LOAN AND SECURITY AGREEMENT DATED AS OF , 2002 BETWEEN LASALLE BUSINESS CREDIT, INC. THE LENDER, AND PERRY JUDD’S INCORPORATED THE BORROWER
Exhibit 10.7
DATED AS OF , 2002
BETWEEN
LASALLE BUSINESS CREDIT, INC.
THE LENDER,
AND
▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED
THE BORROWER
TABLE OF CONTENTS
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PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN |
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COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES |
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iv
THIS LOAN AND SECURITY AGREEMENT (as amended, modified or supplemented from time to time, this “Agreement”) made this day of , 2002 by and between LASALLE BUSINESS CREDIT, INC., a Delaware corporation (“Lender”), ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇–4105, and ▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED, a Delaware corporation, having its principal place of business at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ (“Borrower”).
WITNESSETH:
WHEREAS, Borrower may, from time to time, request Loans from Lender, and the parties wish to provide for the terms and conditions upon which such Loans or other financial accommodations, if made by Lender, shall be made;
NOW, THEREFORE, in consideration of any Loan (including any Loan by renewal or extension) hereafter made to Borrower by Lender, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Borrower, the parties agree as follows:
1. DEFINITIONS.
“Account”, “Account Debtor”, “Chattel Paper”, “Commercial Tort Claims”, “Deposit Accounts”, “Documents”, “Electronic Chattel Paper”, “Equipment”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit Right”, “Proceeds” and “Tangible Chattel Paper” shall have the respective meanings assigned to such terms in the Illinois Uniform Commercial Code, as the same may be in effect from time to time.
“Affiliate” shall mean any Person (i) which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, Borrower, (ii) which beneficially owns or holds five percent (5%) or more of the voting control or equity interests of Borrower, or (iii) five percent (5%) or more of the voting control or equity interests of which is beneficially owned or held by Borrower.
“Business Day” shall mean any day other than a Saturday, a Sunday or (i) with respect to all matters, determinations, fundings and payments in connection with LIBOR Rate Loans, any day on which banks in London, England or Chicago, Illinois are required or permitted to close, and (ii) with respect to all other matters, any day that banks in Chicago, Illinois are required or permitted to close.
“Capital Expenditures” shall mean with respect to any period, the aggregate of all expenditures (whether paid in cash or accrued as liabilities and including expenditures for capitalized lease obligations) by Borrower during such period that are required by generally accepted accounting principles, consistently applied, to be included in or reflected
1
by the property, plant and equipment or similar fixed asset accounts (or intangible accounts subject to amortization) on the balance sheet of Borrower.
“Collateral” shall mean all of the property of Borrower described in Section 5 hereof, together with all other real or personal property of any Obligor or any other Person, including, without limitation, Holdings, now or hereafter pledged to Lender to secure, either directly or indirectly, repayment of any of the Liabilities.
“EBITDA” shall mean, with respect to any period, Borrower’s net income after taxes for such period (excluding any after-tax gains or losses on the sale of assets (other than the sale of Inventory in the ordinary course of business) and excluding other after-tax extraordinary gains or losses) plus interest expense, income tax expense, depreciation and amortization for such period, plus or minus any other non-cash charges or gains which have been subtracted or added in calculating net income after taxes for such period.
“Eligible Account” shall mean an Account owing to Borrower which is acceptable to Lender in its Permitted Discretion for lending purposes (provided that Lender shall give Borrower prior written notice of any eligibility criteria established by Lender and not set forth herein). Without limiting Lender’s discretion, Lender shall, in general, consider an Account to be an Eligible Account if it meets, and so long as it continues to meet, the following requirements:
(i) it is genuine and in all respects what it purports to be;
(ii) it is owned by Borrower, Borrower has the right to subject it to a security interest in favor of Lender or assign it to Lender and it is subject to a first priority perfected security interest in favor of Lender and to no other claim, lien, security interest or encumbrance whatsoever, other than Permitted Liens;
(iii) it arises from (A) the performance of services by Borrower in the ordinary course of Borrower’s business, and such services have been fully performed and acknowledged and accepted by the Account Debtor thereunder; or (B) the sale or lease of Goods by Borrower in the ordinary course of Borrower’s business, and (x) such Goods have been completed in accordance with the Account Debtor’s specifications (if any) and delivered to the Account Debtor, (y) such Account Debtor has not refused to accept, returned or offered to return, any of the Goods which are the subject of such Account, and (z) Borrower has possession of, or Borrower has delivered to Lender (at Lender’s request) shipping and delivery receipts evidencing delivery of such Goods;
(iv) it is evidenced by an invoice rendered to the Account Debtor thereunder, is due and payable within ninety (90) days after the date of the invoice and does not remain unpaid ninety (90) days past the invoice date thereof; provided, however, that if more than twenty-five percent (25%) of the aggregate dollar amount of invoices owing by a particular Account Debtor remain unpaid ninety (90) days after the respective invoice dates thereof, then all Accounts owing by that Account Debtor shall be deemed ineligible;
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(v) it is a valid, legally enforceable and unconditional obligation of the Account Debtor thereunder, and it shall not be an Eligible Account to the extent of any setoff, counterclaim, credit, allowance or adjustment by such Account Debtor, or if it is subject to any claim by such Account Debtor denying liability thereunder in whole or in part;
(vi) it does not arise out of a contract or order which fails in any material respect to comply with the requirements of applicable law;
(vii) the Account Debtor thereunder is not a director, officer, employee or agent of Borrower, or a Subsidiary, Parent or Affiliate;
(viii) it is not an Account with respect to which the Account Debtor is the United States of America or any state or local government, or any department, agency or instrumentality thereof, unless Borrower assigns its right to payment of such Account to Lender pursuant to, and in full compliance with, the Assignment of Claims Act of 1940, as amended, or any comparable state or local law, as applicable;
(ix) it is not an Account with respect to which the Account Debtor is located in a state which requires Borrower, as a precondition to commencing or maintaining an action in the courts of that state, either to (A) receive a certificate of authority to do business and be in good standing in such state; or (B) file a notice of business activities report or similar report with such state’s taxing authority, unless (x) Borrower has taken one of the actions described in clauses (A) or (B); (y) the failure to take one of the actions described in either clause (A) or (B) may be cured retroactively by Borrower at its election; or (z) Borrower has proven, to Lender’s satisfaction, that it is exempt from any such requirements under any such state’s laws;
(x) The Account Debtor is located within the United States of America, Canada or is located within a foreign country other than Canada and, in such case, the Account is payable in U.S. Dollars and with respect to Account Debtors who are residents or citizens of and are located within a foreign country other than Canada, the Account is supported by a letter of credit which is in form and substance satisfactory to Lender, issued by a financial institution acceptable to Lender and assigned to Lender in a manner acceptable to Lender;
(xi) other than Accounts owing from the Boy Scouts of America, it is not an Account with respect to which the Account Debtor’s obligation to pay is subject to any repurchase obligation or return right (other than return rights for defective Goods or repairs available in the ordinary course of business), as with sales made on a ▇▇▇▇-and-hold, guaranteed sale, sale on approval, sale or return or consignment basis;
(xii) it is not an Account (A) with respect to which any representation or warranty contained in this Agreement is untrue; or (B) which violates any of the covenants of Borrower contained in this Agreement;
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(xiii) except with respect to Time Incorporated and The McGraw Hill Companies, Inc., it is not an Account which, when added to a particular Account Debtor’s other indebtedness to Borrower, exceeds ten percent (10%) of all Accounts of Borrower (except that Accounts excluded from Eligible Accounts solely by reason of this clause (xiii) shall be Eligible Accounts to the extent of such credit limit); and
(xiv) it is not an Account with respect to which the prospect of payment by the Account Debtor is or will be impaired, as determined by Lender in its Permitted Discretion.
“Environmental Laws” shall mean all federal, state, district, local and foreign laws, rules, regulations, ordinances, and consent decrees relating to health, safety, hazardous substances, pollution and environmental matters, as now or at any time hereafter in effect, applicable to Borrower’s business or facilities owned or operated by Borrower, including laws relating to emissions, discharges, releases or threatened releases of pollutants, contamination, chemicals, or hazardous, toxic or dangerous substances, materials or wastes into the environment (including, without limitation, ambient air, surface water, ground water, land surface or subsurface strata) or otherwise relating to the generation, manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials.
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, modified or restated from time to time.
“Event of Default” shall have the meaning specified in Section 15 hereof.
“Fiscal Year” shall mean each twelve (12) month accounting period of Borrower, which ends on December 31st of each year.
“Fixed Charges” shall mean for any period, without duplication, scheduled payments of principal during the applicable period with respect to all indebtedness of Borrower for borrowed money, plus scheduled payments of principal during the applicable period with respect to all capitalized lease obligations of Borrower, plus scheduled payments of interest during the applicable period with respect to all indebtedness of Borrower for borrowed money including capital lease obligations, plus unfinanced Capital Expenditures of Borrower during the applicable period.
“Hazardous Materials” shall mean any hazardous, toxic or dangerous substance, materials and wastes, including, without limitation, hydrocarbons (including naturally occurring or man-made petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde insulation, radioactive materials, biological substances, polychlorinated biphenyls, pesticides, herbicides and any other kind and/or type of pollutants or contaminants (including, without limitation, materials which include hazardous constituents), sewage, sludge, industrial slag, solvents and/or any other similar substances, materials, or wastes and including any other substances, materials or wastes that are or become regulated under any Environmental Law (including, without limitation any that are or become classified as hazardous or toxic under any Environmental Law).
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“Holdings” shall mean ▇▇▇▇▇ ▇▇▇▇’▇ Holdings, Inc., a Delaware corporation.
“Indemnified Party” shall have the meaning specified in Section 18 hereof.
“Indenture” shall mean the Indenture dated December 16, 1997 among ▇▇▇▇▇ ▇▇▇▇’▇ Holdings, Inc., a Delaware Corporation, each of the Subsidiary Guarantors named therein and U.S. Trust Company of California, N.A. , as Trustee, as in effect as of the date hereof.
“Interest Period” shall have the meaning specified in subsection 4(a)(ii) hereof.
“LaSalle Bank” shall mean LaSalle Bank National Association, Chicago, Illinois.
“Letter of Credit” shall mean any Letter of Credit issued on behalf of Borrower in accordance with this Agreement.
“Letter of Credit Obligations” shall mean, as of any date of determination, the sum of (i) the aggregate undrawn face amount of all Letters of Credit, and (ii) the aggregate unreimbursed amount of all drawn Letters of Credit not already converted to Loans hereunder.
“Leverage Ratio” shall mean the ratio of Borrower’s funded indebtedness to EBITDA.
“Liabilities” shall mean any and all obligations, liabilities and indebtedness of Borrower to Lender or to any parent, affiliate or subsidiary of Lender of any and every kind and nature, howsoever created, arising or evidenced and howsoever owned, held or acquired, whether now or hereafter existing, whether now due or to become due, whether primary, secondary, direct, indirect, absolute, contingent or otherwise (including, without limitation, obligations of performance), whether several, joint or joint and several, and whether arising or existing under written or oral agreement or by operation of law.
“LIBOR Rate” shall mean, with respect to any LIBOR Rate Loan for any Interest Period, a rate per annum equal to (a) the offered rate for deposits in United States dollars for a period equal to such Interest Period as it appears on Telerate page 3750 as of 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period. “Telerate page 3750” means the display designated as “Page 3750” on the Telerate Service (or such other page as may replace page 3750 of that service or such other service) as may be nominated by the British Bankers’ Association as the vendor for the purpose of displaying British Bankers’ Association interest settlement rates for United States dollar deposits) divided by (b) a number equal to 1.0 minus the maximum reserve percentages (expressed as a decimal fraction) including, without limitation, basic supplemental, marginal and emergency reserves under any regulations of the Board of Governors of the Federal Reserve System or other governmental authority having jurisdiction with respect thereto, as now and from time to time in effect, for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of such Board) which are required to be maintained by Lender
5
by the Board of Governors of the Federal Reserve System. The LIBOR Rate shall be adjusted automatically on and as of the effective date of any change in such reserve percentage.
“LIBOR Rate Loans” shall mean the Loans bearing interest with reference to the LIBOR Rate.
“Loans” shall mean all loans and advances made by Lender to or on behalf of Borrower hereunder.
“Lock Box” and “Lock Box Account” shall have the meanings specified in subsection 8(a) hereof.
“Material Adverse Effect” shall mean a material adverse effect on the business,, assets, liabilities, operations or condition, financial or otherwise, of a Person.
“Maximum Loan Limit” shall mean Twenty-Five Million and No/100 Dollars ($25,000,000.00)
“Maximum Revolving Loan Limit” shall have the meaning specified in subsection 2(a) hereof.
“Obligor” shall mean Borrower and each other Person who is or shall become primarily or secondarily liable for any of the Liabilities.
“Original Term” shall have the meaning specified in Section 10 hereof.
“Other Agreements” shall mean all agreements, instruments and documents, other than this Agreement, including, without limitation, guaranties, mortgages, trust deeds, pledges, powers of attorney, consents, assignments, contracts, notices, security agreements, leases, financing statements and all other writings heretofore, now or from time to time hereafter executed by or on behalf of Borrower or any other Person and delivered to Lender or to any parent, affiliate or subsidiary of Lender in connection with the Liabilities or the transactions contemplated hereby, as each of the same may be amended, modified or supplemented from time to time.
“Parent” shall mean any Person now or at any time or times hereafter owning or controlling (alone or with any other Person) at least a majority of the issued and outstanding equity of Borrower and, if Borrower is a partnership, the general partner of Borrower.
“PBGC” shall have the meaning specified in subsection 12(b)(v) hereof.
“Permitted Discretion” shall mean a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.
“Permitted Liens” shall mean (i) statutory liens of landlords, carriers, warehousemen, processors, mechanics, materialmen or suppliers incurred in the ordinary
6
course of business and securing amounts not yet due or declared to be due by the claimant thereunder or amounts which are being contested in good faith and by appropriate proceedings and for which Borrower has maintained adequate reserves; (ii) liens or security interests in favor of Lender; (iii) zoning restrictions and easements, licenses, covenants and other restrictions affecting the use of real property that do not individually or in the aggregate have a material adverse effect on Borrower’s ability to use such real property for its intended purpose in connection with Borrower’s business; (iv) liens in connection with purchase money indebtedness and capitalized leases otherwise permitted pursuant to this Agreement, provided, that such liens attach only to the assets the purchase of which was financed by such purchase money indebtedness or which is the subject of such capitalized leases; (v) liens set forth on Schedule 1; (vi) liens specifically permitted by Lender in writing; (vii) involuntary liens securing amounts less than $500,000.00 or involuntary liens which are released or for which a bond acceptable to Lender in its Permitted Discretion has been posted within ten (10) days of its creation, or which are covered by insurance to the reasonable satisfaction of Lender; (viii) pledges or deposits in connection with worker’s compensation, unemployment insurance and other social security legislation, or to secure the performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases or to secure statutory obligations or surety, appeal or stay bonds, or to secure indemnity, performance or other similar bonds in the ordinary course of business; (ix) liens for taxes not yet due or for taxes which are being contested in good faith and by appropriate proceedings and for which reserves are being maintained on Borrower’s financial statements in such amount as is required under generally accepted accounting principles and a reserve is maintained by Lender against the amount which Borrower is permitted to borrow hereunder in an amount of money which, in the sole judgment of Lender is sufficient to pay such taxes and any interest of penalties that may accrue thereon, and if Borrower fails to prosecute such contest, Lender may advance and pay such taxes, interest and penalties and any amounts so advanced shall constitute Loans hereunder; (x) liens on assets of Borrower which are not part of the Collateral; (xi) bankers’ liens or rights of recoupment or offset arising in connection with investments permitted under subsection 13(f); and (xii) extensions and renewals of any of the foregoing so long as the aggregate amount of extended and renewed liens are not increased and are on terms and conditions no more restricted than the terms and conditions of the liens extended and renewed.
“Person” shall mean any individual, sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability company, institution, entity, party or foreign or United States government (whether federal, state, county, city, municipal or otherwise), including, without limitation, any instrumentality, division, agency, body or department thereof.
“Plan” shall have the meaning specified in subsection 12(b)(v) hereof.
“Prime Rate” shall mean LaSalle Bank’s publicly announced prime rate (which is not intended to be LaSalle Bank’s lowest or most favorable rate in effect at any time) in effect from time to time.
“Prime Rate Loans” shall mean the Loans bearing interest with reference to the Prime Rate.
7
“Renewal Term” shall have the meaning specified in Section 10 hereof.
“Revolving Loan Limit” shall have the meaning specified in subsection 2(a) hereof.
“Revolving Loans” shall have the meaning specified in subsection 2(a) hereof.
“Subsidiary” shall mean any corporation of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time stock of any other class of such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, owned by Borrower, or any partnership, joint venture or limited liability company of which more than fifty percent (50%) of the outstanding equity interests are at the time, directly or indirectly, owned by Borrower or any partnership of which Borrower is a general partner.
“Tangible Net Worth” shall have the meaning specified in subsection 14(a) hereof.
“Tax” shall mean, in relation to any LIBOR Rate Loans and the applicable LIBOR Rate, any tax, levy, impost, duty, deduction, withholding or charges of whatever nature required to be paid by Lender and/or to be withheld or deducted from any payment otherwise required hereby to be made by Borrower to Lender; provided, that the term “Tax” shall not include any taxes imposed upon the net income of Lender.
2. LOANS.
(a) Revolving Loans.
Subject to the terms and conditions of this Agreement and the Other Agreements, during the Original Term and any Renewal Term, Lender shall, absent the occurrence of an Event of Default, make revolving loans and advances (the “Revolving Loans”) in an amount up to the sum of the following sublimits (the “Revolving Loan Limit”):
(i) Eighty-five percent (85%) of the face amount (less maximum discounts, credits and allowances which may be taken by or granted to Account Debtors in connection therewith in the ordinary course of Borrower’s business) of Borrower’s Eligible Accounts; minus
(ii) such reserves as Lender elects, in its Permitted Discretion to establish from time to time;
provided, that the Revolving Loan Limit shall in no event exceed Twenty-Five Million and No/100 Dollars ($25,000,000.00) (the “Maximum Revolving Loan Limit”).
The aggregate unpaid principal balance of the Revolving Loans shall not at any time exceed the lesser of the (i) Revolving Loan Limit minus the Letter of Credit
8
Obligations and (ii) the Maximum Revolving Loan Limit minus the Letter of Credit Obligations. If at any time the outstanding Revolving Loans exceeds either the Revolving Loan Limit or the Maximum Revolving Loan Limit, in each case minus the Letter of Credit Obligations, or any portion of the Revolving Loans and Letter of Credit Obligations exceeds any applicable sublimit within the Revolving Loan Limit, Borrower shall immediately, and without the necessity of demand by Lender, pay to Lender such amount as may be necessary to eliminate such excess and Lender shall apply such payment to the Revolving Loans to eliminate such excess.
Borrower hereby authorizes Lender, in its Permitted Discretion, to charge any of Borrower’s accounts or advance Revolving Loans to make any payments of principal, interest, fees, costs or expenses required to be made under this Agreement or the Other Agreements.
A request for a Revolving Loan shall be made or shall be deemed to be made, each in the following manner: Borrower shall give Lender same day notice, no later than 1:00 P.M. (determined based on the local time of Borrower at its principal place of business) for such day, of its request for a Revolving Loan as a Prime Rate Loan, and at least two (2) Business Days prior notice of its request for a Revolving Loan as a LIBOR Rate Loan, in which notice Borrower shall specify the amount of the proposed borrowing and the proposed borrowing date; provided, however, that no such request may be made, unless with Lender’s consent, at a time when there exists an Event of Default or an event which, with the passage of time or giving of notice, will become an Event of Default. In the event that Borrower maintains a controlled disbursement account at LaSalle Bank, each check presented for payment against such controlled disbursement account and any other charge or request for payment against such controlled disbursement account shall constitute a request for a Revolving Loan as a Prime Rate Loan. As an accommodation to Borrower, Lender may permit telephone requests for Revolving Loans and electronic transmittal of instructions, authorizations, agreements or reports to Lender by Borrower. Unless Borrower specifically directs Lender in writing not to accept or act upon telephonic or electronic communications from Borrower, Lender shall have no liability to Borrower for any loss or damage suffered by Borrower as a result of Lender’s honoring, in good faith, of any requests, execution of any instructions, authorizations or agreements or reliance on any reports communicated to it telephonically or electronically and purporting to have been sent to Lender by Borrower and Lender shall have no duty to verify the origin of any such communication or the authority of the Person sending it.
Borrower hereby irrevocably authorizes Lender to disburse the proceeds of each Revolving Loan requested by Borrower, or deemed to be requested by Borrower, as follows: the proceeds of each Revolving Loan requested under Section 2(a) shall be disbursed by Lender in lawful money of the United States of America in immediately available funds, in the case of the initial borrowing, in accordance with the terms of the written disbursement letter from Borrower, and in the case of each subsequent borrowing, by wire transfer or Automated Clearing House (ACH) transfer to such bank account as may be agreed upon by Borrower and Lender from time to time, or elsewhere if pursuant to a written direction from Borrower.
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(b) Repayments.
The Liabilities shall be repaid as follows:
(i) Repayment of Revolving Loans. The Revolving Loans and all other Liabilities shall be repaid on the last day of the Original Term or any Renewal Term if this Agreement is renewed pursuant to Section 10 hereof.
(c) Notes.
The Loans shall, in Lender’s Permitted Discretion, be evidenced by one or more promissory notes in form and substance satisfactory to Lender. However, if such Loans are not so evidenced, such Loans may be evidenced solely by entries upon the books and records maintained by Lender.
3. LETTERS OF CREDIT.
(a) General Terms.
Subject to the terms and conditions of this Agreement and the Other Agreements, during the Original Term or any Renewal Term, Lender shall, absent the existence of an Event of Default, from time to time cause to be issued and co-sign for or otherwise guarantee, upon Borrower’s request, commercial and/or standby Letters of Credit; provided, that the aggregate undrawn face amount of all such Letters of Credit shall at no time exceed Five Million and No/100 Dollars ($5,000,000.00). Payments made by Lender to any Person on account of any Letter of Credit shall constitute Loans hereunder and Borrower agrees that each payment made by the issuer of a Letter of Credit in respect of a Letter of Credit shall constitute a request by Borrower for a Loan to reimburse such issuer. Borrower shall remit to Lender a Letter of Credit fee equal to one and one-half percent (1-1/2%) per annum on the aggregate undrawn face amount of all Letters of Credit outstanding, which fee shall be payable monthly in arrears on the last Business Day of each month. Borrower shall also pay on demand the normal and customary administrative charges of the issuer of the Letter of Credit for issuance, amendment, negotiation, renewal or extension of any Letter of Credit.
(b) Requests for Letters of Credit.
Borrower shall make requests for Letters of Credit in writing at least two (2) Business Days prior to the date such Letter of Credit is to be issued. Each such request shall specify the date such Letter of Credit is to be issued, the amount thereof, the name and address of the beneficiary thereof and a description of the transaction to be supported thereby. Any such notice shall be accompanied by the form of Letter of Credit requested and any application or reimbursement agreement required by the issuer of such Letter of Credit. If any term of such application or reimbursement agreement is inconsistent with this Agreement, then the provisions of this Agreement shall control to the extent of such inconsistency.
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(c) Obligations Absolute.
Borrower shall be obligated to reimburse the issuer of any Letter of Credit, or Lender if Lender has reimbursed such issuer on Borrower’s behalf, for any payments made in respect of any Letter of Credit, which obligation shall be unconditional and irrevocable and shall be paid regardless of: (i) any lack of validity or enforceability of any Letter of Credit, (ii) any amendment or waiver of or consent or departure from all or any provisions of any Letter of Credit, this Agreement or any Other Agreement, (iii) the existence of any claim, set off, defense or other right which Borrower or any other Person may have against any beneficiary of any Letter of Credit, Lender or the issuer of the Letter of Credit, (iv) any draft or other document presented under any Letter of Credit proving to be forged, fraudulent, invalid, or insufficient in any respect or any statement therein being untrue or inaccurate in any respect, (v) any payment under any Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, and (vi) any other act or omission to act or delay of any kind of the issuer of such Letter of Credit, the Lender or any other Person or any other event or circumstance that might otherwise constitute a legal or equitable discharge of Borrower’s obligations hereunder. It is understood and agreed by Borrower that the issuer of any Letter of Credit may accept documents that appear on their face to be in order without further investigation or inquiry, regardless of any notice or information to the contrary.
(d) Expiration Dates of Letters of Credit.
The expiration date of each Letter of Credit shall be no later than the earlier of (i) one (1) year from the date of issuance and (ii) the thirtieth (30th) day prior to the end of the Original Term or any Renewal Term. Notwithstanding the foregoing, a Letter of Credit may provide for automatic extensions of its expiration date for one or more one (1) year periods, so long as the issuer thereof has the right to terminate the Letter of Credit at the end of each one (1) year period and no extension period extends past the thirtieth (30th) day prior to the end of the Original Term or any Renewal Term.
4. INTEREST, FEES AND CHARGES.
(a) Interest Rate.
Subject to the terms and conditions set forth below, the Loans shall bear interest at the per annum rate of interest set forth in subsections (i), (ii) or (iii) below:
|
Leverage Ratio |
|
Prime Rate plus |
|
LIBOR Rate plus |
|
|
> 5.0 |
|
3/4ths of 1% |
|
250 basis points |
|
|
> 4.5 but <5.0 |
|
½ of 1% |
|
225 basis points |
|
|
> 4.0 but <4.5 |
|
1/4th of 1% |
|
200 basis points |
|
|
> 3.5 but < 4.0 |
|
0% |
|
175 basis points |
|
|
< 3.5 |
|
0% |
|
150 basis points |
|
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(i) The Prime Rate Loans shall be payable on the last Business Day of each month in arrears. Said rates of interest shall increase or decrease by an amount equal to each increase or decrease in the Prime Rate effective on the effective date of each such change in the Prime Rate.
(ii) The rate set forth above with respect to LIBOR Rate Loans shall remain fixed for the applicable Interest Period. “Interest Period” shall mean any continuous period of thirty (30), sixty (60), ninety (90) or one hundred eighty (180) days, as selected from time to time by Borrower by irrevocable notice (in writing, by telecopy, telex, electronic mail or cable) given to Lender not less than two (2) Business Days prior to the first day of each respective Interest Period; provided that: (A) each such period occurring after such initial period shall commence on the day on which the immediately preceding period expires; (B) the final Interest Period shall be such that its expiration occurs on or before the end of the Original Term or any Renewal Term; and (C) if for any reason Borrower shall fail to timely select a period, then such Loans shall continue as, or revert to, Prime Rate Loans. Interest shall be payable on the last Business Day of each month in arrears and on the last Business Day of such Interest Period.
(iii) Upon the occurrence of an Event of Default and during the continuance thereof, the Loans shall bear interest at the rate of two percent (2.0%) per annum in excess of the interest rate otherwise payable thereon, which interest shall be payable on demand. All interest shall be calculated on the basis of a 360-day year.
(b) Other LIBOR Provisions.
(i) Subject to the provisions of this Agreement, Borrower shall have the option (A) as of any date, to convert all or any part of the Prime Rate Loans to, or request that new Loans be made as, LIBOR Rate Loans of various Interest Periods, (B) as of the last day of any Interest Period, to continue all or any portion of the relevant LIBOR Rate Loans as LIBOR Rate Loans; (C) as of the last day of any Interest Period, to convert all or any portion of the LIBOR Rate Loans to Prime Rate Loans; and (D) at any time, to request new Loans as Prime Rate Loans; provided, that Loans may not be continued as or converted to LIBOR Rate Loans, if the continuation or conversion thereof would violate the provisions of subsections 4(b)(ii) or 4(b)(iii) of this Agreement or if an Event of Default has occurred.
(ii) Lender’s determination of the LIBOR Rate as provided above shall be conclusive, absent manifest error. Furthermore, if Lender determines, in good faith (which determination shall be conclusive, absent manifest error), prior to the commencement of any Interest Period that (A) U.S. Dollar deposits of sufficient amount and maturity for funding the Loans are not available to Lender in the London Interbank Eurodollar market in the ordinary course of business, or (B) by reason of circumstances affecting the London Interbank Eurodollar market, adequate and fair means do not exist for ascertaining the rate of interest to be applicable to the Loans requested by Borrower to be LIBOR Rate Loans or the Loans bearing interest at the rates set forth in subsection 4(a)(ii) of this Agreement shall not represent the effective pricing to Lender for U.S. Dollar deposits of a comparable amount for the relevant period (such as for example, but not limited to, official reserve requirements required by Regulation D to the extent not given effect in determining the rate), Lender shall
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promptly notify Borrower and (1) all existing LIBOR Rate Loans shall convert to Prime Rate Loans upon the end of the applicable Interest Period, and (2) no additional LIBOR Rate Loans shall be made until such circumstances are cured.
(iii) If, after the date hereof, the introduction of, or any change in any applicable law, treaty, rule, regulation or guideline or in the interpretation or administration thereof by any governmental authority or any central bank or other fiscal, monetary or other authority having jurisdiction over Lender or its lending offices (a “Regulatory Change”), shall, in the opinion of counsel to Lender, make it unlawful for Lender to make or maintain LIBOR Rate Loans, then Lender shall promptly notify Borrower and (A) the LIBOR Rate Loans shall immediately convert to Prime Rate Loans on the last Business Day of the then existing Interest Period or on such earlier date as required by law and (B) no additional LIBOR Rate Loans shall be made until such circumstance is cured.
(iv) If, for any reason, a LIBOR Rate Loan is paid prior to the last Business Day of any Interest Period or if a LIBOR Rate Loan does not occur on a date specified by Borrower in its request (other than as a result of a default by Lender), Borrower agrees to indemnify Lender against any loss (including any loss on redeployment of the deposits or other funds acquired by Lender to fund or maintain such LIBOR Rate Loan) cost or expense incurred by Lender as a result of such prepayment.
(v) If any Regulatory Change (whether or not having the force of law) shall (A) impose, modify or deem applicable any assessment, reserve, special deposit or similar requirement against assets held by, or deposits in or for the account of or loans by, or any other acquisition of funds or disbursements by, Lender; (B) subject Lender or the LIBOR Rate Loans to any Tax or change the basis of taxation of payments to Lender of principal or interest due from Borrower to Lender hereunder (other than a change in the taxation of the overall net income of Lender); or (C) impose on Lender any other condition regarding the LIBOR Rate Loans or Lender’s funding thereof, and Lender shall determine (which determination shall be conclusive, absent any manifest error) that the result of the foregoing is to increase the cost to Lender of making or maintaining the LIBOR Rate Loans or to reduce the amount of principal or interest received by Lender hereunder, then Borrower shall pay to Lender, on demand, such additional amounts as Lender shall, from time to time, determine are sufficient to compensate and indemnify Lender from such increased cost or reduced amount.
(vi) Lender shall receive payments of amounts of principal of and interest with respect to the LIBOR Rate Loans free and clear of, and without deduction for, any Taxes. If (A) Lender shall be subject to any Tax in respect of any LIBOR Rate Loans or any part thereof or, (B) Borrower shall be required to withhold or deduct any Tax from any such amount, the LIBOR Rate applicable to such LIBOR Rate Loans shall be adjusted by Lender to reflect all additional costs incurred by Lender in connection with the payment by Lender or the withholding by Borrower of such Tax and Borrower shall provide Lender with a statement detailing the amount of any such Tax actually paid by Borrower. Determination by Lender of the amount of such costs shall be conclusive, absent manifest error. If after any such adjustment any part of any Tax paid by Lender is subsequently recovered by Lender, Lender shall reimburse Borrower to the extent of the amount so recovered. A certificate of
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an officer of Lender setting forth the amount of such recovery and the basis therefor shall be conclusive, absent manifest error.
(vii) Each request for LIBOR Rate Loans shall be in an amount not less than One Million and No/100 Dollars ($1,000,000.00), and in integral multiples of One Hundred Thousand and No/100 Dollars ($100,000.00).
(viii) Unless otherwise specified by Borrower, all Loans shall be Prime Rate Loans.
(ix) No more than four (4) Interest Periods may be in effect with respect to outstanding LIBOR Rate Loans at any one time.
(c) Fees And Charges.
(i) Closing Fee: Borrower shall pay to Lender a closing fee of one-fourth of one percent (1/4th of 1%) of the Maximum Loan Limit, which fee shall be fully earned and payable on the date of disbursement of the initial Loans hereunder.
(ii) Unused Line Fee: Borrower shall pay to Lender an unused line fee of one-fourth of one percent (1/4th of 1%) of the difference between the Maximum Revolving Loan Limit and the average daily balance of the Revolving Loans plus the Letter of Credit Obligations for each month, which fee shall be fully earned by Lender and payable monthly in arrears on the last Business Day of each month. Said fee shall be calculated on the basis of a 360 day year.
(iii) Costs and Expenses: Borrower shall reimburse Lender for all costs and expenses, including, without limitation, legal expenses and reasonable attorneys’ fees, incurred by Lender in connection with the (i) documentation and consummation of this transaction and any other transactions between Borrower and Lender, including, without limitation, Uniform Commercial Code and other public record searches and filings, overnight courier or other express or messenger delivery, appraisal costs, surveys, title insurance and environmental audit or review costs; (ii) collection, protection or enforcement of any rights in or to the Collateral; (iii) collection of any Liabilities; and (iv) administration and enforcement of any of Lender’s rights under this Agreement or any Other Agreement. Borrower shall also pay all normal service charges with respect to all deposit accounts maintained by Borrower with Lender and LaSalle Bank and any additional services requested by Borrower from Lender and LaSalle Bank. All such costs, expenses and charges shall, if owed to LaSalle Bank, be reimbursed by Lender and in such event or in the event such costs and expenses are owed to Lender, shall constitute Liabilities hereunder, shall be payable by Borrower to Lender on demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
(iv) Capital Adequacy Charge. If Lender shall have determined that the adoption of any law, rule or regulation regarding capital adequacy, or any change therein or in the interpretation or application thereof, or compliance by Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any central bank or governmental authority enacted after the date hereof, does or shall have the
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effect of reducing the rate of return on such party’s capital as a consequence of its obligations hereunder to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by a material amount, then from time to time, after submission by Lender to Borrower of a written demand therefor (“Capital Adequacy Demand”) together with the certificate described below, Borrower shall pay to Lender such additional amount or amounts (“Capital Adequacy Charge”) as will compensate Lender for such reduction, such Capital Adequacy Demand to be made with reasonable promptness following such determination. A certificate of Lender claiming entitlement to payment as set forth above shall be conclusive in the absence of manifest error. Such certificate shall set forth the nature of the occurrence giving rise to such reduction, the amount of the Capital Adequacy Charge to be paid to Lender, and the method by which such amount was determined. In determining such amount, Lender may use any reasonable averaging and attribution method, applied on a non-discriminatory basis.
(d) Maximum Interest.
It is the intent of the parties that the rate of interest and other charges to Borrower under this Agreement and the Other Agreements shall be lawful; therefore, if for any reason the interest or other charges payable under this Agreement are found by a court of competent jurisdiction, in a final determination, to exceed the limit which Lender may lawfully charge Borrower, then the obligation to pay interest and other charges shall automatically be reduced to such limit and, if any amount in excess of such limit shall have been paid, then such amount shall be refunded to Borrower.
5. COLLATERAL.
(a) Grant of Security Interest to Lender.
As security for the payment of all Loans now or in the future made by Lender to Borrower hereunder and for the payment or other satisfaction of all other Liabilities, Borrower hereby assigns to Lender and grants to Lender a continuing security interest in the following property of Borrower, whether now or hereafter owned, existing, acquired or arising and wherever now or hereafter located: (a) all Accounts (whether or not Eligible Accounts) and all Inventory whose sale, lease or other disposition by Borrower has given rise to Accounts and have been returned to, or repossessed or stopped in transit by, Borrower; (b) all Chattel Paper, Instruments, Documents and General Intangibles (including, without limitation, all patents, patent applications, trademarks, trademark applications, trade names, trade secrets, goodwill, copyrights, copyright applications, registrations, licenses, software, franchises, customer lists, tax refund claims, claims against carriers and shippers, guarantee claims, contract rights, payment intangibles, security interests, security deposits and rights to indemnification); (c) all Investment Property; (d) all Deposit Accounts, bank accounts, deposits and cash; (e) all Letter-of-Credit Rights; (f) Commercial Tort Claims listed on Exhibit C hereto; (g) any other property of Borrower (other than Equipment, Inventory that has not been returned to, or repossessed or stopped in transit by, Borrower, Fixtures and real property)now or hereafter in the possession, custody or control of Lender or any agent or any parent, affiliate or subsidiary of Lender or any participant with Lender in the Loans, for
15
any purpose (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise) and (h) all Proceeds of the foregoing property, including, without limitation, proceeds of all insurance policies insuring the foregoing property, and all of Borrower’s books and records relating to any of the foregoing and to Borrower’s business.
Lender, in its Permitted Discretion, without waiving or releasing any obligation, liability or duty of Borrower under this Agreement or the Other Agreements or any Event of Default, may at any time or times hereafter, but shall not be obligated to, pay, acquire or accept an assignment of any security interest, lien, encumbrance or claim asserted by any Person in, upon or against the Collateral, provided, that Lender may take such actions with respect to Permitted Liens only after the occurrence and during the continuance of an Event of Default. All sums paid by Lender in respect thereof and all costs, fees and expenses including, without limitation, reasonable attorney fees, all court costs and all other charges relating thereto incurred by Lender shall constitute Liabilities, payable by Borrower to Lender on demand and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
Immediately upon Borrower’s receipt of any portion of the Collateral evidenced by an agreement, Instrument or Document, including, without limitation, any Tangible Chattel Paper and any Investment Property consisting of certificated securities, Borrower shall deliver the original thereof to Lender together with an appropriate endorsement or other specific evidence of assignment thereof to Lender (in form and substance acceptable to Lender). If an endorsement or assignment of any such items shall not be made for any reason, Lender is hereby irrevocably authorized, as Borrower’s attorney and agent-in-fact, to endorse or assign the same on Borrower’s behalf.
To the extent that Borrower obtains or maintains any Electronic Chattel Paper, Borrower shall create, store and assign the record or records comprising the Electronic Chattel Paper in such a manner that (i) a single authoritative copy of the record or records exists which is unique, identifiable and except as otherwise provided in clauses (iv), (v) and (vi) below, unalterable, (ii) the authoritative copy identifies Lender as the assignee of the record or records, (iii) the authoritative copy is communicated to and maintained by the Lender or its designated custodian, (iv) copies or revisions that add or change an identified assignee of the authoritative copy can only be made with the participation of Lender, (v) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy and (vi) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.
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6. PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN.
Borrower shall, at Lender’s request, at any time and from time to time, authorize, authenticate, execute and deliver to Lender such financing statements, documents and other agreements and instruments (and pay the cost of filing or recording the same in all public offices deemed necessary or desirable by Lender) and do such other acts and things or cause third parties to do such other acts and things as Lender may deem necessary or desirable in its Permitted Discretion in order to establish and maintain a valid, attached and perfected security interest in the Collateral in favor of Lender (free and clear of all other liens, claims, encumbrances and rights of third parties whatsoever, whether voluntarily or involuntarily created, except Permitted Liens) to secure payment of the Liabilities, and in order to facilitate the collection of the Collateral. Borrower irrevocably hereby makes, constitutes and appoints Lender (and all Persons designated by Lender for that purpose) as Borrower’s true and lawful attorney and agent-in-fact to execute and file such financing statements, documents and other agreements and instruments and do such other acts and things as may be necessary to preserve and perfect Lender’s security interest in the Collateral, provided, however, Lender shall not exercise its rights under this Section 6 unless Borrower fails to execute such financing statements, documents, instruments and other agreements in a timely manner following Lender’s request. Borrower further agrees that a carbon, photographic, photostatic or other reproduction of this Agreement or of a financing statement shall be sufficient as a financing statement. Borrower further ratifies and confirms the prior filing by Lender of any and all financing statements which identify the Borrower as debtor, Lender as secured party and any or all Collateral as collateral.
7. INTENTIONALLY OMITTED.
8. COLLECTIONS.
(a) Borrower shall direct all of its Account Debtors to make all payments on the Accounts directly to a post office box (the “Lock Box”) designated by, and under the exclusive control of, Lender, at a financial institution acceptable to Lender. Borrower shall establish an account (the “Lock Box Account”) in Lender’s name with a financial institution acceptable to Lender, into which all payments received in the Lock Box shall be deposited, and into which Borrower will immediately deposit all payments received by Borrower on Accounts in the identical form in which such payments were received, whether by cash or check. If Borrower, any Affiliate or Subsidiary, any shareholder, officer, director, employee or agent of Borrower or any Affiliate or Subsidiary, or any other Person acting for or in concert with Borrower shall receive any monies, checks, notes, drafts or other payments relating to or as Proceeds of Accounts or other Collateral, Borrower and each such Person shall receive all such items in trust for, and as the sole and exclusive property of, Lender and, immediately upon receipt thereof, shall remit the same (or cause the same to be remitted) in kind to the Lock Box Account. The financial institution with which the Lock Box Account is established shall acknowledge and agree, in a manner satisfactory to Lender, that the amounts on deposit in such Lock Box and Lock Box Account are the sole and exclusive property of Lender, that such financial institution will follow the instructions of Lender with respect to disposition of funds in the Lock Box and Lock Box Account without further
17
consent from Borrower, that such financial institution has no right to setoff against the Lock Box or Lock Box Account or against any other account maintained by such financial institution into which the contents of the Lock Box or Lock Box Account are transferred, and that such financial institution shall wire, or otherwise transfer in immediately available funds to Lender in a manner satisfactory to Lender, funds deposited in the Lock Box Account on a daily basis as such funds are collected. Borrower agrees that all payments made to such Lock Box Account or otherwise received by Lender, whether in respect of the Accounts or as Proceeds of other Collateral or otherwise (except for proceeds of Collateral which are required to be delivered to the holder of a Permitted Lien which is prior in right of payment), will be applied on account of the Liabilities in accordance with the terms of this Agreement; provided, that so long as no Event of Default has occurred and is continuing, payments received by Lender shall not be applied to the unmatured portion of the LIBOR Rate Loans, but shall be held in a cash collateral account maintained by Lender, until the earlier of (i) the last Business Day of the Interest Period applicable to such LIBOR Rate Loan and (ii) the occurrence of an Event of Default; provided further, that so long as no Event of Default has occurred, the immediately available funds in such cash collateral account may be disbursed, at Borrower’s discretion, to Borrower so long as after giving effect to such disbursement, Borrower’s availability under subsection 2(a) hereof at such time, equals or exceeds the outstanding Revolving Loans at such time. Borrower agrees to pay all customary fees, costs and expenses in connection with opening and maintaining the Lock Box and Lock Box Account. All of such fees, costs and expenses if not paid by Borrower, may be paid by Lender and in such event all amounts paid by Lender shall constitute Liabilities hereunder, shall be payable to Lender by Borrower upon demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder. All checks, drafts, instruments and other items of payment or Proceeds of Collateral shall be endorsed by Borrower to Lender, and, if that endorsement of any such item shall not be made for any reason, Lender is hereby irrevocably authorized to endorse the same on Borrower’s behalf. For the purpose of this section, Borrower irrevocably hereby makes, constitutes and appoints Lender (and all Persons designated by Lender for that purpose) as Borrower’s true and lawful attorney and agent-in-fact (i) to endorse Borrower’s name upon said items of payment and/or Proceeds of Collateral and upon any Chattel Paper, Document, Instrument, invoice or similar document or agreement relating to any Account of Borrower or Goods pertaining thereto; (ii) to take control in any manner of any item of payment or Proceeds thereof and (iii) to have access to any lock box or, upon the occurrence and during the continuance of an Event of Default, any postal box into which any of Borrower’s mail is deposited, and open and process all mail addressed to Borrower and deposited therein.
(b) Lender may, at any time and from time to time after the occurrence and during the continuance of an Event of Default, whether before or after notification to any Account Debtor and whether before or after the maturity of any of the Liabilities, (i) enforce collection of any of Borrower’s Accounts or other amounts owed to Borrower by suit or otherwise; (ii) exercise all of Borrower’s rights and remedies with respect to proceedings brought to collect any Accounts or other amounts owed to Borrower; (iii) surrender, release or exchange all or any part of any Accounts or other amounts owed to Borrower, or compromise or extend or renew for any period (whether or not longer than the original period) any indebtedness thereunder; (iv) sell or assign any Account of Borrower or other amount owed to Borrower upon such terms, for such amount and at such time or times as
18
Lender deems advisable; (v) prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or other similar document against any Account Debtor or other Person obligated to Borrower; and (vi) do all other acts and things which are necessary, in Lender’s Permitted Discretion, to fulfill Borrower’s obligations under this Agreement and the Other Agreements and to allow Lender to collect the Accounts or other amounts owed to Borrower. In addition to any other provision hereof, Lender may at any time, after the occurrence and during the continuance of an Event of Default, at Borrower’s expense, notify any parties obligated on any of the Accounts to make payment directly to Lender of any amounts due or to become due thereunder.
(c) For purposes of calculating interest and fees, Lender shall, within one (1) Business Day after receipt by Lender at its office in Chicago, Illinois of (i) checks and (ii) cash or other immediately available funds from collections of items of payment and Proceeds of any Collateral, apply the whole or any part of such collections or Proceeds against the Liabilities as follows: (i) first to all costs and expenses reimburseable under this Agreement and the Other Agreements, (ii) then to accrued fees and interest due and payable hereunder and under the Other Agreements and (iii) then to principal. For purposes of determining the amount of Loans available for borrowing purposes, checks and cash or other immediately available funds from collections of items of payment and Proceeds of any Collateral shall be applied in whole or in part against the Liabilities, as follows: (i) first to all costs and expenses reimburseable under this Agreement and the Other Agreements, (ii) then to accrued fees and interest due and payable hereunder and under the Other Agreements and (iii) then to principal, on the day of receipt, subject to actual collection.
(d) On a monthly basis, Lender shall deliver to Borrower an account statement showing all Loans, charges and payments, which shall be deemed final, binding and conclusive upon Borrower unless Borrower notifies Lender in writing, specifying any error therein, within thirty (30) days of the date such account statement is sent to Borrower and any such notice shall only constitute an objection to the items specifically identified.
9. COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES.
(i) Borrower shall deliver to Lender, in addition to any other reports, as soon as practicable and in any event: within ten (10) days after the end of each month, (A) a detailed trial balance of Borrower’s Accounts aged per invoice date, in form and substance reasonably satisfactory to Lender including, without limitation, the names and upon the occurrence and during the continuance of an Event of Default, addresses of all Account Debtors of Borrower, and (B) notwithstanding the foregoing, and only upon the request of Lender, a summary and detail of accounts payable (such Accounts and accounts payable divided into such time intervals as Lender may require in its Permitted Discretion), including a listing of any held checks; and (ii) Borrower shall deliver to Lender an executed loan report and certificate in Lender’s then current form on or prior to the tenth (10th ) Business Day of each month, which shall be accompanied by copies (but only if specifically requested by Lender) of Borrower’s sales journal, cash receipts journal and credit memo journal for the
19
relevant period. Such report shall reflect the activity of Borrower with respect to Accounts for the immediately preceding month, and shall be in a form and with such specificity as is satisfactory to Lender and shall contain such additional information concerning Accounts as may be requested by Lender including, without limitation, but only if specifically requested by Lender, copies of all invoices prepared in connection with such Accounts.
Borrower shall deliver to Lender the following financial information, all of which shall be prepared in accordance with generally accepted accounting principles consistently applied, and shall be accompanied by a compliance certificate in the form of Exhibit B hereto, which compliance certificate shall include a calculation of all financial covenants contained in this Agreement: (i) no later than thirty (30) days after each calendar month, copies of internally prepared financial statements, including, without limitation, balance sheets and statements of income, retained earnings and cash flow of Borrower, certified by the Chief Financial Officer of Borrower; (ii) no later than forty-five (45) days after the end of each of the first three quarters of Borrower’s Fiscal Year, copies of internally prepared financial statements including, without limitation, balance sheets, statements of income, retained earnings, cash flows and reconciliation of surplus, certified by the Chief Financial Officer of Borrower and (iii) no later than ninety (90) days after the end of each of Borrower’s Fiscal Years, audited annual financial statements with an unqualified opinion by independent certified public accountants selected by Borrower and reasonably satisfactory to Lender, which financial statements shall be accompanied by (A) a letter from such accountants acknowledging that they are aware that a primary intent of Borrower in obtaining such financial statements is to influence Lender and that Lender is relying upon such financial statements in connection with the exercise of its rights hereunder, provided, that Borrower shall only be required to use its reasonable efforts exercised in good faith to obtain such letter; and (B) copies of any management letters sent to the Borrower by such accountants.
(c) Annual Projections.
As soon as practicable and in any event prior to the beginning of each Fiscal Year, Borrower shall deliver to Lender projected balance sheets, statements of income and cash flow for Borrower, for such Fiscal Year, which shall include the assumptions used therein, together with appropriate supporting details as reasonably requested by Lender.
Promptly upon the filing thereof, Borrower shall deliver to Lender copies of all registration statements and annual, quarterly, monthly or other regular reports which Borrower or any of its Subsidiaries files with the Securities and Exchange Commission, as well as promptly providing to Lender copies of any reports and proxy statements delivered to Borrower or Holdings’ note holders.
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Promptly following request therefor by Lender, such other business or financial data, reports, appraisals and projections as Lender may reasonably request.
10. TERMINATION; AUTOMATIC RENEWAL.
THIS AGREEMENT SHALL BE IN EFFECT FROM THE DATE HEREOF UNTIL , 2005 (THE “ORIGINAL TERM”) AND SHALL AUTOMATICALLY RENEW ITSELF FROM YEAR TO YEAR THEREAFTER (EACH SUCH ONE-YEAR RENEWAL BEING REFERRED TO HEREIN AS A “RENEWAL TERM”) UNLESS (A) THE DUE DATE OF THE LIABILITIES IS ACCELERATED PURSUANT TO SECTION 16 HEREOF; OR (B) BORROWER OR LENDER ELECTS TO TERMINATE THIS AGREEMENT AT THE END OF THE ORIGINAL TERM OR AT THE END OF ANY RENEWAL TERM BY GIVING THE OTHER PARTY WRITTEN NOTICE OF SUCH ELECTION AT LEAST NINETY (90) DAYS PRIOR TO THE END OF THE ORIGINAL TERM OR THE THEN CURRENT RENEWAL TERM IN WHICH CASE BORROWER SHALL PAY ALL OF THE LIABILITIES IN FULL ON THE LAST DAY OF SUCH TERM. If the term of this Agreement expires or one or more of the events specified in clauses (A) and (B) occurs, then (i) Lender shall not make any additional Loans on or after the date identified as the date on which the Liabilities are to be repaid; and (ii) this Agreement shall terminate on the date thereafter that the Liabilities are paid in full. At such time as Borrower has repaid all of the Liabilities and this Agreement has terminated, if Borrower is obtaining new financing from another lender, Borrower shall deliver such lender’s indemnification of Lender, in form and substance satisfactory to Lender, for checks which Lender has credited to Borrower’s account, but which subsequently are dishonored for any reason or for automatic clearinghouse or wire transfers not yet posted to Borrower’s account.
11. REPRESENTATIONS AND WARRANTIES.
Borrower hereby represents and warrants to Lender, which representations and warranties (whether appearing in this Section 11 or elsewhere) shall be true in all material respects at the time of Borrower’s execution hereof and the closing of the transactions described herein or related hereto and shall be remade by Borrower at the time each Loan is made pursuant to this Agreement, provided, that representations and warranties made as of a particular date shall be true and correct in all material respects only as of such date.
(a) Financial Statements and Other Information.
The financial statements and other information delivered or to be delivered by Borrower to Lender at or prior to the date of this Agreement fairly present in all material respects the financial condition of Borrower, and there has been no material adverse change in the financial condition, the operations or any other status of Borrower since the date of the financial statements delivered to Lender most recently prior to the date of this Agreement. All written information now or heretofore furnished by Borrower to Lender is true and correct as of the date with respect to which such information was furnished.
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The office where Borrower keeps its books, records and accounts (or copies thereof) concerning the Collateral, Borrower’s principal place of business and all of Borrower’s other places of business, locations of Collateral and post office boxes and locations of bank accounts are as set forth in Exhibit A and at other locations within the continental United States of which Lender has been advised by Borrower in accordance with subsection 12(b)(i). The Collateral is kept only at the addresses set forth on Exhibit A, and at other locations within the continental United States of which Lender has been advised by Borrower in writing in accordance with subsection 12(b)(i) hereof.
Borrower has not made any loans or advances to any Affiliate or other Person except for advances authorized hereunder to employees, officers and directors of Borrower for travel and other expenses arising in the ordinary course of Borrower’s business and loans permitted pursuant to subsection 13(f) hereof.
Each Account which Borrower shall, expressly or by implication, request Lender to classify as an Eligible Account shall, as of the time when such request is made, conform in all respects to the requirements of such classification as set forth in the respective definitions of “Eligible Account” as set forth herein and as otherwise established by Lender from time to time.
Borrower is the lawful owner of all Collateral now purportedly owned or hereafter purportedly acquired by Borrower, free from all liens, claims, security interests and encumbrances whatsoever, whether voluntarily or involuntarily created and whether or not perfected, other than the Permitted Liens.
(f) Organization, Authority and No Conflict.
Borrower is a corporation, duly organized, validly existing and in good standing in the State of Delaware, its state organizational identification number is P030973 and Borrower is duly qualified and in good standing in all states where the nature and extent of the business transacted by it or the ownership of its assets makes such qualification necessary or, if Borrower is not so qualified, Borrower may cure any such failure without losing any of its rights, incurring any liens or material penalties, or otherwise affecting Lender’s rights. Borrower has the right and power and is duly authorized and empowered to enter into, execute and deliver this Agreement and the Other Agreements and perform its obligations hereunder and thereunder. Borrower’s execution, delivery and performance of this Agreement and the Other Agreements does not conflict with the provisions of the organizational documents of Borrower, any statute, regulation, ordinance or rule of law, or any agreement, contract or other document which may now or hereafter be binding on Borrower, including, without limitation, the Indenture, except for conflicts with agreements,
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contracts or other documents which would not have a Material Adverse Effect on Borrower, and Borrower’s execution, delivery and performance of this Agreement and the Other Agreements shall not result in the imposition of any lien or other encumbrance upon any of Borrower’s property (other than Permitted Liens) under any existing indenture, mortgage, deed of trust, loan or credit agreement or other agreement or instrument by which Borrower or any of its property may be bound or affected. Holdings’ execution, delivery and performance of the Continuing Unconditional Guaranty does not conflict with the Indenture nor will it cause a Default thereunder.
Except as disclosed to Lender on Schedule 11(g) hereto, there are no actions or proceedings which are pending or, to the best of Borrower’s knowledge, threatened against Borrower which is, in the determination of Lender, reasonably likely to have a Material Adverse Effect on Borrower, and Borrower shall, promptly upon becoming aware of any such pending or threatened action or proceeding, give written notice thereof to Lender. Borrower has no Commercial Tort Claims pending other than those set forth on Exhibit C hereto as Exhibit C may be amended from time to time.
(h) Compliance with Laws and Maintenance of Permits.
Borrower has obtained all governmental consents, franchises, certificates, licenses, authorizations, approvals and permits, the lack of which would have a Material Adverse Effect on Borrower. Borrower is in compliance in all material respects with all applicable federal, state, local and foreign statutes, orders, regulations, rules and ordinances (including, without limitation, Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items, securities, ERISA or employee health and safety) the failure to comply with which would have a Material Adverse Effect on Borrower.
Except as set forth on Schedule 11(i) hereto or as permitted pursuant to subsection 11(c) hereof, Borrower is not conducting, permitting or suffering to be conducted, transactions with any Affiliate other than transactions with Affiliates the terms of which are no less favorable to Borrower than the terms upon which such transactions would have been made had they been made to or with a Person that is not an Affiliate.
Borrower’s name has always been as set forth on the first page of this Agreement and Borrower uses no trade names, assumed names, fictitious names or division names in the operation of its business, except as set forth on Schedule 11(j) hereto.
Except for Permitted Liens, Borrower has good and indefeasible and merchantable title to and ownership of all Equipment.
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This Agreement and the Other Agreements to which Borrower is a party are the legal, valid and binding obligations of Borrower and are enforceable against Borrower in accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally.
Borrower is, after giving effect to the transactions contemplated hereby, solvent, able to pay its debts as they become due, has capital sufficient to carry on its business, now owns property having a value both at fair valuation and at present fair saleable value greater than the amount required to pay its debts, and will not be rendered insolvent by the execution and delivery of this Agreement or any of the Other Agreements or by completion of the transactions contemplated hereunder or thereunder.
Except as set forth on Schedule 11(n) hereto and as permitted under subsection 13(b) hereof, Borrower is not obligated (directly or indirectly), for any loans or other indebtedness for borrowed money other than the Loans.
(o) Margin Security and Use of Proceeds.
Borrower does not own any margin securities, and none of the proceeds of the Loans hereunder shall be used for the purpose of purchasing or carrying any margin securities or for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase any margin securities or for any other purpose not permitted by Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time.
(p) Parent, Subsidiaries and Affiliates.
Except as set forth on Schedule 11(p) hereto, Borrower has no Parents, Subsidiaries or other Affiliates or divisions, nor is Borrower engaged in any joint venture or partnership with any other Person.
Borrower is not in default under any material contract, lease or commitment to which it is a party or by which it is bound, nor does Borrower know of any dispute regarding any contract, lease or commitment which would have a Material Adverse Effect on Borrower.
There are no controversies pending or threatened between Borrower and any of its employees, agents or independent contractors other than employee grievances arising
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in the ordinary course of business which would not, in the aggregate, have a Material Adverse Effect on Borrower, and Borrower is in compliance with all federal and state laws respecting employment and employment terms, conditions and practices except for such non-compliance which would not have a Material Adverse Effect on Borrower.
Borrower possesses adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark applications, tradestyles and trade names to continue to conduct its business as heretofore conducted by it except to the extent that the failure to possess such items would not have a Material Adverse Effect on Borrower.
Borrower has not generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Materials, on or off its premises (whether or not owned by it) in any manner which at any time violates in any material respect any Environmental Law or any license, permit, certificate, approval or similar authorization thereunder and the operations of the Borrower comply in all material respects with all Environmental Laws and all licenses, permits, certificates, approvals and similar authorizations thereunder. There has been no investigation, proceeding, complaint, order, directive, claim, citation or notice by any governmental authority or any other Person, nor is any pending or to the best of the Borrower’s knowledge threatened with respect to any non-compliance with or violation of the requirements of any Environmental Law by the Borrower or the release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials or any other environmental, health or safety matter, which affects the Borrower or its business, operations or assets or any properties at which the Borrower has transported, stored or disposed of any Hazardous Materials. Borrower has no material liability (contingent or otherwise) in connection with a release, spill or discharge, threatened or actual, of any Hazardous Materials or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Materials.
Borrower has paid and discharged all obligations and liabilities arising under ERISA of a character which, if unpaid or unperformed, might result in the imposition of a lien against any of its properties or assets.
(i) The Liabilities of Borrower to Lender, including, without limitation, the Loans, constitutes “Permitted Indebtedness” and “Guarantor Senior Indebtedness”, each under and as defined in the Indenture; (ii) Borrower is a Subsidiary Guarantor under and as defined in the Indenture; and (iii) the Notes under the Indenture are junior and subordinate in right of payment to the prior payment in full in immediately available funds of the Liabilities, including the Loans; (iv) there is no “Designated Senior Indebtedness” under and as defined in the Indenture other than the Liabilities to Lender; (v) this Agreement constitutes the
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“Credit Agreement” under and as defined in the Indenture; (vi) there is no “Senior Indebtedness” under and as defined in the Indenture other than the indebtedness of Holdings under the Continuing Unconditional Guaranty executed in favor of Lender by Holdings and dated of even date herewith (the “Holdings Guaranty”); and (vii) the indebtedness of Holdings to Lender under the Holdings Guaranty constitutes “Senior Indebtedness” under the Indenture.
12. AFFIRMATIVE COVENANTS.
Until payment and satisfaction in full of all Liabilities and termination of this Agreement, unless Borrower obtains Lender’s prior written consent waiving or modifying any of Borrower’s covenants hereunder in any specific instance, Borrower covenants and agrees as follows:
Borrower shall at all times keep accurate and complete books, records and accounts with respect to all of Borrower’s business activities, in accordance with sound accounting practices and generally accepted accounting principles consistently applied, and shall keep such books, records and accounts, and any copies thereof, only at the addresses indicated for such purpose on Exhibit A. If any such real property is leased, it shall be subject to a landlord’s agreement in favor of Lender on terms acceptable to Lender.
Borrower shall:
(i) Locations. Promptly (but in no event more than ten (10) days after the occurrence thereof) notify Lender of the opening of any new business location that is material to Borrower’s business, the closing of any existing business location that is material to Borrower’s business or any change in the location of Borrower’s books, records and accounts (or copies thereof), and the opening or closing of any bank account.
(ii) Eligible Accounts. Promptly upon becoming aware thereof, notify Lender if any Account identified by Borrower to Lender as an Eligible Account becomes ineligible for any reason, provided that, unless an Event of Default has occurred and is continuing, Borrower may notify Lender of such event with respect to Eligible Accounts with a face amount of less than $500,000.00 in the aggregate in its ordinary monthly reporting pursuant to subsection 9(a) of this Agreement.
(iii) Litigation and Proceedings. Promptly upon becoming aware thereof, notify Lender of any actions or proceedings which are pending or threatened against Borrower which might have a Material Adverse Effect on Borrower and of any Commercial Tort Claims of Borrower which may arise, which notice shall constitute Borrower’s authorization to amend Exhibit C to add such Commercial Tort Claim.
(iv) Names. Notify Lender within ten (10) days of the change of its name.
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(v) ERISA Matters. Promptly notify Lender of (x) the occurrence of any “reportable event” (as defined in ERISA) which might result in the termination by the Pension Benefit Guaranty Corporation (the “PBGC”) of any employee benefit plan (“Plan”) covering any officers or employees of the Borrower, any benefits of which are, or are required to be, guaranteed by the PBGC, (y) receipt of any notice from the PBGC of its intention to seek termination of any Plan or appointment of a trustee therefor or (z) its intention to terminate or withdraw from any Plan.
(vi) Environmental Matters. Immediately notify Lender upon becoming aware of any investigation, proceeding, complaint, order, directive, claim, citation or notice with respect to any non-compliance with or violation of the requirements of any Environmental Law by Borrower or the generation, use, storage, treatment, transportation, manufacture handling, production or disposal of any Hazardous Materials or any other environmental, health or safety matter which affects Borrower or its business operations or assets or any properties at which Borrower has transported, stored or disposed of any Hazardous Materials unless, the foregoing could not reasonably be expected to have a Material Adverse Effect on Borrower.
(vii) Default; Material Adverse Change. Promptly advise Lender of any material adverse change in the business, assets, liabilities, operations or condition, financial or otherwise, of Borrower, the occurrence of any Event of Default hereunder or the occurrence of any event which, if uncured, will become an Event of Default after notice or lapse of time (or both).
All of the foregoing notices shall be provided by Borrower to Lender in writing.
(c) Compliance with Laws and Maintenance of Permits.
Borrower shall maintain all governmental consents, franchises, certificates, licenses, authorizations, approvals and permits, the lack of which would have a Material Adverse Effect on Borrower and Borrower shall remain in compliance with all applicable federal, state, local and foreign statutes, orders, regulations, rules and ordinances (including, without limitation, Environmental Laws and statutes, orders, regulations, rules and ordinances relating to taxes, employer and employee contributions and similar items, securities, ERISA or employee health and safety) the failure with which to comply would have a Material Adverse Effect on Borrower.
Borrower shall permit Lender, or any Persons designated by it, to call at Borrower’s places of business at any reasonable times, and, without hindrance or delay, to inspect the Collateral and to inspect, audit, check and make extracts from Borrower’s books, records, journals, orders, receipts and any correspondence and other data relating to Borrower’s business, the Collateral or any transactions between the parties hereto, and shall have the right to make such verification concerning Borrower’s business as Lender may consider reasonable under the circumstances. Borrower shall furnish to Lender such information relevant to Lender’s rights under this Agreement and the Other Agreements as Lender shall at any time and from time to time reasonably
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request. Lender, through its officers, employees or agents shall have the right, at any reasonable time and from time to time, in Lender’s name, to verify the validity, amount or any other matter relating to any of Borrower’s Accounts, by mail, telephone, telecopy, electronic mail, or otherwise, provided that prior to the occurrence of an Event of Default, Lender shall conduct such verification in Borrower’s name. Borrower authorizes Lender to discuss the affairs, finances and business of Borrower with any officers, employees or directors of Borrower or with its Parent or any Affiliate or the officers, employees or directors of its Parent or any Affiliate, and to discuss the financial condition of Borrower with Borrower’s independent public accountants. Any such discussions shall be without liability to Lender or to Borrower’s independent public accountants. Borrower shall pay to Lender all customary fees and all costs and out-of-pocket expenses incurred by Lender in the exercise of its rights under this subsection 12(d), and all of such fees, costs and expenses shall constitute Liabilities hereunder, shall be payable on demand and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder; provided, that, prior to the occurrence and continuance of an Event of Default, the maximum amount Borrower shall be required to pay Lender with respect to the foregoing shall be Fifteen Thousand and No/100 Dollars ($15,000.00) per Fiscal Year of Borrower.
Borrower shall:
(i) Keep its tangible assets properly housed and insured for the full insurable value thereof against loss or damage by fire, theft, explosion, sprinklers, collision (in the case of motor vehicles) and such other risks as are customarily insured against by Persons engaged in businesses similar to that of Borrower, with such companies, in such amounts, with such deductibles, and under policies in such form, as shall be satisfactory to Lender. Original (or certified) copies of such policies of insurance have been or shall be, within ninety (90) days of the date hereof or as soon thereafter as such policies are issued by the insurer, delivered to Lender, together with evidence of payment of all premiums therefor, and shall contain an endorsement, in form and substance acceptable to Lender, showing loss under such insurance policies payable to Lender. Such endorsement, or an independent instrument furnished to Lender, shall provide that the insurance company shall give Lender at least thirty (30) days written notice before any such policy of insurance is altered or canceled and that no act, whether willful or negligent, or default of Borrower or any other Person shall affect the right of Lender to recover under such policy of insurance in case of loss or damage. In addition, Borrower shall cause to be executed and delivered to Lender an assignment of proceeds of its business interruption insurance policies. Borrower hereby directs all insurers under all policies of insurance to pay all proceeds payable thereunder directly to Lender as it relates to the Collateral. Borrower irrevocably makes, constitutes and appoints Lender (and all officers, employees or agents designated by Lender) as Borrower’s true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, as such policies relate to the Collateral, endorsing the name of Borrower on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and making all determinations and decisions with
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respect to such policies of insurance, provided however, that if no Event of Default shall have occurred and is continuing, Borrower may make, settle and adjust claims involving less than $5,000,000.00 in the aggregate without Lender’s consent.
(ii) Maintain, at its expense, such public liability and third party property damage insurance as is customary for Persons engaged in businesses similar to that of Borrower with such companies and in such amounts, with such deductibles and under policies in such form as shall be reasonably satisfactory to Lender and original (or certified) copies of such policies have been or shall be, within ninety (90) days after the date hereof or as soon thereafter as such policies are issued by the insurer, delivered to Lender, together with evidence of payment of all premiums therefor; each such policy shall contain an endorsement showing Lender as additional insured thereunder and providing that the insurance company shall give Lender at least thirty (30) days written notice before any such policy shall be altered or canceled.
If Borrower at any time or times hereafter shall fail to obtain or maintain any of the policies of insurance required above or to pay any premium relating thereto, then Lender, without waiving or releasing any obligation or default by Borrower hereunder, may (but shall be under no obligation to) obtain and maintain such policies of insurance and pay such premiums and take such other actions with respect thereto as Lender deems advisable upon notice to Borrower. Such insurance, if obtained by Lender, may, but need not, protect Borrower’s interests or pay any claim made by or against Borrower with respect to the Collateral. Such insurance may be more expensive than the cost of insurance Borrower may be able to obtain on its own and may be cancelled only upon Borrower providing evidence that it has obtained the insurance as required above. All sums disbursed by Lender in connection with any such actions, including, without limitation, court costs, expenses, other charges relating thereto and reasonable attorneys’ fees, shall constitute Loans hereunder, shall be payable on demand by Borrower to Lender and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
Borrower shall keep its assets in good condition, repair and order and shall make all necessary repairs to the Equipment and replacements thereof so that the operating efficiency and the value thereof shall at all times be preserved and maintained in all material respects. Borrower shall permit Lender to examine any of the Collateral at any reasonable times and wherever the Collateral may be located. Borrower shall, at the request of Lender, indicate on its records concerning the Collateral a notation, in form satisfactory to Lender, of the security interest of Lender hereunder.
All Loan proceeds obtained by Borrower from Lender pursuant to this Agreement shall be used solely for business purposes of Borrower.
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Borrower shall file all required tax returns and pay all of its taxes when due, subject to any extensions granted by the applicable taxing authority, including, without limitation, taxes imposed by federal, state or municipal agencies, and shall cause any liens for taxes to be promptly released; provided, that Borrower shall have the right to contest the payment of such taxes in good faith by appropriate proceedings so long as (i) a reserve is established on the books of Borrower in such amount as is required under generally accepted accounting principles or the amount so contested is shown on Borrower’s financial statements if such amount is greater than the reserve established on the books of Borrower; and (ii) the contesting of any such payment does not give rise to a lien for taxes other than Permitted Liens. If Borrower fails to pay any such taxes and in the absence of any such contest by Borrower, Lender may (but shall be under no obligation to) advance and pay any sums required to pay any such taxes and/or to secure the release of any lien therefor, and any sums so advanced by Lender shall constitute Loans hereunder, shall be payable by Borrower to Lender on demand, and, until paid, shall bear interest at the highest rate then applicable to Loans hereunder.
Borrower shall maintain adequate licenses, patents, patent applications, copyrights, service marks, trademarks, trademark applications, tradestyles and trade names to continue its business as heretofore conducted by it or as hereafter conducted by it unless, the failure to maintain any of the foregoing could not reasonably be expected to have a Material Adverse Effect on Borrower.
Borrower shall maintain its general checking account with LaSalle Bank. Normal charges shall be assessed thereon in accordance with Schedule 12(j) attached hereto and made a part hereof. Although no compensating balance is required, Borrower must keep monthly balances in order to merit earnings credits which will cover LaSalle Bank’s service charge for demand deposit account activities.
13. NEGATIVE COVENANTS.
Until payment and satisfaction in full of all Liabilities and termination of this Agreement, unless Borrower obtains Lender’s prior written consent waiving or modifying any of Borrower’s covenants hereunder in any specific instance, Borrower agrees as follows:
Borrower shall not assume, guarantee or endorse, or otherwise become liable in connection with, the obligations of any Person, except by endorsement of instruments for deposit or collection or similar transactions in the ordinary course of business, and except for ordinary course indemnity provisions contained in any lease or loan agreement otherwise permitted under this Agreement, indemnities given in connection with the sale of Inventory
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or other asset dispositions permitted hereunder and guarantees of the indebtedness issued pursuant to the Indenture.
Borrower shall not create, incur, assume or become obligated (directly or indirectly), for any loans or other indebtedness for borrowed money other than the Loans, except that Borrower may (i) borrow money from a Person other than Lender on an unsecured and subordinated basis if a subordination agreement in favor of Lender and in form and substance satisfactory to Lender is executed and delivered to Lender relative thereto; (ii) maintain its present indebtedness listed on Schedule 11(n) hereto and may refinance such indebtedness so long as the aggregate principal amount of the indebtedness so refinanced shall not be increased and the refinancing shall be on terms and conditions no more restrictive than the terms and conditions of the indebtedness to be refinanced; (iii) incur unsecured indebtedness to trade creditors in the ordinary course of business; (iv) incur purchase money indebtedness or capitalized lease obligations in connection with Capital Expenditures; (v) incur operating lease obligations; and (vi) Interest Rate Swap Obligations; as defined in the Indenture, of Borrower provided that such Interest Rate Swap Obligations are entered into to protect the Borrower from fluctuations in interest rates on indebtedness incurred to the extent the notional principal amount of such Interest Rate Swap Obligations does not exceed the principal amount of the indebtedness to which such Interest Rate Swap Obligations relate; (vii) indebtedness incurred under Currency Agreements, as defined in the Indenture, provided that such Currency Agreements do not increase the indebtedness of Borrower outstanding other than as a result of fluctuations in foreign currency exchange rates or by reason of fees, indemnities and compensation payable thereunder; (viii) indebtedness of Borrower to Holdings, for so long as such indebtedness is held by Holdings subject to no lien being held by a Person other than Holdings; (ix) additional indebtedness in an aggregate principal amount not to exceed $40,000,000.00 at any one time outstanding; and (x) so long as no Event of Default shall have occurred and be continuing at the time of or as a consequence of the incurrence of such indebtedness, additional indebtedness if on the date of the incurrence thereof, after giving effect to the incurrence thereof and the application of the proceeds therefrom, the fixed charge coverage ratio set forth in Section 14(b) is greater than 2.0 to 1.0.
Borrower shall not grant or permit to exist (voluntarily or involuntarily) any lien, claim, security interest or other encumbrance whatsoever on any of its assets, other than Permitted Liens.
(d) Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary Course of Business.
Borrower shall not (i) enter into any merger or consolidation (except that Holdings or any Subsidiary which is solvent may merge with Borrower, so long as Borrower is the surviving entity of such merger); (ii) change the state of Borrower’s organization or enter into any transaction which has the effect of changing Borrower’s state of organization; (iii) sell, lease
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or otherwise dispose of any of the Collateral other than in the ordinary course of business; or (iv) except as otherwise permitted herein enter into any other transaction outside the ordinary course of Borrower’s business, including, without limitation, any purchase, redemption or retirement of any shares of any class of its stock or any other equity interest, and any issuance of any shares of, or warrants or other rights to receive or purchase any shares of, any class of its stock or any other equity interest; provided that so long as no Event of Default would occur as a result thereof, Borrower may issue shares of stock or other rights to receive or purchase any shares of any class of its stock; provided further, that (x) so long as no Event of Default has occurred and is continuing or would occur as a result thereof and (y) such redemption does not violate any applicable laws, Borrower may redeem its Series A Preferred Stock on April 30, 2005. Borrower shall not form any Subsidiaries or enter into any joint ventures or partnerships with any other Person unless such Subsidiary, joint venture or partnership executes and delivers to Lender a Continuing Unconditional Guaranty, Security Agreement, Uniform Commercial Code Financing Statement and such other documents as Lender may reasonably request granting a lien on the same assets of such Person as is described in Section 5 hereof.
(e) Dividends and Distributions.
Borrower shall not declare or pay any dividend or other distribution in cash on any class of its stock (if Borrower is a corporation), provided, that (i) so long as such dividend is permitted under all applicable laws; and (ii) no Event of Default shall have occurred prior to the time of, or would occur as a result of such dividend, Borrower may (W) pay cash dividends or make other intercompany transfers to Holdings in an aggregate amount sufficient to permit Holdings to make interest payments with respect to the Notes under and as defined in the Indenture but only to the extent permitted by the subordination provisions contained in the Indenture, provided that voluntary prepayment or redemption or defeasance of the Notes in excess of $15,000,000.00 in the aggregate, shall not be permitted unless at the time of such prepayment there is a zero (0) balance on the Revolving Loans and, after giving effect to such prepayment, there remains a zero (0) balance on the Revolving Loans; (X) pay cash dividends or make other intercompany transfers to Holdings for administrative expenses of Holdings incurred in the ordinary course of business and solely attributable to business activities related to Borrower (including without limitation the payment of executive salaries and benefits)so long as such dividends or other intercompany transfers are applied promptly to pay such administrative expense and do not exceed $5,000,000.00 in any Fiscal Year of Holdings; (Y) pay cash dividends to Holdings to the extent such proceeds are promptly used by Holdings to make payments in respect of repurchased shares of Holdings common stock from employees provided that such payments are not greater than or equal to $500,000.00 in any year and (Z) pay the regularly scheduled dividends on its Series A Preferred Stock.
Borrower shall not purchase or otherwise acquire, or contract to purchase or otherwise acquire, the obligations or stock of any Person, other than direct obligations of the United States, obligations insured by the Federal Deposit Insurance Corporation and obligations unconditionally guaranteed by the United States; nor shall Borrower lend or otherwise advance funds to any Person except for advances made to employees, officers and
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directors for travel and other expenses arising in the ordinary course of business and loans to employees, officers and directors of Borrower in the ordinary course of business for bona fide business purposes not exceeding Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) in the aggregate outstanding for all Persons at any one time and loans described on Schedule 13(f). Notwithstanding the foregoing, Borrower may (i) invest in any Person that is or will immediately after such investment merge or consolidate into Borrower; (ii) invest in Holdings provided that any indebtedness evidencing such investment is unsecured and subordinated pursuant to a subordination agreement executed in favor of Lender in form and substance satisfactory to Lender and delivered to Lender relative thereto; (iii) make loans to employees, officers and directors of Borrower to finance the purchase of the Qualified Capital Stock, as defined in the Indenture, not to exceed $500,000.00 at any one time outstanding; (iv) enter into Currency Agreements, as defined in the Indenture, and Interest Rate Swap Obligations, as defined in the Indenture, entered into in the ordinary course of Borrower’s business and otherwise in compliance with this Agreement; (v) investments in securities of trade creditors or customers received pursuant to any plan of reorganization or similar arrangement upon bankruptcy or insolvency of such trade creditors or customers; and (vi) make investments made by Borrower as a result of consideration received in connection with a sale of assets permitted hereunder.
(g) Fundamental Changes, Line of Business.
Borrower shall not amend its organizational documents or change its Fiscal Year or enter into a new line of business materially different from Borrower’s current business, unless (i) such actions would not have a Material Adverse Effect on the Borrower, (ii) such actions would not affect the obligations of Borrower to Lender under this Agreement and the Other Agreements, (iii) such actions would not affect the interpretation of any of the terms of this Agreement or the Other Agreements and (iv) Lender has received ten (10) days prior written notice of such amendment or change.
Except as set forth on Schedule 11(i) hereto or as permitted pursuant to subsection 11(c) hereof, Borrower shall not conduct, permit or suffer to be conducted, transactions with Affiliates other than transactions pursuant to terms that are no less favorable to Borrower than the terms upon which such transactions would have been made had they been made to or with a Person that is not an Affiliate, provided that Borrower may make payments (whether for fees, as compensation for services or otherwise) to (i) Page Charters, Inc. in an aggregate amount not to exceed $658,845.00 in Fiscal Year 2002, which amount may be increased each Fiscal Year by ten percent (10%) of the prior Fiscal Year’s permitted amount; and (ii) Novamil Corporation under that certain Management Agreement dated April 28, 1995 by and between PPC Acquisitions, Inc. and Novamil Corporation, as in effect of the date hereof, in an aggregate amount not to exceed $819,764.00 in any fiscal year plus any cost of living increases provided for in such Management Agreement .
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Borrower shall not settle or adjust any Account identified by Borrower as an Eligible Account or with respect to which the Account Debtor is an Affiliate without the consent of Lender, except for ordinary course discounts, credits or allowances which reduce the availability set forth in Subsection (2)(a) of this Agreement provided, that following the occurrence and during the continuance of an Event of Default, Borrower shall not settle or adjust any Account without the consent of Lender.
14. FINANCIAL COVENANTS.
Borrower shall maintain and keep in full force and effect each of the financial covenants set forth below:
Borrower’s Tangible Net Worth shall not at any time be less than the Minimum Tangible Net Worth; “Minimum Tangible Net Worth” being defined for purposes of this subsection as (i) $91,000,000.00 (less the principal amount (at par value) of any of Holdings’ Senior Subordinated Notes that are repurchased or otherwise retired so long as the outstanding amount of Revolving Loans at the time of such repurchase or retirement does not exceed $15,000,000) at all times from the date hereof through December 31, 2003 and (ii) thereafter, commencing March 31, 2004 from thefirst day of each fiscal quarter of Borrower through the last day of such fiscal quarter of Borrower, the Minimum Tangible Net Worth during the immediately preceding period plus $125,000.00; and “Tangible Net Worth” being defined for purposes of this subsection as Borrower’s shareholders’ equity (including retained earnings) less the book value of all intangible assets as determined by Lender in its Permitted Discretion on a consistent basis plus the amount of any LIFO reserve plus the amount of any debt subordinated to Lender, all as determined under generally accepted accounting principles applied on a basis consistent with the financial statement dated March 31, 2002 except as set forth herein;
As of the last day of each fiscal quarter of Borrower, for the twelve (12) month period ending on such date, Borrower shall not permit the ratio of its EBITDA to Fixed Charges to be less than 1.00 to 1.00.
15. DEFAULT.
The occurrence of any one or more of the following events shall constitute an “Event of Default” by Borrower hereunder:
The failure of any Obligor to pay when due, declared due, or demanded by Lender, any of the Liabilities.
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(b) Breach of this Agreement and the Other Agreements.
The failure of any Obligor to perform, keep or observe any of the covenants, conditions, promises, agreements or obligations of such Obligor under this Agreement or any of the Other Agreements; provided that any such failure by Borrower under subsections 12(a), 12(b)(i), (iv), (v), (vi), 12(c), 12(h) and 12(i) of this Agreement shall not constitute an Event of Default hereunder until the fifteenth (15th) day following the occurrence thereof.
(c) Breaches of Other Obligations.
The failure of any Obligor to perform, keep or observe (after any applicable notice and cure period) any of the covenants, conditions, promises, agreements or obligations of such Obligor under any other agreement with any Person if such failure could reasonably be expected to have a Material Adverse Effect on such Obligor.
(d) Breach of Representations and Warranties.
The making or furnishing by any Obligor to Lender of any representation, warranty, certificate, schedule, report or other communication within or in connection with this Agreement or the Other Agreements or in connection with any other agreement between such Obligor and Lender, which is untrue or misleading in any material respect as of the date made.
The loss, theft, damage or destruction of, or (except as permitted hereby) sale, lease or furnishing under a contract of service of, any of the Collateral. Notwithstanding the foregoing, loss, theft, damage or destruction (a “Loss”) of any of the Collateral shall not constitute an Event of Default hereunder if, with respect to Losses involving any Collateral, (i) to the extent that such Losses involve Collateral which is insured, coverage is not denied or excluded by the insurer and Lender is in receipt of all insurance proceeds relative thereto within one hundred twenty (120) days of the occurrence of such Loss; or (ii) to the extent that such Losses involve Collateral which is uninsured or for which coverage is denied or excluded by the insurer or for which Lender does not receive the proceeds within one hundred twenty (120) days of the occurrence of such Loss, such Losses involve Collateral worth more than Five Million and No/100 Dollars ($5,000,000.00) in the aggregate for all such events during any year of the Original Term or any Renewal Term. With respect to determining the value of the Collateral, such valuation shall be determined by Lender in its Permitted Discretion.
(f) Levy, Seizure or Attachment.
The making by any Person of any levy, seizure or attachment upon any of Borrower’s assets to the extent such assets have an aggregate value in excess of $5,000,000.00 as determined by Lender in its Permitted Discretion.
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(g) Bankruptcy or Similar Proceedings.
The commencement of any proceedings in bankruptcy by or against any Obligor or for the liquidation or reorganization of any Obligor, or alleging that such Obligor is insolvent or unable to pay its debts as they mature, or for the readjustment or arrangement of any Obligor’s debts, whether under the United States Bankruptcy Code or under any other law, whether state or federal, now or hereafter existing, for the relief of debtors, or the commencement of any analogous statutory or non-statutory proceedings involving any Obligor; provided, however, that if such commencement of proceedings against such Obligor is involuntary, such action shall not constitute an Event of Default unless such proceedings are not dismissed within forty-five (45) days after the commencement of such proceedings.
The appointment of a receiver or trustee for any Obligor, for any of the Collateral or for any substantial part of any Obligor’s assets or the institution of any proceedings for the dissolution, or the full or partial liquidation, or the merger or consolidation, of any Obligor which is a corporation, limited liability company or a partnership; provided, however, that if such appointment or commencement of proceedings against such Obligor is involuntary, such action shall not constitute an Event of Default unless such appointment is not revoked or such proceedings are not dismissed within forty-five (45) days after the commencement of such proceedings.
The entry of any judgments or orders aggregating in excess of $1,000,000.00 against any Obligor which remains unsatisfied or undischarged and in effect for thirty (30) days after such entry without a stay of enforcement or execution.
The dissolution of any Obligor which is a partnership, limited liability company, corporation or other entity.
(k) Default or Revocation of Guaranty.
The occurrence of an event of default under, or the revocation or termination of, any agreement, instrument or document executed and delivered by any Person to Lender pursuant to which such Person has guaranteed to Lender the payment of all or any of the Liabilities or has granted Lender a security interest in or lien upon some or all of such Person’s real and/or personal property to secure the payment of all or any of the Liabilities.
The institution in any court of a criminal proceeding against any Obligor which would have a Material Adverse Effect on such Obligor, or the indictment of any Obligor for any crime other than traffic and boating tickets and misdemeanors not punishable by jail terms.
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(i) The failure of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ and ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ to directly or indirectly own and have voting control of at least Fifty and one-tenth percent (50.1%) in the aggregate of the issued and outstanding voting equity interests of Holdings, (ii) the failure of Holdings to own and have voting control of at least one hundred percent (100%) of the issued and outstanding voting equity interest of Borrower, or (iii) a “Change of Control” under and as defined in the Indenture occurs; provided that the merger of Holdings with and into Borrower shall not constitute an Event of Default so long as Borrower is the surviving entity of such merger.
Any material adverse change in the Collateral, business, assets, liabilities, operations or condition, financial or otherwise of any Obligor, as determined by Lender in its sole reasonable judgment or the occurrence of any event which, in Lender’s reasonable judgment, could have a Material Adverse Effect.
(o) Indenture Event of Default.
The occurrence of an Event of Default under and as defined in the Indenture or any amendment of said Indenture.
16. REMEDIES UPON AN EVENT OF DEFAULT.
(a) Upon the occurrence and during the continuance of an Event of Default described in subsection 15(g) hereof, all of the Liabilities shall immediately and automatically become due and payable, without notice of any kind. Upon the occurrence of any other Event of Default, all Liabilities may, at the option of Lender, and without demand, notice or legal process of any kind, be declared, and immediately shall become, due and payable.
(b) Upon the occurrence and during the continuance of an Event of Default, Lender may exercise from time to time any rights and remedies available to it under the Uniform Commercial Code and any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement (including, without limitation, the right to decrease the Maximum Loan Limit) or in any of the Other Agreements and all of Lender’s rights and remedies shall be cumulative and non-exclusive to the extent permitted by law. In particular, but not by way of limitation of the foregoing, Lender may, without notice, demand or legal process of any kind, take possession of any or all of the Collateral (in addition to Collateral of which it already has possession), wherever it may be found, and for that purpose may pursue the same wherever it may be found, and may enter onto any of Borrower’s premises where any of the Collateral may be, and search for, take possession of, remove, keep and store any of the Collateral until the same shall be sold or otherwise disposed of, and Lender shall have the right to store the same at any of Borrower’s premises without cost to Lender. At Lender’s request, Borrower shall, at Borrower’s expense, assemble the Collateral and make it available to Lender at one or more places to be designated by Lender and reasonably convenient to Lender and Borrower. Borrower
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recognizes that if Borrower fails to perform, observe or discharge any of its Liabilities under this Agreement or the Other Agreements, no remedy at law will provide adequate relief to Lender, and agrees that Lender shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages. Any notification of intended disposition of any of the Collateral required by law will be deemed to be a reasonable authenticated notification of disposition if given at least ten (10) days prior to such disposition and such notice shall (i) describe Lender and Borrower, (ii) describe the Collateral that is the subject of the intended disposition, (iii) state the method of the intended disposition, (iv) state that Borrower is entitled to an accounting of the Liabilities and state the charge, if any, for an accounting and (v) state the time and place of any public disposition or the time after which any private sale is to be made. Lender may disclaim any warranties that might arise in connection with the sale, lease or other disposition of the Collateral and has no obligation to provide any warranties at such time. Any Proceeds of any disposition by Lender of any of the Collateral may be applied by Lender to the payment of expenses in connection with the Collateral, including, without limitation, legal expenses and reasonable attorneys’ fees, and any balance of such Proceeds may be applied by Lender toward the payment of such of the Liabilities, and in such order of application, as Lender may from time to time elect.
17. CONDITIONS PRECEDENT.
The obligation of Lender to fund the initial Revolving Loan, and to issue or cause to be issued the initial Letter of Credit, is subject to the satisfaction or waiver on or before the date hereof of the following conditions precedent:
(a) Lender shall have received each of the agreements, opinions, reports, approvals, consents, certificates and other documents set forth on the closing document list attached hereto as Schedule 17(a) (the “Closing Document List”) in each case in form and substance reasonably satisfactory to Lender;
(b) Since July 9, 2002, no event shall have occurred which has had or could reasonably be expected to have a Material Adverse Effect on any Obligor, as determined by Lender in its Permitted Discretion;
(c) Lender shall have received payment in full of all fees and expenses payable to it by Borrower or any other Person in connection herewith, on or before disbursement of the initial Loans hereunder; and
(d) The Obligors shall have executed and delivered to Lender all such other documents, instruments and agreements which Lender determines are reasonably necessary to consummate the transactions contemplated hereby, including, without limitation a Continuing Unconditional Guaranty from ▇▇▇▇▇ ▇▇▇▇’▇ Holdings, Inc.
18. INDEMNIFICATION.
Borrower agrees to defend (with counsel reasonably satisfactory to Lender), protect, indemnify and hold harmless Lender, each affiliate or subsidiary of Lender, and each of their respective officers, directors, employees, attorneys and agents (each an
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“Indemnified Party”) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature (including, without limitation, the disbursements and the reasonable fees of counsel for each Indemnified Party in connection with any investigative, administrative or judicial proceeding, whether or not the Indemnified Party shall be designated a party thereto), which may be imposed on, incurred by, or asserted against, any Indemnified Party (whether direct, indirect or consequential and whether based on any federal, state or local laws or regulations, including, without limitation, securities laws and regulations, Environmental Laws and commercial laws and regulations, under common law or in equity, or based on contract or otherwise) in any manner relating to or arising out of this Agreement or any Other Agreement, or any act, event or transaction related or attendant thereto, the making or issuance and the management of the Loans or any Letters of Credit or the use or intended use of the proceeds of the Loans or any Letters of Credit; provided, however, that Borrower shall not have any obligation hereunder to any Indemnified Party with respect to matters caused by or resulting from the willful misconduct or gross negligence of such Indemnified Party. To the extent that the undertaking to indemnify set forth in the preceding sentence may be unenforceable because it is violative of any law or public policy, Borrower shall satisfy such undertaking to the maximum extent permitted by applicable law. Any liability, obligation, loss, damage, penalty, cost or expense covered by this indemnity shall be paid to each Indemnified Party on demand, and, failing prompt payment, shall, together with interest thereon at the highest rate then applicable to Loans hereunder from the date incurred by each Indemnified Party until paid by Borrower, be added to the Liabilities of Borrower and be secured by the Collateral. The provisions of this Section 18 shall survive the satisfaction and payment of the other Liabilities and the termination of this Agreement.
19. NOTICE.
All written notices and other written communications with respect to this Agreement shall be sent by ordinary, certified or overnight mail, by telecopy or delivered in person, and in the case of Lender shall be sent to it at ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇, attention: ▇▇▇▇ ▇▇▇▇▇▇▇, facsimile number: (▇▇▇) ▇▇▇-▇▇▇▇, and in the case of Borrower shall be sent to it at its principal place of business set forth on Exhibit A hereto to the attention of the Chief Financial Officer or as otherwise directed by Borrower in writing. All notices shall be deemed received upon actual receipt thereof or refusal of delivery.
20. CHOICE OF GOVERNING LAW; CONSTRUCTION; FORUM SELECTION.
This Agreement and the Other Agreements are submitted by Borrower to Lender for Lender’s acceptance or rejection at Lender’s principal place of business as an offer by Borrower to borrow monies from Lender now and from time to time hereafter, and shall not be binding upon Lender or become effective until accepted by Lender, in writing, at said place of business. If so accepted by Lender, this Agreement and the Other Agreements shall be deemed to have been made at said place of business. THIS AGREEMENT AND THE OTHER AGREEMENTS SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO INTERPRETATION,
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ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING, WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, BUT EXCLUDING PERFECTION OF THE SECURITY INTERESTS IN COLLATERAL LOCATED OUTSIDE OF THE STATE OF ILLINOIS, WHICH SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE RELEVANT JURISDICTION IN WHICH SUCH COLLATERAL IS LOCATED. If any provision of this Agreement shall be held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or remaining provisions of this Agreement.
BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO BORROWER, AT THE ADDRESS SET FORTH FOR NOTICE IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED. Lender shall provide a copy of such process to the law firm of ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇, Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, Esq. by mail at the address of ▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ or by facsimile transmission at facsimile number (▇▇▇) ▇▇▇-▇▇▇▇. Notwithstanding anything to the contrary contained herein, failure of Lender to provide a copy of such process shall not impair Lender’s rights hereunder.
21. MODIFICATION AND BENEFIT OF AGREEMENT.
This Agreement and the Other Agreements may not be modified, altered or amended except by an agreement in writing signed by Borrower or such other Person who is a party to such Other Agreement and Lender. Borrower may not sell, assign or transfer this Agreement, or the Other Agreements or any portion thereof, including, without limitation, Borrower’s rights, titles, interest, remedies, powers or duties hereunder and thereunder. Borrower hereby consents to Lender’s sale, assignment, transfer or other disposition, at any time and from time to time hereafter, of this Agreement, or the Other Agreements to an affiliate of Lender, or of any portion thereof, or participations therein so long as Lender remains a lender, including, without limitation, Lender’s rights, titles, interest, remedies, powers and/or duties and agrees that it shall execute and deliver such documents as Lender may request in connection with any such sale, assignment, transfer or other disposition, provided, that no such consent shall be required and Lender may sell, assign, transfer or otherwise dispose at any time and from time to time hereafter, this Agreement or the Other Agreements, if an Event of Default is then continuing.
The headings of subdivisions in this Agreement are for convenience of reference only, and shall not govern the interpretation of any of the provisions of this Agreement.
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Borrower acknowledges and agrees that its appointment of Lender as its attorney and agent-in-fact for the purposes specified in this Agreement is an appointment coupled with an interest and shall be irrevocable until all of the Liabilities are satisfied and paid in full and this Agreement is terminated.
24. CONFIDENTIALITY.
Lender hereby agrees to use commercially reasonable efforts to assure that any and all information relating to Borrower which is (i) furnished by Borrower to Lender (or to any affiliate of Lender); and (ii) non-public, confidential or proprietary in nature, shall be kept confidential by Lender or such affiliate in accordance with applicable law; provided, however, that such information and other credit information relating to Borrower may be distributed by Lender or such affiliate to Lender’s or such affiliate’s directors, officers, employees, attorneys, affiliates, assignees, participants, auditors, agents and regulators, and upon the order of a court or other governmental agency having jurisdiction over Lender or such affiliate, to any other party. Borrower and Lender further agree that this provision shall survive the termination of this Agreement. Notwithstanding the foregoing, Borrower hereby consents to Lender publishing a tombstone or similar advertising material relating to the financing transaction contemplated by this Agreement.
25. COUNTERPARTS.
This Agreement, any of the Other Agreements, and any amendments, waivers, consents or supplements may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all of which counterparts together shall constitute but one agreement.
Upon not less than sixty (60) days’ prior written notice (the “Approved Electronic Form Notice”), Lender may permit or require that any of the documents, certificates, forms, deliveries or other communications, authorized, required or contemplated by this Agreement or the Other Agreements, be submitted to Lender in “Approved Electronic Form” (as hereafter defined), subject to any reasonable terms, conditions and requirements in the applicable Approved Electronic Forms Notice. For purposes hereof “Electronic Form” means e-mail, e-mail attachments, data submitted on web-based forms or any other communication method that delivers machine readable data or information to Lender, and “Approved Electronic Form” means an Electronic Form that has been approved in writing by Lender (which approval has not been revoked or modified by Lender) and sent to Borrower in an Approved Electronic Form Notice. Except as otherwise specifically provided in the applicable Approved Electronic Form Notice, any submissions made in an applicable Approved Electronic Form shall have the same force and effect that the same submissions would have had if they had been submitted in any other applicable form authorized, required or contemplated by this Agreement or the Other Agreements.
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27. WAIVERS.
(a) IN NO EVENT SHALL LENDER BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL OR CONSEQUENTIAL DAMAGES.
(b) Borrower hereby waives demand, presentment, protest and notice of nonpayment, and further waives the benefit of all valuation, appraisal and exemption laws.
(c) Borrower hereby waives the benefit of any law that would otherwise restrict or limit Lender or any affiliate of Lender in the exercise of its right, after the occurrence and during the continuance of an Event of Default, which is hereby acknowledged and agreed to, to set-off against the Liabilities, without notice at any time hereafter, any indebtedness, matured or unmatured, owing by Lender or such affiliate of Lender to Borrower, including, without limitation any deposit account at Lender or such affiliate.
(d) EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, BORROWER HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE BY LENDER OF ITS RIGHTS TO REPOSSESS THE COLLATERAL OF BORROWER WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON SUCH COLLATERAL, PROVIDED THAT IN THE EVENT THAT LENDER SEEKS TO ENFORCE ITS RIGHTS HEREUNDER BY JUDICIAL PROCESS OR SELF HELP, LENDER SHALL PROVIDE BORROWER WITH SUCH NOTICES AS ARE REQUIRED BY LAW.
(e) Lender’s failure, at any time or times hereafter, to require strict performance by Borrower of any provision of this Agreement or any of the Other Agreements shall not waive, affect or diminish any right of Lender thereafter to demand strict compliance and performance therewith. Any suspension or waiver by Lender of an Event of Default under this Agreement or any default under any of the Other Agreements shall not suspend, waive or affect any other Event of Default under this Agreement or any other default under any of the Other Agreements, whether the same is prior or subsequent thereto and whether of the same or of a different kind or character. No delay on the part of Lender in the exercise of any right or remedy under this Agreement or any Other Agreement shall preclude other or further exercise thereof or the exercise of any right or remedy. None of the undertakings, agreements, warranties, covenants and representations of Borrower contained in this Agreement or any of the Other Agreements and no Event of Default under this Agreement or default under any of the Other Agreements shall be deemed to have been suspended or waived by Lender unless such suspension or waiver is in writing, signed by a duly authorized officer of Lender and directed to Borrower specifying such suspension or waiver.
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28. DESIGNATED SENIOR INDEBTEDNESS.
The Liabilities under this Agreement and the Other Agreements constitutes “Designated Senior Indebtedness” under and as defined in the Indenture.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first written above.
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▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED |
LASALLE BUSINESS CREDIT, INC. |
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By |
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By |
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Title |
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Title |
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EXHIBIT A – BUSINESS AND COLLATERAL LOCATIONS
Attached to and made a part of that certain Loan and Security Agreement of even date herewith between ▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED (“Borrower”) and LASALLE BUSINESS CREDIT, INC. (“Lender”).
A. Borrower’s business locations (please indicate which location is the principal place of business and at which locations originals and all copies of Borrower’s books, records and accounts are kept).
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1. |
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ |
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[principal place of business/leased location] |
B. Other business locations (including, without limitation, warehouse locations, processing locations, consignment locations) and all post office boxes of Borrower. Please indicate the relationship of such location to Borrower (i.e. public warehouse, processor, etc.).
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1. |
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ |
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[leased location] |
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2. |
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ |
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[leased location] |
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3. |
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ |
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[leased location] |
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4. |
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ |
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[leased location] |
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5. |
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ |
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[leased location] |
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6. |
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ |
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▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ |
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[leased location] |
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7. |
▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ |
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▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ |
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[leased location] |
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8. |
▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ |
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▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇ |
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[owned property – LBCI will not have a mortgage] |
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9. |
▇.▇. ▇▇▇ ▇▇ |
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▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ |
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10. |
▇.▇. ▇▇▇ ▇▇▇ |
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▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇ |
C. Bank Accounts of Borrower (other than those at LaSalle Bank National Association):
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Bank (with address) |
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Account Number |
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Type of Account |
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1. Farmers & Merchants State Bank, Waterloo, Wisconsin |
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114-155 |
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Checking Account |
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2. Baraboo National Bank, Baraboo, Wisconsin |
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101124358 |
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Checking Account |
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3. Bank of America, Spencer, Iowa |
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550158200133 |
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Checking Account |
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4. First Virginia Bank, Strasburg, Virginia |
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22152288 |
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Checking Account |
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EXHIBIT B – COMPLIANCE CERTIFICATE
Attached to and made a part of that certain Loan and Security Agreement, as it may be amended in accordance with its terms from time to time, including all exhibits attached thereto (the “Agreement”) of even date herewith between ▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED (“Borrower”) and LASALLE BUSINESS CREDIT, INC. (“Lender”).
This Certificate is submitted pursuant to {subsection 9(c)} of the Agreement.
The undersigned hereby certifies to Lender that as of the date of this Certificate:
1. The undersigned is the of Borrower.
2. There exists no event or circumstance which is or which with the passage of time, the giving of notice, or both would constitute an Event of Default, as that term is defined in the Agreement, or, if such an event of circumstance exists, a writing attached hereto specifies the nature thereof, the period of existence thereof and the action that Borrower has taken or proposes to take with respect thereto.
3. No material adverse change in the condition, financial or otherwise, business, property, or results of operations of Borrower has occurred since [date of last Compliance Certificate/last financial statements delivered prior to closing], or, if such a change has occurred, a writing attached hereto specifies the nature thereof and the action that Borrower has taken or proposes to take with respect thereto.
4. Borrower is in compliance with the representations, warranties and covenants in the Agreement, or, if Borrower is not in compliance with any representations, warranties or covenants in the Agreement, a writing attached hereto specifies the nature thereof, the period of existence thereof and the action that Borrower has taken or proposes to take with respect thereto.
5. The financial statements of Borrower being concurrently delivered herewith have been prepared in accordance with generally accepted accounting principles consistently applied and there have been no material changes in accounting policies or financial reporting practices of Borrower since [date of the last Compliance Certificate/date of last financial statements delivered prior to closing] or, if any such change has occurred, such changes are set forth in a writing attached hereto.
46
6. Attached hereto is a true and correct calculation of the financial covenants contained in the Agreement.
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▇▇▇▇▇ ▇▇▇▇’▇ INCORPORATED |
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By |
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Its |
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47
EXHIBIT C – COMMERCIAL TORT CLAIMS
NONE
48
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1. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Micro Inks Corporation |
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File Number: |
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1081387 8 |
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Filed: |
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08/10/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Inventory |
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2. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Transamerica Equipment Financial Services Corporation |
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File Number: |
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1089955 4 |
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Filed: |
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08/23/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
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3. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation |
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File Number: |
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1097660 0 |
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Filed: |
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08/17/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
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4. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation |
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File Number: |
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1097689 9 |
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Filed: |
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08/17/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment |
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5. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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De ▇▇▇▇ ▇▇▇▇▇▇ Financial Services, Inc. |
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File Number: |
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1112601 5 |
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Filed: |
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09/10/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
49
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6. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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▇▇▇▇▇▇ Financial Leasing, Inc. |
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File Number: |
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1115033 8 |
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Filed: |
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10/03/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
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7. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation |
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File Number: |
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1144764 3 |
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Filed: |
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10/19/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment |
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8. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Financial Corporation |
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File Number: |
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1180849 7 |
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Filed: |
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11/26/01 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
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9. |
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Debtor: |
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Perry Judds Incorporated |
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Secured Party: |
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Canon Financial Services, Inc. |
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File Number: |
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2035533 3 |
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Filed: |
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1/16/02 |
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Jurisdiction: |
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S/S Delawared |
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Collateral: |
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Specific Equipment |
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10. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Heidelberg Web Systems, Inc. |
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File Number: |
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2043108 4 |
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Filed: |
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02/19/02 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment (leased) |
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11. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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BCC Equipment Leasing Corporation |
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File Number: |
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2059062 4 |
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Filed: |
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02/11/02 |
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Jurisdiction: |
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S/S Delaware |
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Collateral: |
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Specific Equipment |
50
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12. |
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Debtor: |
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Perry Judds |
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Secured Party: |
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GFC Leasing A Division of ▇▇▇▇▇▇ ▇▇▇▇▇▇ Co., Inc. |
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File Number: |
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2084806 3 |
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Filed: |
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03/12/02 |
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Jurisdiction: |
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/S Delaware |
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Collateral: |
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Specific Equipment |
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13. |
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Debtor: |
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Perry / Judds |
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Secured Party: |
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Fuji Film |
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File Number: |
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020008685734 |
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Filed: |
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05/01/02 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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14. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇, Inc. |
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Secured Party: |
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▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ |
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Compaq Capital Corporation |
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File Number: |
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1834395 |
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Filed: |
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03/25/99 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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15. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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▇▇▇▇▇▇ Financial Leasing, Inc. |
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File Number: |
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010007272624 |
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Filed: |
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10/26/01 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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16. |
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Debtor: |
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Perry Judds |
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Secured Party: |
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GFC Leasing |
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File Number: |
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1759316 |
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Filed: |
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05/14/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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17. |
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Debtor: |
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Perry Judds |
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Secured Party: |
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GFC Leasing, A Division of ▇▇▇▇▇▇ ▇▇▇▇▇▇ Corporation |
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File Number: |
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1759317 |
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Filed: |
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05/14/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
51
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18. |
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Debtor: |
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Perry Judds |
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Secured Party: |
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GFC Leasing, A Division of ▇▇▇▇▇▇ ▇▇▇▇▇▇ Corporation |
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File Number: |
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01882773 |
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Filed: |
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09/20/99 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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19. |
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Debtor: |
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Perry Printing Corporation |
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Secured Party: |
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Fleet Capital Corporation f/k/a Fleet Credit Corporation. |
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File Number: |
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1529591 |
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Filed: |
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08/23/95 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment (leased) |
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20. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation |
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File Number: |
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1602114 |
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Filed: |
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07/19/96 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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21. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation for Itself and as Agent |
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File Number: |
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1668027 |
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Filed: |
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05/01/97 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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22. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation for Itself and as Agent |
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File Number: |
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1668028 |
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Filed: |
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05/01/97 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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23. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation for Itself and as Agent |
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File Number: |
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1701708 |
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Filed: |
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09/19/97 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
52
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24. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation for Itself and as Agent |
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File Number: |
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1705597 |
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Filed: |
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10/06/97 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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25. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation for Itself and as Agent |
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File Number: |
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1705598 |
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Filed: |
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10/06/97 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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26. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation (for itself and/or as agent) |
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File Number: |
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1763002 |
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Filed: |
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05/29/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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27. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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GTE Leasing Corporation |
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File Number: |
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1792745 |
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Filed: |
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09/28/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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28. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Newcourt Financial USA Inc. |
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File Number: |
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1793768 |
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Filed: |
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10/02/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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29. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation (for itself and/or as agent) |
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File Number: |
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1794581 |
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Filed: |
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10/06/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
53
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30. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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GFC Leasing, A Division of ▇▇▇▇▇▇ ▇▇▇▇▇▇ Corporation |
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File Number: |
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1799581 |
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Filed: |
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10/27/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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31. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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General Electric Capital Corporation |
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File Number: |
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1803393 |
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Filed: |
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11/10/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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32. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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General Electric Capital Corporation |
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File Number: |
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1812279 |
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Filed: |
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12/21/98 |
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Jurisdiction: |
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S/S Wisconsin |
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Collateral: |
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Specific Equipment |
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33. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation, for itself and/or as agent |
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File Number: |
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1814828 |
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|
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Filed: |
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01/04/99 |
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|
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Jurisdiction: |
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S/S Wisconsin |
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|
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Collateral: |
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Specific Equipment |
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34. |
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Debtor: |
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▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
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Secured Party: |
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Fleet Capital Corporation (for itself and/or as agent) |
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File Number: |
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1814829 |
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|
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Filed: |
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01/04/99 |
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|
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Jurisdiction: |
|
S/S Wisconsin |
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|
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Collateral: |
|
Specific Equipment |
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|
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35. |
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Debtor: |
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Perry Judds Inc. |
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|
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Secured Party: |
|
Meridian Leasing Corporation |
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|
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File Number: |
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1820793 |
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|
|
Filed: |
|
01/29/99 |
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|
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Jurisdiction: |
|
S/S Wisconsin |
|
|
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Collateral: |
|
Specific Equipment (leased) |
54
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36. |
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Debtor: |
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Perry Judds, Inc. |
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|
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Secured Party: |
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Compaq Capital |
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|
|
File Number: |
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1820996 |
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|
|
Filed: |
|
01/29/99 |
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|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
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37. |
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Debtor: |
|
Perry Judds Inc |
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|
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Secured Party: |
|
Pitney ▇▇▇▇▇ Credit Corporation |
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|
|
File Number: |
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1841682 |
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|
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Filed: |
|
04/26/99 |
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|
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Jurisdiction: |
|
S/S Wisconsin |
|
|
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Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
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38. |
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Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
Pitney ▇▇▇▇▇ Credit Corporation |
|
|
|
File Number: |
|
1841683 |
|
|
|
Filed: |
|
04/26/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
39. |
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Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
Pitney ▇▇▇▇▇ Credit Corporation |
|
|
|
File Number: |
|
1841684 |
|
|
|
Filed: |
|
04/26/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
40. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Siemens Credit Corporation |
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|
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File Number: |
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01861678 |
|
|
|
Filed: |
|
07/08/99 |
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|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
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Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
41. |
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Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Fleet Capital Corporation (for itself and/or as agent) |
|
|
|
File Number: |
|
01869625 |
|
|
|
Filed: |
|
08/03/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
55
|
42. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Fleet Capital Corporation (for itself and/or as agent) |
|
|
|
File Number: |
|
01870356 |
|
|
|
Filed: |
|
08/05/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
43. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc. |
|
|
|
Secured Party: |
|
NMHG Financial Services, Inc. |
|
|
|
File Number: |
|
01888260 |
|
|
|
Filed: |
|
10/08/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
44. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc. |
|
|
|
Secured Party: |
|
NMGH Financial Services, Inc. |
|
|
|
File Number: |
|
01889166 |
|
|
|
Filed: |
|
10/12/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
45. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
01898729 |
|
|
|
Filed: |
|
11/12/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
46. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
01898734 |
|
|
|
Filed: |
|
11/12/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
47. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
NMHG Financial Services, Inc. |
|
|
|
File Number: |
|
01900178 |
|
|
|
Filed: |
|
11/18/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
56
|
48. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
NMHG Financial Services, Inc. |
|
|
|
File Number: |
|
01903403 |
|
|
|
Filed: |
|
11/30/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
49. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
NMHG Financial Services, Inc. |
|
|
|
File Number: |
|
01909026 |
|
|
|
Filed: |
|
12/20/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
50. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
▇▇▇▇▇▇ Financial Leasing, Inc. |
|
|
|
File Number: |
|
01914726 |
|
|
|
Filed: |
|
01/05/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
51. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Citicorp Del Lease, Inc. |
|
|
|
File Number: |
|
01916575 |
|
|
|
Filed: |
|
01/11/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
52. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
GE Capital Corporation |
|
|
|
File Number: |
|
01918571 |
|
|
|
Filed: |
|
01/18/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
53. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Transamerica Services Corporation |
|
|
|
File Number: |
|
01955950 |
|
|
|
Filed: |
|
05/12/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
57
|
54. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Associated Bank |
|
|
|
File Number: |
|
01966169 |
|
|
|
Filed: |
|
06/15/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
55. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
American Medical Association |
|
|
|
File Number: |
|
01971516 |
|
|
|
Filed: |
|
07/05/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Inventory |
|
|
|
|
|
|
|
56. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Bank One, Milwaukee |
|
|
|
File Number: |
|
01995365 |
|
|
|
Filed: |
|
09/28/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
57. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Bank One, Milwaukee |
|
|
|
File Number: |
|
02002899 |
|
|
|
Filed: |
|
10/24/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
58. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
BancBoston Leasing Inc. |
|
|
|
File Number: |
|
02028543 |
|
|
|
Filed: |
|
01/22/01 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
59. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇, Inc. |
|
|
|
Secured Party: |
|
PrimeSource Corporation |
|
|
|
File Number: |
|
1350332 |
|
|
|
Filed: |
|
04/29/93 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
58
|
60. |
|
Debtor: |
|
Perry - Judds |
|
|
|
Secured Party: |
|
GFC Leasing, A Division of ▇▇▇▇▇▇ ▇▇▇▇▇▇ Corporation |
|
|
|
File Number: |
|
1779133 |
|
|
|
Filed: |
|
07/31/98 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
61. |
|
Debtor: |
|
▇▇▇▇▇-▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
Meridian Leasing Corporation |
|
|
|
File Number: |
|
1779138 |
|
|
|
Filed: |
|
07/31/98 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
62. |
|
Debtor: |
|
▇▇▇▇▇-▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
PrimeSource Corp. |
|
|
|
File Number: |
|
1844795 |
|
|
|
Filed: |
|
05/06/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
63. |
|
Debtor: |
|
▇▇▇▇▇-▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
PrimeSource Corp. |
|
|
|
File Number: |
|
1844815 |
|
|
|
Filed: |
|
05/06/99 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
64. |
|
Debtor: |
|
Perry-Judds Incorporated |
|
|
|
Secured Party: |
|
IBM Credit Corporation |
|
|
|
File Number: |
|
01939225 |
|
|
|
Filed: |
|
03/23/00 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
65. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ |
|
|
|
Secured Party: |
|
Pitney ▇▇▇▇▇ Credit |
|
|
|
File Number: |
|
P086967 |
|
|
|
Filed: |
|
03/03/00 |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
59
|
66. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
General Electric Capital Corporation |
|
|
|
File Number: |
|
168578 |
|
|
|
Filed: |
|
01/19/99 |
|
|
|
Jurisdiction: |
|
Sauk County, Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
67. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Siemens Credit Corporation |
|
|
|
File Number: |
|
171689 |
|
|
|
Filed: |
|
01/31/00 |
|
|
|
Jurisdiction: |
|
Sauk County, Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
68. |
|
Debtor: |
|
▇▇▇▇▇-▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
Meridian Leasing Corporation |
|
|
|
File Number: |
|
9805267452 |
|
|
|
Filed: |
|
05/26/98 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
69. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA Inc. |
|
|
|
File Number: |
|
9810157236 |
|
|
|
Filed: |
|
10/15/98 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
70. |
|
Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
▇.▇. ▇▇▇▇▇▇ de Nemours & Co. |
|
|
|
File Number: |
|
9901207801 |
|
|
|
Filed: |
|
01/20/99 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
71. |
|
Debtor: |
|
Perry Judds, Inc. |
|
|
|
Secured Party: |
|
Compaq Capital Corporation |
|
|
|
File Number: |
|
9905267810 |
|
|
|
Filed: |
|
05/26/99 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
60
|
72. |
|
Debtor: |
|
Perry Judds, Inc. |
|
|
|
Secured Party: |
|
Compaq Capital Corporation |
|
|
|
File Number: |
|
9905277820 |
|
|
|
Filed: |
|
05/27/99 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
73. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
9911127377 |
|
|
|
Filed: |
|
11/12/99 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
74. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
▇▇▇▇▇▇▇▇▇▇ |
|
|
|
Filed: |
|
11/12/99 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
75. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Citicorp Del Lease, Inc. |
|
|
|
File Number: |
|
0001117176 |
|
|
|
Filed: |
|
01/11/00 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
76. |
|
Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
▇▇▇▇▇▇ Financial Services, Inc. |
|
|
|
File Number: |
|
0007217071 |
|
|
|
Filed: |
|
07/21/00 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
77. |
|
Debtor: |
|
Perry Judds Incorporated |
|
|
|
Secured Party: |
|
Transamerica Equipment Financial |
|
|
|
File Number: |
|
0101047007 |
|
|
|
Filed: |
|
01/04/01 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
61
|
78. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇, Inc. |
|
|
|
Secured Party: |
|
PrimeSource Corporation |
|
|
|
File Number: |
|
0108237228 |
|
|
|
Filed: |
|
08/23/01 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
79. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
▇▇▇▇▇▇ Financial Leasing, Inc. |
|
|
|
File Number: |
|
0110267340 |
|
|
|
Filed: |
|
10/26/01 |
|
|
|
Jurisdiction: |
|
S/S Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
80. |
|
Debtor: |
|
▇▇▇▇▇-▇▇▇▇’▇ Inc. |
|
|
|
Secured Party: |
|
Meridian Leasing Corporation |
|
|
|
File Number: |
|
98000176 |
|
|
|
Filed: |
|
05/22/98 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment (Leased) |
|
|
|
|
|
|
|
81. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Fleet Capital Corporation for itself and/or as Agent |
|
|
|
File Number: |
|
98000351 |
|
|
|
Filed: |
|
10/01/98 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
82. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
99000206 |
|
|
|
Filed: |
|
07/26/99 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
83. |
|
Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
Canon Financial Services, Inc. |
|
|
|
File Number: |
|
99000276 |
|
|
|
Filed: |
|
10/12/99 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
62
|
84. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
99000315 |
|
|
|
Filed: |
|
11/15/99 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
85. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Newcourt Financial USA, Inc. |
|
|
|
File Number: |
|
99000316 |
|
|
|
Filed: |
|
11/15/99 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
86. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Siemens Credit Corporation |
|
|
|
File Number: |
|
00000013 |
|
|
|
Filed: |
|
01/12/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
87. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Siemens Credit Corporation |
|
|
|
File Number: |
|
00000014 |
|
|
|
Filed: |
|
01/12/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
88. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
GE Capital |
|
|
|
File Number: |
|
00000018 |
|
|
|
Filed: |
|
01/18/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
89. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Citicorp Del Lease, Inc. |
|
|
|
File Number: |
|
00000045 |
|
|
|
Filed: |
|
02/11/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
63
|
90. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
American Medical Association |
|
|
|
File Number: |
|
00000236 |
|
|
|
Filed: |
|
07/06/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Inventory |
|
|
|
|
|
|
|
91. |
|
Debtor: |
|
Perry Judds Inc |
|
|
|
Secured Party: |
|
Canon Financial Services, Inc. |
|
|
|
File Number: |
|
00000265 |
|
|
|
Filed: |
|
07/24/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
92. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Imaging Financial Services Inc |
|
|
|
File Number: |
|
00000321 |
|
|
|
Filed: |
|
08/30/00 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
93. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Transamerica Equipment Financial Services Corporation |
|
|
|
File Number: |
|
01000012 |
|
|
|
Filed: |
|
01/08/01 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
94. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
BancBoston Leasing Inc. |
|
|
|
File Number: |
|
01000028 |
|
|
|
Filed: |
|
01/22/01 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
95. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
▇▇▇▇▇▇ Financial Leasing, Inc. |
|
|
|
File Number: |
|
01000307 |
|
|
|
Filed: |
|
10/26/01 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
64
|
96. |
|
Debtor: |
|
▇▇▇▇▇ ▇▇▇▇’▇ Incorporated |
|
|
|
Secured Party: |
|
Heidelberg Web Systems, Inc. |
|
|
|
File Number: |
|
02000006 |
|
|
|
Filed: |
|
02/20/02 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
97. |
|
Debtor: |
|
▇▇▇▇’▇ Inc |
|
|
|
Secured Party: |
|
Master Lease Div of Tokai Financial Services, Inc. |
|
|
|
File Number: |
|
9300252 |
|
|
|
Filed: |
|
05/04/93 |
|
|
|
Jurisdiction: |
|
Shenandoah County, Virginia |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
98. |
|
Debtor: |
|
Perry Graphic Communication |
|
|
|
Secured Party: |
|
Caterpillar Financial Services Corporation |
|
|
|
File Number: |
|
1631005 |
|
|
|
Filed: |
|
11/26/96 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
99. |
|
Debtor: |
|
Perry Graphic Communications |
|
|
|
Secured Party: |
|
Fuji Photo Film U.S.A. Inc. |
|
|
|
File Number: |
|
1608652 |
|
|
|
Filed: |
|
08/19/96 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
100. |
|
Debtor: |
|
Perry Graphic Communications |
|
|
|
Secured Party: |
|
Imaging Financial Services Inc |
|
|
|
File Number: |
|
1669558 |
|
|
|
Filed: |
|
05/06/97 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
101. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
GTE Leasing Corporation |
|
|
|
File Number: |
|
1673655 |
|
|
|
Filed: |
|
05/21/97 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
65
|
102. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
GTE Leasing Corporation |
|
|
|
File Number: |
|
1694801 |
|
|
|
Filed: |
|
08/18/97 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment (leased) |
|
|
|
|
|
|
|
103. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
Fleet Capital Corporation for itself and/or as Agent |
|
|
|
File Number: |
|
1696365 |
|
|
|
Filed: |
|
08/25/97 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
104. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
Caterpillar Financial Services Corporation |
|
|
|
File Number: |
|
1718671 |
|
|
|
Filed: |
|
12/01/97 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
105. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
Fleet Capital Corporation (for itself and/or as Agent) |
|
|
|
File Number: |
|
1739876 |
|
|
|
Filed: |
|
03/02/98 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
106. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
GTE Leasing Corporation |
|
|
|
File Number: |
|
1779777 |
|
|
|
Filed: |
|
08/03/98 |
|
|
|
Jurisdiction: |
|
S/S Wisconsin |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
107. |
|
Debtor: |
|
Perry Graphic Communications, Inc. |
|
|
|
Secured Party: |
|
Fleet Capital Corporation (for itself and/or as Agent) |
|
|
|
File Number: |
|
P068087 |
|
|
|
Filed: |
|
12/29/99 |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
66
|
108. |
|
Debtor: |
|
Heartland Press Inc |
|
|
|
Secured Party: |
|
The CIT Group/Equipment Financing Inc |
|
|
|
File Number: |
|
K638818 |
|
|
|
Filed: |
|
03/30/95 (cont’d) |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
109. |
|
Debtor: |
|
Heartland Press |
|
|
|
Secured Party: |
|
Fuji Photo Film USA, Inc. |
|
|
|
File Number: |
|
K830593 |
|
|
|
Filed: |
|
04/24/97 (cont’d) |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
110. |
|
Debtor: |
|
Heartland Press |
|
|
|
Secured Party: |
|
Fuji Photo Film USA, Inc. |
|
|
|
File Number: |
|
K860522 |
|
|
|
Filed: |
|
09/16/97 (cont’d) |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
111. |
|
Debtor: |
|
Heartland Press, Inc |
|
|
|
Secured Party: |
|
Wam!Net Inc |
|
|
|
File Number: |
|
K957936 |
|
|
|
Filed: |
|
10/26/98 |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
|
|
|
|
|
|
|
112. |
|
Debtor: |
|
Heartland Press |
|
|
|
Secured Party: |
|
Fuji Photo Film USA, Inc. |
|
|
|
File Number: |
|
P036846 |
|
|
|
Filed: |
|
08/19/99 |
|
|
|
Jurisdiction: |
|
S/S Iowa |
|
|
|
Collateral: |
|
Specific Equipment |
67
None
68
SCHEDULE 11(i) – AFFILIATE TRANSACTIONS
NONE
69
SCHEDULE 11(j) – NAMES & TRADE NAMES
1. ▇▇▇▇▇ ▇▇▇▇’▇ Incorporated (Borrower/Legal Name)
70
$115,000,000 under the Indenture
71
SCHEDULE 11(p) – PARENT, SUBSIDIARIES AND AFFILIATES
1. ▇▇▇▇▇ ▇▇▇▇’▇ Holdings, Inc. (Parent)
72
SCHEDULE 12(j) – CHARGES REGARDING CHECKING ACCOUNTS
See Attached
73
SCHEDULE 13(f) – LOANS BY BORROWER
NONE
74
SCHEDULE 17(a) – CLOSING DOCUMENT CHECKLIST
1. Loan and Security Agreement (including Exhibits and Schedules) (ver2g)
2. $25,000,000.00 Revolving Note for Loans in favor of Lender (ver 1)
3. UCC financing statements showing Borrower as debtor filed with each of the following offices:
|
State |
|
Office |
|
Includes |
|
|
|
|
|
|
|
Delaware |
|
S/S Delaware |
|
N/A |
4. Items relating to insurance:
a. Insurance policy(ies)
b. Lender Insurance Letter to Agent (ver 1)
c. Assignment of Business Interruption Insurance Policy (ver 1)
d. Certificate(s) of Insurance with respect to property and liability insurance, showing LaSalle Business Credit, Inc. as certificate holder, lenders loss payee and additional insured, as applicable, and with lenders loss payable clause in favor of LaSalle Business Credit, Inc. (ver 1)
e. Letter from insurance agent indicating LaSalle Business Credit, Inc.’s status as sole loss payee with respect to the property insurance policy,
5. Secretary’s Certificate as to Certificate of Incorporation and By-Laws as each may be amended, Incumbency of Officers and Stockholders (ver 1)
6. Corporate Resolutions (ver2g)
7. Signature Cards
8. Controlled Disbursement Services Agreement (ver 1)
[Cash Management form]
9. Cash Management Forms
[Cash Management form]
10. Collateral Report Authorization Letter (ver 1)
75
11. Authorization to Disburse Loan Proceeds (ver 1)
12. Master Cash Management Service Agreement
[Cash Management form]
13. W-9 Taxpayer Identification Form (ver 1)
14. Continuing Unconditional Guaranty with
Rider A-Special Provisions (ver 1):
a) ▇▇▇▇▇ ▇▇▇▇’▇ Holdings, Inc.
15. Landlord’s Agreement from Print (WI) QRS 12-40, Inc. with respect to the property located at (ver 1):
a) ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
16. Attorney’s Opinion Letter (ver2g)
17. Payoff Letter with copy of executed UCC Terminations - [Lender to record terminations]
18. Lock Box and Blocked Account Agreement (ver 1)
19. Master Letter of Credit Agreement (ver 1)
20. Accountant’s Reliance Letter from Accountant (ver 1)
21. Accountant’s Reliance Letter from Bank (ver 1)
22. Daily Loan Request Form (ver 1)
23. Wire Transfer Security Procedures – Telephone (ver 1)
24. Waiver Agreement (ver 1)
76