreement compatible with the laws of such Foreign Subsidiary's jurisdiction in
form and substance reasonably satisfactory to the Collateral Agent, and (B) to
take all actions necessary or advisable in the opinion of the Administrative
Agent or the Collateral Agent to cause the Lien created by the applicable
Security Agreement to be duly perfected to the extent required by such agreement
in accordance with all applicable Requirements of Law, including the filing of
financing statements in such jurisdictions as may
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be reasonably requested by the Administrative Agent or the Collateral Agent.
Notwithstanding the foregoing, (1) the Equity Interests required to be delivered
to the Collateral Agent pursuant to clause (i) of this Section 5.11(b) shall not
include any Equity Interests of a Foreign Subsidiary created or established in
accordance with a waiver received under Section 6.14 after the Closing Date and
(2) no such Foreign Subsidiary shall be required to take the actions specified
in clause (ii) of this Section 5.11(b), if, in the case of either clause (1) or
(2), doing so would constitute an investment of earnings in United States
property under Section 956 (or a successor provision) of the Code, which
investment would or could reasonably be expected to trigger a material increase
in the net income of a United States shareholder of such Subsidiary pursuant to
Section 951 (or a successor provision) of the Code, as reasonably determined by
the Administrative Agent; provided that this exception shall not apply to (A)
Voting Stock of any Subsidiary which is a first tier controlled foreign
corporation (as defined in Section 957(a) of the Code) representing 66% of the
total voting power of all outstanding Voting Stock of such Subsidiary and (B)
100% of the Equity Interests not constituting Voting Stock of any such
Subsidiary, except that any such Equity Interests constituting "stock entitled
to vote" within the meaning of Treasury Regulation Section 1.956 2(c)(2) shall
be treated as Voting Stock for purposes of this Section 5.11(b).
(c) Subject to the terms of the Intercreditor Agreement, promptly
grant to the Collateral Agent, within 60 days of the acquisition thereof, a
security interest in and Mortgage on (i) each Real Property owned in fee by such
Loan Party as is acquired by such Loan Party after the Closing Date and that,
together with any improvements thereon, individually has a fair market value of
at least $1.0 million, and (ii) unless the Collateral Agent otherwise consents,
each leased Real Property of such Loan Party which lease individually has a fair
market value of at least $1.0 million, in each case, as additional security for
the Obligations (unless the subject property is already mortgaged to a third
party to the extent permitted by Section 6.02). Such Mortgages shall be granted
pursuant to documentation reasonably satisfactory in form and substance to the
Administrative Agent and the Collateral Agent and shall constitute valid and
enforceable perfected First Priority Liens subject only to Permitted Collateral
Liens or other Liens acceptable to the Collateral Agent. The Mortgages or
instruments related thereto shall be duly recorded or filed in such manner and
in such places as are required by law to establish, perfect, preserve and
protect the Liens in favor of the Collateral Agent required to be granted
pursuant to the Mortgages and all taxes, fees and other charges payable in
connection therewith shall be paid in full. Such Loan Party shall otherwise take
such actions and execute and/or deliver to the Collateral Agent such documents
as the Administrative Agent or the Collateral Agent shall require to confirm the
validity, perfection and priority of the Lien of any existing Mortgage or new
Mortgage against such after-acquired Real Property (including a Title Policy, a
Survey and local counsel opinion (in form and substance reasonably satisfactory
to the Administrative Agent and the Collateral Agent) in respect of such
Mortgage).
(d) Subject to the terms of the Intercreditor Agreement, with
respect to any person that becomes an Additional Equity Partner, concurrently
with the consummation of the sale or issuance of the Equity Interests, the
Additional Equity Partner shall (i) deliver to the Collateral Agent the
certificates representing all of the Equity Interests of the Company acquired by
such Additional Equity Partner, together with undated stock powers or other
appropriate instruments of transfer executed and delivered in blank by a duly
authorized officer of the holder(s) of such Equity Interests, and all
intercompany notes owing from such Additional Equity Partner to any Loan Party
together with instruments of transfer executed and delivered in blank by a duly
authorized officer of such Loan Party and (ii) execute a joinder agreement to
the applicable Security Agreement, substantially in the form annexed thereto and
to take all actions necessary or advisable in the opinion of the Administrative
Agent or the Collateral Agent to cause the Lien created by the applicable
Security Agreement to be duly perfected to the extent required by such agreement
in accordance with all applicable Requirements of Law, including the filing of
financing
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statements in such jurisdictions as may be reasonably requested by the
Administrative Agent or the Collateral Agent.
SECTION 5.12 SECURITY INTERESTS; FURTHER ASSURANCES. Subject to the
terms of the Intercreditor Agreement, promptly, upon the reasonable request of
the Administrative Agent, the Collateral Agent or any Lender, at Borrower's
expense, execute, acknowledge and deliver, or cause the execution,
acknowledgment and delivery of, and thereafter register, file or record, or
cause to be registered, filed or recorded, in an appropriate governmental
office, any document or instrument supplemental to or confirmatory of the
Security Documents or otherwise deemed by the Administrative Agent or the
Collateral Agent reasonably necessary or desirable for the continued validity,
perfection and priority of the Liens on the Collateral covered thereby subject
to no other Liens except as permitted by the applicable Security Document, or
obtain any consents or waivers as may be necessary or appropriate in connection
therewith. Deliver or cause to be delivered to the Administrative Agent and the
Collateral Agent from time to time such other documentation, consents,
authorizations, approvals and orders in form and substance reasonably
satisfactory to the Administrative Agent and the Collateral Agent as the
Administrative Agent and the Collateral Agent shall reasonably deem necessary to
perfect or maintain the Liens on the Collateral pursuant to the Security
Documents. Upon the exercise by the Administrative Agent, the Collateral Agent
or any Lender of any power, right, privilege or remedy pursuant to any Loan
Document which requires any consent, approval, registration, qualification or
authorization of any Governmental Authority execute and deliver all
applications, certifications, instruments and other documents and papers that
the Administrative Agent, the Collateral Agent or such Lender may require. If
the Administrative Agent, the Collateral Agent or the Required Lenders determine
that they are required by law or regulation to have appraisals prepared in
respect of the Real Property of any Loan Party constituting Collateral, Borrower
shall provide to the Administrative Agent appraisals that satisfy the applicable
requirements of the Real Estate Appraisal Reform Amendments of FIRREA and are
otherwise in form and substance satisfactory to the Administrative Agent and the
Collateral Agent.
SECTION 5.13 INFORMATION REGARDING COLLATERAL.
(a) Not effect any change (i) in any Loan Party's legal name, (ii)
in the location of any Loan Party's chief executive office, (iii) in any Loan
Party's identity or organizational structure, (iv) in any Loan Party's Federal
Taxpayer Identification Number or organizational identification number, if any,
or (v) in any Loan Party's jurisdiction of organization (in each case, including
by merging with or into any other entity, reorganizing, dissolving, liquidating,
reorganizing or organizing in any other jurisdiction), until (A) it shall have
given the Collateral Agent and the Administrative Agent, in the case of clause
(i) prior or simultaneous written notice (in the form of an Officer's
Certificate) of its intention to do so, or in the case of clauses (ii) through
(v), not less than 30 days' prior written notice (in the form of an Officers'
Certificate), or such lesser notice period agreed to by the Collateral Agent, of
its intention so to do, and, in each case, clearly describing such change and
providing such other information in connection therewith as the Collateral Agent
or the Administrative Agent may reasonably request and (B) it shall have taken
all action reasonably satisfactory to the Collateral Agent to maintain the
perfection and priority of the security interest of the Collateral Agent for the
benefit of the Secured Parties in the Collateral, if applicable. Each Loan Party
agrees to promptly provide the Collateral Agent with certified Organizational
Documents reflecting any of the changes described in the preceding sentence.
Each Loan Party also agrees to promptly notify the Collateral Agent of any
change in the location of any office in which it maintains books or records
relating to Collateral owned by it or any office or facility at which Collateral
is located (including the establishment of any such new office or facility),
other than changes in location to a Mortgaged Property or a leased property
subject to a Landlord Access Agreement.
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(b) Concurrently with the delivery of financial statements pursuant
to Section 5.01(a), deliver to the Administrative Agent and the Collateral Agent
a Perfection Certificate Supplement and a certificate of a Financial Officer and
the chief legal officer of Borrower certifying that all UCC financing statements
(including fixture filings, as applicable) or other appropriate filings,
recordings or registrations, including all refilings, rerecordings and
reregistrations, containing a description of the Collateral have been filed of
record in each governmental, municipal or other appropriate office in each
jurisdiction necessary to protect and perfect the security interests and Liens
under the Security Documents for a period of not less than 18 months after the
date of such certificate (except as noted therein with respect to any
continuation statements to be filed within such period).
SECTION 5.14 POST-CLOSING MATTERS. Unless modified, amended, waived
or extended by the Administrative Agent, execute and deliver the documents and
complete the tasks set forth on Schedule 5.14, in each case within the time
limits specified on such schedule.
SECTION 5.15 RATINGS. Borrower shall use its best efforts to obtain
updated secured debt ratings on the Loans from each of S&P and ▇▇▇▇▇'▇ not less
than once every fiscal year (which ratings need not be monitored public
ratings).
ARTICLE VI
NEGATIVE COVENANTS
Each Loan Party warrants, covenants and agrees with each Lender
that, so long as this Agreement shall remain in effect and until the Commitments
have been terminated and the principal of and interest on each Loan, all Fees
and all other expenses or amounts payable under any Loan Document 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, unless the Required
Lenders shall otherwise consent in writing, no Loan Party will, nor will they
cause or permit any Subsidiaries to:
SECTION 6.01 INDEBTEDNESS. Incur, create, assume or permit to exist,
directly or indirectly, any Indebtedness, except
(a) Indebtedness incurred under (i) this Agreement and the other
Loan Documents or (ii) the Second Lien Credit Agreement and the other
Second Lien Loan Documents in an aggregate principal amount not to exceed
$115.0 million incurred on the Amendment and Restatement Effective Date
and refinancings, repricing, amendments, amendments and restatements,
waivers, modifications and/or renewals thereof in compliance with the
Intercreditor Agreement;
(b) (i) Indebtedness outstanding on the Closing Date and listed on
Schedule 6.01(b) and (ii) refinancings or renewals thereof; provided that
(A) any such refinancing Indebtedness is in an aggregate principal amount
not greater than the aggregate principal amount of the Indebtedness being
renewed or refinanced, plus the amount of any premiums required to be paid
thereon and reasonable fees and expenses associated therewith, (B) such
refinancing Indebtedness has a later or equal final maturity and longer or
equal weighted average life than the Indebtedness being renewed or
refinanced and (C) the covenants, events of default, subordination and
other provisions thereof (including any guarantees thereof) shall be, in
the aggregate, no less favorable to the Lenders than those contained in
the Indebtedness being renewed or refinanced;
(c) Indebtedness under Hedging Obligations that are designed to
protect against fluctuations in interest rates, foreign currency exchange
rates or commodity prices, in each case not
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entered into for speculative purposes; provided that if such Hedging
Obligations relate to interest rates, (a) such Hedging Obligations relate
to payment obligations on Indebtedness otherwise permitted to be incurred
by the Loan Documents and (b) the notional principal amount of such
Hedging Obligations at the time incurred does not exceed the principal
amount of the Indebtedness to which such Hedging Obligations relate;
(d) Indebtedness permitted by Section 6.04(f);
(e) Indebtedness in respect of Purchase Money Obligations and
Capital Lease Obligations, and refinancings or renewals thereof, in an
aggregate amount not to exceed $7.0 million at any time outstanding and
Indebtedness in respect of Purchase Money Obligations and Capital Lease
Obligations incurred in connection with the initial construction or
acquisition of the New North Carolina Plant, and refinancings and renewals
thereof, in an aggregate amount not to exceed $12.0 million at any time
outstanding;
(f) Indebtedness in respect of bid, performance or surety bonds
issued for the account of any Company in the ordinary course of business,
including guarantees or obligations of any Company with respect to letters
of credit supporting such bid, performance or surety obligations (in each
case other than for an obligation for money borrowed), in an aggregate
amount not to exceed $7.5 million at any time outstanding;
(g) Contingent Obligations of any Loan Party in respect of
Indebtedness otherwise permitted under this Section 6.01;
(h) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided that such
Indebtedness is extinguished within five Business Days of incurrence;
(i) Indebtedness arising in connection with endorsement of
instruments for deposit in the ordinary course of business;
(j) unsecured Indebtedness of any Company in an aggregate amount not
to exceed $7.0 million at any time outstanding;
(k) Indebtedness consisting of "pay-in-kind" interest payments made
in respect of obligations evidenced by bonds, debentures, notes or similar
instruments otherwise permitted hereunder;
(l) accretion of principal amount of obligations evidenced by bonds,
debentures, notes or similar instruments issued at any original issued
discount; and
(m) Indebtedness of persons acquired in a Permitted Acquisition in
an aggregate amount not to exceed $5.0 million at any time outstanding,
provided that such Indebtedness was not incurred by such acquired person
in connection with, or in anticipation or contemplation of such Permitted
Acquisition.
SECTION 6.02 LIENS. Create, incur, assume or permit to exist,
directly or indirectly, any Lien on any property now owned or hereafter acquired
by it or on any income or revenues or rights in respect of any thereof, except
the following (collectively, the "PERMITTED LIENS"):
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(a) inchoate Liens for taxes, assessments or governmental charges or
levies not yet due and payable or delinquent and Liens for taxes,
assessments or governmental charges or levies, which (i) are being
contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, which proceedings
(or orders entered in connection with such proceedings) have the effect of
preventing the forfeiture or sale of the property subject to any such
Lien, or (ii) in the case of any such charge or claim which has or may
become a Lien against any of the Collateral, such Lien and the contest
thereof shall satisfy the Contested Collateral Lien Conditions;
(b) Liens in respect of property of any Company imposed by law,
which were incurred in the ordinary course of business and do not secure
Indebtedness for borrowed money, such as carriers', warehousemen's,
materialmen's, landlords', workmen's, suppliers', repairmen's and
mechanics' Liens and other similar Liens arising in the ordinary course of
business, and (i) which do not in the aggregate materially detract from
the value of the property of the Companies, taken as a whole, and do not
materially impair the use thereof in the operation of the business of the
Companies, taken as a whole, (ii) which, if they secure obligations that
are then due and unpaid, are being contested in good faith by appropriate
proceedings for which adequate reserves have been established in
accordance with GAAP, which proceedings (or orders entered in connection
with such proceedings) have the effect of preventing the forfeiture or
sale of the property subject to any such Lien, and (iii) in the case of
any such Lien which has or may become a Lien against any of the
Collateral, such Lien and the contest thereof shall satisfy the Contested
Collateral Lien Conditions;
(c) any Lien in existence on the Closing Date and set forth on
Schedule 6.02(c) and any Lien granted as a replacement or substitute
therefor; provided that any such replacement or substitute Lien (i) except
as permitted by Section 6.01(b)(ii)(A), does not secure an aggregate
amount of Indebtedness, if any, greater than that secured on the Closing
Date and (ii) does not encumber any property other than the property
subject thereto on the Closing Date (any such Lien, an "EXISTING LIEN");
(d) easements, rights-of-way, restrictions (including zoning
restrictions), covenants, licenses, encroachments, protrusions and other
similar charges or encumbrances, and minor title deficiencies on or with
respect to any Real Property, in each case whether now or hereafter in
existence, not (i) securing Indebtedness, (ii) individually or in the
aggregate materially impairing the value or marketability of such Real
Property or (iii) individually or in the aggregate materially interfering
with the ordinary conduct of the business of the Companies at such Real
Property;
(e) Liens arising out of judgments, attachments or awards not
resulting in a Default and in respect of which such Company shall in good
faith be prosecuting an appeal or proceedings for review in respect of
which there shall be secured a subsisting stay of execution pending such
appeal or proceedings and, in the case of any such Lien which has or may
become a Lien against any of the Collateral, such Lien and the contest
thereof shall satisfy the Contested Collateral Lien Conditions;
(f) Liens (other than any Lien imposed by ERISA) (x) imposed by law
or deposits made in connection therewith in the ordinary course of
business in connection with workers' compensation, unemployment insurance
and other types of social security legislation, (y) incurred in the
ordinary course of business to secure the performance of tenders,
statutory obligations (other than excise taxes), surety, stay, customs and
appeal bonds, statutory bonds, bids, leases, government contracts, trade
contracts, performance and return of money bonds and other similar
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obligations (exclusive of obligations for the payment of borrowed money)
or (z) arising by virtue of deposits made in the ordinary course of
business to secure liability for premiums to insurance carriers; provided
that (i) with respect to clauses (x), (y) and (z) of this paragraph (f),
such Liens are for amounts not yet due and payable or delinquent or, to
the extent such amounts are so due and payable, such amounts are being
contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, which proceedings
for orders entered in connection with such proceedings have the effect of
preventing the forfeiture or sale of the property subject to any such
Lien, (ii) to the extent such Liens are not imposed by law, such Liens
shall in no event encumber any property other than cash and Cash
Equivalents, (iii) in the case of any such Lien against any of the
Collateral, such Lien and the contest thereof shall satisfy the Contested
Collateral Lien Conditions and (iv) the aggregate amount of deposits at
any time pursuant to clause (y) and clause (z) of this paragraph (f) shall
not exceed $1.5 million in the aggregate;
(g) Leases of the properties of any Company, in each case entered
into in the ordinary course of such Company's business so long as such
Leases do not, individually or in the aggregate, (i) interfere in any
material respect with the ordinary conduct of the business of any Company
or (ii) materially impair the use (for its intended purposes) or the value
of the property subject thereto;
(h) Liens arising out of conditional sale, title retention,
consignment or similar arrangements for the sale of goods entered into by
any Company in the ordinary course of business in accordance with the past
practices of such Company;
(i) Liens securing Indebtedness incurred pursuant to Section
6.01(e); provided that any such Liens attach only to the property being
financed pursuant to such Indebtedness and do not encumber any other
property of any Company;
(j) bankers' Liens, rights of setoff and other similar Liens
existing solely with respect to cash and Cash Equivalents on deposit in
one or more accounts maintained by any Company, in each case granted in
the ordinary course of business in favor of the bank or banks with which
such accounts are maintained, securing amounts owing to such bank with
respect to cash management and operating account arrangements, including
those involving pooled accounts and netting arrangements; provided that,
unless such Liens are non-consensual and arise by operation of law, in no
case shall any such Liens secure (either directly or indirectly) the
repayment of any Indebtedness;
(k) Liens on property of a person existing at the time such person
is acquired or merged with or into or consolidated with any Company to the
extent permitted hereunder (and not created in anticipation or
contemplation thereof); provided that such Liens do not extend to property
not subject to such Liens at the time of acquisition (other than
improvements thereon) and are no more favorable to the lienholders than
such existing Lien;
(l) (i) Liens granted pursuant to the Security Documents to secure
the Obligations and (ii) subject to the Intercreditor Agreement, Liens
granted under Second Lien Security Documents to secure Second Lien
Obligations incurred in accordance with Section 6.01(a)(ii);
(m) licenses of Intellectual Property granted by any Company in the
ordinary course of business and not interfering in any material respect
with the ordinary conduct of business of the Companies;
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(n) the filing of UCC financing statements solely as a precautionary
measure in connection with operating leases or consignment of goods;
(o) Liens incurred in the ordinary course of business of any Company
with respect to obligations that do not in the aggregate exceed $1.5
million at any time outstanding, so long as such Liens, to the extent
covering any Collateral, are junior to the Liens granted pursuant to the
Security Documents; and
(p) Liens on cash or cash equivalents securing Hedging Obligations
of the type described in Section 6.01(c) entered into in the ordinary
course of business, consistent with past practices and designed to protect
against fluctuations in the price of aluminum and not for speculative
purposes;
provided that no consensual Liens shall be permitted to exist, directly or
indirectly, on any Securities Collateral, other than Liens granted pursuant to
the Security Documents and, subject to the terms of the Intercreditor Agreement,
Liens granted pursuant to the Second Lien Security Documents.
SECTION 6.03 SALE AND LEASEBACK TRANSACTIONS. 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 (a "SALE AND LEASEBACK
TRANSACTION") unless (i) the sale of such property is permitted by Section 6.06
and (ii) any Liens arising in connection with its use of such property are
permitted by Section 6.02.
SECTION 6.04 INVESTMENT, LOAN AND ADVANCES. Directly or indirectly,
lend money or credit (by way of guarantee or otherwise) or make advances to any
person, or purchase or acquire any stock, bonds, notes, debentures or other
obligations or securities of, or any other interest in, or make any capital
contribution to, any other person, or purchase or own a futures contract or
otherwise become liable for the purchase or sale of currency or other
commodities at a future date in the nature of a futures contract (all of the
foregoing, collectively, "INVESTMENTS"), except that the following shall be
permitted:
(a) the Companies may consummate the January 2004 Transactions in
accordance with the provisions of the Transaction Documents, which
occurred in January 2004;
(b) Investments outstanding on the Closing Date and identified on
Schedule 6.04(b);
(c) the Companies may (i) acquire and hold accounts receivables
owing to any of them if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary terms,
(ii) invest in, acquire and hold cash and Cash Equivalents, (iii) endorse
negotiable instruments held for collection in the ordinary course of
business or (iv) make lease, utility and other similar deposits in the
ordinary course of business;
(d) Hedging Obligations permitted to be incurred under Section
6.01(c);
(e) loans and advances to directors, employees and officers of
Borrower and the Subsidiaries for bona fide business purposes and to
purchase Equity Interests of Window Holdings, in aggregate amount not to
exceed $500,000 at any time outstanding;
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(f) Investments (i) by Borrower in any Subsidiary Guarantor, (ii) by
any Company in Borrower or any Subsidiary Guarantor, (iii) by a Subsidiary
Guarantor in another Subsidiary Guarantor and (iv) by a Subsidiary that is
not a Subsidiary Guarantor in any other Subsidiary that is not a
Subsidiary Guarantor; provided that any Investment in the form of a loan
or advance shall be evidenced by the Intercompany Note and, in the case of
a loan or advance by a Loan Party, pledged by such Loan Party as
Collateral pursuant to the Security Documents;
(g) Investments in securities of trade creditors or customers in the
ordinary course of business and consistent with such Company's past
practices that are received in settlement of bona fide disputes or
pursuant to any plan of reorganization or liquidation or similar
arrangement upon the bankruptcy or insolvency of such trade creditors or
customers;
(h) Investments made by Borrower or any Subsidiary as a result of
consideration received in connection with an Asset Sale made in compliance
with Section 6.06;
(i) other investments in an aggregate amount not to exceed $7.0
million at any time outstanding; and
(j) Permitted Acquisitions.
SECTION 6.05 MERGERS AND CONSOLIDATIONS. Wind up, liquidate or
dissolve its affairs or enter into any transaction of merger or consolidation
(or agree to do any of the foregoing at any future time), except that the
following shall be permitted:
(a) the January 2004 Transactions as contemplated by the Transaction
Documents, including, without limitation, the Merger, which occurred in
January 2004;
(b) Assets Sales in compliance with Section 6.06;
(c) acquisitions in compliance with Section 6.07;
(d) subject to compliance with the provisions of this Agreement, any
Company (other than Holdings) may merge or consolidate with or into
Borrower or any Subsidiary Guarantor (as long as Borrower or a Subsidiary
Guarantor is the surviving person in such merger or consolidation and
remains a Wholly Owned Subsidiary of Holdings); provided that the Lien on
and security interest in such property granted or to be granted in favor
of the Collateral Agent under the Security Documents shall be maintained
or created in accordance with the provisions of Section 5.11 or Section
5.12, as applicable;
(e) any Subsidiary may dissolve, liquidate or wind up its affairs at
any time; provided that such dissolution, liquidation or winding up, as
applicable, could not reasonably be expected to have a Material Adverse
Effect; and
(f) the Holdings Intercompany Merger, which occurred in May 2004.
To the extent the Required Lenders waive the provisions of this
Section 6.05 with respect to the sale of any Collateral, or any Collateral is
sold as permitted by this Section 6.05, such Collateral (unless sold to a
Company) shall be sold free and clear of the Liens created by the Security
Documents (provided that the Liens of the Second Lien Secured Parties on such
Collateral are concurrently released
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on the same terms) and the Agents shall take all actions they deem appropriate
in order to effect the foregoing.
SECTION 6.06 ASSET SALES. Effect any Asset Sale, or agree to effect
any Asset Sale, except that the following shall be permitted:
(a) disposition of used, worn out, obsolete or surplus property by
any Loan Party in the ordinary course of business and the abandonment or
other disposition of Intellectual Property that is, in the reasonable
judgment of Borrower, no longer economically practicable to maintain or
useful in the conduct of the business of the Companies taken as a whole;
(b) Asset Sales; provided that the aggregate consideration received
in respect of all Asset Sales pursuant to this clause (b) shall not exceed
$7.0 million in any four consecutive fiscal quarters of Borrower, but, in
any event, shall not exceed $700,000 with respect to any single Asset
Sale;
(c) leases of real or personal property in the ordinary course of
business and in accordance with the applicable Security Documents;
(d) mergers and consolidations in compliance with Section 6.05;
(e) Investments in compliance with Section 6.04;
(f) transfer of assets or property between Borrower and any
Wholly-Owned Subsidiary Guarantor or between Wholly Owned Subsidiary
Guarantors; provided that (i) such transfer does not materially impair any
Lien thereon granted to any Secured Party under any Security Document and
(ii) in the case of any such transfer or series of related transfers of
assets or property with a fair market value (as determined in good faith
by an executive officer or the Board of Directors of Borrower) in excess
of $7.5 million, Borrower shall give the Administrative Agent three
Business Days' prior written notice, which notice shall specify the assets
or property subject to such transfer, the identity of the Loan Party in
receipt of such asset or property and the location of such asset or
property; and
(g) the Permitted North Carolina Sale and Leaseback Transaction.
To the extent the Required Lenders waive the provisions of this
Section 6.06 with respect to the sale of any Collateral, or any Collateral is
sold as permitted by this Section 6.06, such Collateral (unless sold to a
Company) shall be sold free and clear of the Liens created by the Security
Documents (provided that the Liens of the Second Lien Secured Parties on such
Collateral are concurrently released on the same terms) and the Agents shall
take all actions they deem appropriate in order to effect the foregoing.
SECTION 6.07 ACQUISITIONS. Purchase or otherwise acquire (in one or
a series of related transactions) any part of the property (whether tangible or
intangible) of any person (or agree to do any of the foregoing at any future
time), except that the following shall be permitted:
(a) Capital Expenditures by Borrower and the Subsidiaries shall be
permitted to the extent permitted by Section 6.10(d);
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(b) purchases and other acquisitions of inventory, materials,
equipment and intangible property in the ordinary course of business;
(c) Investments in compliance with Section 6.04;
(d) leases of real or personal property in the ordinary course of
business and in accordance with the applicable Security Documents;
(e) the January 2004 Transactions as contemplated by the Transaction
Documents, which occurred in January 2004;
(f) Permitted Acquisitions; and
(g) mergers and consolidations in compliance with Section 6.05;
provided that the Lien on and security interest in such property granted or to
be granted in favor of the Collateral Agent under the Security Documents shall
be maintained or created in accordance with the provisions of Section 5.11 or
Section 5.12, as applicable.
SECTION 6.08 DIVIDENDS. Authorize, declare or pay, directly or
indirectly, any Dividends with respect to any Company, except that the following
shall be permitted:
(a) Dividends by any Company (other than Borrower) to Borrower or
any Guarantor that is a Wholly Owned Subsidiary of Borrower;
(b) payments to Window Holdings to permit Window Holdings, and the
subsequent use of such payments by Window Holdings, (i) to repurchase or
redeem Qualified Capital Stock of Window Holdings held by officers,
directors or employees or former officers, directors or employees (or
their transferees, estates or beneficiaries under their estates) of any
Company, upon their death, disability, retirement, severance or
termination of employment or service, provided that the aggregate cash
consideration paid for all such redemptions and payments shall not exceed
(a) $1.5 million in any fiscal year and (b) $5.6 million in the aggregate
from the Closing Date; and (ii) to make cashless redemptions and cashless
repurchases of Qualified Capital Stock of Window Holdings held by
officers, directors or employees or former officers, directors or
employees (or their transferees, estates or beneficiaries under their
estates) of any Company in order to satisfy, in whole or in part,
withholding tax requirements or exercise price requirements pursuant to a
restricted stock agreement or a cashless exercise option in connection
with the exercise of warrants, options or other rights in accordance with
the provisions of a warrant, option or other rights plan or program of
such Company;
(c) (A) to the extent actually used by Holdings to pay such Taxes,
costs and expenses, payments by Borrower to or on behalf of Holdings in an
amount sufficient to pay franchise taxes and other fees required to
maintain the legal existence of Holdings and (B) payments by Borrower to
or on behalf of Holdings in an amount sufficient to pay reasonable
out-of-pocket legal, accounting and filing costs and other expenses in the
nature of overhead in the ordinary course of business of Holdings;
(d) distributions by Borrower to Holdings, so long as Holdings uses
such distributions to pay Taxes provided that such payments do not in the
aggregate materially exceed the Tax liabilities that would have been
payable by Borrower and its Subsidiaries on a stand-alone basis;
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(e) the September 2005 Dividend, as made in September 2005;
(f) the 2006 Dividend; and
(g) so long as no Default is continuing at the time of the
declaration of such Dividend, the declaration or payment of Dividends on
Qualified Capital Stock of Holdings following the IPO of Holdings (or the
initial public offering of a parent of Holdings (the net proceeds of which
were contributed as cash common equity to Holdings)) in an amount per
annum not to exceed the lesser of (i) 6% of the gross cash proceeds
received by Holdings in connection with such IPO (or contributed to
Holdings, as the case may be) and (ii) $10.0 million per annum, other than
public offerings registered on Form S-4 or S-8.
SECTION 6.09 TRANSACTIONS WITH AFFILIATES. Enter into, directly or
indirectly, any transaction or series of related transactions, whether or not in
the ordinary course of business, with any Affiliate of any Company (other than
between or among Borrower and one or more Subsidiary Guarantors), other than on
terms and conditions at least as favorable to such Company as would reasonably
be obtained by such Company at that time in a comparable arm's-length
transaction with a person other than an Affiliate, except that the following
shall be permitted:
(a) Dividends permitted by Section 6.08;
(b) Investments permitted by Sections 6.04(e) and (f);
(c) reasonable and customary director, officer and employee
compensation (including bonuses) and other benefits (including retirement,
health, stock option and other benefit plans) and indemnification
arrangements, in each case approved by the Board of Directors;
(d) transactions with customers, clients, suppliers, joint venture
partners or purchasers or sellers of goods and services, in each case in
the ordinary course of business and otherwise not prohibited by the Loan
Documents;
(e) so long as no Event of Default is continuing, the payment of
management fees ("MANAGEMENT FEES") (including Management Fees previously
not paid when due because of the existence of an Event of Default) to
Sponsor in the amounts and at the times specified in the Management
Services Agreement dated the date hereof, by and among Window Holdings and
JLL Associates IV, L.P., a Delaware limited partnership (the "MANAGEMENT
SERVICES AGREEMENT"), as in effect on the Closing Date or as thereafter
amended or replaced in any manner, that, taken as a whole, is not more
adverse to the interests of the Lenders in any material respect than such
agreement as it was in effect on the Closing Date; provided that payments
under this clause (e) shall in any event not exceed the amount per fiscal
year set forth in such Management Services Agreement, as in effect on the
Closing Date;
(f) sales of Qualified Capital Stock to Affiliates of Borrower not
otherwise prohibited by the Loan Documents and the granting of
registration and other customary rights in connection therewith;
(g) any transaction with an Affiliate where the only consideration
paid by any Loan Party is Qualified Capital Stock; and
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(h) the January 2004 Transactions as contemplated by the Transaction
Documents, which occurred in January 2004.
SECTION 6.10 FINANCIAL COVENANTS.
(a) Maximum Total Leverage Ratio. Permit the Total Leverage Ratio,
as of the last day of any Test Period ending closest to the end of the period
set forth in the table below, to exceed the ratio set forth opposite such period
in the table below:
TEST PERIOD TOTAL LEVERAGE RATIO
----------- --------------------
April 1, 2006 -- June 30, 2006 6.00 to 1.0
July, 1, 2006 -- September 30, 2006 6.00 to 1.0
October 1, 2006 -- December 31, 2006 6.00 to 1.0
January 1, 2007 -- March 31, 2007 5.75 to 1.0
April 1, 2007 -- June 30, 2007 5.50 to 1.0
July 1, 2007 -- September 30, 2007 5.25 to 1.0
October 1, 2007 -- December 31, 2007 5.00 to 1.0
January 1, 2008 -- March 31, 2008 4.90 to 1.0
April 1, 2008 -- June 30, 2008 4.80 to 1.0
July 1, 2008 -- September 30, 2008 4.65 to 1.0
October 1, 2008 -- December 31, 2008 4.50 to 1.0
January 1, 2009 -- March 31, 2009 4.35 to 1.0
April 1, 2009 -- June 30, 2009 4.15 to 1.0
July 1, 2009 -- September 30, 2009 3.95 to 1.0
October 1, 2009 -- December 31, 2009 3.75 to 1.0
January 1, 2010 -- March 31, 2010 3.60 to 1.0
April 1, 2010 -- June 30, 2010 3.40 to 1.0
July 1, 2010 -- September 30, 2010 3.20 to 1.0
October 1, 2010 -- and thereafter 3.00 to 1.0
(b) Minimum Interest Coverage Ratio. Permit the Consolidated
Interest Coverage Ratio, for any Test Period ending during any period set
forth in the table below, to be less than the ratio set forth opposite
such period in the table below:
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CONSOLIDATED INTEREST
TEST PERIOD COVERAGE RATIO
------------------------------------ ---------------------
April 1, 2006 -- June 30, 2006 1.75 to 1.0
July, 1, 2006 -- September 30, 2006 1.75 to 1.0
October 1, 2006 -- December 31, 2006 1.75 to 1.0
January 1, 2007 -- March 31, 2007 1.80 to 1.0
April 1, 2007 -- June 30, 2007 1.85 to 1.0
July 1, 2007 -- September 30, 2007 1.90 to 1.0
October 1, 2007 -- December 31, 2007 2.00 to 1.0
January 1, 2008 -- March 31, 2008 2.05 to 1.0
April 1, 2008 -- June 30, 2008 2.10 to 1.0
July 1, 2008 -- September 30, 2008 2.15 to 1.0
October 1, 2008 -- December 31, 2008 2.25 to 1.0
January 1, 2009 -- March 31, 2009 2.30 to 1.0
April 1, 2009 -- June 30, 2009 2.35 to 1.0
July 1, 2009 -- September 30, 2009 2.40 to 1.0
October 1, 2009 -- December 31, 2009 2.50 to 1.0
January 1, 2010 -- March 31, 2010 2.60 to 1.0
April 1, 2010 -- June 30, 2010 2.70 to 1.0
July 1, 2010 -- September 30, 2010 2.85 to 1.0
October 1, 2010 -- and thereafter 3.00 to 1.0
(c) [Intentionally Omitted].
(d) Limitation on Capital Expenditures. Permit the aggregate amount
of Capital Expenditures made in any period set forth below, to exceed the
amount set forth opposite such period below:
AMOUNT
PERIOD (IN MILLIONS)
----------------------------------- -------------
January 1, 2005 - December 31, 2005 $ 16.0
January 1, 2006 - December 31, 2006 $ 32.0
January 1, 2007 - December 31, 2007 $ 15.0
January 1, 2008 - December 31, 2008 $ 15.0
January 1, 2009 - December 31, 2009 $ 15.0
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AMOUNT
PERIOD (IN MILLIONS)
------------------------------------------ -------------
January 1, 2005 - December 31, 2005 $ 16.0
January 1, 2010 - December 31, 2010 $ 16.0
January 1, 2011 - Term Loan Maturity Date $ 17.0
provided, however, that (x) if the aggregate amount of Capital Expenditures made
in any fiscal year shall be less than the maximum amount of Capital Expenditures
permitted under this Section 6.10(d) for such fiscal year (before giving effect
to any carryover), then an amount of such shortfall not exceeding 50% of such
maximum amount (without giving effect to clause (z) below) may be added to the
amount of Capital Expenditures permitted under this Section 6.10(d) for the
immediately succeeding (but not any other) fiscal year, (y) in determining
whether any amount is available for carryover, the amount expended in any fiscal
year shall first be deemed to be from the amount allocated to such fiscal year
(before giving effect to any carryover) and (z) the amount set forth in the
table above for any period may be increased by the amount of Net Cash Proceeds
of Excluded Issuances designated for Capital Expenditures for such period during
such period; and provided, further, that for purposes of this Section 6.10(d),
in determining Capital Expenditures, whether the increase in gross property,
plant and equipment account is due to purchase of properties for cash or
financed by the incurrence of Indebtedness, such increase shall be deemed a
Capital Expenditure.
SECTION 6.11 PREPAYMENTS OF OTHER INDEBTEDNESS; MODIFICATIONS OF
ORGANIZATIONAL DOCUMENTS AND OTHER DOCUMENTS, ETC. Directly or indirectly:
(a) make (or give any notice in respect thereof) any voluntary or
optional payment or prepayment on or redemption or acquisition for value
of, or any prepayment or redemption as a result of any asset sale, change
of control or similar event of, any Second Lien Obligations (other than
prepayments in accordance with Section 2.10(h) or refinancings thereof
permitted by Section 6.01(a)(ii)) or any Subordinated Indebtedness, except
as otherwise permitted by this Agreement;
(b) amend or modify, or permit the amendment or modification of, any
provision of any (i) Transaction Document in any manner that is adverse in
any material respect to the interests of the Lenders or (ii) Second Lien
Loan Document, except in accordance with Section 6.01(a)(ii) and the
Intercreditor Agreement; or
(c) terminate, amend, modify (including electing to treat any
Pledged Interests (as defined in the Security Agreement) as a "security"
under Section 8-103 of the UCC) or change any of its Organizational
Documents (including by the filing or modification of any certificate of
designation) or any agreement to which it is a party with respect to its
Equity Interests (including any stockholders' agreement), or enter into
any new agreement with respect to its Equity Interests, other than any
such amendments, modifications or changes or such new agreements which are
not adverse in any material respect to the interests of the Lenders;
provided that Window Holdings may issue such Equity Interests, so long as
such issuance is not prohibited by Section 6.13 or any other provision of
this Agreement, and may amend its Organizational Documents to authorize
any such Equity Interests.
SECTION 6.12 LIMITATION ON CERTAIN RESTRICTIONS ON SUBSIDIARIES.
Directly or indirectly, create or otherwise cause or suffer to exist or become
effective any encumbrance or restriction
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on the ability of any Subsidiary to (a) pay dividends or make any other
distributions on its capital stock or any other interest or participation in its
profits owned by Borrower or any Subsidiary, or pay any Indebtedness owed to
Borrower or a Subsidiary, (b) make loans or advances to Borrower or any
Subsidiary or (c) transfer any of its properties to Borrower or any Subsidiary,
except for such encumbrances or restrictions existing under or by reason of (i)
applicable law; (ii) this Agreement and the other Loan Documents and/or the
Second Lien Loan Documents; (iii) customary provisions restricting subletting or
assignment of any lease governing a leasehold interest of a Subsidiary; (iv)
customary provisions restricting assignment of any agreement entered into by a
Subsidiary in the ordinary course of business; (v) any holder of a Lien
permitted by Section 6.02 restricting the transfer of the property subject
thereto; (vi) customary restrictions and conditions contained in any agreement
relating to the sale of any property permitted under Section 6.06 pending the
consummation of such sale; (vii) any agreement in effect at the time such
Subsidiary becomes a Subsidiary of Borrower, so long as such agreement was not
entered into in connection with or in contemplation of such person becoming a
Subsidiary of Borrower; (viii) in the case of any joint venture which is not a
Loan Party in respect of any matters referred to in clauses (b) and (c) above,
restrictions in such person's Organizational Documents or pursuant to any joint
venture agreement or stockholders agreements solely to the extent of the Equity
Interests of or property held in the subject joint venture or other entity; or
(ix) any encumbrances or restrictions imposed by any amendments or refinancings
that are otherwise permitted by the Loan Documents of the contracts, instruments
or obligations referred to in clauses (iii) or (vii) above; provided that such
amendments or refinancings are no more materially restrictive with respect to
such encumbrances and restrictions than those prior to such amendment or
refinancing.
SECTION 6.13 LIMITATION ON ISSUANCE OF CAPITAL STOCK.
(a) With respect to Window Holdings, issue any Equity Interest that
is not Qualified Capital Stock.
(b) With respect to Borrower or any Subsidiary, issue any Equity
Interest (including by way of sales of treasury stock) or any options or
warrants to purchase, or securities convertible into, any Equity Interest,
except (i) for stock splits, stock dividends and additional issuances of Equity
Interests which do not decrease the percentage ownership of Borrower or any
Subsidiaries in any class of the Equity Interest of such Subsidiary; (ii)
Subsidiaries of Borrower formed after the Closing Date in accordance with
Section 6.14 may issue Equity Interests to Borrower or the Subsidiary of
Borrower which is to own such Equity Interests; (iii) Borrower may issue common
stock that is Qualified Capital Stock to Window Holdings; and (iv) Borrower may
issue Equity Interests to Additional Equity Partners in Qualified Contribution
Transactions. All Equity Interests issued in accordance with this Section
6.13(b) shall, to the extent required by Sections 5.11 and 5.12 or the Security
Agreement, be delivered to the Collateral Agent for pledge pursuant to the
Security Agreement.
SECTION 6.14 LIMITATION ON CREATION OF SUBSIDIARIES. Establish,
create or acquire any additional Subsidiaries without the prior written consent
of the Required Lenders; provided that, without such consent, Borrower may (i)
establish or create one or more Wholly Owned Subsidiaries of Borrower, (ii)
establish, create or acquire one or more Subsidiaries in connection with an
Investment made pursuant to Section 6.04(f) or (iii) acquire one or more
Subsidiaries in connection with a Permitted Acquisition, so long as, in each
case, Section 5.11(b) shall be complied with, provided, further that in no event
may any Loan Party establish, create or acquire any Foreign Subsidiary without
the prior written consent of the Required Lenders.
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SECTION 6.15 BUSINESS.
(a) With respect to Holdings, engage in any business activities or
have any properties or liabilities, other than (i) its ownership of the Equity
Interests of Borrower, (ii) obligations under the Loan Documents and the Second
Lien Loan Documents and (iii) activities and properties incidental to the
foregoing clauses (i) and (ii).
(b) With respect to Borrower and its Subsidiaries, engage (directly
or indirectly) in any business other than those businesses in which Borrower and
its Subsidiaries are engaged on the Closing Date as described in the
Confidential Information Memorandum (or, in the good faith judgment of the Board
of Directors, which are substantially related thereto or are reasonable
extensions thereof).
SECTION 6.16 LIMITATION ON ACCOUNTING CHANGES. Make or permit, any
material change, any change which would have a material impact on the results of
operations or financial condition or financial statements or make any change
which would be determinative as to whether or not Window Holdings and its
Subsidiaries would be in compliance with any of the covenants set forth in
Article VI hereof, in accounting policies or reporting practices, without the
consent of the Administrative Agent, which consent shall not be unreasonably
withheld, except changes that are required by GAAP.
SECTION 6.17 FISCAL YEAR. Change its fiscal year-end to a date other
than the Saturday closest to December 31.
SECTION 6.18 EMBARGOED PERSON. Cause or permit (a) any of the funds
or properties of the Loan Parties that are used to repay the Loans to constitute
property of, or be beneficially owned directly or indirectly by, any person
subject to sanctions or trade restrictions under United States law ("EMBARGOED
PERSON" or "EMBARGOED PERSONS") that is identified on (1) the "List of Specially
Designated Nationals and Blocked Persons" (the "SDN LIST") maintained by OFAC
and/or on any other similar list ("OTHER LIST") maintained by OFAC pursuant to
any authorizing statute including, but not limited to, the International
Emergency Economic Powers Act, 50 U.S.C. Sections 1701 et seq., The Trading with
the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Order or regulation
promulgated thereunder, with the result that the investment in the Loan Parties
(whether directly or indirectly) is prohibited by law, or the Loans made by the
Lenders would be in violation of law, or (2) the Executive Order, any related
enabling legislation or any other similar Executive Orders (collectively,
"EXECUTIVE ORDERS"), or (b) any Embargoed Person to have any direct or indirect
interest, of any nature whatsoever in the Loan Parties, with the result that the
investment in the Loan Parties (whether directly or indirectly) is prohibited by
law or the Loans are in violation of law.
SECTION 6.19 NO FURTHER NEGATIVE PLEDGE. Enter into any agreement,
instrument, deed or lease which prohibits or limits the ability of any Loan
Party to create, incur, assume or suffer to exist any Lien upon any of their
respective properties or revenues, whether now owned or hereafter acquired, or
which requires the grant of any security for an obligation if security is
granted for another obligation, except the following: (1) this Agreement and the
other Loan Documents, the Second Lien Credit Agreement and the Second Lien Loan
Documents; (2) covenants in documents creating Liens permitted by Section 6.02
prohibiting further Liens on the properties encumbered thereby; (3) any other
agreement that does not restrict in any manner (directly or indirectly) Liens
created pursuant to the Loan Documents on any Collateral securing the
Obligations and does not require the direct or indirect granting of any Lien
securing any Indebtedness or other obligation by virtue of the granting of Liens
on or pledge of property of any Loan Party to secure the Obligations; and (4)
any prohibition or limitation that (a) exists pursuant to applicable law, (b)
consists of customary restrictions and conditions contained in any agreement
relating to the sale of any property permitted under Section 6.06 pending the
consumma-
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tion of such sale, (c) restricts subletting or assignment of any lease governing
a leasehold interest of Borrower or a Subsidiary, (d) exists in any agreement in
effect at the time such Subsidiary becomes a Subsidiary of Borrower, so long as
such agreement was not entered into in contemplation of such person becoming a
Subsidiary or (e) customary contract anti-assignment provisions, or (f) is
imposed by any amendments or refinancings that are otherwise permitted by the
Loan Documents of the contracts, instruments or obligations referred to in
clause (3) or (4)(e); provided that such amendments and refinancings are no more
materially restrictive with respect to such prohibitions and limitations than
those prior to such amendment or refinancing.
SECTION 6.20 ANTI-TERRORISM LAW; ANTI-MONEY LAUNDERING.
(a) Directly or indirectly, (i) knowingly conduct any business or
engage in making or receiving any contribution of funds, goods or services to or
for the benefit of any person described in Section 3.22, (ii) knowingly deal in,
or otherwise engage in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order or any other Anti-Terrorism
Law, or (iii) knowingly engage in or conspire to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law (and the
Loan Parties shall deliver to the Lenders any certification or other evidence
requested from time to time by any Lender in its reasonable discretion,
confirming the Loan Parties' compliance with this Section 6.20).
(b) Cause or permit any of the funds of such Loan Party that are
used to repay the Loans to be derived from any unlawful activity with the result
that the making of the Loans would be in violation of law.
ARTICLE VII
GUARANTEE
SECTION 7.01 THE GUARANTEE. The Guarantors hereby, jointly and
severally guarantee, as a primary obligor and not as a surety to each Secured
Party and their respective successors and assigns, the prompt payment in full
when due (whether at stated maturity, by required prepayment, declaration,
demand, by acceleration or otherwise) of the principal of and interest
(including any interest, fees, costs or charges that would accrue but for the
provisions of the Title 11 of the United States Code after any bankruptcy or
insolvency petition under Title 11 of the United States Code) on the Loans made
by the Lenders to, and the Notes held by each Lender of, Borrower, and all other
Obligations from time to time owing to the Secured Parties by any Loan Party
under any Loan Document or any Hedging Agreement entered into with a counterpart
that is a Secured Party in each case strictly in accordance with the terms
thereof (such obligations being herein collectively called the "GUARANTEED
OBLIGATIONS"). The Guarantors hereby jointly and severally agree that if
Borrower or other Guarantor(s) shall fail to pay in full when due (whether at
stated maturity, by acceleration or otherwise) any of the Guaranteed
Obligations, the Guarantors will promptly pay the same in cash, without any
demand or notice whatsoever, and that in the case of any extension of time of
payment or renewal of any of the Guaranteed Obligations, the same will be
promptly paid in full when due (whether at extended maturity, by acceleration or
otherwise) in accordance with the terms of such extension or renewal.
SECTION 7.02 OBLIGATIONS UNCONDITIONAL. The obligations of the
Guarantors under Section 7.01 shall constitute a guaranty of payment and to the
fullest extent permitted by applicable law, are absolute, irrevocable and
unconditional, joint and several, irrespective of the value, genuineness,
validity, regularity or enforceability of the Guaranteed Obligations of Borrower
under this Agreement, the
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Notes, if any, or any other agreement or instrument referred to herein or
therein, or any substitution, release or exchange of any other guarantee of or
security for any of the Guaranteed Obligations, and, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a surety or Guarantor (except for payment in full).
Without limiting the generality of the foregoing, it is agreed that the
occurrence of any one or more of the following shall not alter or impair the
liability of the Guarantors hereunder which shall remain absolute, irrevocable
and unconditional under any and all circumstances as described above:
(i) at any time or from time to time, without notice to the
Guarantors, the time for any performance of or compliance with any of the
Guaranteed Obligations shall be extended, or such performance or
compliance shall be waived;
(ii) any of the acts mentioned in any of the provisions of this
Agreement or the Notes, if any, or any other agreement or instrument
referred to herein or therein shall be done or omitted;
(iii) the maturity of any of the Guaranteed Obligations shall be
accelerated, or any of the Guaranteed Obligations shall be amended in any
respect, or any right under the Loan Documents or any other agreement or
instrument referred to herein or therein shall be amended or waived in any
respect or any other guarantee of any of the Guaranteed Obligations or any
security therefor shall be released or exchanged in whole or in part or
otherwise dealt with;
(iv) any Lien or security interest granted to, or in favor of,
Issuing Bank or any Lender or Agent as security for any of the Guaranteed
Obligations shall fail to be perfected; or
(v) the release of any other Guarantor pursuant to Section 7.09.
The Guarantors hereby expressly waive diligence, presentment, demand
of payment, protest and all notices whatsoever, and any requirement that any
Secured Party exhaust any right, power or remedy or proceed against Borrower
under this Agreement or the Notes, if any, or any other agreement or instrument
referred to herein or therein, or against any other person under any other
guarantee of, or security for, any of the Guaranteed Obligations. The Guarantors
waive any and all notice of the creation, renewal, extension, waiver,
termination or accrual of any of the Guaranteed Obligations and notice of or
proof of reliance by any Secured Party upon this Guarantee or acceptance of this
Guarantee, and the Guaranteed Obligations, and any of them, shall conclusively
be deemed to have been created, contracted or incurred in reliance upon this
Guarantee, and all dealings between Borrower and the Secured Parties shall
likewise be conclusively presumed to have been had or consummated in reliance
upon this Guarantee. This Guarantee shall be construed as a continuing,
absolute, irrevocable and unconditional guarantee of payment without regard to
any right of offset with respect to the Guaranteed Obligations at any time or
from time to time held by Secured Parties, and the obligations and liabilities
of the Guarantors hereunder shall not be conditioned or contingent upon the
pursuit by the Secured Parties or any other person at any time of any right or
remedy against Borrower or against any other person which may be or become
liable in respect of all or any part of the Guaranteed Obligations or against
any collateral security or guarantee therefor or right of offset with respect
thereto. This Guarantee shall remain in full force and effect and be binding in
accordance with and to the extent of its terms upon the Guarantors and the
successors and assigns thereof, and shall inure to the benefit of the Lenders,
and their respective successors and assigns, notwithstanding that from time to
time during the term of this Agreement there may be no Guaranteed Obligations
outstanding.
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SECTION 7.03 REINSTATEMENT. The obligations of the Guarantors under
this Article VII shall be automatically reinstated if and to the extent that for
any reason any payment by or on behalf of Borrower or other Loan Party in
respect of the Guaranteed Obligations is rescinded or must be otherwise restored
by any holder of any of the Guaranteed Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise.
SECTION 7.04 SUBROGATION; SUBORDINATION. Each Guarantor hereby
agrees that until the indefeasible payment and satisfaction in full in cash of
all Guaranteed Obligations and the expiration and termination of the Commitments
of the Lenders under this Agreement it shall waive any claim and shall not
exercise any right or remedy, direct or indirect, arising by reason of any
performance by it of its guarantee in Section 7.01, whether by subrogation or
otherwise, against Borrower or any other Guarantor of any of the Guaranteed
Obligations or any security for any of the Guaranteed Obligations. Any
Indebtedness of any Loan Party permitted pursuant to Section 6.01(a)(ii) or
Section 6.01(d) shall be subordinated to such Loan Party's Obligations in the
manner set forth in the Intercompany Note or the Window Intercompany Note (as
defined in the Original Credit Agreement), as applicable, evidencing such
Indebtedness.
SECTION 7.05 REMEDIES. The Guarantors jointly and severally agree
that, as between the Guarantors and the Lenders, the obligations of Borrower
under this Agreement and the Notes, if any, may be declared to be forthwith due
and payable as provided in Article VIII (and shall be deemed to have become
automatically due and payable in the circumstances provided in said Article
VIII) for purposes of Section 7.01, notwithstanding any stay, injunction or
other prohibition preventing such declaration (or such obligations from becoming
automatically due and payable) as against Borrower and that, in the event of
such declaration (or such obligations being deemed to have become automatically
due and payable), such obligations (whether or not due and payable by Borrower)
shall forthwith become due and payable by the Guarantors for purposes of Section
7.01.
SECTION 7.06 INSTRUMENT FOR THE PAYMENT OF MONEY. Each Guarantor
hereby acknowledges that the guarantee in this Article VII constitutes an
instrument for the payment of money, and consents and agrees that any Lender or
Agent, at its sole option, in the event of a dispute by such Guarantor in the
payment of any moneys due hereunder, shall have the right to bring a
motion-action under New York CPLR Section 3213.
SECTION 7.07 CONTINUING GUARANTEE. The guarantee in this Article VII
is a continuing guarantee of payment, and shall apply to all Guaranteed
Obligations whenever arising.
SECTION 7.08 GENERAL LIMITATION ON GUARANTEE OBLIGATIONS. In any
action or proceeding involving any state corporate limited partnership or
limited liability company law, or any applicable state, federal or foreign
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Guarantor under Section 7.01
would otherwise be held or determined to be void, voidable, invalid or
unenforceable, or subordinated to the claims of any other creditors, on account
of the amount of its liability under Section 7.01, then, notwithstanding any
other provision to the contrary, the amount of such liability shall, without any
further action by such Guarantor, any Loan Party or any other person, be
automatically limited and reduced to the highest amount that is valid and
enforceable and not subordinated to the claims of other creditors as determined
in such action or proceeding.
SECTION 7.09 RELEASE OF GUARANTORS. If, in compliance with the terms
and provisions of the Loan Documents, all or substantially all of the Equity
Interests or property of any Guarantor are sold or otherwise transferred (a
"TRANSFERRED GUARANTOR") to a person or persons, none of which is
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Borrower or a Subsidiary, such Transferred Guarantor shall, upon the
consummation of such sale or transfer, be released from its obligations under
this Agreement (including under Section 11.03 hereof) and its obligations to
pledge and grant any Collateral owned by it pursuant to any Security Document
and, in the case of a sale of all or substantially all of the Equity Interests
of the Transferred Guarantor, the pledge of such Equity Interests to the
Collateral Agent pursuant to the Security Agreements shall be released, and the
Collateral Agent shall take such actions as are necessary to effect each release
described in this Section 7.09 in accordance with the relevant provisions of the
Security Documents; provided that such Guarantor is also released simultaneously
from its obligations under the Second Lien Loan Documents on the same terms and
to the same extent.
ARTICLE VIII
EVENTS OF DEFAULT
SECTION 8.01 EVENTS OF DEFAULT. Upon the occurrence and during the
continuance of the following events ("EVENTS OF DEFAULT"):
(a) default shall be made in the payment of any principal of any
Loan or any Reimbursement Obligation when and as the same shall become due
and payable, whether at the due date thereof (including a Term Loan
Repayment Date) or at a date fixed for prepayment (whether voluntary or
mandatory) thereof or by acceleration thereof or otherwise;
(b) default shall be made in the payment of any interest on any Loan
or any Fee or any other amount (other than an amount referred to in
paragraph (a) above) due under any Loan Document, when and as the same
shall become due and payable, and such default shall continue unremedied
for a period of three Business Days;
(c) any representation or warranty made or deemed made in or in
connection with any Loan Document or the borrowings or issuances of
Letters of Credit hereunder, or any representation, warranty, statement or
information contained in any report, certificate, financial statement or
other instrument furnished in connection with or pursuant to any Loan
Document, shall prove to have been false or misleading in any material
respect when so made, deemed made or furnished;
(d) default shall be made in the due observance or performance by
any Company of any covenant, condition or agreement contained in Section
5.02, 5.03(a) or 5.08 or in Article VI;
(e) default shall be made in the due observance or performance by
any Company of any covenant, condition or agreement contained in any Loan
Document (other than those specified in paragraphs (a), (b) or (d)
immediately above) and such default shall continue unremedied or shall not
be waived for a period of 30 days after written notice thereof from the
Administrative Agent or any Lender to Borrower;
(f) any Company shall (i) fail to pay any principal or interest,
regardless of amount, due in respect of any Indebtedness (other than the
Obligations), when and as the same shall become due and payable beyond any
applicable grace period, 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 or other
representative on its or their behalf to cause, such Indebtedness to
become due prior to its stated maturity or
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become subject to a mandatory offer purchase by the obligor; provided
that, other than in the case of Second Lien Loans, it shall not constitute
an Event of Default pursuant to this paragraph (f) unless the aggregate
amount of all such Indebtedness referred to in clauses (i) and (ii)
exceeds $2.0 million at any one time (provided that, in the case of
Hedging Obligations, the termination value shall be counted for this
purpose);
(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 any Company, or of a substantial part of the property
of any Company, under Title 11 of the 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 any Company or for a substantial part of the property of any
Company; or (iii) the winding-up or liquidation of any Company; 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) any Company 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 clause
(g) above; (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for any
Company or for a substantial part of the property of any Company; (iv)
file an answer admitting the material allegations of a petition filed
against it in any such proceeding; (v) make 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; (vii) take any
action for the purpose of effecting any of the foregoing; or (viii) wind
up or liquidate;
(i) one or more judgments, orders or decrees for the payment of
money in an aggregate amount in excess of $3.0 million shall be rendered
against any Company or any combination thereof and the same shall remain
undischarged, unvacated or unbonded 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 properties of
any Company to enforce any such judgment;
(j) one or more ERISA Events shall have occurred that, in the
opinion of the Required Lenders, when taken together with all other such
ERISA Events could reasonably be expected to result in a Material Adverse
Effect or the imposition of a Lien on any properties of a Company;
(k) any security interest and Lien purported to be created by any
Security Document shall cease to be in full force and effect, or shall
cease to give the Collateral Agent, for the benefit of the applicable
Secured Parties, the Liens, rights, powers and privileges purported to be
created and granted under such Security Documents (including a perfected
First Priority security interest in and Lien on, all of the Collateral
thereunder (except as otherwise expressly provided in this Agreement or in
such Security Document)) in favor of the Collateral Agent, or shall be
asserted by Borrower or any other Loan Party not to be, a valid,
perfected, First Priority (except as otherwise expressly provided in this
Agreement or such Security Document) security interest in or Lien on the
Collateral covered thereby;
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(l) any Loan Document or any material provisions thereof shall at
any time and for any reason be declared by a court of competent
jurisdiction to be null and void (other than any such declaration
resulting solely from an amendment or modification of the Intercreditor
Agreement not consented to by Borrower), or a proceeding shall be
commenced by any Loan Party or any other person, or by any Governmental
Authority, seeking to establish the invalidity or unenforceability thereof
(exclusive of questions of interpretation of any provision thereof), or
any Loan Party shall repudiate or deny any portion of its liability or
obligation for the Obligations;
(m) there shall have occurred a Change in Control; or
(n) any Loan Party shall be prohibited or otherwise restrained from
conducting the business theretofore conducted by it in any manner that has
or could reasonably be expected to result in a Material Adverse Effect by
virtue of any determination, ruling, decision, decree or order of any
court or Governmental Authority of competent jurisdiction;
then, and in every such event (other than an event with respect to Holdings or
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 Borrower, take either or
both of the following actions, at the same or different times: (i) terminate
forthwith the Commitments (which termination of Commitments, in the case of
Tranche A-1 Revolving Commitments, may be in the sole discretion of the Required
Lenders as to all Tranche A-1 Revolving Commitments (resulting in a required
repayment of all outstanding Tranche A-1 Revolving Loans) or as to all unused
Tranche A-1 Revolving Commitments at such time) and (ii) declare the Loans and
Reimbursement Obligations then outstanding to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans and Reimbursement
Obligations so declared to be due and payable, together with accrued interest
thereon and any unpaid accrued Fees and all other liabilities of Borrower
accrued hereunder and under any other Loan Document, 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 Borrower and the Guarantors,
anything contained herein or in any other Loan Document to the contrary
notwithstanding; and in any event, with respect to Holdings or Borrower
described in paragraph (g) or (h) above, the Commitments shall automatically
terminate and the principal of the Loans and Reimbursement Obligations then
outstanding, together with accrued interest thereon and any unpaid accrued Fees
and all other liabilities of Borrower accrued hereunder and under any other Loan
Document, 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 Borrower and the Guarantors, anything contained herein or in
any other Loan Document to the contrary notwithstanding.
ARTICLE IX
APPLICATION OF COLLATERAL PROCEEDS
SECTION 9.01 [INTENTIONALLY OMITTED].
SECTION 9.02 [INTENTIONALLY OMITTED].
SECTION 9.03 APPLICATION OF PROCEEDS. Subject to the terms of the
Intercreditor Agreement, the proceeds received by the Collateral Agent in
respect of any sale of, collection from or other realization upon all or any
part of the Collateral pursuant to the exercise by the Collateral Agent of its
remedies shall be applied, in full or in part, together with any other sums then
held by the Collateral Agent pursuant to this Agreement, promptly by the
Collateral Agent as follows:
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(a) First, to the payment of all reasonable costs and expenses,
fees, commissions and taxes of such sale, collection or other realization
including compensation to the Collateral Agent and its agents and counsel,
and all expenses, liabilities and advances made or incurred by the
Collateral Agent in connection therewith and all amounts for which the
Collateral Agent is entitled to indemnification pursuant to the provisions
of any Loan Document, together with interest on each such amount at the
highest rate then in effect under this Agreement from and after the date
such amount is due, owing or unpaid until paid in full;
(b) Second, to the payment of all other reasonable costs and
expenses of such sale, collection or other realization including
compensation to the other Secured Parties and their agents and counsel and
all costs, liabilities and advances made or incurred by the other Secured
Parties in connection therewith, together with interest on each such
amount at the highest rate then in effect under this Agreement from and
after the date such amount is due, owing or unpaid until paid in full;
(c) Third, without duplication of amounts applied pursuant to
clauses (a) and (b) above, to the indefeasible payment in full in cash,
pro rata, of interest and other amounts constituting Obligations (other
than principal and Reimbursement Obligations) in each case equally and
ratably in accordance with the respective amounts thereof then due and
owing;
(d) Fourth, to the indefeasible payment in full in cash, pro rata,
of principal amount of the Obligations (including Reimbursement
Obligations with respect thereto); and
(e) Fifth, the balance, if any, to the person lawfully entitled
thereto (including the applicable Loan Party or its successors or assigns)
or as a court of competent jurisdiction may direct.
In the event that any such proceeds are insufficient to pay in full
the items described in clauses (a) through (e) of this Section 9.03, the Loan
Parties shall remain liable, jointly and severally, for any deficiency.
Each Loan Party acknowledges the relative rights, priorities and
agreements of the Secured Parties and the Second Lien Secured Parties, as set
forth in this Agreement and the Intercreditor Agreement, including as set forth
in this Section 9.03.
ARTICLE X
THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT
SECTION 10.01 APPOINTMENT. Each Lender and the Issuing Bank hereby
irrevocably designates and appoints the Administrative Agent as an agent of such
Lender under this Agreement and the other Loan Documents. Each Lender and the
Issuing Bank and each holder of any Related Hedging Obligations and each person
holding Overdraft Obligations (in each case, in its capacity as such) hereby
irrevocably designates and appoints the Collateral Agent as an agent of such
person under this Agreement. Each Lender irrevocably authorizes each Agent, in
such capacity, through its agents or employees, to take such actions on its
behalf under the provisions of this Agreement and the other Loan Documents and
to exercise such powers and perform such duties as are expressly delegated to
such Agent by the terms of this Agreement and the other Loan Documents, together
with such actions and powers as are reasonably incidental thereto.
Notwithstanding anything herein to the contrary, each Lender also acknowledges
that the Lien and security interest granted to the Collateral Agent pursuant to
the Security
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Documents and the exercise of any right or remedy by the Collateral Agent
thereunder are subject to the provisions of the Intercreditor Agreement. In the
event of any conflict between the terms of the Intercreditor Agreement and the
Security Documents, the terms of the Intercreditor Agreement shall govern and
control.
SECTION 10.02 AGENT IN ITS INDIVIDUAL CAPACITY. Each person serving
as an Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not an
Agent, and such person and its Affiliates may accept deposits from, lend money
to and generally engage in any kind of business with Borrower or any Subsidiary
or other Affiliate thereof as if it were not an Agent hereunder.
SECTION 10.03 EXCULPATORY PROVISIONS. No Agent shall have any duties
or obligations except those expressly set forth in the Loan Documents. Without
limiting the generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) no Agent shall have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated by the Loan Documents that such Agent is required
to exercise in writing by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 11.02), and (c) except as expressly set forth in the Loan
Documents, no Agent shall have any duty to disclose or shall be liable for the
failure to disclose, any information relating to Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as such
Agent or any of its Affiliates in any capacity. No Agent shall be liable for any
action taken or not taken by it with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 11.02) or in the
absence of its own gross negligence or willful misconduct. No Agent shall be
deemed to have knowledge of any Default unless and until written notice thereof
is given to such Agent by Borrower or a Lender, and no Agent shall be
responsible for or have any duty to ascertain or inquire into (i) any statement,
warranty or representation made in or in connection with any Loan Document, (ii)
the contents of any certificate, report or other document delivered thereunder
or in connection therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any
Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere in any Loan
Document.
SECTION 10.04 RELIANCE BY AGENT. Each Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice,
request, certificate, consent, statement, instrument, document or other writing
believed by it to be genuine and to have been signed or sent by a proper person.
Each Agent also may rely upon any statement made to it orally and believed by it
to be made by a proper person, and shall not incur any liability for relying
thereon. Each Agent may consult with legal counsel (who may be counsel for
Borrower), independent accountants and other advisors selected by it, and shall
not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or advisors.
SECTION 10.05 DELEGATION OF DUTIES. Each Agent may perform any and
all its duties and exercise its rights and powers by or through any one or more
sub-agents appointed by such Agent. Each Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their
respective Affiliates. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Affiliates of each Agent and any
such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as Agent.
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SECTION 10.06 SUCCESSOR AGENT. Each Agent may resign as such at any
time upon at least 30 days' prior notice to the Lenders, the Issuing Bank and
Borrower. Upon any such resignation, the Required Lenders shall have the right,
in consultation with Borrower, to appoint a successor Agent from among the
Lenders. If no successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring Agent
gives notice of its resignation, then the retiring Agent may, on behalf of the
Lenders and the Issuing Bank, appoint a successor Agent, which successor shall
be a commercial banking institution organized under the laws of the United
States (or any State thereof) or a United States branch or agency of a
commercial banking institution or a non-bank financial institution, in each
case, having combined capital and surplus of at least $250 million; provided
that if such retiring Agent is unable to find a commercial banking institution
or a non-bank financial institution which is willing to accept such appointment
and which meets the qualifications set forth above, the retiring Agent's
resignation shall nevertheless thereupon become effective, and the Lenders shall
assume and perform all of the duties of the Agent hereunder until such time, if
any, as the Required Lenders appoint a successor Agent.
Upon the acceptance of its appointment as an Agent hereunder by a
successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by Borrower to a successor Agent shall be the same as those payable to
its predecessor unless otherwise agreed between Borrower and such successor.
After an Agent's resignation hereunder, the provisions of this Article X and
Section 11.03 shall continue in effect for the benefit of such retiring Agent,
its sub-agents and their respective Affiliates in respect of any actions taken
or omitted to be taken by any of them while it was acting as Agent.
SECTION 10.07 NON-RELIANCE ON AGENT AND OTHER LENDERS. Each Lender
acknowledges that it has, independently and without reliance upon any 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. Each Lender also acknowledges that it will, independently and without
reliance upon any 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,
any other Loan Document or related agreement or any document furnished hereunder
or thereunder.
SECTION 10.08 NAME AGENTS. The parties hereto acknowledge that the
Bookmanager, Co-Documentation Agents and the Syndication Agent hold such titles
in name only, and that such titles confer no additional rights or obligations
relative to those conferred on any Lender hereunder.
SECTION 10.09 INDEMNIFICATION. The Lenders severally agree to
indemnify each Agent in its capacity as such (to the extent not reimbursed by
Borrower or the Guarantors and without limiting the obligation of Borrower or
the Guarantors to do so), ratably according to their respective outstanding
Loans and Commitments in effect on the date on which indemnification is sought
under this Section 10.09 (or, if indemnification is sought after the date upon
which all Commitments shall have terminated and the Loans and Reimbursement
Obligations shall have been paid in full, ratably in accordance with such
outstanding Loans and Commitments as in effect immediately prior to such date),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever that may at any time (whether before or after the payment of the
Loans and Reimbursement Obligations) be imposed on, incurred by or asserted
against such Agent in any way relating to or arising out of, the Commitments,
this Agreement, any of the other Loan Documents or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by such Agent under or in connection with
any of
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the foregoing; provided that no Lender shall be liable for the payment of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements that are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from such Agent's gross negligence or willful misconduct. The agreements in this
Section shall survive the payment of the Loans and all other amounts payable
hereunder.
ARTICLE XI
MISCELLANEOUS
SECTION 11.01 NOTICES.
(a) Generally. Except as provided in paragraph (b) below, 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:
(i) if to any Loan Party, to Borrower at:
JLL Partners
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇▇▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇;
(ii) if to PGT Industries, Inc., to it at:
PGT Industries, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇.
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇;
(iii) if to the Administrative Agent or the Collateral Agent,
to it at:
UBS AG, Stamford Branch
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇;
(iv) if to a Lender, to it at its address (or telecopy number) set
forth on the applicable Lender Addendum or in the Assignment and
Acceptance pursuant to which such Lender shall have become a party hereto;
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(v) if to the Swingline Lender, to it at:
UBS Loan Finance LLC
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇; and
(vi) if to the General Electric Capital Corporation, as
Co-Documentation Agent,
GE Corporate Financial Services
Global Sponsor Finance
▇▇▇ ▇▇▇▇▇▇▇ ▇, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Telecopy No.: (▇▇▇) ▇▇▇-▇▇▇▇.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement 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 by certified or registered mail, in each case delivered, sent or
mailed (properly addressed) to such party as provided in this Section 11.01 or
in accordance with the latest unrevoked direction from such party given in
accordance with this Section 11.01, and failure to deliver courtesy copies of
notices and other communications shall in no event affect the validity or
effectiveness of such notices and other communications.
(b) Electronic Communications. Notices and other communications to
the Lenders and the Issuing Bank hereunder may (subject to Section 11.01(d)) be
delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices to
any Lender or the Issuing Bank pursuant to Article II if such Lender or the
Issuing Bank, as applicable, has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication.
The Administrative Agent, the Collateral Agent or Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it (including as
set forth in Section 11.01(d)); provided that approval of such procedures may be
limited to particular notices or communications.
Unless the Administrative Agent otherwise prescribes, (i) notices
and other communications sent to an e-mail address shall be deemed received upon
the sender's receipt of an acknowledgement from the intended recipient (such as
by the "return receipt requested" function, as available, return e-mail or other
written acknowledgement, in each case, to be made promptly by the recipient
thereof); provided that if such notice or other communication is not sent during
the normal business hours of the recipient, such notice or communication shall
be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and
identifying the website address therefor.
(c) Change of Address, etc. Any party hereto may change its address
or telecopier number for notices and other communications hereunder by notice to
the other parties hereto.
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(d) Posting. Each Loan Party hereby agrees that it will provide to
the Administrative Agent all information, documents and other materials that it
is obligated to furnish to the Administrative Agent pursuant to this Agreement
and any other Loan Document, including all notices, requests, financial
statements, financial and other reports, certificates and other information
materials, but excluding any such communication that (i) relates to a request
for a new, or a conversion of an existing, Borrowing or other extension of
credit (including any election of an interest rate or interest period relating
thereto), (ii) relates to the payment of any principal or other amount due under
this Agreement prior to the scheduled date therefor, (iii) provides notice of
any Default under this Agreement or (iv) is required to be delivered to satisfy
any condition precedent to the effectiveness of this Agreement and/or any
borrowing or other extension of credit hereunder (all such non-excluded
communications, collectively, the "COMMUNICATIONS"), by transmitting the
Communications in an electronic/soft medium in a format reasonably acceptable to
the Administrative Agent at ▇▇▇▇▇▇.▇▇▇▇▇@▇▇▇.▇▇▇ or at such other e-mail
address(es) provided to Borrower from time to time or in such other form,
including hard copy delivery thereof, as the Administrative Agent shall require.
In addition, each Loan Party agrees to continue to provide the Communications to
the Administrative Agent in the manner specified in this Agreement or any other
Loan Document or in such other form, including hard copy delivery thereof, as
the Administrative Agent shall reasonably require. Nothing in this Section 11.01
shall prejudice the right of the Agents, any Lender or any Loan Party to give
any notice or other communication pursuant to this Agreement or any other Loan
Document in any other manner specified in this Agreement or any other Loan
Document or as any such Agent shall reasonably require.
Unless otherwise advised by the Administrative Agent in writing, the
Administrative Agent agrees that receipt of the Communications by the
Administrative Agent at its e-mail address(es) set forth above shall constitute
effective delivery of the Communications to the Administrative Agent for
purposes of the Loan Documents; provided that Borrower shall also deliver to the
Administrative Agent an executed original of each Compliance Certificate
required to be delivered hereunder.
Each Loan Party further agrees that Administrative Agent may make
the Communications available to the Lenders by posting the Communications on
Intralinks or a substantially similar electronic transmission system (the
"PLATFORM"). The Platform is provided "as is" and "as available." The Agents do
not warrant the accuracy or completeness of the Communications, or the adequacy
of the Platform and expressly disclaim liability for errors or omissions in the
Communications. No warranty of any kind, express, implied or statutory,
including, without limitation, any warranty of merchantability, fitness for a
particular purpose, non-infringement of third party rights or freedom from
viruses or other code defects, is made by any Agent in connection with the
Communications or the Platform. In no event shall the Administrative Agent or
any of its Affiliates have any liability to the Loan Parties, any Lender or any
other person for damages of any kind, including direct or indirect, special,
incidental or consequential damages, losses or expenses (whether in tort,
contract or otherwise) arising out of any Loan Party's or the Administrative
Agent's transmission of communications through the Internet, except to the
extent the liability of such person is found in a final non-appealable judgment
by a court of competent jurisdiction to have resulted from such person's gross
negligence or willful misconduct.
SECTION 11.02 WAIVERS; AMENDMENT.
(a) No failure or delay by any Agent, the Issuing Bank or any Lender
in exercising any right or power hereunder or under any other Loan Document
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 each Agent,
the Issuing Bank and the Lenders hereunder and under the other Loan Documents
are cumulative and are not exclusive of any rights or remedies that
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they would otherwise have. No waiver of any provision of any Loan Document or
consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default, regardless of whether any Agent, any
Lender or the Issuing Bank may have had notice or knowledge of such Default at
the time.
(b) Subject to the terms of the Intercreditor Agreement and
paragraphs (c) and (d) below, neither this Agreement nor any other Loan Document
nor any provision hereof or thereof may be waived, amended, supplemented or
modified except, in the case of this Agreement, pursuant to an agreement or
agreements in writing entered into by Borrower and the Required Lenders or, in
the case of any other Loan Document, pursuant to an agreement or agreements in
writing entered into by the Administrative Agent (which it shall do if so
instructed by the Borrower and the Required Lenders), the Collateral Agent (in
the case of any Security Document (which it shall do if so instructed by the
Borrower and the Required Lenders) and the Loan Party or Loan Parties that are
parties thereto, in each case with the written consent of the Required Lenders;
provided that no such agreement shall:
(i) increase the Commitment of any Lender without the written
consent of such Lender;
(ii) reduce the principal amount or premium of any Loan or LC
Disbursement or reduce the rate of interest thereon, or reduce any Fees
payable hereunder, or change the currency of payment of any Obligation,
without the written consent of each Lender affected thereby;
(iii) postpone or extend the maturity of any Loan, or any scheduled
date of payment of or the installment otherwise due on the principal
amount of any Term Loan under Section 2.09, or the required date of
payment of any Reimbursement Obligation, or any date for the payment of
any interest or fees payable hereunder, or reduce the amount of, waive or
excuse any such payment, or postpone the scheduled date of expiration of
any Commitment or postpone the scheduled date of expiration of any Letter
of Credit beyond the Revolving Maturity Date, without the written consent
of each Lender affected thereby;
(iv) change Section 2.14(b) or (c) in a manner that would alter the
pro rata sharing of payments or setoffs required thereby, without the
written consent of each Lender;
(v) change the percentage set forth in the definition of "Required
Lenders" or any other provision of any Loan Document (including this
Section) specifying the number or percentage of Lenders (or Lenders of any
Class) required to waive, amend or modify any rights thereunder or make
any determination or grant any consent thereunder, without the written
consent of each Lender (or each Lender of such Class, as the case may be);
(vi) release any Guarantor from its Guarantee (except as expressly
provided in Article VII), or limit its liability in respect of such
Guarantee, without the written consent of each Lender;
(vii) release all or a substantial portion of the Collateral from
the Liens of the Security Documents or alter the relative priorities of
the Obligations entitled to the Liens of the Security Documents (except in
connection with securing additional Obligations equally and ratably with
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the other Obligations), or alter the order of the application of proceeds
from the sale of collateral as set forth in Section 9.03 hereof, in each
case without the written consent of each Lender;
(viii) change any provisions of any Loan Document in a manner that
by its terms adversely affects the rights in respect of payments due to
Lenders holding Loans of any Class differently than those holding Loans of
any other Class, without the written consent of Lenders holding a majority
in interest of the outstanding Loans and unused Commitments of each
affected Class;
(ix) change the application of prepayments as among or between
Classes under Section 2.10(h), without the written consent of the Required
Class Lenders of each Class that is being allocated a lesser prepayment as
a result thereof (it being understood that the Required Lenders may waive,
in whole or in part, any prepayment so long as the application, as between
Classes, of any portion of such prepayment that is still required to be
made is not changed and, if additional Classes of Term Loans under this
Agreement consented to by the Required Lenders are made, such new Term
Loans may be included on a pro rata basis in the various prepayments
required pursuant to Section 2.10(h));
(x) modify any of the rights, obligations or privileges of any Agent
hereto without the consent of such Agent; or
(xi) expressly change or waive any condition precedent in Section
4.02 to any Revolving Borrowing without the written consent of the
Required Revolving Lenders;
provided, further, that (1) no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent, the Collateral Agent,
the Issuing Bank or the Swingline Lender without the prior written consent of
the Administrative Agent, Collateral Agent, the Issuing Bank or the Swingline
Lender, as the case may be, (2) any waiver, amendment or modification of this
Agreement that by its terms affects the rights or duties under this Agreement of
the Tranche A-1 Revolving Lenders (but not the Tranche A-2 Term Loan Lenders) or
the Tranche A-2 Term Loan Lenders (but not the Tranche A-1 Revolving Lenders)
may be effected by an agreement or agreements in writing entered into by
Borrower and requisite percentage in interest of the affected Class of Lenders
that would be required to consent thereto under this Section if such Class of
Lenders were the only Class of Lenders hereunder at the time, (3) any waiver,
amendment or modification prior to the achievement of a Successful Syndication
may not be effected without the written consent of the Arranger and (4) any
waiver, amendment or modification of the Intercreditor Agreement (and any
related definitions) may be effected by an agreement or agreements in writing
entered into among the Collateral Agent, the Administrative Agent and the
Required Lenders (without the consent of any Loan Party, so long as such
amendment, waiver or modification does not impose any additional duties or
obligations on the Loan Parties or alter or impair any right of any Loan Party
under the Loan Documents). Notwithstanding the foregoing, any provision of this
Agreement may be amended by an agreement in writing entered into by Borrower,
the Required Lenders and the Administrative Agent (and, if their rights or
obligations are affected thereby, the Issuing Bank and the Swingline Lender) if
(x) by the terms of such agreement the Commitment of each Lender not consenting
to the amendment provided for therein shall terminate upon the effectiveness of
such amendment and (y) at the time such amendment becomes effective, each Lender
not consenting thereto receives payment in full of the principal of, premium, if
any, and interest accrued on each Loan made by it and all other amounts owing to
it or accrued for its account under this Agreement.
(c) If, in connection with any proposed change, waiver, discharge or
termination of the provisions of this Agreement as contemplated by Section
11.02(b) (other than clause (iii) of such Sec-
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tion), the consent of the Supermajority Lenders is obtained but the consent of
one or more of such other Lenders whose consent is required is not obtained,
then Borrower shall have the right to replace all, but not less than all, of
such non-consenting Lender or Lenders (so long as all non-consenting Lenders are
so replaced) with one or more persons pursuant to Section 2.16 so long as at the
time of such replacement each such new Lender consents to the proposed change,
waiver, discharge or termination; provided, however, that Borrower shall not
have the right to replace a Lender solely as a result of the exercise of such
Lender's rights (and the withholding of any required consent by such Lender)
pursuant to clause (iii) of Section 11.02(b).
(d) Notwithstanding the foregoing but subject to the Intercreditor
Agreement, this Agreement may be amended (or amended and restated) with the
written consent of the Required Lenders, the Administrative Agent, Holdings and
Borrower (a) to add one or more additional credit facilities to this Agreement
and to permit the extensions of credit from time to time outstanding thereunder
and the accrued interest and fees in respect thereof to share ratably in the
benefits of this Agreement and the other Loan Documents with the Term Loans and
the Revolving Loans and the accrued interest and fees in respect thereof and (b)
to include appropriately the Lenders holding such credit facilities in any
determination of the Required Lenders.
SECTION 11.03 EXPENSES; INDEMNITY.
(a) The Loan Parties agree, jointly and severally, to pay, promptly
upon demand:
(i) all reasonable costs and expenses incurred by the Arranger, the
Administrative Agent, the Collateral Agent, the Swingline Lender and the
Issuing Bank, including the reasonable fees, charges and disbursements of
Advisors for the Arranger, the Administrative Agent, the Collateral Agent,
the Swingline Lender and the Issuing Bank, in connection with the
syndication of the Loans and Commitments, the preparation, execution and
delivery of the Loan Documents, the administration of the Loans and
Commitments, the perfection and maintenance of the Liens securing the
Collateral and any actual or proposed amendment, supplement or waiver of
any of the Loan Documents (whether or not the transactions contemplated
hereby or thereby shall be consummated);
(ii) all costs and expenses incurred by the Administrative Agent or
the Collateral Agent, including the fees, charges and disbursements of
Advisors for the Administrative Agent and the Collateral Agent, in
connection with any action, suit or other proceeding affecting the
Collateral or any part thereof, in which action, suit or proceeding the
Administrative Agent or the Collateral Agent is made a party or
participates or in which the right to use the Collateral or any part
thereof is threatened, or in which it becomes necessary in the judgment of
the Administrative Agent or the Collateral Agent to defend or uphold the
Liens granted by the Security Documents (including any action, suit or
proceeding to establish or uphold the compliance of the Collateral with
any Requirements of Law);
(iii) all costs and expenses incurred by the Arranger, the
Administrative Agent, the Collateral Agent, the Swingline Lender, the
Issuing Bank or any Lender, including the fees, charges and disbursements
of Advisors for the Arranger, the Administrative Agent, the Collateral
Agent, the Swingline Lender, the Issuing Bank or any Lender, incurred in
connection with the enforcement or protection of its rights under the Loan
Documents, including its rights under this Section 11.03(a), or in
connection with the Loans made or Letters of Credit issued hereunder and
the collection of the Obligations, including all such costs and expenses
incurred during any workout, restructuring or negotiations in respect of
the Obligations; and
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(iv) all documentary and similar taxes and charges in respect of the
Loan Documents.
For purposes of this Section 11.03(a), "ADVISORS" shall mean legal counsel
(including local counsel), auditors, accountants, consultants, appraisers or
other advisors; provided that (x) in the case of clause (i), the engagement of
any Advisors other than legal counsel (including local counsel) shall be subject
to approval by Borrower (which approval shall not be unreasonably withheld) and
(y) in the case of clause (iii), the engagement of any Advisors other than one
firm of legal counsel by any Lender shall be subject to approval by the
Administrative Agent.
(b) The Loan Parties agree, jointly and severally, to indemnify the
Agents, each Lender, the Issuing Bank and the Swingline Lender, each Affiliate
of any of the foregoing persons and each of their respective partners,
controlling persons, directors, officers, trustees, employees and agents (each
such person being called an "INDEMNITEE") against, and to hold each Indemnitee
harmless from, all reasonable out-of-pocket costs and any and all losses,
claims, damages, liabilities, penalties, judgments, suits 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, delivery, performance, administration or
enforcement of the Loan Documents, (ii) any actual or proposed use of the
proceeds of the Loans or issuance of Letters of Credit, (iii) any claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether or not any Indemnitee is a party thereto, or (iv) any actual or alleged
presence or Release or threatened Release of Hazardous Materials, on, at, under
or from any property owned, leased or operated by any Company at any time, or
any Environmental Claim related in any way to any Company; 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 solely from the gross negligence or willful misconduct of such
Indemnitee.
(c) The provisions of this Section 11.03 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 the Loans and Reimbursement Obligations, the release of all or any
portion of the Collateral, the expiration of the Commitments, the expiration of
any Letter of Credit, the invalidity or unenforceability of any term or
provision of this Agreement or any other Loan Document, or any investigation
made by or on behalf of the Agents, the Issuing Bank or any Lender. All amounts
due under this Section 11.03 shall be payable on written demand therefor
accompanied by reasonable documentation with respect to any reimbursement,
indemnification or other amount requested.
(d) To the extent that Borrower fails to promptly pay any amount
required to be paid by it to the Agents, the Issuing Bank or the Swingline
Lender under paragraph (a) or (b) of this Section, each Lender severally agrees
to pay to the Agents, the Issuing Bank or the Swingline Lender, as the case may
be, such Lender's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against any of the Agents, the Issuing Bank or the Swingline Lender in its
capacity as such. For purposes hereof, a Lender's "pro rata share" shall be
determined based upon its share of the sum of the total Revolving Exposure,
outstanding Term Loans and unused Commitments at the time.
SECTION 11.04 SUCCESSORS AND ASSIGNS.
(a) The provisions of this Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit), except that Borrower may not assign or otherwise
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transfer any of its rights or obligations hereunder without the prior written
consent of the Administrative Agent, the Collateral Agent, the Issuing Lender,
the Swingline Lender and each Lender (and any attempted assignment or transfer
by Borrower without such consent shall be null and void). Nothing in this
Agreement, express or implied, shall be construed to confer upon any person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any
Letter of Credit) and, to the extent expressly contemplated hereby, the other
Indemnitees) any legal or equitable right, remedy or claim under or by reason of
this Agreement.
(b) Any Lender shall have the right at any time to assign to one or
more banks, insurance companies, investment companies or funds or other
institutions (other than Borrower, Holdings or any Affiliate or Subsidiary
thereof) all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to
it); provided that (i) except in the case of an assignment to a Lender, an
Affiliate of a Lender or a Related Fund, each of the Administrative Agent and,
after the achievement of a Successful Syndication, Borrower (and, in the case of
an assignment of all or a portion of a Tranche A-1 Revolving Commitment or any
Lender's obligations in respect of its LC Exposure or Swingline Exposure, the
Issuing Bank and the Swingline Lender) must give its prior written consent to
such assignment (which consent shall not be unreasonably withheld or delayed),
(ii) except in the case of an assignment to a Lender, an Affiliate of a Lender
or a Related Fund, any assignment made in connection with the primary
syndication of the Commitment and Loans by the Arranger or an assignment of the
entire remaining amount of the assigning Lender's Commitment or Loans, the
amount of the Commitment or Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with respect
to such assignment is delivered to the Administrative Agent) shall not be less
than $1.0 million, in the case of Tranche A-2 Terms Loans or Term Loan
Commitments being so assigned, and $2.5 million, in the case of Tranche A-1
Revolving Loans or Tranche A-1 Revolving Commitments being so assigned, unless
each of Borrower and the Administrative Agent otherwise consent, (iii) each
partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender's rights and obligations under this Agreement, except that
this clause (iii) shall not be construed to prohibit the assignment of a
proportionate part of all the assigning Lender's rights and obligations in
respect of one Class of Commitments or Loans, (iv) the parties to each
assignment shall execute and deliver to the Administrative Agent an Assignment
and Acceptance, together with a processing and recordation fee of $3,500, and
(v) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and provided, further,
that any consent of Borrower otherwise required under this paragraph shall not
be required if a Default has occurred and is continuing. Subject to acceptance
and recording thereof pursuant to paragraph (d) of this Section, from and after
the effective date specified in each Assignment and Acceptance 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 (provided that any liability of Borrower to such assignee
under Section 2.12, 2.13 or 2.15 shall be limited to the amount, if any, that
would have been payable thereunder by Borrower in the absence of such
assignment, except to the extent any such amounts are attributable to a Change
in Law occurring after the date of such assignment), and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.12,
2.13, 2.15 and 11.03).
(c) The Administrative Agent, acting for this purpose as an agent of
Borrower, shall maintain at one of its offices 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 Commitment of, and principal amount
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of the Loans and LC Disbursements (and, in each case, interest thereon) owing
to, each Lender pursuant to the terms hereof from time to time (the "REGISTER").
The entries in the Register shall be conclusive in the absence of manifest
error, and Borrower, the Administrative Agent, the Issuing Bank and the Lenders
shall 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,
notwithstanding notice to the contrary. The Register shall be available for
inspection by Borrower, the Issuing Bank, the Collateral Agent, the Swingline
Lender and any Lender (with respect to its own interest only), at any reasonable
time and from time to time upon reasonable prior notice.
(d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.
(e) Any Lender shall have the right at any time, without the consent
of Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender
to sell participations to one or more banks, investment funds or other entities
(a "PARTICIPANT") in all or a portion of such Lender's rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans
owing to it); provided that (i) such Lender's obligations under this Agreement
shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) Borrower,
the Administrative Agent, the Issuing Bank and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such
Lender shall retain the sole right to enforce the Loan Documents and to approve
any amendment, modification or waiver of any provision of the Loan Documents;
provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment,
modification or waiver described in clause (i), (ii) or (iii) of the first
proviso to Section 11.02(b) that affects such Participant. Subject to paragraph
(f) of this Section, Borrower agrees that each Participant shall be entitled to
the benefits of Sections 2.12, 2.13 and 2.15 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section. To the extent permitted by law, each Participant also shall be
entitled to the benefits of Section 11.08 as though it were a Lender; provided
that such Participant agrees in writing to be subject to Section 2.14(c) as
though it were a Lender. Each Lender shall, acting for this purpose as an agent
of Borrower, maintain at one of its offices a register for the recordation of
the names and addresses of its Participants, and the amount and terms of its
participations; provided that no Lender shall be required to disclose or share
the information contained in such register with Borrower or any other party,
except as required by applicable law.
(f) A Participant shall not be entitled to receive any greater
payment under Section 2.12, 2.13 or 2.15 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the prior written consent of Borrower. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of
Section 2.15 unless Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of Borrower, to comply
with Sections 2.15(e) and (f) as though it were a Lender.
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(g) Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto. In
the case of any Lender that is a fund that invests in bank loans, such Lender
may, without the consent of Borrower or the Administrative Agent, collaterally
assign or pledge all or any portion of its rights under this Agreement,
including the Loans and Notes or any other instrument evidencing its rights as a
Lender under this Agreement, to any holder of, trustee for, or any other
representative of holders of, obligations owed or securities issued, by such
fund, as security for such obligations or securities.
SECTION 11.05 SURVIVAL OF AGREEMENT. All covenants, agreements,
representations and warranties made by the Loan Parties in the Loan Documents
and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any
such other party or on its behalf and notwithstanding that the Agents, the
Issuing Bank or any Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The
provisions of Sections 2.12, 2.14, 2.15 and 11.03 and Article X shall survive
and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the payment of the
Reimbursement Obligations, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement or any provision
hereof.
SECTION 11.06 COUNTERPARTS; INTEGRATION; EFFECTIVENESS; ELECTRONIC
EXECUTION OF ASSIGNMENTS. 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. This Agreement, the other Loan Documents, and the Fee Letter
constitute the entire contract among the parties relating to the subject matter
hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. This Agreement shall become
effective when it shall have been executed by 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 successors and assigns. Delivery of an executed counterpart
of a signature page of this Agreement by telecopy shall be effective as delivery
of a manually executed counterpart of this Agreement.
The words "execution," "signed," "signature," and words of like
import in any Assignment and Acceptance shall be deemed to include electronic
signatures or the keeping of records in electronic form, each of which shall be
of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable Requirement of Law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.
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SECTION 11.07 SEVERABILITY. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
SECTION 11.08 RIGHT OF SETOFF. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates are 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 obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of
Borrower against any and all of the obligations of Borrower now or hereafter
existing under this Agreement 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
are in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.
SECTION 11.09 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF
PROCESS.
(a) This Agreement shall be construed in accordance with and
governed by the law of the State of New York, without regard to conflicts of law
principles that would require the application of the laws of another
jurisdiction.
(b) Each Loan Party hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United
States District Court of the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to any Loan Document, 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 New York 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 any other Loan Document 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
Document against any Loan Party or its properties in the courts of any
jurisdiction.
(c) Each Loan Party 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
Document in any court referred to in Section 11.09(b). 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.
(d) Each party to this Agreement irrevocably consents to service of
process in any action or proceeding arising out of or relating to any Loan
Document, in the manner provided for notices (other than telecopy) in Section
11.01. Nothing in this Agreement or any other Loan Document will affect the
right of any party to this Agreement to serve process in any other manner
permitted by applicable law.
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SECTION 11.10 WAIVER OF JURY TRIAL. Each Loan Party hereby waives,
to the fullest extent permitted by applicable law, any right it may have to a
trial by jury in any legal proceeding directly or indirectly arising out of or
relating to this Agreement, any other Loan Document or the transactions
contemplated hereby (whether based on contract, tort or any other theory). 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 by, among other things, the mutual waivers and
certifications in this Section.
SECTION 11.11 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 shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.
SECTION 11.12 CONFIDENTIALITY. Each of the Administrative Agent, the
Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its and its Affiliates' and Related Funds' directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being
understood that the persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential pursuant to the terms hereof), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section 11.12, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to Borrower and its
obligations or (iii) any rating agency for the purpose of obtaining a credit
rating applicable to any Loan or Loan Party, (g) with the consent of Borrower or
(h) to the extent such Information (i) is publicly available at the time of
disclosure or becomes publicly available other than as a result of a breach of
this Section or (ii) becomes available to the Administrative Agent, the Issuing
Bank or any Lender on a nonconfidential basis from a source other than Borrower
or any Subsidiary. For the purposes of this Section, "INFORMATION" means all
information received from Borrower or any Subsidiary relating to Borrower or any
Subsidiary or its business that is clearly identified at the time of delivery as
confidential, other than any such information that is available to the
Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis
prior to disclosure by Borrower or any Subsidiary. Any person required to
maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such person has
exercised the same degree of care to maintain the confidentiality of such
Information as such person would accord to its own confidential information.
SECTION 11.13 INTEREST RATE LIMITATION. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively, the "CHARGES"), shall exceed
the maximum lawful rate (the "MAXIMUM RATE") which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount,
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together with interest thereon at the Federal Funds Effective Rate to the date
of repayment, shall have been received by such Lender.
SECTION 11.14 LENDER ADDENDUM. Each Tranche A-2 Term Loan Lender and
each Tranche A-1 Revolving Lender to become a party to this Agreement on the
Amendment and Restatement Effective Date shall do so by delivering to the
Administrative Agent a Lender Addendum duly executed by such Lender, Borrower
and the Administrative Agent.
SECTION 11.15 OBLIGATIONS ABSOLUTE. To the fullest extent permitted
by applicable law, all obligations of the Loan Parties hereunder shall be
absolute and unconditional irrespective of:
(a) any bankruptcy, insolvency, reorganization, arrangement,
readjustment, composition, liquidation or the like of any Loan Party;
(b) any lack of validity or enforceability of any Loan Document or
any other agreement or instrument relating thereto against any Loan Party;
(c) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or
waiver of or any consent to any departure from any Loan Document or any
other agreement or instrument relating thereto;
(d) any exchange, release or non-perfection of any other Collateral,
or any release or amendment or waiver of or consent to any departure from
any guarantee, for all or any of the Obligations;
(e) any exercise or non-exercise, or any waiver of any right,
remedy, power or privilege under or in respect hereof or any Loan
Document; or
(f) any other circumstances which might otherwise constitute a
defense available to, or a discharge of, the Loan Parties.
SECTION 11.16 USA PATRIOT ACT NOTICE. Each Lender and Issuing Bank
that is subject to the Act (as hereinafter defined) and the Administrative Agent
(for itself and not on behalf of any Lender or Issuing Bank) hereby notifies
Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the "ACT"), it is required
to obtain, verify and record information that identifies Borrower (and any
Subsidiary, in the case of a Letter of Credit issued for the account of such
Subsidiary), which information includes the name, address and tax identification
number of Borrower (and such Subsidiary, if applicable) and other information
regarding Borrower (and such Subsidiary, if applicable) that will allow such
Lender, Issuing Bank or the Administrative Agent, as applicable, to identify
Borrower (or such Subsidiary, if applicable) in accordance with the Act. This
notice is given in accordance with the requirements of the Act and is effective
as to the Lenders, each Issuing Bank and the Administrative Agent.
ARTICLE XII
[INTENTIONALLY OMITTED]
[Signature Pages Follow]
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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.
PGT INDUSTRIES, INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Chief Financial Officer
and Treasurer
JLL WINDOW HOLDINGS, INC.
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Chief Financial Officer
and Treasurer
S-1
UBS AG, STAMFORD BRANCH, as Issuing
Bank and Administrative Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Director,
Banking Products
Services, US
By: /s/ ▇▇▇▇▇▇ Oh
--------------------------------
Name: ▇▇▇▇▇▇ Oh
Title: Associate Director,
Banking Products
Services, US
UBS LOAN FINANCE LLC, as
Swingline Lender
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Director,
Banking Products
Services, US
By: /s/ ▇▇▇▇▇▇ Oh
--------------------------------
Name: ▇▇▇▇▇▇ Oh
Title: Associate Director,
Banking Products
Services, US
S-2
UBS AG, STAMFORD BRANCH, as Collateral
Agent
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Director,
Banking Products
Services, US
By: /s/ ▇▇▇▇▇▇ Oh
--------------------------------
Name: ▇▇▇▇▇▇ Oh
Title: Associate Director,
Banking Products
Services, US
S-3
GENERAL ELECTRIC CAPITAL CORPORATION,
as a Lender
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Duly Authorized Signatory
S-4
