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EXHIBIT 4(n)
CREDIT AGREEMENT
Dated as of June 23, 2000
among
▇▇▇▇▇ SUPERMARKETS, INC.
▇▇▇▇▇ SUPERMARKETS, LLC
THE PROVIDENT BANK
as Agent and Arranger
FIRSTAR BANK MISSOURI, NATIONAL ASSOCIATION
as Syndication Agent
LASALLE BANK NATIONAL ASSOCIATION
as Documentation Agent
and
THE INSTITUTIONS FROM TIME TO TIME
PARTIES HERETO AS LENDERS
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TABLE OF CONTENTS
Section Page
ARTICLE I: DEFINITIONS
1.1 Certain Defined Terms 1
1.2 References 14
ARTICLE II: THE REVOLVING LOAN FACILITIES
2.1 Revolving Loans 15
2.2 Rate Options for Advances 15
2.3 Optional Payments; Mandatory Prepayments 15
2.4 Optional Reduction of Revolving Loan Commitments 16
2.5 Method of Borrowing 16
2.6 Method of Selecting Types and Interest Periods for
Advances 16
2.7 Minimum Amount of Each Advance 16
2.8 Method of Selecting Types and Interest Periods for
Conversion and Continuation of Advances 16
2.9 Default Rate 17
2.10 Method of Payment 17
2.11 Revolving Notes 17
2.12 Telephonic Notices 17
2.13 Promise to Pay; Interest and Revolving Loan Commitment
Fees; Interest Payment Dates; Interest and Fee Basis;
Taxes; Loan and Control Accounts 17
2.14 Notification of Advances, Interest Rates, Prepayments
and Aggregate Revolving Loan Commitment Reductions 22
2.15 Lending Installations 22
2.16 Non-Receipt of Funds by the Agent 22
2.17 Termination Date 22
ARTICLE III: THE LETTER OF CREDIT FACILITY
3.1 Obligation to Issue 22
3.2 [Intentionally Omitted] 22
3.3 Types and Amounts 22
3.4 Conditions. 23
3.5 Procedure for Issuance of Letters of Credit 23
3.6 Letter of Credit Participation 23
3.7 Reimbursement Obligation 24
3.8 Letter of Credit Fees 24
3.9 Issuing Bank Reporting Requirements. 24
3.10 Indemnification; Exoneration 24
3.11 Cash Collateral 25
ARTICLE IV: CHANGE IN CIRCUMSTANCES
4.1 Yield Protection 25
4.2 Changes in Capital Adequacy Regulations 26
4.3 Availability of Types of Advances 26
4.4 Funding Indemnification 27
4.5 Lender Statements; Survival of Indemnity 27
ARTICLE V: CONDITIONS PRECEDENT
5.1 Initial Advances and Letters of Credit 27
5.2 Each Advance and Letter of Credit 28
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ARTICLE VI: REPRESENTATIONS AND WARRANTIES
6.1 Organization; Corporate Powers 29
6.2 Authority 29
6.3 No Conflict; Governmental Consents 29
6.4 Financial Statements 30
6.5 No Material Adverse Change 30
6.6 Taxes 30
6.7 Litigation; Loss Contingencies and Violations 30
6.8 Subsidiaries 30
6.9 ERISA 31
6.10 Accuracy of Information 31
6.11 Securities Activities 31
6.12 Material Agreements 31
6.13 [Intentionally Omitted] 32
6.14 Assets and Properties 32
6.15 Statutory Indebtedness Restrictions 32
6.16 Insurance 32
6.17 Labor Matters 32
6.18 Environmental Matters 32
6.19 Solvency 33
6.20 Designated Senior Indebtedness 33
6.21 Guarantor Senior Indebtedness 33
ARTICLE VII: COVENANTS
7.1 Reporting 33
7.2 Affirmative Covenants 36
7.3 Negative Covenants 38
7.4 Financial Covenants 43
ARTICLE VIII: DEFAULTS
8.1 Defaults 44
ARTICLE IX: ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS
AND REMEDIES
9.1 Termination of Revolving Loan Commitments; Acceleration 46
9.2 Defaulting Lender 46
9.3 Amendments 47
9.4 Preservation of Rights 47
ARTICLE X: GENERAL PROVISIONS
10.1 Survival of Representations 48
10.2 Governmental Regulation 48
10.3 Performance of Obligations 48
10.4 Headings 48
10.5 Entire Agreement 48
10.6 Several Obligations; Benefits of this Agreement 48
10.7 Expenses; Indemnification 48
10.8 Numbers of Documents 49
10.9 Accounting 49
10.10 Severability of Provisions 50
10.11 Nonliability of Lenders 50
10.12 GOVERNING LAW 50
10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS;
JURY TRIAL 50
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ARTICLE XI: THE AGENT
11.1 Appointment; Nature of Relationship 51
11.2 Powers 51
11.3 General Immunity 51
11.4 No Responsibility for Revolving Loans, Creditworthiness,
Recitals, Etc. 51
11.5 Action on Instructions of Lenders 52
11.6 Employment of Agents and Counsel 52
11.7 Reliance on Documents; Counsel 52
11.8 The Agent's Reimbursement and Indemnification 52
11.9 Rights as a Lender 52
11.10 Lender Credit Decision 52
11.11 Successor Agent 52
ARTICLE XII: SETOFF; RATABLE PAYMENTS
12.1 Setoff 53
12.2 Ratable Payments 53
12.3 Application of Payments 53
12.4 Relations Among Lenders 54
ARTICLE XIII: BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
13.1 Successors and Assigns 54
13.2 Participations 54
13.3 Assignments 55
13.4 Confidentiality 56
13.5 Dissemination of Information 56
ARTICLE XIV: NOTICES
14.1 Giving Notice 56
14.2 Change of Address 56
ARTICLE XV: COUNTERPARTS
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EXHIBITS AND SCHEDULES
Exhibits
EXHIBIT A -- Commitments
(Definitions)
EXHIBIT B -- Form of Revolving Note
(Definitions)
EXHIBIT C -- Form of Borrowing Notice (Section 2.6)
EXHIBIT D -- Form of Request for Letter of Credit (Section 3.4)
EXHIBIT E -- Form of Assignment and Acceptance Agreement
(Section 13.3)
EXHIBIT F -- Form of Borrowers' Counsel's Opinion
(Section 5.1)
EXHIBIT G -- List of Closing Documents
(Section 5.1)
EXHIBIT H -- Form of Officer's Certificate
(Sections 5.2 and 7.1(A)(iii))
EXHIBIT I -- Form of Compliance Certificate
(Sections 5.2 and 7.1(A)(iii))
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Schedules
Schedule 1.1.1 -- Permitted Contingent Obligations (Definitions)
Schedule 1.1.2 -- Permitted Existing Indebtedness (Definitions)
Schedule 1.1.3 -- Permitted Existing Liens (Definitions)
Schedule 1.1.4 -- Permitted Third Party Loans (Definitions)
Schedule 6.3 -- Conflicts; Governmental Consents (Section 6.3)
Schedule 6.6 -- Taxes (Section 6.6(A))
Schedule 6.7 -- Litigation; Loss Contingencies (Section 6.7)
Schedule 6.8 -- Subsidiaries (Section 6.8)
Schedule 6.9 -- ERISA (Section 6.9)
Schedule 6.18 -- Environmental Matters (Section 6.18)
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CREDIT AGREEMENT
This Credit Agreement dated as of June 23, 2000 is entered into among
▇▇▇▇▇ Supermarkets, Inc., an Indiana corporation, ▇▇▇▇▇ Supermarkets, LLC, an
Indiana limited liability company, the institutions from time to time parties
hereto as Lenders, whether by execution of this Agreement or an Assignment
Agreement pursuant to Section 13.3, The Provident Bank, in its capacities as
Agent and Arranger, Firstar Bank Missouri, National Association, in its capacity
as syndication agent and LaSalle Bank National Association, in its capacity as
documentation agent. The parties hereto agree as follows:
ARTICLE I: DEFINITIONS
1.1 Certain Defined Terms. In addition to the terms defined above, the
following terms used in this Agreement shall have the following meanings,
applicable both to the singular and the plural forms of the terms defined.
As used in this Agreement:
"ACQUISITION" means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, by which the
Borrowers or any of their respective Subsidiaries (i) acquire any going business
or all or substantially all of the assets of any firm, corporation or division
thereof, whether through purchase of assets, merger or otherwise or (ii)
directly or indirectly acquire (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of
votes) of the securities of a corporation which have ordinary voting power for
the election of directors (other than securities having such power only by
reason of the happening of a contingency) or a majority (by percentage of voting
power) of the outstanding equity interests of another Person.
"ADVANCE" means a borrowing hereunder consisting of the aggregate
amount of the several Revolving Loans made by the Lenders to the Borrowers and,
in the case of Eurodollar Rate Advances, for the same Interest Period.
"AFFILIATE" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person is the
"beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of greater than twenty percent (20%) or more of any class of voting
securities (or other voting interests) of the controlled Person or possesses,
directly or indirectly, the power to direct or cause the direction of the
management or policies of the controlled Person, whether through ownership of
Capital Stock, by contract or otherwise.
"AGENT" means The Provident Bank in its capacity as contractual
representative for itself and the Lenders pursuant to Article XI hereof and any
successor Agent appointed pursuant to Article XI hereof.
"AGGREGATE REVOLVING LOAN COMMITMENT" means the aggregate of the
Revolving Loan Commitments of all the Lenders, as reduced from time to time
pursuant to the terms hereof. The initial Aggregate Revolving Loan Commitment is
Ninety Million and 00/100 Dollars ($90,000,000.00).
"AGREEMENT" means this Credit Agreement, as it may be further amended,
restated, supplemented or otherwise modified and in effect from time to time.
"AGREEMENT ACCOUNTING PRINCIPLES" means generally accepted accounting
principles as in effect from time to time, applied in a manner consistent with
that used in preparing the financial statements referred to in Section 6.4
hereof; provided, however, that all pro forma financial statements reflecting
Acquisitions shall be prepared in accordance with the requirements established
by the Commission for acquisition accounting for reporting acquisitions by
public companies (whether or not such Acquisitions are required to be publicly
reported).
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"APPLICABLE REVOLVING LOAN COMMITMENT FEE PERCENTAGE" means, as at any
date of determination, the rate per annum then applicable in the determination
of the amount payable under Section 2.13(C)(i) hereof determined in accordance
with the provisions of Section 2.13(D)(ii) hereof.
"APPLICABLE EURODOLLAR MARGIN" means, as at any date of determination,
the rate per annum then applicable to Eurodollar Rate Loans determined in
accordance with the provisions of Section 2.13(D)(ii) hereof.
"APPLICABLE FLOATING RATE MARGIN" means, as at any date of
determination, the rate per annum then applicable to Floating Rate Loans,
determined in accordance with the provisions of Section 2.13(D)(ii) hereof.
"APPLICABLE L/C FEE PERCENTAGE" means, as at any date of determination,
a rate per annum equal to the Applicable Eurodollar Margin for Revolving Loans
in effect on such date.
"ARRANGER" means The Provident Bank, in its capacity as the arranger
for the loan transactions evidenced by this Agreement.
"ASSIGNMENT AGREEMENT" shall mean an assignment and acceptance
agreement entered into in connection with an assignment pursuant to Section 13.3
hereof in substantially the form of Exhibit E.
"ASSET SALE" means, with respect to any Person, the sale, lease,
conveyance, disposition or other transfer by such Person of any of its assets,
whether now owned or hereafter acquired, or any income or profits therefrom
(including by way of a sale-leaseback transaction and including the sale or
other transfer of any of the Equity Interests of any Subsidiary of such Person).
"AUTHORIZED OFFICER" means any of the Chairman, President, Chief
Financial Officer, Treasurer or Assistant Secretary of each Borrower, acting
singly on behalf of the applicable Borrower.
"BENEFIT PLAN" means a defined benefit plan as defined in Section 3(35)
of ERISA (other than a Multiemployer Plan) in respect of which the Borrowers or
any other member of the Controlled Group is, or within the immediately preceding
six (6) years was, an "employer" as defined in Section 3(5) of ERISA.
"BORROWERS/BORROWER" means ▇▇▇▇▇ Supermarkets, Inc., an Indiana
corporation, and ▇▇▇▇▇ Supermarkets, LLC, an Indiana limited liability company
together, jointly and severally, together with their respective successors and
assigns, including a debtor-in-possession on behalf of either Borrower. The term
Borrower means one of the Borrowers, individually.
"BORROWING DATE" means a date on which an Advance is made hereunder.
"BORROWING NOTICE" is defined in Section 2.6 hereof.
"BUSINESS DAY" means (i) with respect to any borrowing, payment or rate
selection of Revolving Loans bearing interest at the Eurodollar Rate, a day
(other than a Saturday or Sunday) on which banks are open for business in
Indiana and Ohio and on which dealings in Dollars are carried on in the London
interbank market and (ii) for all other purposes a day (other than a Saturday or
Sunday) on which banks are open for business in Indiana and Ohio.
"CAPITAL EXPENDITURES" means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities and including
Capitalized Leases and Permitted Purchase Money Indebtedness) by the Borrowers
and their respective Subsidiaries during that period that, in conformity with
Agreement Accounting Principles, are required to be included in or reflected by
the property, plant, equipment or similar fixed asset accounts reflected in the
consolidated balance sheet of the Borrowers and their respective Subsidiaries,
exclusive of Permitted Acquisitions.
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"CAPITAL STOCK" means (i) in the case of a corporation, corporate
stock, (ii) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership, partnership
interests (whether general or limited) and (iv) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person.
"CAPITALIZED LEASE" of a Person means any lease of property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.
"CAPITALIZED LEASE OBLIGATIONS" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be capitalized
on a balance sheet of such Person prepared in accordance with Agreement
Accounting Principles.
"CASH EQUIVALENTS" means (i) marketable direct obligations issued or
unconditionally guaranteed by the United States government and backed by the
full faith and credit of the United States government; (ii) domestic and
Eurodollar certificates of deposit and time deposits, bankers' acceptances and
floating rate certificates of deposit issued by any commercial bank organized
under the laws of the United States, any state thereof, the District of
Columbia, any foreign bank, or its branches or agencies (fully protected against
currency fluctuations for any such deposits with a term of more than ninety (90)
days); (iii) shares of money market, mutual or similar funds having assets in
excess of $100,000,000 and the investments of which are limited to investment
grade securities (i.e., securities rated at least Baa-3 by ▇▇▇▇▇'▇ Investors
Service, Inc. or at least BBB- by Standard & Poor's Ratings Group); and (iv)
commercial paper of United States and foreign banks and bank holding companies
and their subsidiaries and United States and foreign finance, commercial
industrial or utility companies which, at the time of acquisition, are rated A-1
(or better) by Standard & Poor's Ratings Group, or P-1 (or better) by ▇▇▇▇▇'▇
Investors Service, Inc.; provided that the maturities of such Cash Equivalents
shall not exceed 365 days.
"CHANGE" is defined in Section 4.2 hereof.
"CHANGE OF CONTROL" means an event or series of events by which:
(a) during any period of twelve (12) consecutive calendar
months, individuals: (i) who were directors of a Borrower on the first
day of such period, or (ii) whose election or nomination for election
to the board of directors of a Borrower was recommended or approved by
at least a majority of the directors then still in office who were
directors of such Borrower on the first day of such period, or whose
election or nomination for election was so approved, shall cease to
constitute a majority of the board of directors of such Borrower; or
(b) a Borrower consolidates with or merges into another
corporation or conveys, transfers or leases all or substantially all of
its property to any Person, or any corporation consolidates with or
merges into a Borrower, in either event pursuant to a transaction in
which the outstanding Capital Stock of such Borrower is reclassified or
changed into or exchanged for cash, securities or other property.
"CLOSING DATE" means June 23, 2000.
"CODE" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time.
"COMMISSION" means the Securities and Exchange Commission and any
Person succeeding to the functions thereof.
"COMMITMENT" means, for each Lender, such Lender's Revolving Loan
Commitment.
"CONSOLIDATED ASSETS" means the total assets of the Borrowers and their
respective Subsidiaries on a consolidated basis determined in accordance with
Agreement Accounting Principles.
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"CONSOLIDATED INDEBTEDNESS" means at any time the Indebtedness of the
Borrowers and their respective Subsidiaries calculated on a consolidated basis
as of such time determined in accordance with Agreement Accounting Principles.
"CONSOLIDATED NET WORTH" means, at a particular date, all amounts which
would be included under shareholders' equity for any Person and its consolidated
Subsidiaries determined in accordance with Agreement Accounting Principles.
"CONSOLIDATED TOTAL CAPITALIZATION" means at any time the sum of
Consolidated Indebtedness and Consolidated Net Worth, each calculated at such
time.
"CONTAMINANT" means any waste, pollutant, hazardous substance, toxic
substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, asbestos, polychlorinated biphenyls ("PCBS"), or any
constituent of any such substance or waste, and includes but is not limited to
these terms as defined in Environmental, Health or Safety Requirements of Law.
"CONTINGENT OBLIGATION", as applied to any Person, means any
Contractual Obligation, contingent or otherwise, of that Person with respect to
any Indebtedness of another or other obligation or liability of another,
including, without limitation, any such Indebtedness, obligation or liability of
another directly or indirectly guaranteed, endorsed (otherwise than for
collection or deposit in the ordinary course of business), co-made or discounted
or sold with recourse by that Person, or in respect of which that Person is
otherwise directly or indirectly liable, including Contractual Obligations
(contingent or otherwise) arising through any agreement to purchase, repurchase,
or otherwise acquire such Indebtedness, obligation or liability or any security
therefor, or to provide funds for the payment or discharge thereof (whether in
the form of loans, advances, stock purchases, capital contributions or
otherwise), or to maintain solvency, assets, level of income, or other financial
condition, or to make payment other than for value received.
"CONTRACTUAL OBLIGATION", as applied to any Person, means any provision
of any equity or debt securities issued by that Person or any indenture,
mortgage, deed of trust, security agreement, pledge agreement, guaranty,
contract, undertaking, agreement or instrument, in any case in writing, to which
that Person is a party or by which it or any of its properties is bound, or to
which it or any of its properties is subject.
"CONTROLLED GROUP" means the group consisting of (i) any corporation
which is a member of the same controlled group of corporations (within the
meaning of Section 414(b) of the Code) as the Borrowers; (ii) a partnership or
other trade or business (whether or not incorporated) which is under common
control (within the meaning of Section 414(c) of the Code) with the Borrowers;
and (iii) a member of the same affiliated service group (within the meaning of
Section 414(m) of the Code) as the Borrowers, any corporation described in
clause (i) above or any partnership or trade or business described in clause
(ii) above.
"CONTROLLED SUBSIDIARY" of any Person means a Subsidiary of such Person
(i) 90% or more of the total Equity Interests or other ownership interests of
which (other than directors' qualifying shares) shall at the time be owned by
such Person or by one or more wholly-owned Subsidiaries of such Person and (ii)
of which such Person possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies, whether through the ownership
of voting securities, by agreement or otherwise.
"CONVERSION/CONTINUATION NOTICE" is defined in Section 2.8(D) hereof.
"CONVERTIBLE SUBORDINATED NOTES" means the $20 Million of 7%
Convertible Subordinated Debentures due 2003 issued by ▇▇▇▇▇ Supermarkets, Inc.
"CURE LOAN" is defined in Section 9.2(iii) hereof.
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"CUSTOMARY PERMITTED LIENS" means:
(i) Liens (other than Environmental Liens and Liens in favor
of the IRS or the PBGC) with respect to the payment of taxes,
assessments or governmental charges in all cases which are not yet due
or (if foreclosure, distraint, sale or other similar proceedings shall
not have been commenced) which are being contested in good faith by
appropriate proceedings properly instituted and diligently conducted
and with respect to which adequate reserves or other appropriate
provisions are being maintained in accordance with Agreement Accounting
Principles;
(ii) statutory Liens of landlords and Liens of suppliers,
mechanics, carriers, materialmen, warehousemen or workmen and other
similar Liens imposed by law created in the ordinary course of business
for amounts not yet due or which are being contested in good faith by
appropriate proceedings properly instituted and diligently conducted
and with respect to which adequate reserves or other appropriate
provisions are being maintained in accordance with Agreement Accounting
Principles;
(iii) Liens (other than Environmental Liens and Liens in favor
of the IRS or the PBGC) incurred or deposits made in the ordinary
course of business in connection with worker's compensation,
unemployment insurance or other types of social security benefits or to
secure the performance of bids, tenders, sales, contracts (other than
for the repayment of borrowed money), surety, appeal and performance
bonds; provided that (A) all such Liens do not in the aggregate
materially detract from the value of the Borrowers' or their respective
Subsidiary's assets or property taken as a whole or materially impair
the use thereof in the operation of the businesses taken as a whole,
and (B) all Liens securing bonds to stay judgments or in connection
with appeals which do not secure at any time an aggregate amount
exceeding $1,000,000;
(iv) Liens arising with respect to zoning restrictions,
easements, licenses, reservations, covenants, rights-of-way, utility
easements, building restrictions and other similar charges or
encumbrances on the use of real property which do not in any case
materially detract from the value of the property subject thereto or
interfere with the ordinary conduct of the business of a Borrower or
any of its Subsidiaries;
(v) Liens of attachment or judgment with respect to judgments,
writs or warrants of attachment, or similar process against a Borrower
or any of its Subsidiaries which do not constitute a Default under
Section 8.1(H) hereof; and
(vi) any interest or title of the lessor in the property
subject to any operating lease entered into by a Borrower or any of its
Subsidiaries in the ordinary course of business.
"DEFAULT" means an event described in Article VIII hereof.
"DISTRIBUTION" means (i) any dividend or other distribution, direct or
indirect, on account of any Equity Interests of a Borrower now or hereafter
outstanding, except a dividend payable solely in the Capital Stock of a Borrower
or in options, warrants or other rights to purchase such Capital Stock, (ii) any
redemption, retirement, purchase or other acquisition for value, direct or
indirect, of any Equity Interests of the Borrowers or any of their respective
Subsidiaries now or hereafter outstanding, (iii) any redemption, purchase,
retirement, defeasance, prepayment or other acquisition for value, direct or
indirect, of any Indebtedness other than the Obligations, (iv) any payment of a
claim for the rescission of the purchase or sale of, or for material damages
arising from the purchase or sale of, any Indebtedness (other than the
Obligations) or any Equity Interests of the Borrowers or any of their respective
Subsidiaries, or of a claim for reimbursement, indemnification or contribution
arising out of or related to any such claim for damages or rescission and (v)
any payment of any management fee or similar consulting fee to any Affiliate of
the Borrowers.
"DOL" means the United States Department of Labor and any Person
succeeding to the functions thereof.
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"DOLLAR" and "$" means dollars in the lawful currency of the United
States.
"EBITDA" means, for any period, on a consolidated basis for the
Borrowers and their respective Subsidiaries, the sum of the amounts for such
period, without duplication, of (i) Net Income, plus (ii) Interest Expense, plus
(iii) charges against income for foreign, federal, state and local taxes to the
extent deducted in computing Net Income, plus (iv) depreciation expense to the
extent deducted in computing Net Income, plus (v) amortization expense,
including, without limitation, amortization of goodwill and other intangible
assets and Transaction Costs to the extent deducted in computing Net Income,
plus (vi) any amount deducted from Net Income due to an increase in the LIFO
Reserve for such period, less (vii) any amount added to Net Income due to a
decrease in the LIFO Reserve for such period.
"ENVIRONMENTAL, HEALTH OR SAFETY REQUIREMENTS OF LAW" means all
Requirements of Law derived from or relating to federal, state and local laws or
regulations relating to or addressing pollution or protection of the
environment, or protection of worker health or safety, including, but not
limited to, the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. ss. 9601 et seq., the Occupational Safety and Health Act of 1970,
29 U.S.C. ss. 651 et seq., and the Resource Conservation and Recovery Act of
1976, 42 U.S.C. ss. 6901 et seq., in each case including any amendments thereto,
any successor statutes, and any regulations or guidance promulgated thereunder,
and any state or local equivalent thereof.
"ENVIRONMENTAL LIEN" means a lien in favor of any Governmental
Authority for (a) any liability under Environmental, Health or Safety
Requirements of Law, or (b) damages arising from, or costs incurred by such
Governmental Authority in response to, a Release or threatened Release of a
Contaminant into the environment.
"ENVIRONMENTAL PROPERTY TRANSFER ACT" means any applicable requirement
of law that conditions, restricts, prohibits or requires any notification or
disclosure triggered by the closure of any property or the transfer, sale or
lease of any property or deed or title for any property for environmental
reasons, including, but not limited to, any so-called "Industrial Site Recovery
Act" or "Responsible Property Transfer Act."
"EQUITY INTERESTS" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).
"EQUITY OFFERING" means, with respect to any Person, the issuance or
sale by such Person of any Equity Interests.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time including (unless the context otherwise requires) any
rules or regulations promulgated thereunder.
"EURODOLLAR BASE RATE" means, with respect to a Eurodollar Rate Loan
for any specified Interest Period, the rate determined by the Agent, in its sole
discretion, to be the rate at which deposits in U.S. Dollars are offered to
first-class banks in the London interbank market at approximately 11:00 a.m.
(London time) for the relevant Interest Period two Business Days prior to the
first day of such Interest Period. Such determination by the Agent shall be
presumed correct absent manifest error.
"EURODOLLAR RATE" means, with respect to a Eurodollar Rate Loan for the
relevant Interest Period, the Eurodollar Base Rate applicable to such Interest
Period plus the then Applicable Eurodollar Margin. The Eurodollar Rate shall be
rounded to the next higher multiple of 1/100 of 1% if the rate is not such a
multiple.
"EURODOLLAR RATE ADVANCE" means an Advance which bears interest at the
Eurodollar Rate.
"EURODOLLAR RATE LOAN" means a Loan, or portion thereof, which bears
interest at the Eurodollar Rate.
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"FEDERAL FUNDS EFFECTIVE RATE" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m.
(Indianapolis time) on such day on such transactions received by the Agent from
three Federal funds brokers of recognized standing selected by the Agent in its
sole discretion.
"FIXED CHARGE COVERAGE RATIO" is defined in Section 7.4(A) hereof.
"FLOATING RATE" means, for any day for any Loan, a rate per annum equal
to the Prime Rate for such day, changing when and as the Prime Rate changes,
plus the then Applicable Floating Rate Margin.
"FLOATING RATE ADVANCE" means an Advance which bears interest at the
Floating Rate.
"FLOATING RATE LOAN" means a Loan, or portion thereof, which bears
interest at the Floating Rate.
"GOVERNMENTAL ACTS" is defined in Section 3.10(A) hereof.
"GOVERNMENTAL AUTHORITY" means any nation or government, any federal,
state, local or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.
"GROSS NEGLIGENCE" means recklessness, or actions taken or omitted with
conscious indifference to or the complete disregard of consequences. Gross
Negligence does not mean the absence of ordinary care or diligence, or an
inadvertent act or inadvertent failure to act. If the term "gross negligence" is
used with respect to the Agent, the Arranger or any Lender or any indemnitee in
any of the other Loan Documents, it shall have the meaning set forth herein.
"GUARANTORS" means (i) all of the Subsidiaries of the Borrowers as of
the Closing Date, other than the Inactive Subsidiaries and (ii) any other new
Subsidiaries which have satisfied the provisions of Section 7.2(K) hereof, in
each case, together with their respective successors and assigns.
"GUARANTY" means any guaranty now or hereafter (including pursuant to
Section 7.2(K) hereof) executed by a Guarantor in favor of the Agent for the
ratable benefit of the Holders of Revolving Loans, in each case, as amended,
restated or otherwise modified from time to time.
"HEDGING OBLIGATIONS" of a Person means any and all obligations of such
Person, whether absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all
agreements, devices or arrangements designed to protect at least one of the
parties thereto from the fluctuations of interest rates, commodity prices,
exchange rates or forward rates applicable to such party's assets, liabilities
or exchange transactions, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants, and (ii) any and all
cancellations, buy backs, reversals, terminations or assignments of any of the
foregoing.
"INACTIVE SUBSIDIARIES" means those Subsidiaries of each Borrower
identified on Schedule 6.8 attached to this Agreement as inactive.
"INDEBTEDNESS" of any Person means, without duplication, such Person's
(a) obligations for borrowed money, (b) obligations representing the deferred
purchase price of property or services (other than accounts payable arising in
the ordinary course of such Person's business payable on terms customary in the
trade), (c) obligations, whether or not assumed, secured by Liens or payable out
of the proceeds or production from property or assets now
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or hereafter owned or acquired by such Person, (d) obligations which are
evidenced by notes, acceptances or other instruments, (e) Capitalized Lease
Obligations, (f) Contingent Obligations, (g) obligations with respect to letters
of credit and (h) Hedging Obligations. The amount of Indebtedness of any Person
at any date shall be without duplication (i) the outstanding balance at such
date of all unconditional obligations as described above and the maximum
liability of any such Contingent Obligations at such date and (ii) in the case
of Indebtedness of others secured by a Lien to which the property or assets
owned or held by such Person is subject, the lesser of the fair market value at
such date of any asset subject to a Lien securing the Indebtedness of others and
the amount of the Indebtedness secured.
"INDEMNIFIED MATTERS" is defined in Section 10.7(B) hereof.
"INDEMNITEES" is defined in Section 10.7(B) hereof.
"INSURED CASUALTY LOSS" means the damage or destruction of assets of a
Person which are covered, in whole or in part, by insurance.
"INTANGIBLE ASSETS" means the intangible assets reflect on the
consolidated balance sheet of the Borrowers prepared in accordance with
Agreement Accounting Principles.
"INTEREST EXPENSE" means, for any period, the total interest expense of
the Borrowers and their consolidated Subsidiaries, whether paid or accrued
(including the interest component of Capitalized Leases, commitment and letter
of credit fees) as reflected on the income statement of the Borrowers and their
consolidated Subsidiaries, all as determined in conformity with Agreement
Accounting Principles.
"INTEREST PERIOD" means, with respect to a Eurodollar Rate Loan, a
period of 30, 60 or 90 days commencing on a Business Day selected by a Borrower
pursuant to this Agreement. Such Interest Period shall end on (but exclude) the
day which corresponds to such date 30, 60 or 90 days thereafter. If an Interest
Period would otherwise end on a day which is not a Business Day, such Interest
Period shall end on the next succeeding Business Day.
"INVENTORY" shall mean any and all goods, including, without
limitation, goods in transit, wheresoever located, whether now owned or
hereafter acquired by the Borrowers and their respective Subsidiaries, which are
held for sale or lease, furnished under any contract of service or held as raw
materials, work in process or supplies, and all materials used or consumed in
the business of Borrowers and their respective Subsidiaries, and shall include
all right, title and interest of the Borrowers and their respective Subsidiaries
in any property the sale or other disposition of which has given rise to
receivables and which has been returned to or repossessed or stopped in transit
by the Borrowers or their respective Subsidiaries.
"IRS" means the Internal Revenue Service and any Person succeeding to
the functions thereof.
"ISSUING BANK" means Provident.
"L/C DRAFT" means a draft drawn on the Issuing Bank pursuant to a
Letter of Credit.
"L/C INTEREST" shall have the meaning ascribed to such term in Section
3.6 hereof.
"L/C OBLIGATIONS" means, without duplication, an amount equal to the
sum of (i) the aggregate of the amount then available for drawing under each of
the Letters of Credit, (ii) the face amount of all outstanding L/C Drafts
corresponding to the Letters of Credit, which L/C Drafts have been accepted by
the applicable Issuing Bank, (iii) the aggregate outstanding amount of all
Reimbursement Obligations at such time and (iv) the aggregate face amount of all
Letters of Credit requested by a Borrower but not yet issued (unless the request
for an unissued Letter of Credit has been denied).
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"LENDERS" means the lending institutions listed on the signature pages
of this Agreement and their respective successors and assigns.
"LENDING INSTALLATION" means, with respect to a Lender or the Agent,
any office, branch, subsidiary or affiliate of such Lender or the Agent.
"LETTER OF CREDIT" means the letters of credit to be issued by the
Issuing Bank pursuant to Section 3.1 hereof.
"LEVERAGE RATIO" is defined in Section 7.4(B) hereof.
"LIFO RESERVE" means the reserve for lifo inventory on the Borrowers
consolidated financial statements recorded in accordance with Agreement
Accounting Principles.
"LIEN" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, the interest of a vendor or lessor
under any conditional sale, Capitalized Lease or other title retention
agreement).
"LOAN(S)" means, with respect to a Lender, such Lender's portion of any
Advance made pursuant to Section 2.1, hereof, whether made or continued as or
converted to Floating Rate Loans or Eurodollar Rate Loans.
"LOAN ACCOUNT" is defined in Section 2.13(F) hereof.
"LOAN DOCUMENTS" means this Agreement, the Revolving Notes, the
Guaranties and all other documents, instruments and agreements executed in
connection therewith or contemplated thereby, as the same may be amended,
restated or otherwise modified and in effect from time to time.
"MARGIN STOCK" shall have the meaning ascribed to such term in
Regulation U.
"MATERIAL ADVERSE EFFECT" means a material adverse effect upon (a) the
business, condition (financial or otherwise), operations, performance,
properties or prospects of each Borrower, or the Borrowers and their respective
Subsidiaries, taken as a whole, (b) the ability of the Borrowers or any of their
respective Material Subsidiaries to perform their respective obligations under
the Loan Documents in any material respect, or (c) the ability of the Lenders or
the Agent to enforce in any material respect the Obligations.
"MATERIAL ASSET SALE" means any Asset Sale, or entering into an
agreement regarding an Asset Sale, except:
(i) sales of Inventory in the ordinary course of business;
(ii) the disposition in the ordinary course of business of
equipment or other personal property that is obsolete, excess or no
longer useful in the business of the Borrowers or their respective
Subsidiaries;
(iii) the sale or other disposition of assets by any
consolidated Subsidiary of a Borrower to another consolidated
Subsidiary of that Borrower or by any consolidated Subsidiary of a
Borrower to that Borrower;
(iv) a sale and leaseback transaction permitted pursuant to
Section 7.3(J) hereof; or
(v) sales, assignments, transfers, leases, conveyances or
other dispositions of assets if such transaction (a) is not for less
than fair market value, and (b) when combined with all such other
transactions in the immediately preceding twelve month period, results
in Net Cash Proceeds to the Borrowers and their respective Subsidiaries
of less than $250,000.
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"MATERIAL INSURED CASUALTY LOSS" means any Insured Casualty Loss,
except if the insurance proceeds from such Insured Casualty Loss, when combined
with all such other insurance proceeds resulting from Insured Casualty Losses in
the immediately preceding twelve month period, results in Net Cash Proceeds to
the Borrowers and their respective Subsidiaries of less than $250,000.
"MATERIAL SUBSIDIARY" means a Subsidiary having a Net Worth of
$3,000,000 or more.
"MULTIEMPLOYER PLAN" means a "Multiemployer Plan" as defined in Section
4001(a)(3) of ERISA which is, or within the immediately preceding six (6) years
was, contributed to by a Borrower or any member of the Controlled Group.
"NET CASH PROCEEDS" means, with respect to any Asset Sale, Equity
Offering or Insured Casualty Loss, (a) cash (freely convertible into Dollars)
received by such Person or any Subsidiary of such Person from such Asset Sale
(including cash received as consideration for the assumption or incurrence of
liabilities incurred in connection with or in anticipation of such Asset Sale),
Equity Offering or Insured Casualty Loss, after (i) provision for all income or
other taxes measured by or resulting from such Asset Sale, (ii) payment of all
brokerage commissions and other fees and expenses related to such Asset Sale or
such Equity Offering, and (iii) all amounts used to repay Indebtedness secured
by a Lien on any asset disposed of in such Asset Sale or damaged or destroyed in
such Insured Casualty Loss or which is or may be required (by the express terms
of the instrument governing such Indebtedness) to be repaid in connection with
such Asset Sale or Insured Casualty Loss (including payments made to obtain or
avoid the need for the consent of any holder of such Indebtedness); and (b) cash
payments in respect of any other consideration received by such Person or any
Subsidiary of such Person from such Asset Sale upon receipt of such cash
payments by such Person or such Subsidiary.
"NET INCOME" means, for any period, the net earnings (or loss) after
taxes of the Borrowers and their respective Subsidiaries on a consolidated basis
for such period taken as a single accounting period determined in conformity
with Agreement Accounting Principles.
"NET WORTH" means, at a particular date, all amounts which would be
included under shareholders' equity for any Person determined in accordance with
Agreement Accounting Principles.
"NEW SUBSIDIARY" is defined in Section 7.3(G)(ii) hereof.
"NON PRO RATA LOAN" is defined in Section 9.2 hereof.
"NOTICE OF ASSIGNMENT" is defined in Section 13.3(B) hereof.
"OBLIGATIONS" means all Revolving Loans, Advances, Reimbursement
Obligations, debts, liabilities, obligations, covenants and duties owing by
either Borrower to the Agent, the Arranger, any Lender, any Issuing Bank, any
Affiliate of the Agent, the Arranger or any Lender, or any Indemnitee, of any
kind or nature, present or future, arising under this Agreement, the Revolving
Notes or any other Loan Document, whether or not evidenced by any note, guaranty
or other instrument, whether or not for the payment of money, whether arising by
reason of an extension of credit, loan, guaranty, indemnification, or in any
other manner, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or
hereafter arising and however acquired. The term includes, without limitation,
all interest, charges, expenses, fees, attorneys' fees and disbursements,
paralegals' fees (in each case whether or not allowed), and any other sum
chargeable to either Borrower under this Agreement or any other Loan Document.
"OPERATING LEASE" of a Person means any lease of property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.
"OTHER TAXES" is defined in Section 2.13(E)(ii) hereof.
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"PARTICIPANTS" is defined in Section 13.2(A) hereof.
"PAYMENT DATE" means the last Business Day of each calendar month.
"PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.
"PERMITTED ACQUISITION" is defined in Section 7.3(G) hereof.
"PERMITTED CONTINGENT OBLIGATIONS" means the Contingent Obligations of
a Borrower and its Subsidiaries identified as such on Schedule 1.1.1 to this
Agreement.
"PERMITTED EXISTING INDEBTEDNESS" means the Indebtedness of a Borrower
and its Subsidiaries identified as such on Schedule 1.1.2 to this Agreement, and
any renewals, modifications or extensions thereof provided that the terms of
such renewals, modifications or extensions do not increase the amount of such
Indebtedness.
"PERMITTED EXISTING LIENS" means the Liens on assets of a Borrower and
its Subsidiaries identified as such on Schedule 1.1.3 to this Agreement.
"PERMITTED PURCHASE MONEY INDEBTEDNESS" is defined in Section
7.3(A)(vi) hereof.
"PERMITTED THIRD PARTY LOANS" means the Third Party Loans of the
Borrowers and their respective Subsidiaries identified as such on Schedule 1.1.4
to this Agreement.
"PERSON" means any individual, corporation, firm, enterprise,
partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company, limited liability company or other entity of any kind, or
any government or political subdivision or any agency, department or
instrumentality thereof.
"PLAN" means an employee benefit plan defined in Section 3(3) of ERISA
in respect of which either Borrower or any member of the Controlled Group is, or
within the immediately preceding six (6) years was, an "employer" as defined in
Section 3(5) of ERISA.
"PRIME RATE" means a rate per annum equal to the prime rate of interest
announced from time to time by Provident (which is not necessarily the lowest
rate charged to any customer), changing when and as said prime rate changes.
"PROVIDENT" means The Provident Bank.
"PURCHASERS" is defined in Section 13.3(A) hereof.
"RATE OPTION" means the Eurodollar Rate or the Floating Rate.
"REGISTER" is defined in Section 13.3(C) hereof.
"REGULATION T" means Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by and to brokers and dealers of securities for the purpose
of purchasing or carrying margin stock (as defined therein).
"REGULATION U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying Margin
Stock applicable to member banks of the Federal Reserve System.
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"REGULATION X" means Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).
"REIMBURSEMENT OBLIGATION" is defined in Section 3.7 hereof.
"RELEASE" means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into
the indoor or outdoor environment, including the movement of Contaminants
through or in the air, soil, surface water or groundwater.
"RENTALS" of a Person means the aggregate fixed amounts payable by such
Person under any Operating Lease but does not include any amounts payable under
Capitalized Leases of such Person.
"REPORTABLE EVENT" means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC by regulation waived the
requirement of Section 4043(a) of ERISA that it be notified within 30 days after
such event occurs, provided, however, that a failure to meet the minimum funding
standards of Section 412 of the Code and of Section 302 of ERISA shall be a
Reportable Event regardless of the issuance of any such waiver of the notice
requirement in accordance with either Section 4043(a) of ERISA or Section 412(d)
of the Code.
"REQUIRED LENDERS" means Lenders whose Revolving Loan Pro Rata Shares,
in the aggregate, are greater than fifty percent (50%); provided, however, that,
if any of the Lenders shall have failed to fund its Revolving Loan Pro Rata
Share of any Revolving Loan requested by the Borrowers, which such Lenders are
obligated to fund under the terms of this Agreement and any such failure has not
been cured, then for so long as such failure continues, "REQUIRED LENDERS" means
Lenders (excluding all Lenders whose failure to fund their applicable Revolving
Loan Pro Rata Shares of such Revolving Loans has not been so cured) whose
Revolving Loan Pro Rata Shares represent greater than fifty percent (50%) of the
aggregate Revolving Loan Pro Rata Shares of such Lenders; provided further,
however, that, if the Revolving Loan Commitments have been terminated pursuant
to the terms of this Agreement, "REQUIRED LENDERS" means Lenders (without regard
to such Lenders' performance of their respective obligations hereunder) whose
aggregate ratable shares (stated as a percentage) of the aggregate outstanding
principal balance of all Revolving Loans and L/C Obligations are greater than
fifty percent (50%).
"REQUIREMENTS OF LAW" means, as to any Person, the charter and by-laws
or other organizational or governing documents of such Person, and any law, rule
or regulation, or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is subject
including, without limitation, the Securities Act of 1933, the Securities
Exchange Act of 1934, Regulations T, U and X, ERISA, the Fair Labor Standards
Act, the Worker Adjustment and Retraining Notification Act, Americans with
Disabilities Act of 1990, and any certificate of occupancy, zoning ordinance,
building, environmental or land use requirement or permit or environmental,
labor, employment, occupational safety or health law, rule or regulation,
including Environmental, Health or Safety Requirements of Law.
"RESERVES" shall mean the maximum reserve requirement, as prescribed by
the Board of Governors of the Federal Reserve System (or any successor) with
respect to "Eurocurrency liabilities" or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Eurodollar Rate Loans is determined or category of extensions of credit or other
assets which includes loans by a non-United States office of any Lender to
United States residents.
"REVOLVING CREDIT AVAILABILITY" means, at any particular time, the
amount by which (a) the Aggregate Revolving Loan Commitment at such time exceeds
(b) the Revolving Credit Obligations at such time.
"REVOLVING CREDIT OBLIGATIONS" means, at any particular time, the sum
of (i) the outstanding principal amount of the Revolving Loans at such time,
plus (ii) the L/C Obligations at such time.
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"REVOLVING LOAN" is defined in Section 2.2 hereof.
"REVOLVING LOAN COMMITMENT" means, for each Lender, the obligation of
such Lender to make Revolving Loans and to purchase participations in Letters of
Credit not exceeding the amount set forth on Exhibit A to this Agreement
opposite its name thereon under the heading "Revolving Loan Commitment" or the
signature page of the assignment and acceptance by which it became a Lender, as
such amount may be modified from time to time pursuant to the terms of this
Agreement or to give effect to any applicable assignment and acceptance.
"REVOLVING LOAN PRO RATA SHARE" shall mean, at any particular time and
with respect to any Lender, the percentage obtained by dividing (A) such
Lender's Revolving Loan Commitment (or the outstanding principal balance of such
Lender's Revolving Loans and all L/C Obligations in which such Lender has an
interest, if the Revolving Loan Commitments have been terminated pursuant to the
terms of this Agreement) by (B) the Aggregate Revolving Loan Commitment (or the
aggregate outstanding principal balance of the Revolving Loans and all L/C
Obligations, if the Revolving Loan Commitments have been terminated pursuant to
the terms of this Agreement).
"REVOLVING LOAN TERMINATION DATE" means February 1, 2003.
"REVOLVING NOTE" means a promissory note, in substantially the form of
Exhibit B hereto, duly executed by a Borrower and payable to the order of a
Lender in the amount of its Revolving Loan Commitment, including any amendment,
restatement, modification, renewal or replacement of such Revolving Note.
"RISK-BASED CAPITAL GUIDELINES" is defined in Section 4.2 hereof.
"SENIOR SUBORDINATED NOTES" means the $150 Million of 8-7/8% Senior
Subordinated Notes due 2007 issued by ▇▇▇▇▇ Supermarkets, Inc.
"SINGLE EMPLOYER PLAN" means a Plan maintained by a Borrower or any
member of the Controlled Group for employees of such Borrower or any member of
the Controlled Group.
"SOLVENT" shall mean, when used with respect to any Person, that at the
time of determination:
(i) the fair value of its assets (both at fair valuation and
at present fair saleable value) is equal to or in excess of the total
amount of its liabilities, including, without limitation, contingent
liabilities; and
(ii) it is then able and expects to be able to pay its debts
as they mature; and
(iii) it has capital sufficient to carry on its business as
conducted and as proposed to be conducted.
With respect to contingent liabilities (such as litigation, guarantees and
pension plan liabilities), such liabilities shall be computed at the amount
which, in light of all the facts and circumstances existing at the time,
represent the amount which can be reasonably be expected to become an actual or
matured liability.
"SUBORDINATED DEBT" means the Senior Subordinated Notes and the
Convertible Subordinated Notes.
"SUBSIDIARY" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, association, joint venture or similar business
organization more than 50% of the ownership interests having ordinary voting
power of which shall at the time be so owned or controlled. Unless otherwise
expressly provided, all references herein to a "Subsidiary" shall mean a
Subsidiary of either Borrower.
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"TAXES" is defined in Section 2.15(E)(i) hereof.
"TERMINATION DATE" means the earlier of (a) the Revolving Loan
Termination Date, and (b) the date of termination of the Aggregate Revolving
Loan Commitment pursuant to Section 2.4 hereof or pursuant to Section 9.1
hereof.
"TERMINATION EVENT" means (i) a Reportable Event with respect to any
Benefit Plan; (ii) the withdrawal of a Borrower or any member of the Controlled
Group from a Benefit Plan during a plan year in which a Borrower or such
Controlled Group member was a "substantial employer" as defined in Section
4001(a)(2) of ERISA or the cessation of operations which results in the
termination of employment of twenty percent (20%) of Benefit Plan participants
who are employees of a Borrower or any member of the Controlled Group; (iii) the
imposition of an obligation on a Borrower or any member of the Controlled Group
under Section 4041 of ERISA to provide affected parties written notice of intent
to terminate a Benefit Plan in a distress termination described in Section
4041(c) of ERISA; (iv) the institution by the PBGC of proceedings to terminate a
Benefit Plan; (v) any event or condition which might constitute grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Benefit Plan; or (vi) the partial or complete withdrawal of a
Borrower or any member of the Controlled Group from a Multiemployer Plan.
"THIRD PARTY LOAN" means, with respect to any Person, any loan or
advance (other than deposits with financial institutions available for
withdrawal on demand, prepaid expenses, accounts receivable and similar items
made or incurred in the ordinary course of business) by that Person to any other
Person, including all Indebtedness to such Person arising from a sale of
property by such Person other than in the ordinary course of its business.
"TRANSACTION COSTS" means the fees, costs and expenses payable by the
Borrowers in connection with the execution, delivery and performance of the Loan
Documents.
"TRANSFEREE" is defined in Section 13.5 hereof.
"TYPE" means, with respect to any Loan, its nature as a Floating Rate
Loan or a Eurodollar Rate Loan.
"UNFUNDED LIABILITIES" means (i) in the case of Single Employer Plans,
the amount (if any) by which the present value of all vested nonforfeitable
benefits under all Single Employer Plans exceeds the fair market value of all
such Plan assets allocable to such benefits, all determined as of the then most
recent valuation date for such Plans, and (ii) in the case of Multiemployer
Plans, the withdrawal liability that would be incurred by the Controlled Group
if all members of the Controlled Group completely withdrew from all
Multiemployer Plans.
"UNMATURED DEFAULT" means an event which, but for the lapse of time or
the giving of notice, or both, would constitute a Default.
"WEIGHTED AVERAGE LIFE TO MATURITY" means when applied to any
Indebtedness at any date, the number of years obtained by dividing (i) the sum
of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness.
The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms. Any accounting terms used in
this Agreement which are not specifically defined herein shall have the meanings
customarily given them in accordance with generally accepted accounting
principles in existence as of the date hereof.
1.2 References. Any references to Subsidiaries of the Borrowers set
forth herein shall not in any way be construed as consent by the Agent or any
Lender to the establishment, maintenance or acquisition of any Subsidiary,
except as may otherwise be permitted hereunder.
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ARTICLE II: THE REVOLVING LOAN FACILITIES
2.1 Revolving Loans. Upon the satisfaction of the conditions precedent
set forth in Sections 5.1 and 5.2, from and including the date of this Agreement
and prior to the Termination Date, each Lender, severally and not jointly
agrees, on the terms and conditions set forth in this Agreement, to make
revolving loans to the Borrowers from time to time, in Dollars, in an amount not
to exceed such Lender's Revolving Loan Pro Rata Share of Revolving Credit
Availability at such time (each individually, a "REVOLVING LOAN" and,
collectively, the "REVOLVING LOANS"); provided, however, at no time shall the
Revolving Credit Obligations exceed the Aggregate Revolving Loan Commitment.
Subject to the terms of this Agreement, the Borrowers may borrow, repay and
reborrow Revolving Loans at any time prior to the Termination Date. On the
Termination Date, the Borrowers shall repay in full the outstanding principal
balance of the Revolving Loans. Each Advance under this Section 2.1 shall
consist of Revolving Loans made by each Lender ratably in proportion to such
Lender's respective Revolving Loan Pro Rata Share.
2.2 Rate Options for Advances. The Revolving Loans may be Floating Rate
Advances or Eurodollar Rate Advances, or a combination thereof, selected by the
Borrowers in accordance with Section 2.8. The Borrowers may select, in
accordance with Section 2.8, Rate Options and Interest Periods applicable to
portions of the Revolving Loans; provided that there shall be no more than five
(5) Interest Periods in effect with respect to all of the Revolving Loans at any
time.
2.3 Optional Payments; Mandatory Prepayments.
(A) Optional Payments. The Borrowers may from time to time repay,
without penalty or premium, all or any part of outstanding Floating Rate
Advances. Eurodollar Rate Advances may be voluntarily repaid or prepaid prior to
the last day of the applicable Interest Period, subject to the indemnification
provisions contained in Section 4.4, provided, that the Borrowers may not so
prepay Eurodollar Rate Advances unless it shall have provided at least three
Business Days' written notice to the Agent of such prepayment.
(B) Mandatory Prepayments.
(i) Mandatory Prepayments and Reduction of Revolving Loan
Commitments.
(a) Upon the consummation or occurrence of any (i) Material
Asset Sale, (ii) Equity Offering or (iii) Material Insured Casualty
Loss, by a Borrower or any of their respective Subsidiaries except
as provided in the second sentence of this Section 2.3(B)(i)(a),
within three (3) Business Days after such Borrower's or
Subsidiaries' (i) receipt of any Net Cash Proceeds from any such
Material Asset Sale, Equity Offering or Material Insured Casualty
Loss, or (ii) conversion to cash or Cash Equivalents of non-cash
proceeds (whether principal or interest and including securities,
release of escrow arrangements or lease payments) received from any
Material Asset Sale, the Borrowers shall make a mandatory
prepayment of the Obligations in an amount equal to one hundred
percent (100%) of such Net Cash Proceeds or such proceeds converted
from non-cash to cash or Cash Equivalents, and the Aggregate
Revolving Loan Commitment shall be reduced by a like amount. Net
Cash Proceeds with respect to which a Borrower shall have given the
Agent written notice in the next compliance certificate delivered
pursuant to Section 7.1(A)(iii) of its intention to acquire, repair
or replace capital assets within twelve months following such
Material Asset Sale, Equity Offering or Material Insured Casualty
Loss shall not be subject to the provisions of the first sentence
of this Section 2.3(B)(i)(a) unless and to the extent that such
applicable period shall have expired without such acquisition,
repair or replacement having been made.
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(b) Nothing in this Section 2.3(B)(i) shall be construed to
constitute the Lenders' consent to any transaction referred to in
clause (a) above which is not expressly permitted by the terms of
this Agreement.
(ii) Application of Mandatory Prepayments. Subject to the
preceding provisions of this Section 2.5(B), all of the mandatory
prepayments made under this Section 2.5(B) shall be applied first to
Floating Rate Loans and to any Eurodollar Rate Loans maturing on such
date and then to subsequently maturing Eurodollar Rate Loans in order
of maturity.
2.4 Optional Reduction of Revolving Loan Commitments. (a) The Borrowers
may, from time to time, permanently reduce the Aggregate Revolving Loan
Commitment in whole, or in part ratably among the Lenders, in an aggregate
minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of
that amount (unless the Aggregate Revolving Loan Commitment is reduced in
whole), upon at least one Business Day's written notice to the Agent, which
notice shall specify the amount of any such reduction; provided, however, that
the amount of the Aggregate Revolving Loan Commitment may not be reduced below
the aggregate principal amount of the outstanding Revolving Credit Obligations.
(b) All accrued commitment fees shall be payable on the effective date
of any termination of the obligations of the Lenders to make Revolving Loans
hereunder.
2.5 Method of Borrowing. Not later than 2:00 p.m. (Indianapolis time)
on each Borrowing Date, each Lender shall make available its Revolving Loan in
funds immediately available to the Agent at the address designated by the Agent.
The Agent will promptly make the funds so received from the Lenders available to
the Borrowers at the Agent's aforesaid address.
2.6 Method of Selecting Types and Interest Periods for Advances. The
Borrowers shall select the Type of Advance and, in the case of each Eurodollar
Rate Advance, the Interest Period applicable to each Advance from time to time.
The Borrowers shall give the Agent irrevocable notice in substantially the form
of Exhibit C hereto (a "BORROWING NOTICE") not later than 10:00 a.m.
(Indianapolis time) (a) on the Borrowing Date of each Floating Rate Advance and
(b) three Business Days before the Borrowing Date for each Eurodollar Rate
Advance, specifying: (i) the Borrowing Date (which shall be a Business Day) of
such Advance; (ii) the aggregate amount of such Advance; (iii) the Type of
Advance selected; and (iv) in the case of each Eurodollar Rate Advance, the
Interest Period applicable thereto. The Borrowers shall select Interest Periods
so that, to the best of the Borrowers' knowledge, it will not be necessary to
prepay all or any portion of any Eurodollar Rate Advance prior to the last day
of the applicable Interest Period and no Interest Period shall extend beyond the
Revolving Loan Termination Date. Each Floating Rate Advance and all Obligations
other than Revolving Loans shall bear interest from and including the date of
the making of such Advance to (but not including) the date of repayment thereof
at the Floating Rate, changing when and as such Floating Rate changes. Changes
in the rate of interest on that portion of any Advance maintained as a Floating
Rate Loan will take effect simultaneously with each change in the Prime Rate.
Each Eurodollar Rate Advance shall bear interest from and including the first
day of the Interest Period applicable thereto to (but not including) the last
day of such Interest Period at the interest rate determined as applicable to
such Eurodollar Rate Advance.
2.7 Minimum Amount of Each Advance. Each Advance shall be in the
minimum amount of $5,000,000 (and in multiples of $1,000,000 if in excess
thereof); provided, however, if there is less than $5,000,000 of unused
Aggregate Revolving Loan Commitment that a Floating Rate Advance may be in the
amount of the unused Aggregate Revolving Loan Commitment.
2.8 Method of Selecting Types and Interest Periods for Conversion and
Continuation of Advances.
(A) Right to Convert. The Borrowers may elect from time to time,
subject to the provisions of Section 2.2 and this Section 2.8, to convert all or
any part of a Loan of any Type into any other Type or Types of Revolving Loans;
provided that any conversion of any Eurodollar Rate Advance shall be made on,
and only on, the last day of the Interest Period applicable thereto.
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(B) Automatic Conversion and Continuation. Floating Rate Loans shall
continue as Floating Rate Loans unless and until such Floating Rate Loans are
converted into Eurodollar Rate Loans. Eurodollar Rate Loans shall continue as
Eurodollar Rate Loans until the end of the then applicable Interest Period
therefor, at which time such Eurodollar Rate Loans shall be automatically
converted into Floating Rate Loans unless the Borrowers shall have given the
Agent notice in accordance with Section 2.8(D) requesting that, at the end of
such Interest Period, such Eurodollar Rate Loans continue as a Eurodollar Rate
Loan.
(C) No Conversion Post-Default or Post-Unmatured Default.
Notwithstanding anything to the contrary contained in Section 2.8(A) or Section
2.8(B), no Loan may be converted into or continued as a Eurodollar Rate Loan
(except with the consent of the Required Lenders) when any Default or Unmatured
Default has occurred and is continuing.
(D) Conversion/Continuation Notice. The Borrowers shall give the Agent
irrevocable notice (a "CONVERSION/CONTINUATION NOTICE") of each conversion of a
Floating Rate Loan into a Eurodollar Rate Loan or continuation of a Eurodollar
Rate Loan not later than 10:00 a.m. (Indianapolis time) three Business Days
prior to the date of the requested conversion or continuation, specifying: (1)
the requested date (which shall be a Business Day) of such conversion or
continuation; (2) the amount and Type of the Loan to be converted or continued;
and (3) the amount of Eurodollar Rate Loan(s) into which such Loan is to be
converted or continued and the duration of the Interest Period applicable
thereto.
2.9 Default Rate. After the occurrence and during the continuance of a
Default, at the option of the Agent or at the direction of the Required Lenders,
the interest rate(s) applicable to the Obligations and the fees payable under
Section 3.8 with respect to Letters of Credit shall be increased by two percent
(2.0%) per annum above the Floating Rate or Eurodollar Rate, as applicable.
2.10 Method of Payment. All payments of principal, interest, and fees
hereunder shall be made, without setoff, deduction or counterclaim, in
immediately available funds to the Agent at the Agent's address specified
pursuant to Article XIV, or at any other Lending Installation of the Agent
specified in writing by the Agent to the Borrowers, by 12:00 p.m. (Indianapolis
time) on the date when due and shall be made ratably among the Lenders (unless
such amount is not to be shared ratably in accordance with the terms hereof).
Each payment delivered to the Agent for the account of any Lender shall be
delivered promptly by the Agent to such Lender in the same type of funds which
the Agent received at its address specified pursuant to Article XIV or at any
Lending Installation specified in a notice received by the Agent from such
Lender. The Borrowers authorize the Agent to charge the account of the Borrowers
maintained with Provident for each payment of principal, interest and fees as it
becomes due hereunder.
2.11 Revolving Notes. Each Lender is authorized to record the principal
amount of each of its Revolving Loans and each repayment with respect to its
Revolving Loans on the schedule attached to its respective Revolving Notes;
provided, however, that the failure to so record shall not affect the Borrowers'
obligations under any such Revolving Notes.
2.12 Telephonic Notices. The Borrowers authorize the Lenders and the
Agent to extend Advances, issue Letters of Credit, effect selections of Types of
Advances and to transfer funds based on telephonic notices made by any person or
persons the Agent or any Lender in good faith believes to be acting on behalf of
the Borrowers. The Borrowers agree to deliver promptly to the Agent a written
confirmation, signed by an Authorized Officer, if such confirmation is requested
by the Agent or any Lender, of each telephonic notice. If the written
confirmation differs in any material respect from the action taken by the Agent
and the Lenders, (i) the telephonic notice shall govern absent manifest error
and (ii) the Agent or the Lender, as applicable, shall promptly notify the
Authorized Officer who provided such confirmation of such difference.
2.13 Promise to Pay; Interest and Revolving Loan Commitment Fees;
Interest Payment Dates; Interest and Fee Basis; Taxes; Loan and Control
Accounts.
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(A) Promise to Pay. Each Borrower, jointly and severally,
unconditionally promises to pay when due the principal amount of each Loan and
all other Obligations and to pay all unpaid interest accrued thereon, in
accordance with the terms of this Agreement and the Revolving Notes.
(B) Interest Payment Dates. Interest accrued on each Floating Rate Loan
shall be payable on each Payment Date, commencing with the first such date to
occur after the date hereof, and at maturity (whether by acceleration or
otherwise). Interest accrued on each Eurodollar Rate Loan shall be payable on
the last day of its applicable Interest Period, on any date on which the
Eurodollar Rate Loan is prepaid, whether by acceleration or otherwise, and at
maturity. Interest accrued on the principal balance of all other Obligations
shall be payable in arrears (i) on the last day of each calendar month,
commencing on the first such day following the incurrence of such Obligation,
(ii) upon repayment thereof in full or in part, and (iii) if not theretofore
paid in full, at the time such other Obligation becomes due and payable (whether
by acceleration or otherwise).
(C) Revolving Loan Commitment Fees. (i) The Borrowers shall pay to the
Agent, for the account of the Lenders as provided hereinbelow, from and after
the Closing Date until the date on which the Aggregate Revolving Loan Commitment
shall be terminated in whole, a commitment fee accruing at the rate of the then
Applicable Revolving Loan Commitment Fee Percentage, on the amount by which (x)
the Aggregate Revolving Loan Commitment exceeds (y) the Revolving Credit
Obligations from time to time. All such commitment fees payable under this
clause (C)(i) shall be payable quarterly in arrears on the last day of the
calendar quarter occurring after the Closing Date (with the first such payment
being calculated for the period from the Closing Date and ending on June 30,
2000), and, in addition, on the date on which the Aggregate Revolving Loan
Commitment shall be terminated in whole. The Agent shall pay to each Lender a
portion of such commitment fee based on the amount by which such Lender's
Revolving Loan Commitment exceeds the Revolving Credit Obligations.
(ii) The Borrowers agree to pay to the Agent for the sole account of
the Agent and the Arranger (unless otherwise agreed between the Agent and the
Arranger and any Lender) the fees set forth in the letter agreements among the
Agent, the Arranger and the Borrowers dated June 23, 2000, payable at the times
and in the amounts set forth therein.
(D) Interest and Fee Basis; Applicable Floating Rate Margin, Applicable
Eurodollar Margin and Applicable Revolving Loan Commitment Fee Percentage.
(i) Interest on all Obligations and all fees shall be calculated for
actual days elapsed on the basis of a 360-day year. Interest shall be payable
for the day an Obligation is incurred but not for the day of any payment on the
amount paid if payment is received prior to 12:00 p.m. (Indianapolis time) at
the place of payment. If any payment of principal of or interest on a Loan or
any payment of any other Obligations shall become due on a day which is not a
Business Day, such payment shall be made on the next succeeding Business Day
and, in the case of a principal payment, such extension of time shall be
included in computing interest in connection with such payment.
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(ii) The Applicable Floating Rate Margin and Applicable Eurodollar
Margin and the Applicable Revolving Loan Commitment Fee Percentage shall be
determined from time to time by reference to the table set forth below, on the
basis of the then applicable Leverage Ratio as described in this Section
2.13(D)(ii):
Applicable
Applicable Applicable Revolving Loan
Eurodollar Floating Rate Commitment
Leverage Ratio Margin Margin Fee Percentage
-------------- ------ ------ --------------
Greater than or
equal to 4.5 to 1.0 2.25% 0.75% 0.50%
Greater than or
equal to 4.0 to 1.0
and less than
4.5 to 1.0 2.00% 0.50% 0.50%
Greater than or
equal to 3.5 to 1.0
and less than
4.0 to 1.0 1.75% 0.25% 0.375%
Greater than or
equal to 3.0 to 1.0
and less than
3.5 to 1.0 1.50% 0.00% 0.375%
Greater than or
equal to 2.5 to 1.0
and less than
3.0 to 1.0 1.00% 0.00% 0.25%
Less than 2.5 to 1.0 .50% 0.00% 0.25%
For purposes of this Section 2.13(D)(ii), the Leverage Ratio shall be determined
as of the last day of each fiscal quarter based upon (a) for Consolidated
Indebtedness, the outstanding balance of Consolidated Indebtedness as of such
date, except with regard to revolving Indebtedness (including Revolving Loan
Obligations hereunder) which shall be the average outstanding revolving
Indebtedness for the four fiscal quarter period ending on such date, adjusted,
(x) with respect to Permitted Acquisitions, to treat additional revolving
Indebtedness incurred in connection with such Permitted Acquisition as if it
were also outstanding during such portion of the four fiscal quarter period
which is prior to the consummation of the Permitted Acquisition, and (y) with
respect to the repayment of Indebtedness (other than revolving Indebtedness)
with the proceeds of revolving Indebtedness, to treat additional revolving
Indebtedness incurred in connection with such repayment as if it were also
outstanding during such portion of the four quarter fiscal period which is prior
to the consummation of such repayment; and (b) for EBITDA, the actual amount of
EBITDA for the four fiscal quarter period ending on such day, adjusted, with
respect to Permitted Acquisitions, to reflect the EBITDA of the acquired entity
(calculated consistent with the definition of EBITDA contained herein) during
such portion of the four fiscal quarter period which is prior to the
consummation of such Permitted Acquisition. Upon receipt of the financial
statements delivered pursuant to Sections 7.1(A)(i) and (ii), as applicable, the
Applicable Floating Rate Margin, Applicable Eurodollar Margin and Applicable
Revolving Loan Commitment Fee Percentage shall be adjusted, such adjustment
being effective five (5) Business Days following the Agent's receipt of such
financial statements and the compliance certificate required to be delivered in
connection therewith pursuant to Section 7.1(A)(iii); provided, that if the
Borrowers shall not have timely delivered its financial statements in accordance
with Section 7.1(A)(i) or (ii), as applicable, then commencing on the date upon
which such financial statements should have been delivered and continuing until
such financial statements are actually delivered, it shall be assumed for
purposes of determining the Applicable Floating Rate Margin, Applicable
Eurodollar Margin and Applicable Revolving Loan Commitment Fee Percentage that
the Leverage Ratio was greater than or equal to 4.5 to 1.0.
(E) Taxes.
(i) Any and all payments by the Borrowers hereunder shall be made
free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings or
any liabilities with respect thereto including those arising after the
date hereof as a result of the adoption of or any change in any law,
treaty, rule, regulation, guideline or determination of a Governmental
Authority or any change in the interpretation or application thereof by
a Governmental Authority but excluding, in the case of each Lender and
the Agent, such taxes (including income taxes, franchise taxes, excise
taxes, Indiana gross income taxes and branch profit taxes) as are
imposed on or measured by such Lender's or Agent's, as the case may be,
income or assets by the United States of
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America or any Governmental Authority (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings, and liabilities
which the Agent or a Lender determines to be applicable to this
Agreement, the other Loan Documents, the Revolving Loan Commitments or
the Revolving Loans or the Letters of Credit being hereinafter referred
to as "TAXES"). If the Borrowers shall be required by law to deduct any
Taxes from or in respect of any sum payable hereunder or under the
other Loan Documents to any Lender or the Agent, (i) the sum payable
shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums
payable under this Section 2.13(E)) such Lender or the Agent (as the
case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrowers shall make such
deductions, and (iii) the Borrowers shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance
with applicable law. If a withholding tax of the United States of
America or any other Governmental Authority shall be or become
applicable (y) after the date of this Agreement, to such payments by
the Borrowers made to the Lending Installation or any other office that
a Lender may claim as its Lending Installation, or (z) after such
Lender's selection and designation of any other Lending Installation,
to such payments made to such other Lending Installation, such Lender
shall use reasonable efforts to make, fund and maintain its Revolving
Loans through another Lending Installation of such Lender in another
jurisdiction so as to reduce the liability of the Borrowers hereunder,
if the making, funding or maintenance of such Revolving Loans through
such other Lending Installation of such Lender does not, in the
judgment of such Lender, otherwise adversely affect such Revolving
Loans, or obligations under the Revolving Loan Commitments or such
Lender.
(ii) In addition, the Borrowers agree to pay any present (the Agent
is aware of none at the time of Closing) or future stamp or documentary
taxes or any other excise or property taxes, charges, or similar levies
which arise from any payment made hereunder, from the issuance of
Letters of Credit hereunder, or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement, the
other Loan Documents, the Revolving Loan Commitments or the Revolving
Loans or the Letters of Credit (hereinafter referred to as "OTHER
TAXES").
(iii) The Borrowers indemnify each Lender and the Agent for the
full amount of Taxes and Other Taxes (including, without limitation,
any Taxes or Other Taxes imposed by any Governmental Authority on
amounts payable under this Section 2.13(E)) paid by such Lender or the
Agent (as the case may be) and any liability (including penalties,
interest, and expenses) arising therefrom or with respect thereto. This
indemnification shall be made within thirty (30) days after the date
such Lender or the Agent (as the case may be) makes written demand
therefor. A certificate as to any additional amount payable to any
Lender or the Agent under this Section 2.13(E) submitted to the
Borrowers and the Agent (if a Lender is so submitting) by such Lender
or the Agent shall show in reasonable detail the amount payable and the
calculations used to determine such amount and shall, absent manifest
error, be final, conclusive and binding upon all parties hereto. With
respect to such deduction or withholding for or on account of any Taxes
and to confirm that all such Taxes have been paid to the appropriate
Governmental Authorities, the Borrowers shall promptly (and in any
event not later than thirty (30) days after receipt) furnish to each
Lender and the Agent such certificates, receipts and other documents as
may be required (in the judgment of such Lender or the Agent) to
establish any tax credit to which such Lender or the Agent may be
entitled.
(iv) Within thirty (30) days after the date of any payment of Taxes
or Other Taxes by the Borrowers, the Borrowers shall furnish to the
Agent the original or a certified copy of a receipt evidencing payment
thereof.
(v) Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers
contained in this Section 2.13(E) shall survive the payment in full of
principal and interest hereunder, the termination of the Letters of
Credit and the termination of this Agreement.
(vi) Without limiting the obligations of the Borrowers under this
Section 2.13(E), each Lender that is not created or organized under the
laws of the United States of America or a political
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subdivision thereof shall deliver to the Borrowers and the Agent on or
before the Closing Date, or, if later, the date on which such Lender
becomes a Lender pursuant to Section 13.3, a true and accurate
certificate executed in duplicate by a duly authorized officer of such
Lender, in a form satisfactory to the Borrowers and the Agent, to the
effect that such Lender is capable under the provisions of an
applicable tax treaty concluded by the United States of America (in
which case the certificate shall be accompanied by two executed copies
of Form 1001 of the IRS) or under Section 1442 of the Code (in which
case the certificate shall be accompanied by two copies of Form 4224 of
the IRS, or, if such Lender is not a "bank" within the meaning of
Section 881(c)(3)(A) of the Code, two completed and signed copies of
IRS Form W-8 or W-9 or the applicable successor form) of receiving
payments of interest hereunder without deduction or withholding of
United States federal income tax. Each such Lender further agrees to
deliver to the Borrowers and the Agent from time to time a true and
accurate certificate executed in duplicate by a duly authorized officer
of such Lender substantially in a form satisfactory to the Borrowers
and the Agent, before or promptly upon the occurrence of any event
requiring a change in the most recent certificate previously delivered
by it to the Borrowers and the Agent pursuant to this Section
2.13(E)(vi). Further, each Lender which delivers a certificate
accompanied by Form 1001 of the IRS covenants and agrees to deliver to
the Borrowers and the Agent within fifteen (15) days prior to January
1, 2001, and every third (3rd) anniversary of such date thereafter on
which this Agreement is still in effect, another such certificate and
two accurate and complete original signed copies of Form 1001 (or any
successor form or forms required under the Code or the applicable
regulations promulgated thereunder), and each Lender that delivers a
Form W-8 or W-9 as prescribed above or a certificate accompanied by
Form 4224 of the IRS covenants and agrees to deliver to the Borrowers
and the Agent within fifteen (15) days prior to the beginning of each
subsequent taxable year of such Lender during which this Agreement is
still in effect, another such Form W-8 or W-9 or another such
certificate and two accurate and complete original signed copies of IRS
Form 4224 (or any successor form or forms required under the Code or
the applicable regulations promulgated thereunder). Each such
certificate shall certify as to one of the following:
(a) that such Lender is capable of receiving payments
of interest hereunder without deduction or withholding of
United States of America federal income tax;
(b) that such Lender is not capable of receiving
payments of interest hereunder without deduction or
withholding of United States of America federal income tax as
specified therein but is capable of recovering the full amount
of any such deduction or withholding from a source other than
the Borrowers and will not seek any such recovery from the
Borrowers; or
(c) that, as a result of the adoption of or any
change in any law, treaty, rule, regulation, guideline or
determination of a Governmental Authority or any change in the
interpretation or application thereof by a Governmental
Authority after the date such Lender became a party hereto,
such Lender is not capable of receiving payments of interest
hereunder without deduction or withholding of United States of
America federal income tax as specified therein and that it is
not capable of recovering the full amount of the same from a
source other than the Borrowers.
Each Lender shall promptly furnish to the Borrowers and the Agent such
additional documents as may be reasonably required by the Borrowers or
the Agent to establish any exemption from or reduction of any Taxes or
Other Taxes required to be deducted or withheld and which may be
obtained without undue expense to such Lender.
(F) Loan Account. Each Lender shall maintain in accordance with its
usual practice an account or accounts (a "LOAN ACCOUNT") evidencing the
Obligations of the Borrowers to such Lender owing to such Lender from time to
time, including the amount of principal and interest payable and paid to such
Lender from time to time hereunder and under the Revolving Notes.
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(G) Entries Binding. The entries made in the Register and each Loan
Account shall be conclusive and binding for all purposes, absent manifest error,
unless the Borrowers object to information contained in the Register and each
Loan Account within thirty (30) days of the receipt by Borrowers of such
information.
2.14 Notification of Advances, Interest Rates, Prepayments and
Aggregate Revolving Loan Commitment Reductions. Promptly after receipt thereof,
the Agent will notify each Lender of the contents of each Aggregate Revolving
Loan Commitment reduction notice, Borrowing Notice, Continuation/Conversion
Notice, and repayment notice received by it hereunder. The Agent will notify
each Lender of the interest rate applicable to each Eurodollar Rate Loan
promptly upon determination of such interest rate and will give each Lender
prompt notice of each change in the Prime Rate.
2.15 Lending Installations. Each Lender may book its Revolving Loans at
any Lending Installation selected by such Lender and may change its Lending
Installation from time to time. All terms of this Agreement shall apply to any
such Lending Installation and the Revolving Notes shall be deemed held by each
Lender for the benefit of such Lending Installation. Each Lender may, by written
or facsimile notice to the Agent and the Borrowers, designate a Lending
Installation through which Revolving Loans will be made by it and for whose
account Loan payments are to be made.
2.16 Non-Receipt of Funds by the Agent. Unless the Borrowers or a
Lender, as the case may be, notifies the Agent prior to the date on which it is
scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or (ii) in the case of the Borrowers, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or the Borrowers, as the case may be, has not in fact made such
payment to the Agent, the recipient of such payment shall, on demand by the
Agent, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to (i) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day or (ii) in the case of payment by the
Borrowers, the interest rate applicable to the relevant Loan.
2.17 Termination Date. This Agreement shall be effective until the
Termination Date. Notwithstanding the termination of this Agreement on the
Termination Date, until all of the Obligations (other than contingent indemnity
obligations) shall have been fully and indefeasibly paid and satisfied and all
financing arrangements among the Borrowers and the Lenders shall have been
terminated and all of the Letters of Credit shall have expired, been canceled or
terminated, all of the rights and remedies under this Agreement and the other
Loan Documents shall survive.
ARTICLE III: THE LETTER OF CREDIT FACILITY
3.1 Obligation to Issue. Subject to the terms and conditions of this
Agreement and in reliance upon the representations, warranties and covenants of
the Borrowers herein set forth, the Issuing Bank hereby agrees to issue for the
account of the Borrowers through the Issuing Bank's branches as it and the
Borrowers may jointly agree, one or more Letters of Credit denominated in
Dollars in accordance with this Article III, from time to time during the
period, commencing on the date hereof and ending on the Business Day prior to
the Termination Date.
3.2 [Intentionally Omitted].
3.3 Types and Amounts. The Issuing Bank shall have no obligation to and
Issuing Bank shall not:
(i) issue any Letter of Credit if on the date of issuance, before
or after giving effect to the Letter of Credit requested hereunder, (a)
the Revolving Credit Obligations at such time would exceed the
Aggregate Revolving Loan Commitment at such time, or (b) the aggregate
outstanding amount of the L/C Obligations would exceed $5,000,000; or
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(ii) issue any Letter of Credit which has an expiration date later
than the date which is the earlier of one (1) year after the date of
issuance thereof or five (5) Business Days immediately preceding the
Revolving Loan Termination Date.
3.4 Conditions. In addition to being subject to the satisfaction of the
conditions contained in Sections 5.1 and 5.2, the obligation of the Issuing Bank
to issue any Letter of Credit is subject to the satisfaction in full of the
following conditions:
(i) the Borrowers shall have delivered to the applicable Issuing
Bank at such times and in such manner as the Issuing Bank may
reasonably prescribe, a request for issuance of such Letter of Credit
in substantially the form of Exhibit D hereto, duly executed
applications for such Letter of Credit, and such other documents,
instructions and agreements as may be required pursuant to the terms
thereof, and the proposed Letter of Credit shall be reasonably
satisfactory to the Issuing Bank as to form and content; and
(ii) as of the date of issuance no order, judgment or decree of any
court, arbitrator or Governmental Authority shall purport by its terms
to enjoin or restrain the Issuing Bank from issuing such Letter of
Credit and no law, rule or regulation applicable to the Issuing Bank
and no request or directive (whether or not having the force of law)
from a Governmental Authority with jurisdiction over the Issuing Bank
shall prohibit or request that the Issuing Bank refrain from the
issuance of Letters of Credit generally or the issuance of that Letter
of Credit.
3.5 Procedure for Issuance of Letters of Credit. (a) Subject to the
terms and conditions of this Article III and provided that the applicable
conditions set forth in Sections 5.1 and 5.2 hereof have been satisfied, the
Issuing Bank shall, on the requested date, issue a Letter of Credit on behalf of
the Borrowers in accordance with the Issuing Bank's usual and customary business
practices and, in this connection, the Issuing Bank may assume that the
applicable conditions set forth in Section 5.2 hereof have been satisfied unless
it shall have received notice to the contrary from the Agent or a Lender or has
knowledge that the applicable conditions have not been met.
(b) The Issuing Bank shall give the Agent written or telex notice, or
telephonic notice confirmed promptly thereafter in writing, of the issuance of a
Letter of Credit, provided, however, that the failure to provide such notice
shall not result in any liability on the part of the Issuing Bank.
(c) The Issuing Bank shall not extend or amend any Letter of Credit
unless the requirements of this Section 3.5 are met as though a new Letter of
Credit was being requested and issued.
3.6 Letter of Credit Participation. Immediately upon the issuance of
each Letter of Credit hereunder, each Lender with a Revolving Loan Commitment
shall be deemed to have automatically, irrevocably and unconditionally purchased
and received from the applicable Issuing Bank an undivided interest and
participation in and to such Letter of Credit, the obligations of the Borrowers
in respect thereof, and the liability of the Issuing Bank thereunder
(collectively, an "L/C INTEREST") in an amount equal to the amount available for
drawing under such Letter of Credit multiplied by such Lender's Revolving Loan
Pro Rata Share. The Issuing Bank will notify each Lender promptly upon
presentation to it of an L/C Draft or upon any other draw under a Letter of
Credit. On or before the Business Day on which the Issuing Bank makes payment of
each such L/C Draft or, in the case of any other draw on a Letter of Credit, on
demand by the Agent, each Lender shall make payment to the Agent, for the
account of the Issuing Bank, in immediately available funds in an amount equal
to such Lender's Revolving Loan Pro Rata Share of the amount of such payment or
draw. The obligation of each Lender to reimburse the Issuing Bank under this
Section 3.6 shall be unconditional, continuing, irrevocable and absolute. In the
event that any Lender fails to make payment to the Agent of any amount due under
this Section 3.6, the Agent shall be entitled to receive, retain and apply
against such obligation the principal and interest otherwise payable to such
Lender hereunder until the Agent receives such payment from such Lender or such
obligation is otherwise fully satisfied; provided, however, that nothing
contained in this sentence shall relieve such Lender of its obligation to
reimburse the applicable Issuing Bank for such amount in accordance with this
Section 3.6.
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3.7 Reimbursement Obligation. The Borrowers agree unconditionally,
irrevocably and absolutely to pay immediately to the Agent, for the account of
the Lenders, the amount of each advance which may be drawn under or pursuant to
a Letter of Credit or an L/C Draft related thereto (such obligation of the
Borrowers to reimburse the Agent for an advance made under a Letter of Credit or
L/C Draft being hereinafter referred to as a "REIMBURSEMENT OBLIGATION" with
respect to such Letter of Credit or L/C Draft). If the Borrowers at any time
fails to repay a Reimbursement Obligation pursuant to this Section 3.7, the
Borrowers shall be deemed to have elected to borrow Revolving Loans from the
Lenders, as of the date of the advance giving rise to the Reimbursement
Obligation, equal in amount to the amount of the unpaid Reimbursement
Obligation. Such Revolving Loans shall be made as of the date of the payment
giving rise to such Reimbursement Obligation, automatically, without notice and
without any requirement to satisfy the conditions precedent otherwise applicable
to an Advance of Revolving Loans. Such Revolving Loans shall constitute a
Floating Rate Advance, the proceeds of which Advance shall be used to repay such
Reimbursement Obligation. If, for any reason, the Borrowers fail to repay a
Reimbursement Obligation on the day such Reimbursement Obligation arises and,
for any reason, the Lenders are unable to make or have no obligation to make
Revolving Loans, then such Reimbursement Obligation shall bear interest from and
after such day, until paid in full, at the interest rate applicable to a
Floating Rate Advance.
3.8 Letter of Credit Fees. The Borrowers agree to pay (i) quarterly, in
arrears, to the Agent for the ratable benefit of the Lenders, except as set
forth in Section 9.2, a letter of credit fee at a rate per annum equal to the
Applicable L/C Fee Percentage on the average daily outstanding face amount
available for drawing under all Letters of Credit, (ii) quarterly, in advance,
to the Agent for the sole account of each Issuing Bank, a letter of credit
fronting fee of one-quarter of one percent (0.25%) per annum on the average
daily outstanding face amount available for drawing under all Letters of Credit
issued by the Issuing Bank, and (iii) to the Agent for the benefit of the
Issuing Bank, all customary fees and other issuance, amendment, document
examination, negotiation and presentment expenses and related charges in
connection with the issuance, amendment, presentation of L/C Drafts, and the
like customarily charged by the Issuing Bank with respect to standby and
commercial Letters of Credit, including, without limitation, standard
commissions with respect to commercial Letters of Credit, payable at the time of
invoice of such amounts.
3.9 Issuing Bank Reporting Requirements. In addition to the notices
required by Section 3.5(C), the Issuing Bank shall, no later than the tenth
Business Day following the last day of each month, provide to the Agent, upon
the Agent's request, schedules, in form and substance reasonably satisfactory to
the Agent, showing the date of issue, account party, amount, expiration date and
the reference number of each Letter of Credit issued by it outstanding at any
time during such month and the aggregate amount payable by the Borrowers during
such month. In addition, upon the request of the Agent, the Issuing Bank shall
furnish to the Agent copies of any Letter of Credit and any application for or
reimbursement agreement with respect to a Letter of Credit to which the Issuing
Bank is party and such other documentation as may reasonably be requested by the
Agent. Upon the request of any Lender, the Agent will provide to such Lender
information concerning such Letters of Credit.
3.10 Indemnification; Exoneration. (A) In addition to amounts payable
as elsewhere provided in this Article III, the Borrowers hereby agree to
protect, indemnify, pay and save harmless the Agent, the Issuing Bank and each
Lender from and against any and all liabilities and costs which the Agent, the
Issuing Bank or such Lender may incur or be subject to as a consequence, direct
or indirect, of (i) the issuance of any Letter of Credit other than, in the case
of the Issuing Bank, as a result of its Gross Negligence or willful misconduct,
as determined by the final judgment of a court of competent jurisdiction, or
(ii) the failure of the Issuing Bank to honor a drawing under a Letter of Credit
as a result of any act or omission, whether rightful or wrongful, of any present
or future de jure or de facto Governmental Authority (all such acts or omissions
herein called "GOVERNMENTAL ACTS").
(B) As among the Borrowers, the Lenders, the Agent and the Issuing
Bank, the Borrowers assume all risks of the acts and omissions of, or misuse of
such Letter of Credit by, the beneficiary of any Letters of Credit. In
furtherance and not in limitation of the foregoing, subject to the provisions of
the Letter of Credit applications and Letter of Credit reimbursement agreements
executed by the Borrowers at the time of request for any Letter of Credit,
neither the Agent, the Issuing Bank nor any Lender shall be responsible (in the
absence of Gross Negligence or
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willful misconduct in connection therewith, as determined by the final judgment
of a court of competent jurisdiction): (i) for the form, validity, sufficiency,
accuracy, genuineness or legal effect of any document submitted by any party in
connection with the application for and issuance of the Letters of Credit, even
if it should in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged; (ii) for the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any reason;
(iii) for failure of the beneficiary of a Letter of Credit to comply duly with
conditions required in order to draw upon such Letter of Credit; (iv) for
errors, omissions, interruptions or delays in transmission or delivery of any
messages, by mail, cable, telegraph, telex, or other similar form of
teletransmission or otherwise; (v) for errors in interpretation of technical
trade terms; (vi) for any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any Letter of Credit or of
the proceeds thereof; (vii) for the misapplication by the beneficiary of a
Letter of Credit of the proceeds of any drawing under such Letter of Credit; and
(viii) for any consequences arising from causes beyond the control of the Agent,
the Issuing Bank and the Lenders, including, without limitation, any
Governmental Acts. None of the above shall affect, impair, or prevent the
vesting of the Issuing Bank's rights or powers under this Section 3.10.
(C) In furtherance and extension and not in limitation of the specific
provisions hereinabove set forth, any action taken or omitted by the Issuing
Bank under or in connection with the Letters of Credit or any related
certificates shall not, in the absence of Gross Negligence or willful
misconduct, as determined by the final judgment of a court of competent
jurisdiction, put the Issuing Bank, the Agent or any Lender under any resulting
liability to the Borrowers or relieve the Borrowers of any of their obligations
hereunder to any such Person.
(D) Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in this Section 3.10 shall survive the payment in full of principal and interest
hereunder, the termination of the Letters of Credit and the termination of this
Agreement.
3.11 Cash Collateral. Notwithstanding anything to the contrary herein
or in any application for a Letter of Credit, after the occurrence and during
the continuance of a Default, the Borrowers shall, upon the Agent's demand,
deliver to the Agent for the benefit of the Lenders and the Issuing Bank, cash,
or other collateral of a type satisfactory to the Required Lenders, having a
value, as determined by such Lenders, equal to the aggregate outstanding L/C
Obligations. In addition, if the Revolving Credit Availability is at any time
less than the amount of contingent L/C Obligations outstanding at any time, the
Borrowers shall deposit cash collateral with the Agent in an amount equal to the
amount by which such L/C Obligations exceed such Revolving Credit Availability.
Any such collateral shall be held by the Agent in a separate account
appropriately designated as a cash collateral account in relation to this
Agreement and the Letters of Credit and retained by the Agent for the benefit of
the Lenders and the Issuing Bank as collateral security for the Borrowers'
obligations in respect of this Agreement and each of the Letters of Credit and
L/C Drafts. Such amounts shall be applied to reimburse the Issuing Bank for
drawings or payments under or pursuant to Letters of Credit or L/C Drafts, or if
no such reimbursement is required, to payment of such of the other Obligations
as the Agent shall determine. If no Default shall be continuing, amounts
remaining in any cash collateral account established pursuant to this Section
3.11 which are not to be applied to reimburse the Issuing Bank for amounts
actually paid or to be paid by the Issuing Bank in respect of a Letter of Credit
or L/C Draft, shall be returned to the Borrowers (after deduction of the Agent's
expenses incurred in connection with such cash collateral account).
ARTICLE IV: CHANGE IN CIRCUMSTANCES
4.1 Yield Protection. If any law or any governmental or
quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law) adopted after the date of this Agreement and having
general applicability to all banks within the jurisdiction in which such Lender
operates (excluding, for the avoidance of doubt, the effect of and phasing in of
capital requirements or other regulations or guidelines passed prior to the date
of this Agreement), or any interpretation or application thereof by any
Governmental Authority charged with the interpretation or application thereof,
or the compliance of any Lender therewith,
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(i) subjects any Lender or any applicable Lending Installation to
any Taxes, duties, charges or withholdings on or from payments due from
the Borrowers, or changes the basis of taxation of payments to any
Lender in respect of its Revolving Loans, its L/C Interests, the
Letters of Credit or other amounts due it hereunder, or
(ii) imposes or increases or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement
against assets of, deposits with or for the account of, or credit
extended by, any Lender or any applicable Lending Installation (other
than reserves and assessments taken into account in determining the
interest rate applicable to Eurodollar Rate Loans) with respect to its
Revolving Loans, L/C Interests or the Letters of Credit, or
(iii) imposes any other condition the result of which is to
increase the cost to any Lender or any applicable Lending Installation
of making, funding or maintaining the Revolving Loans, the L/C
Interests or the Letters of Credit or reduces any amount received by
any Lender or any applicable Lending Installation in connection with
Revolving Loans or Letters of Credit, or requires any Lender or any
applicable Lending Installation to make any payment calculated by
reference to the amount of Revolving Loans or L/C Interests held or
interest received by it or by reference to the Letters of Credit, by an
amount deemed material by such Lender;
and the result of any of the foregoing is to increase the cost to that Lender of
making, renewing or maintaining its Revolving Loans, L/C Interests or Letters of
Credit or to reduce any amount received under this Agreement, then, within 15
days after receipt by the Borrowers of written demand by such Lender pursuant to
Section 4.5, the Borrowers shall pay such Lender that portion of such increased
expense incurred or reduction in an amount received which such Lender determines
is attributable to making, funding and maintaining its Revolving Loans, L/C
Interests, Letters of Credit and its Revolving Loan Commitment.
4.2 Changes in Capital Adequacy Regulations. If a Lender determines (i)
the amount of capital required or expected to be maintained by such Lender, any
Lending Installation of such Lender or any corporation controlling such Lender
is increased as a result of a "Change" (as defined below), and (ii) such
increase in capital will result in an increase in the cost to such Lender of
maintaining its Revolving Loans, L/C Interests, the Letters of Credit or its
obligation to make Revolving Loans hereunder, then, within 15 days after receipt
by the Borrowers of written demand by such Lender pursuant to Section 4.5, the
Borrowers shall pay such Lender the amount necessary to compensate for any
shortfall in the rate of return on the portion of such increased capital which
such Lender determines is attributable to this Agreement, its Revolving Loans,
its L/C Interests, the Letters of Credit or its obligation to make Revolving
Loans hereunder (after taking into account such Lender's policies as to capital
adequacy). "CHANGE" means (i) any change after the date of this Agreement in the
"Risk-Based Capital Guidelines" (as defined below) excluding, for the avoidance
of doubt, the effect of any phasing in of such Risk-Based Capital Guidelines or
any other capital requirements passed prior to the date hereof, or (ii) any
adoption of or change in any other law, governmental or quasi-governmental rule,
regulation, policy, guideline, interpretation, or directive (whether or not
having the force of law) after the date of this Agreement and having general
applicability to all banks and financial institutions within the jurisdiction in
which such Lender operates which affects the amount of capital required or
expected to be maintained by any Lender or any Lending Installation or any
corporation controlling any Lender. "RISK-BASED CAPITAL GUIDELINES" means (i)
the risk-based capital guidelines in effect in the United States on the date of
this Agreement, including transition rules, and (ii) the corresponding capital
regulations promulgated by regulatory authorities outside the United States
implementing the July 1988 report of the Basle Committee on Banking Regulation
and Supervisory Practices Entitled "International Convergence of Capital
Measurements and Capital Standards," including transition rules, and any
amendments to such regulations adopted prior to the date of this Agreement.
4.3 Availability of Types of Advances. If (i) any Lender determines
that maintenance of its Eurodollar Rate Loans at a suitable Lending Installation
would violate any applicable law, rule, regulation or directive, whether or not
having the force of law, or (ii) the Required Lenders determine that (x)
deposits of a type and maturity appropriate to match fund Eurodollar Rate
Advances are not available or (y) the interest rate applicable to a Type of
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Advance does not accurately reflect the cost of making or maintaining such an
Advance, then the Agent shall suspend the availability of the affected Type of
Advance and, in the case of any occurrence set forth in clause (i) require any
Advances of the affected Type to be repaid.
4.4 Funding Indemnification. If any payment of a Eurodollar Rate
Advance occurs on a date which is not the last day of the applicable Interest
Period, whether because of acceleration, prepayment, conversion or otherwise, or
a Eurodollar Rate Advance is not made on the date specified by the Borrowers for
any reason other than default by the Lenders, the Borrowers shall indemnify each
Lender for any loss or cost reasonably estimated to have been incurred by it
resulting therefrom, including, without limitation, any loss or cost reasonably
estimated to have been incurred in liquidating or employing deposits acquired to
fund or maintain the Eurodollar Rate Advance.
4.5 Lender Statements; Survival of Indemnity. If reasonably possible,
each Lender shall designate an alternate Lending Installation with respect to
its Eurodollar Rate Loans to reduce any liability of the Borrowers to such
Lender under Sections 4.1 and 4.2 or to avoid the unavailability of a Type of
Advance under Section 4.3, so long as such designation is not disadvantageous to
such Lender. Each Lender requiring compensation pursuant to Section 2.13(E) or
to this Article IV shall use its reasonable efforts to notify the Borrowers and
the Agent in writing of any Change, law, policy, rule, guideline or directive
giving rise to such demand for compensation not later than thirty (30) days
following the date upon which the responsible account officer of such Lender
knows or should have known of such Change, law, policy, rule, guideline or
directive. Any demand for compensation pursuant to this Article IV shall be in
writing and shall state the amount due, if any, under Section 4.1, 4.2 or 4.4
and shall set forth in reasonable detail the calculations upon which such Lender
determined such amount. Such written demand shall be rebuttably presumed correct
for all purposes. Determination of amounts payable under such Sections in
connection with a Eurodollar Rate Loan shall be calculated as though each Lender
funded its Eurodollar Rate Loan through the purchase of a deposit of the type
and maturity corresponding to the deposit used as a reference in determining the
Eurodollar Rate applicable to such Loan, whether in fact that is the case or
not. The obligations of the Borrowers under Sections 4.1, 4.2 and 4.4 shall
survive payment of the Obligations and termination of this Agreement.
ARTICLE V: CONDITIONS PRECEDENT
5.1 Initial Advances and Letters of Credit. The Lenders shall not be
required to make the initial Revolving Loans or issue any Letters of Credit
unless the Borrowers have furnished to the Agent each of the following, with
sufficient copies for the Lenders, all in form and substance satisfactory to the
Agent, the Arranger and the Lenders:
(1) Copies of a certificate of existence or good standing for each
Borrower and Guarantor, certified by the appropriate governmental
officer in its jurisdiction of organization;
(2) Copies, certified by the Secretary, Assistant Secretary, or
Chief Executive Officer, as the case may be, of each Borrower and
Guarantor, of (i) its respective Articles of Incorporation (together
with all amendments thereto) and By-Laws or operating or other
management agreement, (ii) resolutions of its Board of Directors or
Members, as applicable (and resolutions of other bodies, if any are
deemed necessary by counsel for any Lender) authorizing the execution
of the Loan Documents;
(3) An incumbency certificate, executed by the Secretary or
Assistant Secretary of each Borrower and Guarantor, which shall
identify by name and title and bear the signature of the officers of
each Borrower and Guarantor, authorized to sign the Loan Documents and
to make borrowings hereunder, upon which certificate the Agent and the
Lenders shall be entitled to rely until informed of any change in
writing by such Borrower;
(4) A certificate, in form and substance satisfactory to the Agent,
signed by the chief financial officer of each Borrower, stating that on
the Closing Date no Default or Unmatured Default has occurred and is
continuing;
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(5) A written opinion of outside counsel to the Borrowers,
addressed to the Agent and the Lenders, addressing the issues
identified in Exhibit F hereto containing assumptions and
qualifications acceptable to the Agent and the Lenders;
(6) Revolving Notes payable to the order of each of the applicable
Lenders (amended and restated where appropriate);
(7) Evidence satisfactory to the Agent that there has been no
material adverse change in the business, financial condition, operation
or prospects of the Borrowers, since the date of the Borrowers'
consolidated financial statements for the fiscal year ended March 27,
1999.
(8) Evidence satisfactory to the Agent that there exists no
injunction or temporary restraining order which, in the judgment of the
Agent, would prohibit the making of the Revolving Loans or any
litigation seeking such an injunction or restraining order;
(9) Written money transfer instructions reasonably requested by the
Agent, addressed to the Agent and signed by an Authorized Officer;
(10) Evidence satisfactory to the Agent that the Borrowers have
paid to the Agent and the Arranger the fees agreed to in the fee letter
dated June 23, 2000 among the Agent, the Arranger and the Borrowers and
the fees due on the Closing Date which the Agent, the Arranger and the
Borrowers have agreed to herein; and
(11) Evidence satisfactory to the Agent of the insurance coverage
required by Section 7.2(E) hereof.
(12) Such other documents as the Agent or any Lender or its counsel
may have reasonably requested, including, without limitation all of the
documents reflected on the List of Closing Documents attached as
Exhibit G to this Agreement.
5.2 Each Advance and Letter of Credit. The Lenders shall not be
required to make any Advance or issue any Letter of Credit, unless on the
applicable Borrowing Date, or in the case of a Letter of Credit, the date on
which the Letter of Credit is to be issued:
(i) There exists no Default or Unmatured Default; and
(ii) The representations and warranties contained in Article VI are
true and correct as of such Borrowing Date except for changes in the
Schedules to this Agreement reflecting transactions permitted by this
Agreement or consented to by the Agent, Required Lenders or Lenders, as
appropriate.
Each Borrowing Notice with respect to each such Advance and the letter
of credit application with respect to a Letter of Credit shall constitute a
representation and warranty by the Borrowers that the conditions contained in
Sections 5.2(i) and (ii) have been satisfied. The Agent may require a duly
completed officer's certificate in substantially the form of Exhibit H hereto
and/or a duly completed compliance certificate in substantially the form of
Exhibit I hereto as a condition to making an Advance.
ARTICLE VI: REPRESENTATIONS AND WARRANTIES
In order to induce the Agent and the Lenders to enter into this
Agreement and to make the Revolving Loans and the other financial accommodations
to the Borrowers and to issue the Letters of Credit described herein, the
Borrowers represent and warrant as follows to each Lender and the Agent as of
the Closing Date, and thereafter on each date as required by Section 5.2
(representations and warranties made with respect to each Borrower are made by
such Borrower; representations with respect to a Subsidiary are made by the
Borrower which holds an Equity Interest in such Subsidiary):
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6.1 Organization; Corporate Powers. Each Borrower and each Guarantor
(i) is a corporation or limited liability company duly and properly organized,
validly existing and in existence or good standing under the laws of the
jurisdiction of its organization, (ii) is duly qualified to do business as a
foreign corporation or limited liability company and is in good standing under
the laws of each jurisdiction in which failure to be so qualified and in good
standing could not reasonably be expected to have a Material Adverse Effect, and
(iii) has all requisite power and authority to own, operate and encumber its
property and to conduct its business as presently conducted and as proposed to
be conducted.
6.2 Authority.
(A) Each Borrower and each of its Subsidiaries has the requisite power
and authority to execute, deliver and perform each of the Loan Documents, to
which each is a party.
(B) The execution, delivery and performance of each of the Loan
Documents which have been executed as required by this Agreement or otherwise on
or prior to the Closing Date and to which the Borrowers or any of their
respective Subsidiaries is party, and the consummation of the transactions
contemplated thereby, have been duly approved by proper organizational actions
and proceedings, and such approvals have not been rescinded. No other action or
proceedings on the part of the Borrowers or their respective Subsidiaries are
necessary to consummate such transactions.
(C) Each of the Loan Documents to which the Borrowers or any of their
Subsidiaries is a party has been duly executed, delivered or filed, as the case
may be, by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms (except as enforceability
may be limited by bankruptcy, insolvency, fraudulent conveyance, or similar laws
affecting the enforcement of creditors' rights generally), is in full force and
effect and no material term or condition thereof has been amended, modified or
waived from the terms and conditions contained in the Loan Documents delivered
to the Agent pursuant to Section 5.1 without the prior written consent of the
Required Lenders, and the Borrowers and their respective Subsidiaries have
performed and complied with all the terms, provisions, agreements and conditions
set forth therein and required to be performed or complied with by such parties
on or before the Closing Date, and no unmatured default, default or breach of
any covenant by any such party exists thereunder.
6.3 No Conflict; Governmental Consents. The execution, delivery and
performance of each of the Loan Documents to which the Borrowers or any of their
respective Subsidiaries are a party do not and will not (i) conflict with the
certificate or articles of incorporation and by-laws or operating or other
management agreement of the Borrowers or any such Subsidiary, (ii) constitute a
tortious interference with any Contractual Obligation of any Person or conflict
with, result in a breach of or constitute (with or without notice or lapse of
time or both) a default under any Requirement of Law (including, without
limitation, any Environmental Property Transfer Act) or Contractual Obligation
of the Borrowers or any such Subsidiary, or require termination of any
Contractual Obligation, except such interference, breach, default or termination
which individually or in the aggregate could not reasonably be expected to have
a Material Adverse Effect, (iii) result in or require the creation or imposition
of any Lien whatsoever upon any of the property or assets of the Borrowers or
any such Subsidiary, other than Liens permitted by the Loan Documents, or (iv)
require any approval of the Borrowers' or any such Subsidiary's shareholders or
members, as the case may be, except such as have been obtained. Except as set
forth on Schedule 6.3 to this Agreement, the execution, delivery and performance
of each of the Loan Documents to which the Borrowers or any of their respective
Subsidiaries is a party do not and will not require any registration with,
consent or approval of, or notice to, or other action to, with or by any
Governmental Authority, including under any Environmental Property Transfer Act,
except filings, consents or notices which have been made, obtained or given, or
which, if not made, obtained or given, individually or in the aggregate could
not reasonably be expected to have a Material Adverse Effect.
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6.4 Financial Statements. Complete and accurate copies of the following
financial statements and the following related information have been delivered
to the Agent: (1) the consolidated balance sheet of the Borrowers as at March
27, 1999, and the related consolidated statements of income, changes in
stockholders' equity and cash flows of the Borrowers for the fiscal year then
ended, and the audit report related thereto; and (2) the unaudited consolidated
balance sheet of the Borrowers for the fiscal quarter ended January 1, 2000, and
the related statements of operations, changes in stockholder's equity and cash
flows of the Borrowers for the fiscal quarter then ended.
6.5 No Material Adverse Change. (A) Since March 27, 1999 up to the
Closing Date, there has occurred no material adverse change in the business,
financial condition, operations or prospects of the Borrowers and their
respective Subsidiaries taken as a whole or any other event which has had or
could reasonably be expected to result in a Material Adverse Effect.
(B) Since the Closing Date, there has occurred no event which has had
or could reasonably be expected to result in a Material Adverse Effect.
6.6 Taxes.
(A) Tax Examinations. All deficiencies which have been asserted against
the Borrowers or any of their respective Subsidiaries as a result of any
federal, state, local or foreign tax examination for each taxable year in
respect of which an examination has been conducted have been fully paid or
finally settled or are being contested in good faith, and as of the Closing Date
no issue has been raised by any taxing authority in any such examination which,
by application of similar principles, reasonably can be expected to result in
assessment by such taxing authority of a material deficiency for any other year
not so examined which has not been reserved for in the Borrowers' consolidated
financial statements to the extent, if any, required by Agreement Accounting
Principles. Except as permitted pursuant to Section 7.2(D), neither the
Borrowers nor any of the Borrowers' Subsidiaries anticipates any material tax
liability with respect to the years which have not been closed pursuant to
applicable law.
(B) Payment of Taxes. Except as described on Schedule 6.6, all tax
returns and reports of the Borrowers and their respective Subsidiaries required
to be filed have been timely filed, and all taxes, assessments, fees and other
governmental charges thereupon and upon their respective property, assets,
income and franchises which are shown in such returns or reports to be due and
payable have been paid except those items which are being contested in good
faith and have been reserved for in accordance with Agreement Accounting
Principles. The Borrowers have no knowledge of any proposed tax assessment
against the Borrowers or any of their Subsidiaries that will have or could
reasonably be expected to have a Material Adverse Effect.
6.7 Litigation; Loss Contingencies and Violations. Except as set forth
in Schedule 6.7 to this Agreement, which lists all pending litigation involving
individual claims against the Borrowers or any of their Subsidiaries of more
than $1,000,000, there is no action, suit, proceeding, arbitration or (to the
Borrowers' knowledge) investigation before or by any Governmental Authority or
private arbitrator pending or, to the Borrowers' knowledge, threatened against
the Borrowers or any of their respective Subsidiaries or any property of any of
them which will have or could reasonably be expected to have a Material Adverse
Effect. There is no material loss contingency within the meaning of Agreement
Accounting Principles which has not been reflected in the consolidated financial
statements of the Borrowers prepared and delivered pursuant to Section 7.1(A)
for the fiscal period during which such material loss contingency was incurred.
Neither the Borrowers nor any of their respective Subsidiaries is (A) in
violation of any applicable Requirements of Law which violation will have or
could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, or (B) subject to or in default with respect to any
final judgment, writ, injunction, restraining order or order of any nature,
decree, rule or regulation of any court or Governmental Authority which will
have or could reasonably be expected to have a Material Adverse Effect.
6.8 Subsidiaries. Schedule 6.8 to this Agreement (i) contains a
description of the corporate structure of the Borrowers, their respective
Subsidiaries (both narratively and in chart form); and (ii) accurately sets
forth (A) the correct legal name and the jurisdiction of incorporation or
organization of the Borrowers and their direct and
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indirect Subsidiaries, (B) the jurisdictions in which each of the Borrowers is
qualified to transact business as a foreign entity and (C) a summary of the
direct and indirect Capital Stock, partnership, joint venture, or other Equity
Interests, if any, of the Borrowers and each Subsidiary of the Borrowers in any
Borrower or Other Subsidiary. The outstanding Capital Stock, if any, of the
Borrowers and each of their Subsidiaries is duly authorized, validly issued,
fully paid and nonassessable and is not Margin Stock.
6.9 ERISA. Except as disclosed on Schedule 6.9, no Benefit Plan has
incurred any accumulated funding deficiency (as defined in Sections 302(a)(2) of
ERISA and 412(a) of the Code) whether or not waived. Neither Borrower nor any
member of the Controlled Group has incurred any liability to the PBGC which
remains outstanding other than the payment of premiums, and there are no premium
payments which have become due which are unpaid. Schedule B to the most recent
annual report filed with the IRS with respect to each Benefit Plan and furnished
to the Lenders is complete and accurate. Since the date of each such Schedule B,
there has been no material adverse change in the funding status or financial
condition of the Benefit Plan relating to such Schedule B. Neither Borrower nor
any member of the Controlled Group has (i) failed to make a required
contribution or payment to a Multiemployer Plan or (ii) made a complete or
partial withdrawal under Sections 4203 or 4205 of ERISA from a Multiemployer
Plan. Neither Borrower nor any member of the Controlled Group has failed within
the last six (6) years to make a required installment or any other required
payment under Section 412 of the Code on or before the due date for such
installment or other payment. Neither Borrower nor any member of the Controlled
Group is required to provide security to a Benefit Plan under Section 401(a)(29)
of the Code due to a Plan amendment that results in an increase in current
liability for the plan year. Except as set forth on Schedule 6.9, neither
Borrower nor any of its Subsidiaries maintains or contributes to any employee
welfare benefit plan within the meaning of Section 3(1) of ERISA which provides
benefits to employees after termination of employment other than as required by
Section 601 of ERISA. To Borrowers' knowledge, each Plan which is intended to be
qualified under Section 401(a) of the Code as currently in effect is so
qualified, and each trust related to any such Plan is exempt from federal income
tax under Section 501(a) of the Code as currently in effect. The Borrowers and
all their respective Subsidiaries are in compliance in all material respects
with the responsibilities, obligations and duties imposed on them by ERISA and
the Code with respect to all Plans. To Borrowers' knowledge, neither the
Borrowers nor any of their respective Subsidiaries nor any fiduciary of any Plan
has engaged in a nonexempt prohibited transaction described in Sections 406 of
ERISA or 4975 of the Code. Neither Borrower nor any member of the Controlled
Group has taken or failed to take any action which would constitute or result in
a Termination Event. Neither Borrowers nor any of its Subsidiaries is subject to
any liability under Sections 4063, 4064, 4069, 4204 or 4212(c) of ERISA and no
other member of the Controlled Group is subject to any liability under Sections
4063, 4064, 4069, 4204 or 4212(c) of ERISA.
6.10 Accuracy of Information. The information, exhibits and reports
furnished by or on behalf of the Borrowers and any of their respective
Subsidiaries to the Agent or to any Lender in connection with the negotiation
of, or compliance with, the Loan Documents, the representations and warranties
of the Borrowers and their respective Subsidiaries contained in the Loan
Documents, and all certificates and documents delivered by and on behalf of the
Borrowers and any of their Subsidiaries to the Agent and the Lenders pursuant to
the terms thereof, taken as a whole, do not contain as of the date furnished any
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading.
6.11 Securities Activities. Neither the Borrowers nor any of their
respective Subsidiaries is engaged in the business of extending credit for the
purpose of purchasing or carrying Margin Stock.
6.12 Material Agreements. Neither the Borrowers nor any of their
respective Subsidiaries has received notice or has knowledge that (i) it is in
default in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any Contractual Obligation applicable to
it, or (ii) any condition exists which, with the giving of notice or the lapse
of time or both, would constitute a default with respect to any such Contractual
Obligation, in each case, except where such default or defaults, if any,
individually or in the aggregate will not have or could not reasonably be
expected to have a Material Adverse Effect.
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6.13 [Intentionally Omitted].
6.14 Assets and Properties. The Borrowers and each of their respective
Subsidiaries have good and marketable title to all of their respective material
assets and properties (tangible and intangible, real or personal) owned by it or
a valid leasehold interest in all of its material leased assets (except insofar
as marketability may be limited by any laws or regulations of any Governmental
Authority affecting such assets), and all such assets and property are free and
clear of all Liens, except Liens permitted under Section 7.3(C). Substantially
all of the assets and properties owned by, leased to or used by the Borrowers
and/or each such Subsidiary of the Borrowers are in adequate operating condition
and repair, ordinary wear and tear excepted. Neither this Agreement nor any
other Loan Document, nor any transaction contemplated under any such agreement,
will affect any right, title or interest of the Borrowers or such Subsidiary in
and to any of such assets in a manner that would have or could reasonably be
expected to have a Material Adverse Effect.
6.15 Statutory Indebtedness Restrictions. Neither the Borrowers nor any
of their respective Subsidiaries is subject to regulation under the Public
Utility Holding Company Act of 1935, the Federal Power Act, the Interstate
Commerce Act, or the Investment Company Act of 1940, or any other federal or
state statute or regulation which limits its ability to incur indebtedness or
its ability to consummate the transactions contemplated hereby or in connection
with any Permitted Acquisition and the related transactions.
6.16 Insurance. The Borrowers and their respective Subsidiaries
maintain insurance policies and programs reasonably consistent with prudent
industry practice.
6.17 Labor Matters. No labor disputes, strikes or walkouts affecting
the operations of the Borrowers or any of their respective Subsidiaries, is
pending, or, to the knowledge of the Borrowers, threatened, planned or
contemplated.
6.18 Environmental Matters. (A) Except as disclosed on Schedule 6.18 to
this Agreement
(i) the operations of the Borrowers and their respective
Subsidiaries comply in all material respects with Environmental, Health
or Safety Requirements of Law;
(ii) the Borrowers and their respective Subsidiaries have all
material permits, licenses or other authorizations required under
Environmental, Health or Safety Requirements of Law and are in material
compliance with such permits;
(iii) to the best of the Borrowers' or any of their respective
Subsidiaries' knowledge, neither the Borrowers, any of their respective
Subsidiaries nor any of their respective present property or
operations, or, any of their respective past property or operations,
are subject to or the subject of, any investigation known to the
Borrowers or any of their respective Subsidiaries, any judicial or
administrative proceeding, order, judgment, decree, settlement or other
agreement respecting: (A) any material violation of Environmental,
Health or Safety Requirements of Law; (B) any material remedial action;
or (C) any material claims or liabilities arising from the Release or
threatened Release of a Contaminant into the environment;
(iv) to the best of the Borrowers' or any of their respective
Subsidiaries' knowledge there is not now, nor has there ever been on or
in the property of the Borrowers or any of their respective
Subsidiaries any landfill, waste pile, underground storage tanks,
aboveground storage tanks, surface impoundment or hazardous waste
storage facility of any kind, any polychlorinated biphenyls (PCBs) used
in hydraulic oils, electric transformers or other equipment, or any
asbestos containing material which in any such case could reasonably be
expected to result in material liability for the Borrowers or any of
their respective Subsidiaries; and
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(v) neither the Borrowers nor any of their respective Subsidiaries
has any material Contingent Obligation in connection with any Release
or threatened Release of a Contaminant into the environment.
(B) For purposes of this Section 6.18 "material" means any
noncompliance or basis for liability which could reasonably be likely to subject
the Borrowers or their respective Subsidiaries to liability which, in the
aggregate, is in excess of $1,000,000.
6.19 Solvency. After giving effect to the (i) Revolving Loans to be
made on the Closing Date or such other date as Revolving Loans requested
hereunder are made and the consummation of the other transactions contemplated
by this Agreement and (ii) the payment and accrual of all Transaction Costs with
respect to the foregoing, the Borrowers and their respective Subsidiaries taken
as a whole is Solvent. After giving effect to (a) any Permitted Acquisition and
(b) the payment and accrual of all Transaction Costs with respect thereto, the
Borrowers and their respective Subsidiaries taken as a whole is Solvent.
6.20 Designated Senior. The Obligations constitute "Designated Senior
Indebtedness" under that certain Indenture dated as of August 5, 1997 among
▇▇▇▇▇ Supermarkets, Inc., as issuer, certain Subsidiaries of ▇▇▇▇▇ Supermarkets,
Inc., as guarantors, and State Street Bank and Trust Company, as trustee.
6.21 Guarantor Senior Indebtedness. The obligations of the guarantors
under the guaranty entered into pursuant to the terms of this Agreement
constitute "Guarantor Senior Indebtedness" under that certain Indenture dated as
of August 5, 1997 among ▇▇▇▇▇ Supermarkets, Inc., as issuer, certain
Subsidiaries of ▇▇▇▇▇ Supermarkets, Inc., as guarantors, and State Street Bank
and Trust Company.
ARTICLE VII: COVENANTS
The Borrowers covenant and agree that so long as any Revolving Loan
Commitments are outstanding and thereafter until payment in full of all of the
Obligations (other than contingent indemnity obligations), unless the Required
Lenders shall otherwise give prior written consent:
7.1 Reporting. The Borrowers shall:
(A) Financial Reporting. Furnish to the Lenders:
(i) Quarterly Reports. As soon as practicable, and in any event
within forty-five (45) days after the end of each fiscal quarter in
each fiscal year, the consolidated balance sheet of the Borrowers and
their respective Subsidiaries as at the end of such period and the
related consolidated statements of income and cash flows of the
Borrowers and their respective Subsidiaries for such fiscal quarter and
for the period from the beginning of the then current fiscal year to
the end of such fiscal quarter, certified by the chief financial
officers of the Borrowers on behalf of the Borrowers as fairly
presenting the consolidated and consolidating financial position of the
Borrowers and their respective Subsidiaries as at the dates indicated
and the results of their operations and cash flows for the periods
indicated in accordance with Agreement Accounting Principles except for
the omission of full footnotes which may be required under Agreement
Accounting Principles, subject to normal year end adjustments.
(ii) Annual Reports. As soon as practicable, and in any event
within one hundred twenty (120) days after the end of each fiscal year,
(a) the consolidated balance sheet of the Borrowers and their
respective Subsidiaries as at the end of such fiscal year and the
related consolidated statements of income, stockholders' equity and
cash flows of the Borrowers and their respective Subsidiaries for such
fiscal year, and in comparative form the corresponding figures for the
previous fiscal year along with consolidating schedules in form and
substance sufficient to calculate the financial covenants set forth in
Section 7.4, and (b) an audit report on the items listed in clause (a)
hereof of independent certified public accountants of recognized
national standing, which audit report shall be unqualified and shall
state that such financial statements fairly present the consolidated
and consolidating financial position of the Borrowers and
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respective Subsidiaries as at the dates indicated and the results of
their operations and cash flows for the periods indicated in conformity
with Agreement Accounting Principles and that the examination by such
accountants in connection with such consolidated and consolidating
financial statements has been made in accordance with generally
accepted auditing standards. The deliveries made pursuant to this
clause (ii) shall be accompanied by (x) any management letter prepared
by the above-referenced accountants, and (y) a certificate of such
accountants that, in the course of their examination necessary for
their certification of the foregoing, they have obtained no knowledge
of any Default or Unmatured Default, or if, in the opinion of such
accountants, any Default or Unmatured Default shall exist, stating the
nature and status thereof.
(iii) Officer's Certificate. Together with each delivery of
any financial statement (a) pursuant to clauses (i), and (ii) of this
Section 7.1(A), an Officer's Certificate of the Borrowers,
substantially in the form of Exhibit H attached hereto and made a part
hereof, stating that no Default or Unmatured Default exists, or if any
Default or Unmatured Default exists, stating the nature and status
thereof and (b) pursuant to clauses (i) and (ii) of this Section
7.1(A), a compliance certificate, substantially in the form of Exhibit
I attached hereto and made a part hereof, signed by each Borrower's
Chief Financial Officer or Treasurer, setting forth calculations which
demonstrate compliance, when applicable, with the provisions of Section
7.4, and which calculate the Leverage Ratio for purposes of determining
the then Applicable Floating Rate Margin, Applicable Eurodollar Margin
and Applicable Revolving Loan Commitment Fee Percentage.
(B) Notice of Default. Promptly upon any of the chief executive
officer, chief operating officer, chief financial officer, treasurer or
controller of either Borrower obtaining knowledge (i) of any condition or event
which constitutes a Default or Unmatured Default, or becoming aware that any
Lender or Agent has given any written notice with respect to a claimed Default
or Unmatured Default under this Agreement, or (ii) that any Person (other than a
Lender or the Agent with respect to this Agreement) has given any written notice
to either Borrower or any Subsidiary of the Borrowers or taken any other action
with respect to a claimed default or event or condition of the type referred to
in Section 8.1(E), deliver to the Agent and the Lenders an Officer's Certificate
specifying (a) the nature and period of existence of any such claimed default,
Default, Unmatured Default, condition or event, (b) the notice given or action
taken by such Person in connection therewith, and (c) what action the Borrowers
have taken, are taking and propose to take with respect thereto.
(C) Lawsuits. (i) Promptly upon either Borrower obtaining knowledge of
the institution of, or written threat of, any action, suit, proceeding,
governmental investigation or arbitration against the Borrowers or any of their
Subsidiaries or any property of the Borrowers or any of their respective
Subsidiaries not previously disclosed pursuant to Section 6.7, which action,
suit, proceeding, governmental investigation or arbitration exposes, or in the
case of multiple actions, suits, proceedings, governmental investigations or
arbitrations arising out of the same general allegations or circumstances which
expose, in the reasonable judgment of the Borrowers, the Borrowers or any of
their respective Subsidiaries to liability in an amount aggregating $1,000,000
or more (exclusive of claims covered by insurance policies of the Borrowers or
any of their respective Subsidiaries unless the insurers of such claims have
disclaimed coverage or reserved the right to disclaim coverage on such claims
and exclusive of claims covered by the indemnity of a financially responsible
indemnitor in favor of the Borrowers or any of their respective Subsidiaries
unless the indemnitor has disclaimed or reserved the right to disclaim coverage
thereof), give written notice thereof to the Agent and the Lenders and provide
such other information as may be reasonably available to enable each Lender and
the Agent and its counsel to evaluate such matters; and (ii) in addition to the
requirements set forth in clause (i) of this Section 7.1(C), upon request of the
Agent or the Required Lenders, promptly give written notice of the status of any
action, suit, proceeding, governmental investigation or arbitration covered by a
report delivered pursuant to clause (i) above and provide such other information
as may be reasonably available to it that would not violate any attorney-client
privilege by disclosure to the Lenders to enable each Lender and the Agent and
its counsel to evaluate such matters.
(D) ERISA Notices. Deliver or cause to be delivered to the Agent and
the Lenders, at the Borrowers' expense, the following information and notices as
soon as reasonably possible, and in any event:
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(i) (a) within ten (10) Business Days after either Borrower obtains
knowledge that a Termination Event has occurred, a written statement of
the chief financial officer of such Borrower describing such
Termination Event and the action, if any, which such Borrower has
taken, is taking or proposes to take with respect thereto, and when
known, any action taken or threatened by the IRS, DOL or PBGC with
respect thereto and (b) within ten (10) Business Days after any member
of the Controlled Group obtains knowledge that a Termination Event has
occurred, a written statement of the chief financial officers of the
Borrowers describing such Termination Event and the action, if any,
which the member of the Controlled Group has taken, is taking or
proposes to take with respect thereto, and when known, any action taken
or threatened by the IRS, DOL or PBGC with respect thereto;
(ii) within ten (10) Business Days after either Borrower or any of
its Subsidiaries obtains knowledge that a prohibited transaction
(defined in Sections 406 of ERISA and Section 4975 of the Code) has
occurred, a statement of the chief financial officers of the Borrowers
describing such transaction and the action which the Borrowers or such
Subsidiary has taken, is taking or proposes to take with respect
thereto;
(iii) within ten (10) Business Days after the material increase in
the benefits of any existing Benefit Plan or the establishment of any
new Benefit Plan or the commencement of, or obligation to commence,
contributions to any Benefit Plan or Multiemployer Plan to which the
Borrowers or any member of the Controlled Group was not previously
contributing, notification of such increase, establishment,
commencement or obligation to commence and the amount of such
contributions;
(iv) within ten (10) Business Days after either Borrower or any of
its Subsidiaries receives notice of any unfavorable determination
letter from the IRS regarding the qualification of a Plan under Section
401(a) of the Code, copies of each such letter;
(v) within ten (10) Business Days after the establishment of any
foreign employee benefit plan or the commencement of, or obligation to
commence, contributions to any foreign employee benefit plan to which
the Borrowers or any Subsidiary was not previously contributing,
notification of such establishment, commencement or obligation to
commence and the amount of such contributions;
(vi) upon the request of the Agent, within ten (10) Business Days
after the filing thereof with the DOL, IRS or PBGC, copies of each
annual report (form 5500 series), including Schedule B thereto, filed
with respect to each Benefit Plan;
(vii) upon the request of the Agent, within ten (10) Business Days
after receipt by either Borrower or any member of the Controlled Group
of each actuarial report for any Benefit Plan or Multiemployer Plan and
each annual report for any Multiemployer Plan, copies of each such
report;
(viii) within ten (10) Business Days after the filing thereof with
the IRS, a copy of each funding waiver request filed with respect to
any Benefit Plan and all communications received by either Borrower or
a member of the Controlled Group with respect to such request;
(ix) within ten (10) Business Days after receipt by either Borrower
or any member of the Controlled Group of the PBGC's intention to
terminate a Benefit Plan or to have a trustee appointed to administer a
Benefit Plan, copies of each such notice;
(x) within ten (10) Business Days after receipt by either Borrower
or any member of the Controlled Group of a notice from a Multiemployer
Plan regarding the imposition of withdrawal liability, copies of each
such notice;
(xi) within ten (10) Business Days after either Borrower or any
member of the Controlled Group fails to make a required installment or
any other required payment under Section 412 of the Code on or before
the due date for such installment or payment, a notification of such
failure; and
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(xii) within ten (10) Business Days after either Borrower or any
member of the Controlled Group knows or has reason to know that (a) a
Multiemployer Plan has been terminated, (b) the administrator or plan
sponsor of a Multiemployer Plan intends to terminate a Multiemployer
Plan, or (c) the PBGC has instituted or will institute proceedings
under Section 4042 of ERISA to terminate a Multiemployer Plan.
For the purposes of this Section 7.1(D), the Borrowers, any of their respective
Subsidiaries and any member of the Controlled Group shall be deemed to know all
facts known by the Administrator of any Plan of which the Borrowers, such
Subsidiary or any member of the Controlled Group is the plan sponsor.
(E) Labor Matters. Notify the Agent and the Lenders in writing,
promptly upon either Borrower learning thereof, of (i) any labor dispute to
which the Borrowers or any of their respective Subsidiaries may become a party,
including, without limitation, any strikes, lockouts or other disputes relating
to such Persons' plants and other facilities and (ii) any material Worker
Adjustment and Retraining Notification Act liability incurred with respect to
the closing of any plant or other facility of the Borrowers or any of their
respective Subsidiaries, which, with respect to (i) or (ii) above, could be
reasonably expected to result in a Material Adverse Effect.
(F) Other Indebtedness. Deliver to the Agent (i) a copy of each regular
report, notice or communication regarding potential or actual defaults
(including any accompanying officer's certificate) delivered by or on behalf of
the Borrowers to the holders of funded Indebtedness pursuant to the terms of the
agreements governing such Indebtedness, such delivery to be made at the same
time and by the same means as such notice or other communication is delivered to
such holders, and (ii) a copy of each notice or other communication received by
the Borrowers from the holders of funded Indebtedness pursuant to the terms of
such Indebtedness regarding potential or actual defaults, such delivery to be
made promptly after such notice or other communication is received by the
Borrowers.
(G) Other Reports. Deliver or cause to be delivered to the Agent and
the Lenders copies of all financial statements, reports and notices, if any,
sent or made available generally by either Borrower to its securities holders or
filed with the Commission by the Borrowers, all press releases made available
generally by either Borrower or any of their respective Subsidiaries to the
public concerning material developments in the business of the Borrowers or any
of their respective Subsidiaries and all notifications received from the
Commission by the Borrowers or their respective Subsidiaries pursuant to the
Securities Exchange Act of 1934 and the rules promulgated thereunder.
(H) Environmental Notices. As soon as possible and in any event within
ten (10) days after receipt by a Borrower or its respective Subsidiaries, a copy
of (i) any notice or claim to the effect that such Borrower or any of its
Subsidiaries is or may be liable to any Person as a result of the Release by the
Borrower, any of its Subsidiaries, or any other Person of any Contaminant into
the environment, and (ii) any notice alleging any violation of any
Environmental, Health or Safety Requirements of Law by such Borrower or any of
its Subsidiaries if, in either case, such notice or claim relates to an event
which could reasonably be expected to subject the Borrowers or their respective
Subsidiaries to liability which, in the aggregate, is in excess of $1,000,000.
(I) Other Information. Promptly upon receiving a request therefor from
the Agent, prepare and deliver to the Agent and the Lenders such other
information with respect to the Borrowers, or any of their respective
Subsidiaries, including, without limitation, any Material Asset Sale, Equity
Offering or Material Insured Casualty Loss (and the use of the Net Cash Proceeds
thereof), as from time to time may be reasonably requested by the Agent.
7.2 Affirmative Covenants.
(A) Corporate Existence, Etc. The Borrowers shall, and shall cause each
of the Guarantors to, at all times maintain its existence and preserve and keep,
or cause to be preserved and kept, in full force and effect its rights and
franchises material to its businesses, except to the extent permitted by Section
7.3(I).
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(B) Corporate Powers; Conduct of Business. The Borrowers shall, and
shall cause each of the Guarantors to, qualify and remain qualified to do
business in each jurisdiction in which the nature of its business requires it to
be so qualified and where the failure to be so qualified will have or could
reasonably be expected to have a Material Adverse Effect. The Borrowers will,
and will cause each of the Guarantors to, carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise
as it is presently conducted.
(C) Compliance with Laws, Etc. The Borrowers shall, and shall cause
their respective Subsidiaries to, (a) comply with all Requirements of Law and
all restrictive covenants affecting such Person or the business, properties,
assets or operations of such Person, and (b) obtain as needed all Permits
necessary for its operations and maintain such Permits in good standing, unless
failure to comply or obtain could not reasonably be expected to have a Material
Adverse Effect.
(D) Payment of Taxes and Claims; Tax Consolidation. The Borrowers shall
pay, and cause each of their respective Subsidiaries to pay, (i) all taxes,
assessments and other governmental charges imposed upon them or on any of their
properties or assets or in respect of any of its franchises, business, income or
property before any penalty or interest accrues thereon, and (ii) all claims
(including, without limitation, claims for labor, services, materials and
supplies) for sums which have become due and payable and which by law have or
may become a Lien (other than a Lien permitted by Section 7.3(C)) upon any of a
Borrower's or a Subsidiary's property or assets, prior to the time when any
penalty or fine shall be incurred with respect thereto; provided, however, that
no such taxes, assessments and governmental charges referred to in clause (i)
above or claims referred to in clause (ii) above (and interest, penalties or
fines relating thereto) need be paid if being contested in good faith by
appropriate proceedings diligently instituted and conducted and if such reserve
or other appropriate provision, if any, as shall be required in conformity with
Agreement Accounting Principles shall have been made therefor.
(E) Insurance. The Borrowers shall maintain for themselves and their
respective Subsidiaries, or shall cause each of their respective Subsidiaries to
maintain in full force and effect, the insurance policies and programs
reasonably consistent with prudent industry practice. The Borrowers shall
deliver to the Agent insurance certificates and endorsements (y) to all property
damage, fire and extended coverage insurance policies on all of the Borrowers'
tangible real and personal property and assets naming the Agent as lender's loss
payee (to the extent permissible under Borrowers' agreements with mortgagors or
lessors), and (z) to all general liability and other liability policies naming
the Agent an additional insured (to the extent permissible under Borrowers'
agreements with mortgagors or lessors). In the event the Borrowers or any of
their respective Subsidiaries at any time or times hereafter shall fail to
obtain or maintain any of the policies or insurance required herein or to pay
any premium in whole or in part relating thereto, then the Agent, without
waiving or releasing any obligations or resulting Default hereunder, may at any
time or times thereafter (but shall be under no obligation to do so) obtain and
maintain such policies of insurance and pay such premiums and take any other
action with respect thereto which the Agent deems advisable. All sums so
disbursed by the Agent shall constitute part of the Obligations, payable as
provided in this Agreement.
(F) Inspection of Property; Books and Records; Discussions. The
Borrowers shall permit and cause each of their respective Subsidiaries to
permit, any authorized representative(s) designated by the Agent to visit and
inspect any of the properties of the Borrowers or any of their respective
Subsidiaries, to examine, audit, check and make copies of their respective
financial and accounting records, books, journals, orders, receipts and any
correspondence and other data relating to their respective businesses or the
transactions contemplated hereby (including, without limitation, in connection
with environmental compliance, hazard or liability), and to discuss their
affairs, finances and accounts with their officers and, with the consent of the
Borrowers (which will not be unreasonably withheld) or after a Default after
notice to the Borrowers, independent certified public accountants, all upon
reasonable notice and at such reasonable times during normal business hours, as
often as may be reasonably requested. So long as no Default has occurred and is
continuing, expenses associated with such activities shall be borne by the
Lenders and such inspections, audits and related activities will be conducted no
more than four times per calendar year. The Borrowers shall keep and maintain,
in all material respects, proper books of record and
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account in which entries in conformity with Agreement Accounting Principles
shall be made of all dealings and transactions in relation to their respective
businesses and activities. If a Default has occurred and is continuing, the
Borrowers, upon the Agent's request, shall turn over any such records (or copies
thereof) requested by the Agent to the Agent or its representatives.
(G) ERISA Compliance. The Borrowers shall, and shall cause each of
their respective Subsidiaries to, establish, maintain and operate all Plans to
comply in all material respects with the provisions of ERISA, the Code, all
other applicable laws, and the regulations and interpretations thereunder and
the respective requirements of the governing documents for such Plans.
(H) Maintenance of Property. The Borrowers shall cause all property
used or useful in the conduct of their respective business or the business of
any Subsidiary to be maintained and kept in adequate condition, repair and
working order and supplied with all necessary equipment and shall cause to be
made all necessary repairs, renewals and replacements, all as in the judgment of
the Borrowers may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section 7.2(H) shall prevent the Borrowers from
discontinuing the operation or maintenance of any of such property if such
discontinuance is, in the judgment of the Borrowers, desirable in the conduct of
their respective businesses or the business of any Subsidiary and not
disadvantageous in any material respect to the Agent or the Lenders.
(I) Environmental Compliance. The Borrowers and their respective
Subsidiaries shall comply with all Environmental, Health or Safety Requirements
of Law, except where noncompliance will not have or is not reasonably likely to
subject the Borrowers and their respective Subsidiaries to liability which, in
the aggregate, is in excess of $1,000,000.
(J) Use of Proceeds. The Borrowers shall use the proceeds of the
Revolving Loans to (i) repay existing Indebtedness, (ii) provide funds for the
additional working capital needs and other general corporate purposes of the
Borrowers, (iii) provide funds for the payment of fees and expenses incurred in
connection with the negotiation and documentation of this Agreement and the Loan
Documents (iv) to finance Permitted Acquisitions and (v) to provide funds for
Capital Expenditures. The Borrowers will not, nor will it permit any of their
respective Subsidiaries to, use any of the proceeds of the Revolving Loans to
purchase or carry any Margin Stock or to make any Acquisition, other than a
Permitted Acquisition pursuant to Section 7.3(G).
(K) Addition of Guarantors. The Borrowers shall cause each of their
respective Subsidiaries that is a Subsidiary as of the date of this Agreement or
at any time thereafter (other than Inactive Subsidiaries), to deliver to the
Agent an executed Guaranty and appropriate corporate resolutions, opinions and
other documentation in form and substance reasonably satisfactory to the Agent,
such Guaranty and other documentation to be delivered to the Agent as promptly
as possible but in any event within thirty (30) days of the date of the
formation of such entity or such entity otherwise becoming a Subsidiary.
7.3 Negative Covenants.
(A) Indebtedness. Neither Borrower nor any of its respective
Subsidiaries shall directly or indirectly create, incur, assume or otherwise
become or remain directly or indirectly liable with respect to any Indebtedness,
except:
(i) the Obligations;
(ii) Permitted Existing Indebtedness;
(iii) Indebtedness in respect of obligations secured by Customary
Permitted Liens;
(iv) Indebtedness constituting Contingent Obligations permitted by
Section 7.3(E);
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(v) Indebtedness arising from intercompany loans from a Borrower or
Subsidiary to a Borrower or any other Subsidiary;
(vi) secured purchase money Indebtedness (including Capitalized
Leases) incurred by a Borrower or any of its respective Subsidiaries
after the Closing Date to finance the acquisition of new fixed assets
or, in the case of real property within 365 days of project completion,
if (1) at the time of such incurrence, no Default or Unmatured Default
has occurred and is continuing or would result from such incurrence,
(2) such Indebtedness has a scheduled maturity and is not due on
demand, (3) such Indebtedness does not exceed the lower of the fair
market value or the cost of the applicable fixed assets on the date
acquired, and (4) any Lien securing such Indebtedness is permitted
under Section 7.3(C) (such Indebtedness being referred to herein as
"PERMITTED PURCHASE MONEY INDEBTEDNESS");
(vii) Indebtedness with respect to surety, appeal and performance
bonds obtained by a Borrower or any of its respective Subsidiaries in
the ordinary course of business.
(B) Sales of Assets. Neither Borrower nor any of its respective
Subsidiaries shall sell, assign, transfer, lease, convey or otherwise dispose of
any property, whether now owned or hereafter acquired, or any income or profits
therefrom, or enter into any agreement to do so, except:
(i) sales of Inventory in the ordinary course of business;
(ii) the disposition in the ordinary course of business of
equipment or other personal property that is obsolete, excess or no
longer useful in the business of the Borrowers or their respective
Subsidiaries;
(iii) sale and leaseback transactions permitted pursuant to Section
7.3(J);
(iv) sales, assignments, transfers, leases, conveyances or other
dispositions of other assets if such transaction (a) is for not less
than fair market value, and (b) when combined with all such other
transactions (each such transaction being valued at book value) during
the term of this Agreement, represents the disposition of not greater
than $15,000,000 of the Consolidated Assets of the Borrowers; and
(v) the sale or other disposition of assets by any consolidated
Subsidiary of a Borrower to another consolidated Subsidiary of that
Borrower or by any consolidated Subsidiary of a Borrower to that
Borrower.
(C) Liens. Neither Borrower nor any of its respective Subsidiaries
shall directly or indirectly create, incur, assume or permit to exist any Lien
on or with respect to any of their respective property or assets except:
(i) Permitted Existing Liens;
(ii) Customary Permitted Liens; and
(iii) purchase money Liens (including the interest of a lessor
under a Capitalized Lease and Liens to which any property is subject at
the time of the Borrower's acquisition thereof) securing Permitted
Purchase Money Indebtedness; provided that such Liens shall not apply
to any property of the Borrowers or their respective Subsidiaries other
than that purchased or subject to such Capitalized Lease.
In addition, neither Borrower nor any of its respective Subsidiaries shall
become a party to any agreement, note, indenture or other instrument, or take
any other action, which would prohibit the creation of a Lien on any of their
respective properties or other assets in favor of the Agent for the benefit of
itself and the Lenders, as collateral for the
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Obligations; provided that any agreement, note, indenture or other instrument in
connection with Permitted Purchase Money Indebtedness (including Capitalized
Leases) may prohibit the creation of a Lien in favor of the Agent for the
benefit of itself and the Lenders on the items of property obtained with the
proceeds of such Permitted Purchase Money Indebtedness.
(D) Third Party Loans. Neither Borrower nor any of its respective
Subsidiaries shall directly or indirectly make any Third Party Loans except:
(i) Permitted Third Party Loans in an amount not greater than the
amount thereof on the Closing Date;
(ii) Third Party Loans consisting of intercompany loans from a
Borrower or Subsidiary to a Borrower or any other Subsidiary permitted
by Section 7.3(A)(v);
(iii) Third Party Loans consisting of loans to employees of the
Borrowers and their respective Subsidiaries, in addition to those
listed on Schedule 1.1.3 to this Agreement, in an amount not to exceed
$1,500,000; and
(iv) Third Party Loans consisting of seller financing for sales of
real property which are permitted pursuant to Section 7.3(B)(iii) of
this Agreement and which otherwise meet the following requirements:
(1) are evidenced by enforceable promissory notes with a term
to maturity of not greater than three (3) years;
(2) are in a principal amount which does not exceed 80% of the
fair market value of the real property being sold (with the other
20% of the fair market value to be paid in cash at closing, which
cash payment is subject to the terms of Section 2.3(B) of this
Agreement); and
(3) are secured by an enforceable first or second priority
mortgage on the real property sold.
(E) Contingent Obligations. Neither Borrower nor any of its respective
Subsidiaries shall directly or indirectly create or become or be liable with
respect to any Contingent Obligation, except: (i) recourse obligations resulting
from endorsement of negotiable instruments for collection in the ordinary course
of business; (ii) obligations, warranties, and indemnities, not relating to
Indebtedness of any Person, which have been or are undertaken or made in the
ordinary course of business and not for the benefit of or in favor of a
Subsidiary; and (iii) Contingent Obligations with respect to surety, appeal and
performance bonds obtained by a Borrower or any of its Subsidiaries in the
ordinary course of business; (iv) Contingent Obligations relating to
Indebtedness of a Borrower or a Subsidiary of such Borrower to such Borrower or
a Subsidiary of such Borrower; and (v) Permitted Contingent Obligations.
(F) Rentals. Neither Borrower will, nor will it permit any of its
respective Subsidiaries to, create, incur or suffer to exist obligations for
Rentals in excess of $30,000,000 during fiscal year 2001 on a non-cumulative
basis in the aggregate for the Borrowers and their respective Subsidiaries, with
such annual maximum to increase by $5,000,000 in each subsequent fiscal year.
(G) Conduct of Business; Subsidiaries; Acquisitions. (i) Neither
Borrower nor any of its respective Subsidiaries shall engage in any business
other than the businesses engaged in by the Borrowers and their Subsidiaries on
the Closing Date and any business or activities which are substantially similar,
related or incidental thereto.
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(ii) Neither Borrower shall create, acquire or capitalize any
Subsidiary (a "NEW SUBSIDIARY") after the date hereof pursuant to any
transaction unless such transaction is permitted by or not otherwise prohibited
by this Agreement, and upon the creation or acquisition of each New Subsidiary,
the Borrowers shall cause each New Subsidiary to promptly deliver to the Agent
the documents, instruments and agreements required pursuant to Section 7.2(K),
and all New Subsidiaries shall be Controlled Subsidiaries. After the formation
or acquisition of any New Subsidiary permitted hereunder, if requested by the
Agent, the Borrowers shall provide a supplement to Schedule 6.8 to this
Agreement.
(iii) Neither Borrower shall, and shall not permit any of its
respective Subsidiaries to make any Acquisitions other than Acquisitions meeting
all of the following requirements (each such Acquisition constituting a
"PERMITTED ACQUISITION"):
(a) no Default or Unmatured Default shall have occurred and be
continuing or would result from such Acquisition or the incurrence of
any Indebtedness in connection therewith;
(b) the businesses being acquired shall be substantially similar to
the businesses or activities engaged in by the Borrowers and/or their
respective Subsidiaries on the Closing Date;
(c) any single Acquisition involving a purchase price (including
assumed liabilities) (x) equal to or in excess of Six Million Dollars
($6,000,000), or (y) exceeding a multiple of 6 times the trailing 12
month EBITDA (calculated in accordance with Agreement Accounting
Principles) for the target company, shall be subject to the prior
approval of the Required Lenders, which approval will be granted or
denied within ten (10) days following the Lenders receipt of sufficient
information as the Agent determines to be reasonably necessary to
assess the Borrowers' ability to comply with clause (a) above.
(d) (i) any related series of Acquisitions involving an aggregate
purchase price (including assumed liabilities) equal to or in excess of
$10,000,000 in any fiscal year shall be subject to the prior approval
of the Required Lenders, which approval shall be granted or denied
within ten (10) days following the Lenders' receipt of sufficient
information as the Agent determines to be reasonably necessary to
assess the Borrowers' ability to comply with clause (a) above.
(H) Transactions with Affiliates. Neither Borrower nor any of its
respective Subsidiaries shall directly or indirectly enter into or permit to
exist any transaction (including, without limitation, the purchase, sale, lease
or exchange of any property or the rendering of any service) with any Affiliate
of the Borrowers which is not its Subsidiary, on terms that are less favorable
to the Borrowers or any of their respective Subsidiaries, as applicable, than
those that might be obtained in an arm's length transaction at the time from
Persons who are not such a holder or Affiliate.
(I) Restriction on Fundamental Changes. Neither Borrower nor any of its
respective Subsidiaries shall enter into any merger or consolidation, or
liquidate, wind-up or dissolve (or suffer any liquidation or dissolution), or
convey, lease, sell, transfer or otherwise dispose of, in one transaction or
series of transactions, all or substantially all of a Borrower's or any such
Subsidiary's business or property, whether now or hereafter acquired, except
transactions permitted under Sections 7.3(B) or 7.3(G), and except that a
consolidated Subsidiary may merge or consolidate with or into a Borrower or a
consolidated Subsidiary thereof.
(J) Sales and Leasebacks. Neither Borrower nor any of its respective
Subsidiaries shall become liable, directly, by assumption or by Contingent
Obligation, with respect to any lease, whether an operating lease, a synthetic
lease or a Capitalized Lease, of any property (whether real or personal or
mixed) (i) which either of them or one of their respective Subsidiaries sold or
transferred or is to sell or transfer to any other Person, or (ii) which either
of them or one of their respective Subsidiaries intends to use for substantially
the same purposes as any other property which has been or is to be sold or
transferred by either of them or one of their Subsidiaries to any other Person
in connection with such lease, unless in either case (i) the lease involved is
not prohibited under Section 7.3(A) or 7.3(F), and (ii) if the subject property
was acquired by either of the Borrowers or their respective Subsidiaries on or
before the Closing Date, the proceeds of such transaction are used to purchase
unencumbered
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replacement assets of equal or greater value within 365 days of such transaction
or such proceeds are used to prepay the Obligations and the Aggregate Revolving
Loan Commitment is reduced by a like amount.
(K) Margin Regulations. Neither Borrower nor any of its respective
Subsidiaries, shall use all or any portion of the proceeds of any credit
extended under this Agreement to purchase or carry Margin Stock.
(L) ERISA. Neither Borrower shall
(i) engage, or permit any of its respective Subsidiaries to engage,
in any prohibited transaction described in Sections 406 of ERISA or
4975 of the Code for which a statutory or class exemption is not
available or a private exemption has not been previously obtained from
the DOL;
(ii) permit to exist any accumulated funding deficiency (as defined
in Sections 302 of ERISA and 412 of the Code) with respect to any
Benefit Plan, whether or not waived;
(iii) fail, or permit any Controlled Group member to fail to pay
timely required contributions or annual installments due with respect
to any waived funding deficiency to any Benefit Plan;
(iv) terminate, or permit any Controlled Group member to terminate,
any Benefit Plan which would result in liability of a Borrower or any
Controlled Group member under Title IV of ERISA of $3,000,000 or more;
(v) fail to make any material contribution or payment to any
Multiemployer Plan which a Borrower or any Controlled Group member may
be required to make under any agreement relating to such Multiemployer
Plan, or any law pertaining thereto;
(vi) fail, or permit any Controlled Group member to fail, to pay
any required installment or any other material payment required under
Section 412 of the Code on or before the due date for such installment
or other payment; or
(vii) amend, or permit any Controlled Group member to amend, a
Benefit Plan resulting in a material increase in current liability for
the plan year such that a Borrower or any Controlled Group member is
required to provide security to such Benefit Plan under Section
401(a)(29) of the Code.
(M) Corporate Documents. Neither Borrower nor any of its respective
Subsidiaries shall amend, modify or otherwise change any of the terms or
provisions in any of their respective Articles or Certificates of Incorporation
or By-Laws or operating or management agreement, as applicable, as in effect on
the date hereof in any manner adverse to the interests of the Lenders, without
the prior written consent of the Required Lenders.
(N) Fiscal Year. Neither Borrower nor any of its respective
consolidated Subsidiaries shall change its fiscal year for accounting or tax
purposes from a period consisting of the 52-week period ending on Saturday of
the thirteenth week of each calendar year.
(O) Subsidiary Covenants. Neither Borrower shall, and will not permit
any of its respective Subsidiaries to, create or otherwise cause to become
effective any consensual encumbrance or restriction of any kind on the ability
of a Subsidiary to pay dividends or make any other distribution on its stock,
pay any Indebtedness or other Obligation owed to the Borrowers or any other
Subsidiary, make loans or advances or other investments in the Borrowers or any
other Subsidiary, or sell, transfer or otherwise convey any of its property to
the Borrowers or any other Subsidiary.
(P) Inactive Subsidiaries. Neither Borrower shall permit any Inactive
Subsidiaries to have a Net Worth in excess of $100,000 unless such Subsidiary
shall become a Guarantor pursuant to Section 7.2(K).
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(Q) Subordinated Debt. Neither Borrower shall, and will not permit any
of its respective Subsidiaries to, make any amendment or modification to the
indenture, note or other agreement evidencing or governing any Subordinated
Debt, or directly or indirectly voluntarily prepay, defease or in substance
defease, purchase, redeem, retire or otherwise acquire any Subordinated Debt,
other than pursuant to the terms thereof when no Default or Unmatured Default
has occurred, is continuing or would result from such action.
7.4 Financial Covenants. The Borrowers shall comply with the following:
(A) Minimum Fixed Charge Coverage Ratio. The Borrowers and their
consolidated Subsidiaries shall maintain a ratio ("FIXED CHARGE COVERAGE RATIO")
of (i) the sum of the amounts of EBITDA plus Rentals paid during such period, to
(ii) the sum of the amounts paid during such period of (a) Interest Expense plus
(b) scheduled amortization payments of the principal portion of all other
Consolidated Indebtedness of the Borrowers made during such period plus (c) cash
taxes paid by the Borrowers and their consolidated Subsidiaries during such
period plus (d) Distributions plus (e) Capital Expenditures paid in cash from
other than (x) a Revolving Loan or other Indebtedness or (y) Net Cash Proceeds
of a Material Asset Sale, Equity Offering or Material Insured Casualty Loss used
to acquire, repair or replace capital assets within twelve months following such
transaction, plus (f) Rentals paid during such period, of at least 1.10 to 1.00
for each fiscal quarter until the Termination Date.
In each case, the Fixed Charge Coverage Ratio shall be determined as of the last
day of each fiscal quarter for the four fiscal quarter period ending on such
day, adjusted, with respect to Permitted Acquisitions, to reflect the EBITDA of
the acquired entity (calculated consistent with the definition of EBITDA
contained herein) during such portion of the four fiscal quarter period which is
prior to the consummation of such Permitted Acquisition.
(B) Maximum Leverage Ratio. The Borrowers shall not permit the ratio
(the "LEVERAGE RATIO") of (i) Consolidated Indebtedness to (ii) EBITDA, to be
greater than the ratio set forth below at the end of the fiscal quarter ending
on the corresponding date set forth below:
QUARTER ENDING RATIO
-------------- -----
June 24, 2000 to January 4, 2002 4.75 to 1.00
January 5, 2002 to January 3, 2003 4.35 to 1.00
January 4, 2003 and each fiscal
quarter thereafter 4.00 to 1.00
The Leverage Ratio shall be calculated, in each case, determined as of the last
day of each fiscal quarter based upon (a) for Consolidated Indebtedness, the
outstanding balance of Consolidated Indebtedness as of such date, except with
regard to revolving Indebtedness (including Revolving Loan Obligations
hereunder) which shall be the average outstanding revolving Indebtedness for the
four fiscal quarter period ending on such date, adjusted, (x) with respect to
Permitted Acquisitions, to treat additional revolving Indebtedness incurred in
connection with such Permitted Acquisition as if it were also outstanding during
such portion of the four fiscal quarter period which is prior to the
consummation of the Permitted Acquisition, (y) with respect to the repayment of
Indebtedness (other than revolving Indebtedness) with the proceeds of revolving
Indebtedness, to treat additional revolving Indebtedness incurred in connection
with such repayment as if it were also outstanding during such portion of the
four quarter fiscal period which is prior to the consummation of such repayment;
and (b) for EBITDA, the actual amount of EBITDA for the four fiscal quarter
period ending on such day, adjusted, with respect to Permitted Acquisitions, to
reflect the EBITDA of the acquired entity (calculated consistent with the
definition of EBITDA contained herein) during such portion of the four fiscal
quarter period which is prior to the consummation of such Permitted Acquisition.
(C) Minimum Consolidated Net Worth. The Borrowers shall not permit the
sum of (i) Consolidated Net Worth plus, (ii) the outstanding principal amount of
Convertible Subordinated Notes, less (iii) Intangible Assets, at any time to be
less than the sum of (i) $114,250,000 plus (ii) fifty percent (50%) of Net
Income (if positive) calculated separately for each fiscal quarter ending on or
after June 24, 2000.
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(D) Consolidated Indebtedness to Consolidated Total Capitalization. The
Borrowers will not permit the ratio of (i) Consolidated Indebtedness to (ii) the
sum of (a) Consolidated Total Capitalization plus (b) the outstanding principal
amount of Subordinated Debt, to be greater than .4 to 1.0 at any time.
ARTICLE VIII: DEFAULTS
8.1 Defaults. Each of the following occurrences shall constitute a
Default under this Agreement:
(A) Failure to Make Payments When Due. The Borrowers shall (i) fail to
pay when due any of the Obligations consisting of principal with respect to the
Revolving Loans or (ii) shall fail to pay within five (5) Business Days of the
date when due any of the other Obligations under this Agreement or the other
Loan Documents.
(B) Breach of Certain Covenants. The Borrowers shall fail duly and
punctually to perform or observe any agreement, covenant or obligation binding
on either Borrower under Sections 7.1(A), 7.1(B), 7.1(C), 7.1(D), 7.1(F), 7.2,
7.3 and 7.4 hereof.
(C) Breach of Representation or Warranty. Any representation or
warranty made or deemed made by the Borrowers to the Agent or any Lender herein
or by the Borrowers or any of their respective Subsidiaries in any of the other
Loan Documents or in any statement or certificate at any time given by any such
Person pursuant to any of the Loan Documents shall be false or misleading in any
material respect on the date as of which made (or deemed made).
(D) Other Defaults. Either of the Borrowers shall default in the
performance of or compliance with any term contained in this Agreement (other
than as covered by paragraphs (A), (B) or (C) of this Section 8.1), or the
Borrowers or any of their respective Subsidiaries shall default in the
performance of or compliance with any term contained in any of the other Loan
Documents, and such default shall continue for thirty (30) days after the
occurrence thereof.
(E) Default as to Other Indebtedness. Either of the Borrowers or any of
their Subsidiaries shall fail to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise) with respect
to any Indebtedness the outstanding principal amount of which Indebtedness is in
excess of $1,000,000 ("CROSS DEFAULT INDEBTEDNESS"), or any breach, default or
event of default shall occur, or any other condition shall exist under any
instrument, agreement or indenture pertaining to any such Cross Default
Indebtedness, if the effect thereof is to cause an acceleration, mandatory
redemption, a requirement that the Borrowers offer to purchase such Cross
Default Indebtedness or other required repurchase of such Cross Default
Indebtedness, or permit the holder(s) of such Cross Default Indebtedness to
accelerate the maturity of any such Cross Default Indebtedness or require a
redemption or other repurchase of such Cross Default Indebtedness; or any such
Cross Default Indebtedness shall be otherwise declared to be due and payable (by
acceleration or otherwise) or required to be prepaid, redeemed or otherwise
repurchased by the Borrowers or any of their respective Subsidiaries (other than
by a regularly scheduled required prepayment) prior to the stated maturity
thereof.
(F) Involuntary Bankruptcy; Appointment of Receiver, Etc.
(i) An involuntary case shall be commenced against either of the
Borrowers or any of their respective Subsidiaries and the petition
shall not be dismissed, stayed, bonded or discharged within seventy
five (75) days after commencement of the case; or a court having
jurisdiction in the premises shall enter a decree or order for relief
in respect of either of the Borrowers or any of their respective
Subsidiaries in an involuntary case, under any applicable bankruptcy,
insolvency or other similar law now or hereinafter in effect; or any
other similar relief shall be granted under any applicable federal,
state, local or foreign law.
(ii) A decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator,
trustee, custodian or other officer having similar powers over the
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Borrowers or any of their respective Subsidiaries or over all or a
substantial part of the property of the Borrowers or any of their
respective Subsidiaries shall be entered; or an interim receiver,
trustee or other custodian of the Borrowers or any of their respective
Subsidiaries or of all or a substantial part of the property of the
Borrowers or any their respective Borrower's Subsidiaries shall be
appointed or a warrant of attachment, execution or similar process
against any substantial part of the property of the Borrowers or any of
their respective Subsidiaries shall be issued and any such event shall
not be stayed, dismissed, bonded or discharged within seventy five (75)
days after entry, appointment or issuance.
(G) Voluntary Bankruptcy; Appointment of Receiver, Etc. Either of the
Borrowers or any of their respective Subsidiaries shall (i) commence a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, (ii) consent to the entry of an order for relief in an
involuntary case, or to the conversion of an involuntary case to a voluntary
case, under any such law, (iii) consent to the appointment of or taking
possession by a receiver, trustee or other custodian for all or a substantial
part of its property, (iv) make any assignment for the benefit of creditors or
(v) take any corporate action to authorize any of the foregoing.
(H) Judgments and Attachments. Any money judgment(s) (other than a
money judgment covered by insurance as to which the insurance company has not
disclaimed or reserved the right to disclaim coverage), writ or warrant of
attachment, or similar process against either Borrower or any of their
respective Subsidiaries or any of their respective assets involving in any
single case or in the aggregate an amount in excess of $1,000,000 is or are
entered and shall remain undischarged, unvacated, unbonded or unstayed for a
period of sixty (60) days or in any event later than fifteen (15) days prior to
the date of any proposed sale thereunder.
(I) Dissolution. Any order, judgment or decree shall be entered against
either Borrower decreeing its involuntary dissolution or split up and such order
shall remain undischarged and unstayed for a period in excess of sixty (60)
days; or either Borrower shall otherwise dissolve or cease to exist except as
specifically permitted by this Agreement.
(J) Loan Documents. At any time, for any reason, any Loan Document as a
whole that materially affects the ability of the Agent, or any of the Lenders to
enforce the Obligations ceases to be in full force and effect or the Borrowers
or any of their respective Subsidiaries party thereto seeks to repudiate its
obligations thereunder.
(K) Termination Event. Any Termination Event occurs which the Required
Lenders believe is reasonably likely to subject either Borrower to liability
which, in the aggregate, is in excess of $1,000,000.
(L) Waiver of Minimum Funding Standard. If the plan administrator of
any Plan applies under Section 412(d) of the Code for a waiver of the minimum
funding standards of Section 412(a) of the Code and any Lender believes the
substantial business hardship upon which the application for the waiver is based
could reasonably be expected to subject either Borrower or any Controlled Group
member to liability which, in the aggregate, is in excess of $1,000,000.
(M) Change of Control. A Change of Control shall occur.
(N) Environmental Matters. Either of the Borrowers or any of their
respective Subsidiaries shall be the subject of any proceeding or investigation
pertaining to (i) the Release by either Borrower or any of their respective
Subsidiaries of any Contaminant into the environment, (ii) the liability of
either Borrower or any of their respective Subsidiaries arising from the Release
by any other Person of any Contaminant into the environment, or (iii) any
violation of any Environmental, Health or Safety Requirements of Law which by
either Borrower or any of their respective Subsidiaries, which, in the case of
any of (i), (ii) or (iii) above, has or is reasonably likely to subject either
Borrower or any of their respective Subsidiaries to liability which, in the
aggregate, is in excess of $1,000,000.
8.2 Continuing Default. A Default shall be deemed "continuing" until
cured (if capable of cure) or until waived in writing in accordance with Section
9.3.
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ARTICLE IX: ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES
9.1 Termination of Revolving Loan Commitments; Acceleration. If any
Default described in Section 8.1(F) or 8.1(G) occurs with respect to the
Borrowers, the obligations of the Lenders to make Revolving Loans hereunder and
the obligation of the Issuing Bank to issue Letters of Credit shall
automatically terminate and the Obligations shall immediately become due and
payable without any election or action on the part of the Agent or any Lender.
If any other Default occurs, the Required Lenders may terminate or suspend the
obligations of the Lenders to make Revolving Loans hereunder and the obligation
of the Issuing Bank to issue Letters of Credit, or declare the Obligations to be
due and payable, or both, whereupon the Obligations shall become immediately due
and payable, without presentment, demand, protest or notice of any kind, all of
which the Borrowers expressly waive.
9.2 Defaulting Lender. In the event that any Lender fails to fund its
applicable Revolving Loan Pro Rata Share of any Advance requested or deemed
requested by the Borrowers (or requested by the Issuing Bank in connection with
the participation in Letters of Credit), which such Lender is obligated to fund
under the terms of this Agreement (the funded portion of such Advance being
hereinafter referred to as a "NON PRO RATA LOAN"), until the earlier of such
Lender's cure of such failure and the termination of the Revolving Loan
Commitments, the proceeds of all amounts thereafter repaid to the Agent by the
Borrowers and otherwise required to be applied to such Lender's share of all
other Obligations pursuant to the terms of this Agreement shall be advanced to
the Borrowers (or Issuing Bank) by the Agent on behalf of such Lender to cure,
in full or in part, such failure by such Lender, but shall nevertheless be
deemed to have been paid to such Lender in satisfaction of such other
Obligations. Notwithstanding anything in this Agreement to the contrary:
(i) the foregoing provisions of this Section 9.2 shall apply only
with respect to the proceeds of payments of Obligations and shall not
affect the conversion or continuation of Revolving Loans pursuant to
Section 2.10;
(ii) any such Lender shall be deemed to have cured its failure to
fund its applicable Revolving Loan Pro Rata Share of any Advance at
such time as an amount equal to such Lender's original applicable
Revolving Loan Pro Rata Share of the requested principal portion of
such Advance is fully funded to the Borrowers (or Issuing Bank),
whether made by such Lender itself or by operation of the terms of this
Section 9.2, and whether or not the Non Pro Rata Loan with respect
thereto has been repaid, converted or continued;
(iii) amounts advanced to the Borrowers to cure, in full or in
part, any such Lender's failure to fund its applicable Revolving Loan
Pro Rata Share of any Advance ("CURE LOANS") shall bear interest at the
rate applicable to Floating Rate Loans in effect from time to time, and
for all other purposes of this Agreement shall be treated as if they
were Floating Rate Loans;
(iv) regardless of whether or not a Default has occurred or is
continuing, and notwithstanding the instructions of the Borrowers as to
its desired application, all repayments of principal which, in
accordance with the other terms of this Agreement, would be applied to
the outstanding Floating Rate Loans shall be applied first, ratably to
all Floating Rate Loans constituting Non Pro Rata Loans, second,
ratably to Floating Rate Loans other than those constituting Non Pro
Rata Loans or Cure Loans and, third, ratably to Floating Rate Loans
constituting Cure Loans;
(v) for so long as and until the earlier of any such Lender's cure
of the failure to fund its applicable Revolving Loan Pro Rata Share of
any Advance and the termination of the Revolving Loan Commitments, the
term "Required Lenders" for purposes of this Agreement shall mean
Lenders (excluding all Lenders whose failure to fund their respective
Revolving Loan Pro Rata Shares of such Advance have not been so cured)
whose applicable Revolving Loan Pro Rata Shares represent greater than
fifty percent (50%) of the aggregate Revolving Loan Pro Rata Shares of
such Lenders; and
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(vi) for so long as and until any such Lender's failure to fund its
Revolving Loan Pro Rata Share of any Advance is cured in accordance
with Section 9.2(ii), (A) such Lender shall not be entitled to any
commitment fees with respect to its Revolving Loan Commitment and (B)
such Lender shall not be entitled to any letter of credit fees, which
commitment fees and letter of credit fees shall accrue in favor of the
Lenders which have funded their respective applicable Revolving Loan
Pro Rata Share of such requested Advance, shall be allocated among such
performing Lenders ratably based upon their relative Revolving Loan
Commitments, and shall be calculated based upon the average amount by
which the aggregate Revolving Loan Commitments of such performing
Lenders exceeds the sum of (I) the outstanding principal amount of the
Revolving Loans owing to such performing Lenders plus (II) the
outstanding Reimbursement Obligations owing to such performing Lenders,
plus (III) the aggregate participation interests of such performing
Lenders arising with respect to undrawn and outstanding Letters of
Credit.
9.3 Amendments. Subject to the provisions of this Article IX, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrowers may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrowers hereunder or waiving
any Default hereunder; provided, however, that no such supplemental agreement
shall, without the consent of each Lender affected thereby:
(i) Postpone or extend the Revolving Loan Termination Date, or any
other date fixed for any payment of principal of, or interest on, the
Revolving Loans, or any fees or other amounts payable to such Lender
(except with respect to (a) any modifications of the provisions
relating to prepayments of Revolving Loans and other Obligations and
(b) a waiver of the application of the default rate of interest
pursuant to Section 2.11 hereof).
(ii) Reduce the principal amount of any Revolving Loans or L/C
Obligations or reduce the rate or extend the time of payment of
interest or fees thereon.
(iii) Reduce the percentage specified in the definition of Required
Lenders or any other percentage of Lenders specified to be the
applicable percentage in this Agreement to act on specified matters.
(iv) Increase the amount of the Revolving Loan Commitment of any
Lender hereunder.
(v) Permit the Borrowers to assign their rights under this
Agreement.
(vi) Release any Guarantor.
(vii) Amend this Section 9.3.
No amendment of any provision of this Agreement relating to the Agent shall be
effective without the written consent of the Agent. The Agent may waive payment
of the fee required under Section 13.3(B) without obtaining the consent of any
of the Lenders.
9.4 Preservation of Rights. No delay or omission of the Lenders or the
Agent to exercise any right under the Loan Documents shall impair such right or
be construed to be a waiver of any Default or an acquiescence therein, and the
making of a Loan or the issuance of a Letter of Credit notwithstanding the
existence of a Default or the inability of the Borrowers to satisfy the
conditions precedent to such Loan or issuance of such Letter of Credit shall not
constitute any waiver or acquiescence. Any single or partial exercise of any
such right shall not preclude other or further exercise thereof or the exercise
of any other right, and no waiver, amendment or other variation of the terms,
conditions or provisions of the Loan Documents whatsoever shall be valid unless
in writing signed by the Lenders required pursuant to Section 9.3, and then only
to the extent in such writing specifically set forth. All remedies contained in
the Loan Documents or by law afforded shall be cumulative and all shall be
available to the Agent and the Lenders until the Obligations have been paid in
full.
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ARTICLE X: GENERAL PROVISIONS
10.1 Survival of Representations. All representations and warranties of
the Borrowers contained in this Agreement shall survive delivery of the
Revolving Notes and the making of the Revolving Loans herein contemplated.
10.2 Governmental Regulation. Anything contained in this Agreement to
the contrary notwithstanding, no Lender shall be obligated to extend credit to
the Borrowers in violation of any limitation or prohibition provided by any
applicable statute or regulation.
10.3 Performance of Obligations. The Borrowers agree that the Agent
may, but shall have no obligation, after the occurrence and during the
continuance of a Default, to make any other payment or perform any act required
of the Borrowers under any Loan Document. The Agent shall use its reasonable
efforts to give the Borrowers notice of any action taken under this Section 10.3
prior to the taking of such action or promptly thereafter provided the failure
to give such notice shall not affect the Borrowers' obligations in respect
thereof. The Borrowers agree to pay the Agent, upon demand, the principal amount
of all funds advanced by the Agent under this Section 10.3, together with
interest thereon at the rate from time to time applicable to Revolving Loans
that are Floating Rate Loans from the date of such advance until the outstanding
principal balance thereof is paid in full. If the Borrowers fail to make payment
in respect of any such advance under this Section 10.3 within one (1) Business
Day after the date the Borrowers receive written demand therefor from the Agent,
the Agent shall promptly notify each Lender and each Lender agrees that it shall
thereupon make available to the Agent, in Dollars in immediately available
funds, the amount equal to such Lender's Revolving Loan Pro Rata Share of such
advance. If such funds are not made available to the Agent by such Lender within
one (1) Business Day after the Agent's demand therefor, the Agent will be
entitled to recover any such amount from such Lender together with interest
thereon at the Federal Funds Effective Rate for each day during the period
commencing on the date of such demand and ending on the date such amount is
received. The failure of any Lender to make available to the Agent its Revolving
Loan Pro Rata Share of any such unreimbursed advance under this Section 10.3
shall neither relieve any other Lender of its obligation hereunder to make
available to the Agent such other Lender's Revolving Loan Pro Rata Share of such
advance on the date such payment is to be made nor increase the obligation of
any other Lender to make such payment to the Agent. All outstanding principal
of, and interest on, advances made under this Section 10.3 shall constitute
Obligations.
10.4 Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.
10.5 Entire Agreement. The Loan Documents embody the entire agreement
and understanding among the Borrowers, the Agent and the Lenders and supersede
all prior agreements and understandings among the Borrowers, the Agent and the
Lenders relating to the subject matter thereof.
10.6 Several Obligations; Benefits of this Agreement. The respective
obligations of the Lenders hereunder are several and not joint and no Lender
shall be the partner or agent of any other Lender (except to the extent to which
the Agent is authorized to act as such). The failure of any Lender to perform
any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. This Agreement shall not be construed so as to confer
any right or benefit upon any Person other than the parties to this Agreement
and their respective successors and assigns.
10.7 Expenses; Indemnification.
(A) Expenses. The Borrowers shall reimburse the Agent and the Arranger
for any reasonable costs and out-of-pocket expenses (including attorneys' and
paralegals' fees and time charges of attorneys and paralegals for the Agent)
paid or incurred by the Agent or the Arranger in connection with the
preparation, negotiation, execution, delivery, syndication, review, amendment,
modification, and administration of the Loan Documents. The Borrowers
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also agree to reimburse the Agent and the Arranger and the Lenders for any
costs, internal charges and out-of-pocket expenses (including attorneys' and
paralegals' fees and time charges of attorneys and paralegals for the Agent and
the Arranger and the Lenders, which attorneys and paralegals may be employees of
the Agent or the Arranger or the Lenders) paid or incurred by the Agent or the
Arranger or any Lender in connection with the collection of the Obligations and
enforcement of the Loan Documents.
(B) Indemnity. The Borrowers further agree to defend, protect,
indemnify, and hold harmless the Agent, the Arranger and each and all of the
Lenders and each of their respective Affiliates, and each of such Agent's,
Arranger's, Lender's, or Affiliate's respective officers, directors, employees,
attorneys and agents (including, without limitation, those retained in
connection with the satisfaction or attempted satisfaction of any of the
conditions set forth in Article V) (collectively, the "INDEMNITEES") from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses of any kind or nature
whatsoever (including, without limitation, the fees and disbursements of counsel
for such Indemnitees in connection with any investigative, administrative or
judicial proceeding, whether or not such Indemnitees shall be designated a party
thereto), imposed on, incurred by, or asserted against such Indemnitees in any
manner relating to or arising out of:
(i) this Agreement, the other Loan Documents, or any act, event or
transaction related or attendant thereto or to the making of the
Revolving Loans, and the issuance of and participation in Letters of
Credit hereunder, the management of such Revolving Loans or Letters of
Credit, the use or intended use of the proceeds of the Revolving Loans
or Letters of Credit hereunder, or any of the other transactions
contemplated by the Loan Documents; or
(ii) any liabilities, obligations, responsibilities, losses,
damages, personal injury, death, punitive damages, economic damages,
consequential damages, treble damages, intentional, willful or wanton
injury, damage or threat to the environment, natural resources or
public health or welfare, costs and expenses (including, without
limitation, attorney, expert and consulting fees and costs of
investigation, feasibility or remedial action studies), fines,
penalties and monetary sanctions, interest, direct or indirect, known
or unknown, absolute or contingent, past, present or future relating to
violation of any Environmental, Health or Safety Requirements of Law
arising from or in connection with the past, present or future
operations of the Borrowers, their respective Subsidiaries or any of
their respective predecessors in interest, or, the past, present or
future environmental, health or safety condition of any respective
property of the Borrowers or their respective Subsidiaries, the
presence of asbestos-containing materials at any respective property of
the Borrowers or their respective Subsidiaries or the Release or
threatened Release of any Contaminant into the environment
(collectively, the "INDEMNIFIED MATTERS");
provided, however, the Borrowers shall have no obligation to an Indemnitee
hereunder with respect to Indemnified Matters caused solely by or resulting
solely from the willful misconduct or Gross Negligence of such Indemnitee or
breach of contract by such Indemnitee with respect to the Loan Documents, in
each case, as determined by the final non-appealed judgment of a court of
competent jurisdiction. If the undertaking to indemnify, pay and hold harmless
set forth in the preceding sentence may be unenforceable because it is violative
of any law or public policy, the Borrowers shall contribute the maximum portion
which it is permitted to pay and satisfy under applicable law, to the payment
and satisfaction of all Indemnified Matters incurred by the Indemnitees.
(C) Survival of Agreements. The obligations and agreements of the
Borrowers under this Section 10.7 shall survive the termination of this
Agreement.
10.8 Numbers of Documents. All statements, notices, closing documents,
and requests hereunder shall be furnished to the Agent with sufficient
counterparts so that the Agent may furnish one to each of the Lenders.
10.9 Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles. If any changes in generally accepted accounting principles are
hereafter required or permitted and are
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adopted by the Borrowers with the agreement of its independent public
accountants and such changes result in a change in the method of calculation of
any of the financial covenants, restrictions or standards herein or in the
related definitions or terms used therein ("Accounting Changes"), the parties
hereto agree to enter into negotiations, in good faith, in order to amend such
provisions in a credit neutral manner so as to reflect equitably such Accounting
Changes with the desired result that the criteria for evaluating the Borrowers'
financial condition shall be the same after such changes as if such changes had
not been made; provided, however, until such provisions are amended in a manner
reasonably satisfactory to the Agent and the Required Lenders, no Accounting
Change shall be given effect in such calculations and all financial statements
and reports required to be delivered hereunder shall be prepared in accordance
with Agreement Accounting Principles without taking into account such Accounting
Changes. In the event such amendment is entered into with respect to any
Accounting Changes, all references to this Agreement to Agreement Accounting
Principles shall mean generally accepted accounting principles as of the date of
such amendment.
10.10 Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.
10.11 Nonliability of Lenders. The relationship between the Borrowers
and the Lenders and the Agent shall be solely that of borrower and lender.
Neither the Agent nor any Lender shall have any fiduciary responsibilities to
the Borrowers. Neither the Agent nor any Lender undertakes any responsibility to
the Borrowers to review or inform the Borrowers of any matter in connection with
any phase of the Borrowers' business or operations.
10.12 GOVERNING LAW. ANY DISPUTE BETWEEN THE BORROWERS AND THE AGENT OR
THE ARRANGER OR ANY LENDER ARISING OUT OF, CONNECTED WITH, RELATED TO, OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER ARISING IN CONTRACT,
TORT, EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL
LAWS (WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF
INDIANA.
10.13 CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.
(A) JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION (B), EACH OF THE
PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH, THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS WHETHER
ARISING IN CONTRACT, TORT, EQUITY, OR OTHERWISE, MAY BE RESOLVED EXCLUSIVELY BY
STATE OR FEDERAL COURTS LOCATED IN ▇▇▇▇▇▇ COUNTY, BUT THE PARTIES HERETO
ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF ▇▇▇▇▇▇ COUNTY. EACH OF THE PARTIES HERETO WAIVES IN ALL
DISPUTES BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY OBJECTION THAT IT MAY HAVE
TO THE LOCATION OF THE COURT CONSIDERING THE DISPUTE.
(B) VENUE. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY OBJECTION
(INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
HEREWITH IN ANY JURISDICTION SET FORTH ABOVE.
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(C) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES
ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED
IN CONNECTION HEREWITH. EACH OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
ARTICLE XI: THE AGENT
11.1 Appointment; Nature of Relationship. Provident is appointed by the
Lenders as the Agent hereunder and under each other Loan Document, and each of
the Lenders irrevocably authorizes the Agent to act as the contractual
representative of such Lender with the rights and duties expressly set forth
herein and in the other Loan Documents. The Agent agrees to act as such
contractual representative upon the express conditions contained in this Article
XI. Notwithstanding the use of the defined term "Agent," it is expressly
understood and agreed that the Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement and that the Agent is
merely acting as the representative of the Lenders with only those duties as are
expressly set forth in this Agreement and the other Loan Documents. In its
capacity as the Lenders' contractual representative, the Agent (i) does not
assume any fiduciary duties to any of the Lenders, (ii) is a "representative" of
the Lenders within the meaning of Section 9-105 of the Uniform Commercial Code
and (iii) is acting as an independent contractor, the rights and duties of which
are limited to those expressly set forth in this Agreement and the other Loan
Documents. Each of the Lenders agrees to assert no claim against the Agent on
any agency theory or any other theory of liability for breach of fiduciary duty,
all of which claims each Lender waives.
11.2 Powers. The Agent shall have and may exercise such powers under
the Loan Documents as are specifically delegated to the Agent by the terms of
each thereof, together with such powers as are reasonably incidental thereto.
The Agent shall have no implied duties or fiduciary duties to the Lenders, or
any obligation to the Lenders to take any action hereunder or under any of the
other Loan Documents except any action specifically provided by the Loan
Documents required to be taken by the Agent.
11.3 General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to the Borrowers, the Lenders or
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Loan Document or in connection herewith or therewith except
to the extent such action or inaction is found in a final judgment by a court of
competent jurisdiction to have arisen solely from the Gross Negligence, willful
misconduct or breach of contract of such Person.
11.4 No Responsibility for Revolving Loans, Creditworthiness, Recitals,
Etc. Neither the Agent nor any of its directors, officers, agents or employees
shall be responsible for or have any duty to ascertain, inquire into, or verify
(i) any statement, warranty or representation made in connection with any Loan
Document or any borrowing hereunder; (ii) the performance or observance of any
of the covenants or agreements of any obligor under any Loan Document; (iii) the
satisfaction of any condition specified in Article V, except receipt of items
required to be delivered solely to the Agent; (iv) the existence or possible
existence of any Default or Unmatured Default or (v) the validity, effectiveness
or genuineness of any Loan Document or any other instrument or writing furnished
in connection therewith. The Agent shall not be responsible to any Lender for
any recitals, statements, representations or warranties herein or in any of the
other Loan Documents, or for the execution, effectiveness, genuineness,
validity, legality, enforceability, collectibility, or sufficiency of this
Agreement or any of the other Loan Documents or the transactions contemplated
thereby, or for the financial condition of any guarantor of any or all of the
Obligations, the Borrowers or any of their respective Subsidiaries.
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11.5 Action on Instructions of Lenders. The Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder and under any
other Loan Document in accordance with written instructions signed by the
Required Lenders, and such instructions and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders and on all holders of
Revolving Notes. The Agent shall be fully justified in failing or refusing to
take any action hereunder and under any other Loan Document unless it shall
first be indemnified to its satisfaction by the Lenders pro rata against any and
all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.
11.6 Employment of Agents and Counsel. The Agent may execute any of its
duties as the Agent hereunder and under any other Loan Document by or through
employees, agents, and attorney-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders
and all matters pertaining to the Agent's duties hereunder and under any other
Loan Document.
11.7 Reliance on Documents; Counsel. The Agent shall be entitled to
rely upon any Revolving Notes, notice, consent, certificate, affidavit, letter,
telegram, statement, paper or document believed by it to be genuine and correct
and to have been signed or sent by the proper person or persons, and, in respect
to legal matters, upon the opinion of counsel selected by the Agent, which
counsel may be employees of the Agent.
11.8 The Agent's Reimbursement and Indemnification. The Lenders agree
to reimburse and indemnify the Agent (to the extent not reimbursed by Borrowers
without limiting the obligation of Borrowers to do so, subject to the provisions
of Section 10.7 of this Agreement) ratably in proportion to their respective
Revolving Loan Commitments (i) for any amounts, which are not unreasonable or
excessive, not reimbursed by the Borrowers for which the Agent is entitled to
reimbursement by the Borrowers under the Loan Documents, (ii) for any other
reasonable expenses incurred by the Agent on behalf of the Lenders, in
connection with the preparation, execution, delivery, administration and
enforcement of the Loan Documents and (iii) for any liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, or any reasonable costs,
expenses or disbursements of any kind and nature whatsoever which may be imposed
on, incurred by or asserted against the Agent in any way relating to or arising
out of the Loan Documents or any other document delivered in connection
therewith or the transactions contemplated thereby, or the enforcement of any of
the terms thereof or of any such other documents, provided that no Lender shall
be liable for any of the foregoing to the extent any of the foregoing is found
in a final non-appealable judgment by a court of competent jurisdiction to have
arisen solely from the Gross Negligence or willful misconduct of the Agent.
11.9 Rights as a Lender. With respect to its Revolving Loan Commitment,
Revolving Loans made by it and the Revolving Notes issued to it, the Agent shall
have the same rights and powers hereunder and under any other Loan Document as
any Lender and may exercise the same as through it were not the Agent, and the
term "Lender" or "Lenders" shall, unless the context otherwise indicates,
include the Agent in its individual capacity. The Agent may accept deposits
from, lend money to, and generally engage in any kind of trust, debt, equity or
other transaction, in addition to those contemplated by this Agreement or any
other Loan Document, with the Borrowers or any of its Subsidiaries in which such
Person is not prohibited hereby from engaging with any other Person.
11.10 Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent or any other Lender and based
on the financial statements prepared by the Borrowers and such other documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement and the other Loan Documents. Each Lender
also acknowledges that it will, independently and without reliance upon the
Agent or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement and the other Loan Documents.
11.11 Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrowers. Upon any such
resignation, the Required Lenders shall have the right to appoint, on behalf of
the Borrowers and the Lenders, a successor Agent. If no successor Agent shall
have been so appointed by
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the Required Lenders and shall have accepted such appointment within thirty days
after the retiring Agent's giving notice of resignation, then the retiring Agent
may appoint, on behalf of the Borrowers and the Lenders, a successor Agent.
Notwithstanding anything herein to the contrary, so long as no Default has
occurred and is continuing, each such successor Agent shall be subject to
approval by the Borrowers, which approval shall not be unreasonably withheld.
Such successor Agent shall be a commercial bank having capital and retained
earnings of at least $500,000,000. Upon the acceptance of any appointment as the
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents. After any
retiring Agent's resignation hereunder as Agent, the provisions of this Article
XI shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as the Agent hereunder and under
the other Loan Documents.
ARTICLE XII: SETOFF; RATABLE PAYMENTS
12.1 Setoff. In addition to, and without limitation of, any rights of
the Lenders under applicable law, if any Default occurs and is continuing, any
indebtedness from any Lender to the Borrowers (including all account balances,
whether provisional or final and whether or not collected or available) may be
offset and applied toward the payment of the Obligations owing to such Lender,
whether or not the Obligations, or any part hereof, shall then be due.
12.2 Ratable Payments. If any Lender, whether by setoff or otherwise,
has payment made to it upon its Revolving Loans (other than payments received
pursuant to Sections 4.1, 4.2 or 4.4) in a greater proportion than that received
by any other Lender, such Lender agrees, promptly upon demand, to purchase a
portion of the Revolving Loans held by the other Lenders so that after such
purchase each Lender will hold its ratable proportion of Revolving Loans. If any
Lender, whether in connection with setoff or amounts which might be subject to
setoff or otherwise, receives collateral or other protection for its Obligation
or such amounts which may be subject to setoff, such Lender agrees, promptly
upon demand, to take such action necessary such that all Lenders share in the
benefits of such collateral ratably in proportion to the obligations owing to
them. In case any such payment is disturbed by legal process, or otherwise,
appropriate further adjustments shall be made.
12.3 Application of Payments. Subject to the provisions of Section 9.2,
the Agent shall, unless otherwise specified at the direction of the Required
Lenders which direction shall be consistent with the last sentence of this
Section 12.3, apply all payments and prepayments in respect of any Obligations
in the following order:
(A) first, to pay interest on and then principal of any portion of the
Revolving Loans which the Agent may have advanced on behalf of any Lender for
which the Agent has not then been reimbursed by such Lender or the Borrowers;
(B) second, to pay interest on and then principal of any advance made
under Section 10.3 for which the Agent has not then been paid by the Borrowers
or reimbursed by the Lenders;
(C) third, to pay Obligations in respect of any fees, expense
reimbursements or indemnities then due to the Agent;
(D) fourth, to pay Obligations in respect of any fees, expenses,
reimbursements or indemnities then due to the Lenders and the issuer(s) of
Letters of Credit;
(E) fifth, to pay interest due in respect of Revolving Loans and L/C
Obligations;
(F) sixth, to the ratable payment or prepayment of principal
outstanding on Revolving Loans and Reimbursement Obligations in such order as
the Agent may determine in its sole discretion;
(G) seventh, to provide required cash collateral, if required pursuant
to Section 3.11; and
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(H) eighth, to the ratable payment of all other Obligations.
Unless otherwise designated (which designation shall only be applicable prior to
the occurrence of a Default) by the Borrowers, all principal payments in respect
of Revolving Loans shall be applied first, to repay outstanding Floating Rate
Revolving Loans, and then to repay outstanding Eurodollar Rate Loans with those
Eurodollar Rate Loans which have earlier expiring Interest Periods being repaid
or prepaid prior to those which have later expiring Interest Periods. The order
of priority set forth in this Section 12.3 and the related provisions of this
Agreement are set forth solely to determine the rights and priorities of the
Agent, the Lenders and the issuer(s) of Letters of Credit as among themselves.
The order of priority set forth in clauses (D) through (J) of this Section 12.3
may at any time and from time to time be changed by the Required Lenders without
necessity of notice to or consent of or approval by the Borrowers, or any other
Person. The order of priority set forth in clauses (A) through (C) of this
Section 12.3 may be changed only with the prior written consent of the Agent.
12.4 Relations Among Lenders.
(A) Except with respect to the exercise of set-off rights of any Lender
in accordance with Section 12.1, the proceeds of which are applied in accordance
with this Agreement, and except as set forth in the following sentence, each
Lender agrees that it will not take any action, nor institute any actions or
proceedings, against the Borrowers or any other obligor hereunder or with
respect to any Loan Document, without the prior written consent of the Required
Lenders or, as may be provided in this Agreement or the other Loan Documents, at
the direction of the Agent.
(B) The Lenders are not partners or co-venturers, and no Lender shall
be liable for the acts or omissions of, or (except as otherwise set forth herein
in case of the Agent) authorized to act for, any other Lender. The Agent shall
have the exclusive right on behalf of the Lenders to enforce on the payment of
the principal of and interest on any Loan after the date such principal or
interest has become due and payable pursuant to the terms of this Agreement.
ARTICLE XIII: BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS
13.1 Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrowers and
the Lenders and their respective successors and assigns, except that (i) the
Borrowers shall not have the right to assign its rights or obligations under the
Loan Documents and (ii) any assignment by any Lender must be made in compliance
with Section 13.3 hereof. Notwithstanding clause (ii) of this Section 13.1, any
Lender may at any time, without the consent of the Borrowers or the Agent,
assign all or any portion of its rights under this Agreement and its Revolving
Notes to a Federal Reserve Bank; provided, however, that no such assignment
shall release the transferor Lender from its obligations hereunder. The Agent
may treat the payee of any Revolving Notes as the owner thereof for all purposes
hereof unless and until such payee complies with Section 13.3 hereof in the case
of an assignment thereof or, in the case of any other transfer, a written notice
of the transfer is filed with the Agent. Any assignee or transferee of a
Revolving Notes agrees by acceptance thereof to be bound by all the terms and
provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the holder of any Revolving Notes, shall be conclusive and binding on
any subsequent holder, transferee or assignee of such Revolving Notes or of any
Revolving Notes or Revolving Notes issued in exchange therefor.
13.2 Participations.
(A) Permitted Participants; Effect. Subject to the terms set forth in
this Section 13.2, any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time sell to one or more banks or other
entities ("PARTICIPANTS") participating interests in any Loan owing to such
Lender, any Revolving Notes held by such Lender, any Revolving Loan Commitment
of such Lender, any L/C Interest of such Lender or any other interest of such
Lender under the Loan Documents on a pro rata or non-pro rata basis. Notice of
such participation to
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the Borrowers and the Agent shall be required prior to any participation
becoming effective with respect to a Participant which is not a Lender or an
Affiliate thereof. In the event of any such sale by a Lender of participating
interests to a Participant, such Lender's obligations under the Loan Documents
shall remain unchanged, such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, such Lender shall remain
the holder of any such Revolving Notes for all purposes under the Loan
Documents, all amounts payable by the Borrowers under this Agreement shall be
determined as if such Lender had not sold such participating interests, and the
Borrowers and the Agent shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under the Loan
Documents except that, for purposes of Article IV hereof, the Participants shall
be entitled to the same rights as if they were Lenders.
(B) Voting Rights. Each Lender shall retain the sole right to approve,
without the consent of any Participant, any amendment, modification or waiver of
any provision of the Loan Documents other than any amendment, modification or
waiver with respect to any Loan or Revolving Loan Commitment in which such
Participant has an interest which forgives principal, interest or fees or
reduces the interest rate or fees payable pursuant to the terms of this
Agreement with respect to any such Loan or Revolving Loan Commitment, postpones
any date fixed for any regularly-scheduled payment of principal of, or interest
or fees on, any such Loan or Revolving Loan Commitment, or releases a
significant portion of the Collateral, if any, securing any such Loan.
(C) Benefit of Setoff. The Borrowers agree that each Participant shall
be deemed to have the right of setoff provided in Section 12.1 hereof in respect
to its participating interest in amounts owing under the Loan Documents to the
same extent as if the amount of its participating interest were owing directly
to it as a Lender under the Loan Documents, provided that each Lender shall
retain the right of setoff provided in Section 12.1 hereof with respect to the
amount of participating interests sold to each Participant except to the extent
such Participant exercises its right of setoff. The Lenders agree to share with
each Participant, and each Participant, by exercising the right of setoff
provided in Section 12.1 hereof, agrees to share with each Lender, any amount
received pursuant to the exercise of its right of setoff, such amounts to be
shared in accordance with Section 12.2 as if each Participant were a Lender.
13.3 Assignments.
(A) Permitted Assignments. Any Lender may, in the ordinary course of
its business and in accordance with applicable law, at any time assign to one or
more banks or other entities ("PURCHASERS") all or a portion of its rights and
obligations under this Agreement (including, without limitation, its Revolving
Loan Commitment and all Revolving Loans owing to it, all of its participation
interests in existing Letters of Credit, and its obligation to participate in
additional Letters of Credit hereunder) in accordance with the provisions of
this Section 13.3. Each assignment shall be of a constant, and not a varying,
ratable percentage of all of the assigning Lender's rights and obligations under
this Agreement. Such assignment shall be substantially in the form of Exhibit E
hereto and shall not be permitted hereunder unless such assignment is either for
all of such Lender's rights and obligations under the Loan Documents or, without
the prior written consent of the Agent, involves loans and commitments in an
aggregate amount of at least $5,000,000 (which minimum amount may be waived by
the Required Lenders after the occurrence of a Default or Unmatured Event of
Default). The consent of the Agent and, prior to the occurrence of a Default or
Unmatured Default, the Borrowers (which consent, in each such case, shall not be
unreasonably withheld), shall be required prior to an assignment becoming
effective with respect to a Purchaser which is not a Lender or an Affiliate
thereof.
(B) Effect; Effective Date. Upon (i) delivery to the Agent of a notice
of assignment, substantially in the form attached as Appendix I to Exhibit E
hereto (a "NOTICE OF ASSIGNMENT"), together with any consent required by Section
13.3.(A) hereof, and (ii), in the case of an assignment to a Purchaser which is
not a Lender or an Affiliate thereof, payment of a $3,500 fee to the Agent for
processing such assignment, such assignment shall become effective on the
effective date specified in such Notice of Assignment. The Notice of Assignment
shall contain a representation by the Purchaser to the effect that none of the
consideration used to make the purchase of the Revolving Loan Commitment and
Revolving Loans and L/C Obligations under the applicable assignment agreement
are "plan assets" as defined under ERISA and that the rights and interests of
the Purchaser in and under the Loan
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Documents will not be "plan assets" under ERISA. On and after the effective date
of such assignment, such Purchaser, if not already a Lender, shall for all
purposes be a Lender party to this Agreement and any other Loan Documents
executed by the Lenders and shall have all the rights and obligations of a
Lender under the Loan Documents, to the same extent as if it were an original
party hereto, and no further consent or action by the Borrowers, the Lenders or
the Agent shall be required to release the transferor Lender with respect to the
percentage of the Aggregate Revolving Loan Commitment and Revolving Loans and
Letter of Credit participations assigned to such Purchaser. Upon the
consummation of any assignment to a Purchaser pursuant to this Section 13.3(B),
the transferor Lender, the Agent and the Borrowers shall make appropriate
arrangements so that replacement Revolving Notes are issued to such transferor
Lender and new Revolving Notes or, as appropriate, replacement Revolving Notes,
are issued to such Purchaser, in each case in principal amounts reflecting their
Revolving Loan Commitment, as adjusted pursuant to such assignment.
(C) The Register. The Agent shall maintain at its address referred to
in Section 14.1 a copy of each assignment delivered to and accepted by it
pursuant to this Section 13.3 and a register (the "REGISTER") for the
recordation of the names and addresses of the Lenders and the Revolving Loan
Commitment of and principal amount of the Revolving Loans owing to, each Lender
from time to time and whether such Lender is an original Lender or the assignee
of another Lender pursuant to an assignment under this Section 13.3. The entries
in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Borrowers and each of its Subsidiaries, the Agent and
the Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this Agreement. The Register shall be
available for inspection by the Borrowers or any Lender at any reasonable time
and from time to time upon reasonable prior notice.
13.4 Confidentiality. Subject to Section 13.5, the Agent and the
Lenders shall hold all nonpublic information obtained pursuant to the
requirements of this Agreement in accordance with such Person's customary
procedures for handling confidential information of this nature and in
accordance with safe and sound banking practices and in any event may make
disclosure reasonably required by a prospective Transferee in connection with
the contemplated participation or assignment or as required or requested by any
Governmental Authority or representative thereof or pursuant to legal process
and shall require any such Transferee to agree (and require any of its
Transferees to agree) to comply with this Section 13.4. In no event shall the
Agent or any Lender be obligated or required to return any materials furnished
by the Borrowers; provided, however, each prospective Transferee shall be
required to agree that if it does not become a participant or assignee it shall
return all materials furnished to it by or on behalf of the Borrowers in
connection with this Agreement.
13.5 Dissemination of Information. The Borrowers authorizes each Lender
to disclose to any Participant or Purchaser or any other Person acquiring an
interest in the Loan Documents by operation of law (each a "TRANSFEREE") and any
prospective Transferee any and all information in such Lender's possession
concerning the Borrowers and its Subsidiaries; provided that prior to any such
disclosure, such prospective Transferee shall agree to preserve in accordance
with Section 13.4 the confidentiality of any confidential information described
therein.
ARTICLE XIV: NOTICES
14.1 Giving Notice. Except as otherwise permitted by Section 2.14 with
respect to borrowing notices, all notices and other communications provided to
any party hereto under this Agreement or any other Loan Documents shall be in
writing or by telex or by facsimile and addressed or delivered to such party at
its address set forth below its signature hereto or at such other address as may
be designated by such party in a notice to the other parties. Any notice, if
mailed and properly addressed with postage prepaid, shall be deemed given when
received; any notice, if transmitted by telex or facsimile, shall be deemed
given when transmitted (answerback confirmed in the case of telexes).
14.2 Change of Address. The Borrowers, the Agent and any Lender may
each change the address for service of notice upon it by a notice in writing to
the other parties hereto.
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ARTICLE XV: COUNTERPARTS
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the Borrowers, the
Agent and the Lenders and each party has notified the Agent by telex or
telephone, that it has taken such action.
[Remainder of This Page Intentionally Blank]
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IN WITNESS WHEREOF, the Borrowers, the Lenders and the Agent have
executed this Agreement as of the date first above written.
▇▇▇▇▇ SUPERMARKETS, INC.
as a Borrower
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇
----------------------------------------
Name: ▇▇▇ ▇. ▇▇▇▇▇
Title: President and Chief Executive
Officer
Address: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Chief Financial Officer
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
with a copy of any notices to:
General Counsel
▇▇▇▇▇ Supermarkets, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
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▇▇▇▇▇ SUPERMARKETS, LLC
as a Borrower
By: ▇▇▇▇▇ Supermarkets, Inc.,
its Chief Operating Officer
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇
----------------------------------------
Name: ▇▇▇ ▇. ▇▇▇▇▇
Title: President and Chief Executive
Officer
Address: ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇.
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Chief Financial Officer
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
with a copy of any notices to:
General Counsel
▇▇▇▇▇ Supermarkets, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
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THE PROVIDENT BANK
as Agent and Arranger and as a Lender
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
----------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President
Address: The Guaranty Building
▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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FIRSTAR BANK MISSOURI, NATIONAL ASSOCIATION
as syndication agent and as a Lender
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
----------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Title: Vice President
Address: ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇-▇
▇▇. ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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LASALLE BANK NATIONAL ASSOCIATION
as documentation agent and as a Lender
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇
Title: Vice President
Address: ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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FIRST MERCHANTS BANK, N.A.
as a Lender
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
----------------------------------------
Name: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Senior Vice President
Address: ▇.▇. ▇▇▇ ▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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UNION PLANTERS BANK, NATIONAL ASSOCIATION
as a Lender
By: /s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
----------------------------------------
Name: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Title: Vice President
Address: ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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THE HUNTINGTON NATIONAL BANK
as a Lender
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
----------------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇
Title: Vice President
Address: Capital Center - South Tower
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
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AMERICAN NATIONAL BANK, DOING BUSINESS AS OLD NATIONAL BANK
as a Lender
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
----------------------------------------
Name: ▇▇▇▇ ▇▇▇▇▇▇
Title: Vice President
Address: ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇ ▇▇▇▇▇▇
Telephone No.: ▇▇▇-▇▇▇-▇▇▇▇
Facsimile No.: ▇▇▇-▇▇▇-▇▇▇▇
66