EXECUTION COPY
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CREDIT AGREEMENT
Dated as of August 30, 1995
among
OAK INDUSTRIES INC.,
THE LENDERS FROM TIME TO TIME PARTY HERETO
and
CHEMICAL BANK, as
Administrative Agent, Collateral Agent
and Issuing Bank
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TABLE OF CONTENTS
Page
ARTICLE I
Definitions
SECTION 1.01. Defined Terms...................................... 2
SECTION 1.02. Terms Generally.................................... 31
ARTICLE II
The Credits
SECTION 2.01. Commitments........................................ 31
SECTION 2.02. Loans.............................................. 32
SECTION 2.03. Borrowing Procedure................................ 34
SECTION 2.04. Evidence of Debt; Repayment of Loans............... 35
SECTION 2.05. Fees............................................... 36
SECTION 2.06. Interest on Loans.................................. 37
SECTION 2.07. Default Interest................................... 38
SECTION 2.08. Alternate Rate of Interest......................... 38
SECTION 2.09. Termination and Reduction of Commitments........... 39
SECTION 2.10. Conversion and Continuation of Borrowings.......... 40
SECTION 2.11. Repayment of Term Borrowings....................... 42
SECTION 2.12. Optional Prepayment................................ 43
SECTION 2.13. Mandatory Prepayments.............................. 43
SECTION 2.14. Reserve Requirements; Change in Circumstances...... 46
SECTION 2.15. Change in Legality................................. 48
SECTION 2.16. Indemnity.......................................... 49
SECTION 2.17. Pro Rata Treatment................................. 50
SECTION 2.18. Sharing of Setoffs................................. 50
SECTION 2.19. Payments........................................... 52
SECTION 2.20. Taxes.............................................. 52
SECTION 2.21. Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate.................... 56
SECTION 2.22. Letters of Credit.................................. 57
ARTICLE III
Representations and Warranties
SECTION 3.01. Organization; Powers............................... 63
SECTION 3.02. Authorization...................................... 63
SECTION 3.03. Enforceability..................................... 64
SECTION 3.04. Governmental Approvals............................. 64
SECTION 3.05. Financial StatementS............................... 64
SECTION 3.06. No Material Adverse Change......................... 66
SECTION 3.07. Title to Properties; Possession Under Leases....... 66
SECTION 3.08. Subsidiaries....................................... 66
SECTION 3.09. Litigation; Compliance with Laws................... 67
SECTION 3.10. Agreements......................................... 67
SECTION 3.11. Federal Reserve Regulations........................ 68
SECTION 3.12. Investment Company Act; Public Utility
Holding Company Act................................ 68
SECTION 3.13. Use of Proceeds.................................... 68
SECTION 3.14. Tax Returns........................................ 68
SECTION 3.15. No Material Misstatements.......................... 68
SECTION 3.16. Employee Benefit Plans............................. 69
SECTION 3.17. Environmental Matters.............................. 69
SECTION 3.18. Insurance.......................................... 70
SECTION 3.19. Security Documents................................. 70
SECTION 3.20. Labor Matters...................................... 71
SECTION 3.21. Solvency........................................... 71
ARTICLE IV
Conditions of Lending
SECTION 4.01. All Credit Events.................................. 72
SECTION 4.02. First Credit Event................................. 72
SECTION 4.03. Tranche A Term Borrowing........................... 75
SECTION 4.04. Tranche B Term Borrowings.......................... 76
ARTICLE V
Affirmative Covenants
SECTION 5.01. Existence; Businesses and Properties............... 76
SECTION 5.02. Insurance.......................................... 77
SECTION 5.03. Obligations and Taxes.............................. 77
SECTION 5.04. Financial Statements, Reports, etc................. 77
SECTION 5.05. Litigation and Other Notices....................... 80
SECTION 5.06. Employee Benefits.................................. 80
SECTION 5.07. Maintaining Records; Access to Properties
and Inspections.................................... 81
SECTION 5.08. Use of Proceeds.................................... 81
SECTION 5.09. Compliance with Environmental Laws................. 81
SECTION 5.10. Further Assurances................................. 81
ARTICLE VI
Negative Covenants
SECTION 6.01. Indebtedness....................................... 83
SECTION 6.02. Liens.............................................. 84
SECTION 6.03. Sale and Lease-Back Transactions................... 86
SECTION 6.04. Investments, Loans and Advances.................... 87
SECTION 6.05. Mergers, Consolidations, Sales of Assets
and Acquisitions................................... 88
SECTION 6.06. Dividends and Distributions; Restrictions on
Ability of Subsidiaries to Pay Dividends........... 90
SECTION 6.07. Transactions with Affiliates....................... 91
SECTION 6.08. Business of Borrower and Subsidiaries.............. 91
SECTION 6.09. Indebtedness and Other Material Agreements......... 91
SECTION 6.10. Capital Expenditures............................... 92
SECTION 6.11. Leverage Ratio..................................... 92
SECTION 6.12. Interest Coverage Ratio............................ 92
SECTION 6.13. Consolidated Net Worth............................. 92
SECTION 6.14. Fiscal Year........................................ 93
ARTICLE VII
Events of Default.................................................. 93
ARTICLE VIII
The Administrative Agent and the Collateral Agent.................. 96
ARTICLE IX
Miscellaneous
SECTION 9.01. Notices............................................ 100
SECTION 9.02. Survival of Agreement.............................. 100
SECTION 9.03. Binding Effect..................................... 101
SECTION 9.04. Successors and Assigns............................. 101
SECTION 9.05. Expenses; Indemnity................................ 106
SECTION 9.06. Right of Setoff.................................... 107
SECTION 9.07. Applicable Law..................................... 108
SECTION 9.08. Waivers; Amendment................................. 108
SECTION 9.09. Interest Rate Limitation........................... 109
SECTION 9.10. Entire Agreement................................... 110
SECTION 9.11. Waiver of Jury Trial............................... 110
SECTION 9.12. Severability....................................... 110
SECTION 9.13. Counterparts....................................... 110
SECTION 9.14. Headings........................................... 111
SECTION 9.15. Jurisdiction; Consent to Service of Process........ 111
SECTION 9.16. Confidentiality.................................... 112
SCHEDULE 1.01(a) Existing Indebtedness
SCHEDULE 1.01(b) Guarantors
SCHEDULE 2.01 Commitments
SCHEDULE 3.08 Subsidiaries
SCHEDULE 3.09 Litigation
SCHEDULE 3.17 Environmental Matters
SCHEDULE 3.18 Insurance
SCHEDULE 6.01 Permitted Indebtedness
SCHEDULE 6.02 Permitted Liens
SCHEDULE 6.04(k)
EXHIBIT A Form of Administrative Questionnaire
EXHIBIT B Form of Assignment and Acceptance
EXHIBIT C Form of Borrowing Request
EXHIBIT D Form of Guarantee Agreement
EXHIBIT E Form of Indemnity, Subrogation and
Contribution Agreement
EXHIBIT F Form of Pledge Agreement
EXHIBIT G Form of Opinion of Ropes & ▇▇▇▇
CREDIT AGREEMENT dated as of August 30,
1995, among OAK INDUSTRIES INC., a Delaware
corporation (the "Borrower"); the Lenders (as
defined in Article I); and CHEMICAL BANK, a
New York banking corporation, as issuing
bank, as administrative agent (in such
capacity, the "Administrative Agent") and as
collateral agent (in such capacity, the
"Collateral Agent") for the Lenders.
The Borrower has requested the Lenders to extend credit in the form
of (a) Tranche A Term Loans (such term and each other capitalized term used
but not defined herein having the meaning given it in Article I) on the date
of the Acquisition, in an aggregate principal amount not in excess of
$60,000,000, (b) Tranche B Term Loans on the date of the Connector Purchase,
in an aggregate principal amount not in excess of $60,000,000, and (c)
Revolving Loans at any time and from time to time prior to the Revolving
Credit Maturity Date, in an aggregate principal amount at any time outstanding
not in excess of $40,000,000. The Borrower has requested the Issuing Banks to
issue trade and standby letters of credit, in an aggregate face amount at any
time outstanding not in excess of $5,000,000, to support payment obligations
incurred in the ordinary course of business by the Borrower and its
Subsidiaries. The proceeds of (x) the Tranche A Term Loans are to be used
solely to finance the Acquisition, (y) the Tranche B Term Loans are to be used
solely to finance the Connector Purchase, and (z) the Revolving Loans are to
be used solely for the general corporate purposes of the Borrower, including
non-hostile acquisitions otherwise permitted herein (and proceeds of
borrowings on the date of the Acquisition, but not on any other date, may be
used to finance the purchase of shares of the capital stock of Lasertron).
The Lenders are willing to extend such credit to the Borrower and
the Issuing Banks are willing to issue letters of credit for the account of
the Borrower on the terms and subject to the conditions set forth herein.
Accordingly, the parties hereto agree as follows:
ARTICLE I. DEFINITIONS
SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms shall have the meanings specified below:
"ABR Borrowing" shall mean a Borrowing comprised of ABR Loans.
"ABR Loan" shall mean any ABR Term Loan or ABR Revolving Loan.
"ABR Revolving Loan" shall mean any Revolving Loan bearing interest
at a rate determined by reference to the Alternate Base Rate in accordance
with the provisions of Article II.
"ABR Term Borrowing" shall mean a Borrowing comprised of ABR Term
Loans.
"ABR Term Loan" shall mean any Term Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.
"Acquisition" shall mean the purchase by the Borrower, pursuant to
the Stock Purchase Agreement, of 100 percent of the issued and outstanding
shares of the capital stock of Lasertron for a gross purchase price no greater
than $112,000,000.
"Adjusted LIBO Rate" shall mean, with respect to any Eurodollar
Borrowing for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1 percent) equal to the product of
(a) the LIBO Rate in effect for such Interest Period and (b) Statutory
Reserves.
"Adjusted Oak" shall mean the Borrower and the Non-Connector
Subsidiaries, on a consolidated basis.
"Administrative Agent Fees" shall have the meaning assigned to such
term in Section 2.05(b).
"Administrative Questionnaire" shall mean an Administrative
Questionnaire in the form of Exhibit A.
"Affiliate" shall mean, when used with respect to a specified
person, another person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common Control with
the person specified.
"Aggregate Revolving Credit Exposure" shall mean the aggregate
amount of the Lenders' Revolving Credit Exposures.
"Alternate Base Rate" shall mean, for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1 percent) equal to the
greater of (a) the Prime Rate in effect on such day and (b) the sum of the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1 percent. If
for any reason the Administrative Agent shall have determined (which
determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, including the
inability or failure of the Administrative Agent to obtain sufficient
quotations in accordance with the terms thereof, the Alternate Base Rate shall
be determined without regard to clause (b) of the preceding sentence, as
appropriate, until the circumstances giving rise to such inability no longer
exist. Any change in the Alternate Base Rate due to a change in the Prime
Rate or the Federal Funds Effective Rate shall be effective on the effective
date of such change in the Prime Rate or the Federal Funds Effective Rate,
respectively. The term "Prime Rate" shall mean the rate of interest per annum
publicly announced from time to time by the Administrative Agent as its prime
rate in effect at its principal office in New York City; each change in the
Prime Rate shall be effective on the date such change is publicly announced as
being effective. The term "Federal Funds Effective Rate" shall mean, for any
day, the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers,
as published on the next succeeding Business Day by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day that is a
Business Day, the average of the quotations for the day for such transactions
received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.
"Applicable Percentage" shall mean, for any day, with respect to any
Eurodollar Loan, or with respect to the Commitment Fees, as the case may be,
the applicable percentage set forth below under the caption "Eurodollar
Spread" or "Fee Percentage", as the case may be, based upon the Leverage Ratio
and Interest Coverage Ratio for Adjusted Oak, prior to the closing of the
Connector Purchase, and Consolidated Oak, on the date of and after the closing
of the Connector Purchase, as of the relevant Determination Date:
Eurodollar Fee
Spread Percentage
------------- -------------
CATEGORY 1 0.500 percent 0.200 percent
Leverage Ratio less than or
or equal to 0.20 to 1.00
AND
Interest Coverage Ratio
greater than or equal to
6.0 to 1.0
CATEGORY 2 0.625 percent 0.250 percent
Leverage Ratio less than or
equal to 0.35 to 1.0
AND
Interest Coverage Ratio
greater than or equal to
5.0 to 1.0
CATEGORY 3 0.750 percent 0.300 percent
Leverage Ratio less than or
equal to 0.50 to 1.00
AND
Interest Coverage Ratio
greater than or equal to
4.0 to 1.0
CATEGORY 4 1.000 percent 0.375 percent
Leverage Ratio greater than
0.50 to 1.00
OR
Interest Coverage Ratio
less than 4.0 to 1.0
The applicable Category shall be the one with the lowest spreads for
which both the Leverage Ratio and the Interest Coverage Ratio requirements are
satisfied. Each change in the Applicable Percentage resulting from a change
in the Leverage Ratio or Interest Coverage Ratio shall be effective with
respect to all Loans, Commitments and Letters of Credit outstanding on and
after the date on which the financial statements and certificates required by
Section 5.04(a) or 5.04(b) and Section 5.04(c) are delivered to the
Administrative Agent indicating such change until the date immediately
preceding the next due date for the delivery of such financial statements and
certificates. Notwithstanding the foregoing, at any time during which the
Borrower has failed to deliver the financial statements and certificates
required by Section 5.04(a) or 5.04(b) and Section 5.04(c), the Leverage Ratio
and Interest Coverage Ratio shall be deemed to be in Category 4 for purposes
of determining the Applicable Percentage.
"Assignment and Acceptance" shall mean an assignment and acceptance
entered into by a Lender and an assignee, and accepted by the Administrative
Agent, in the form of Exhibit B or such other form as shall be approved by the
Administrative Agent.
"Attributable Debt" in respect of a Sale and Lease-Back Transaction
shall mean, at the time of determination, the present value (discounted at the
actual rate of interest implicit in such transaction) of the obligation of the
lessee for net rental payments during the remaining term of the lease included
in such Sale and Lease-Back Transaction (including any period for which such
lease has been extended or may, at the option of the lessor, be extended).
"▇▇▇▇" shall mean ▇▇▇▇ Venture Capital, a California limited
partnership.
"Board" shall mean the Board of Governors of the Federal Reserve
System of the United States of America.
"Borrowing" shall mean a group of Loans of a single Type made by the
Lenders on a single date and as to which a single Interest Period is in
effect.
"Borrowing Request" shall mean a request by the Borrower in
accordance with the terms of Section 2.03 and substantially in the form of
Exhibit C.
"Business Day" shall mean any day other than a Saturday, Sunday or
day on which banks in New York City are authorized or required by law to
close; provided, however, that when used in connection with a Eurodollar Loan,
the term "Business Day" shall also exclude any day on which banks are not open
for dealings in dollar deposits in the London interbank market.
"Capital Expenditures" means, (a) with respect to Adjusted Oak for
any period, the additions to property, plant and equipment and other capital
expenditures of the Borrower and the Non-Connector Subsidiaries for such
period, as the same are (or would be) set forth, in accordance with generally
accepted accounting principles, in a consolidated statement of cash flow of
Adjusted Oak for such period and (b) with respect to Consolidated Oak for any
period, the additions to property, plant and equipment and other capital
expenditures of the Borrower and the Subsidiaries for such period, as the same
are (or would be) set forth, in accordance with generally accepted accounting
principles, in a consolidated statement of cash flow of Consolidated Oak for
such period.
"Capital Lease Obligations" of any person shall mean the obligations
of such person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.
"Capital Stock" of any person shall mean any and all shares,
interests, rights to purchase, warrants, options, participation or other
equivalents of or interests in (however designated) equity of such person,
including any limited or general partnership interest and any limited
liability company membership interest, but excluding any debt securities
convertible into such equity.
A "Change in Control" shall be deemed to have occurred if (a) any
person or group (within the meaning of Rule 13d-5 of the Securities Exchange
Act of 1934 as in effect on the date hereof) shall own directly or indirectly,
beneficially or of record, shares representing more than 30 percent of the
aggregate ordinary voting power represented by the issued and outstanding
capital stock of the Borrower; (b) a majority of the seats (other than vacant
seats) on the board of directors of the Borrower shall at any time be occupied
by persons who were neither (i) nominated by the board of directors of the
Borrower, nor (ii) appointed by directors so nominated; (c) any change in
control (or similar event, however denominated) with respect to the Borrower
or any Subsidiary shall occur under and as defined in any indenture or
agreement in respect of Indebtedness to which the Borrower or any Subsidiary
is a party; or (d) any person or group shall otherwise directly or indirectly
Control the Borrower.
"Closing Date" shall mean the date of the first Credit Event.
"Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time.
"Collateral" shall mean all the "Collateral" as defined in the
Security Documents.
"Commitment" shall mean, with respect to any Lender, such Lender's
Revolving Credit Commitment, Tranche A Commitment and Tranche B Commitment or
any of such Commitments, as the context may require.
"Commitment Fee" shall have the meaning assigned to such term in
Section 2.05(a).
"Confidential Information Memorandum" shall mean the Confidential
Information Memorandum of the Borrower dated August 1995.
"Connector" shall mean Connector Holding Company, a Delaware
corporation.
"Connector Pledge" shall mean the pledge by the Borrower of the
shares it owns of the Capital Stock of Connector pursuant to the Stockholders
Agreement.
"Connector Purchase" shall mean the purchase by the Borrower of all
shares of the Capital Stock of Connector not owned by the Borrower, pursuant
to Section 1.1 or 1.2 of the Stockholders Agreement.
"Consolidated Net Income" shall mean with respect to any person for
any period, the consolidated net income (or loss) of such person and its
subsidiaries, on a consolidated basis, for such period.
"Consolidated Net Worth" shall mean, as of any date, on a
consolidated basis for any person and its subsidiaries, (a) the sum of (i)
common and preferred stock (other than redeemable preferred stock) taken at
par or stated value, (ii) capital surplus relating to common and preferred
stock (other than redeemable preferred stock) and (iii) retained earnings (or
deficit) at such date minus (b) treasury stock at such date; provided,
however, that Consolidated Net Worth shall be adjusted to exclude the non-cash
charges incurred in connection with (x) the incremental expense of up to
$2,000,000 related to the write-up of Lasertron's inventory as a result of
purchase accounting and the charges related to in process research and
development costs of Lasertron immediately following the Acquisition, (y) the
write-off by ▇▇▇▇▇▇▇ in fiscal 1995 of up to $1,800,000 of deferred financing
costs and booked original discount, and (z) purchase accounting adjustments
arising in connection with any acquisition (other than the Acquisition and the
Connector Purchase) consummated after the date of this Agreement, in each case
to the extent that such charges were deducted in any determination of
Consolidated Net Worth; provided, further, that the Consolidated Net Worth of
Adjusted Oak shall equal Consolidated Net Worth of the Borrower minus the
Consolidated Net Worth of Connector, after eliminating all intercompany items.
"Consolidated Oak" shall mean the Borrower and the Subsidiaries, on
a consolidated basis.
"Control" shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
person, whether through the ownership of voting securities, by contract or
otherwise, and "Controlling" and "Controlled" shall have meanings correlative
thereto.
"Credit Event" shall have the meaning assigned to such term in
Section 4.01.
"Current Assets" shall mean, as of any date, on a consolidated basis
for any person and its subsidiaries, all assets (other than cash and Permitted
Investments) which would be classified on a consolidated balance sheet of such
person and its subsidiaries as current assets at such date of determination.
"Current Liabilities" shall mean, as of any date, on a consolidated
basis for any person and its subsidiaries, all liabilities which would be
classified on a consolidated balance sheet of such person and its subsidiaries
as current liabilities (excluding the current portion of long term
Indebtedness) at such date of determination.
"Debt Service" shall mean, with respect to Consolidated Oak or
Adjusted Oak, as applicable, for any period, Interest Expense of such person
for such period plus scheduled principal amortization of Total Debt of such
person for such period, but only if such amount is actually paid in cash.
"Default" shall mean any event or condition which upon notice, lapse
of time or both would constitute an Event of Default.
"Designated Financial Tests" shall be satisfied (a) for the purposes
of Section 6.05(d) (which relates to the right of the Borrower to make
acquisitions under certain circumstances), on the date of the proposed
acquisition, if (i) (A) the Leverage Ratio of Consolidated Oak and, prior to
the closing of the Connector Purchase, of Adjusted Oak is less than or equal
to 0.55 to 1.00 as of such date and (B) the Interest Coverage Ratio of
Consolidated Oak and, prior to the closing of the Connector Purchase, of
Adjusted Oak as of the last day of the fiscal quarter most recently ended for
which financial statements and certificates requried by Section 5.04(a) or
5.04(b) and Section 5.04(c) have been delivered was greater than or equal to
3.0 to 1.0, or (ii) (A) the sum of the aggregate Net Proceeds received on or
prior to such date (without giving effect to the provisos in clauses (a) and
(b) of the definition of "Net Proceeds") from (1) the issuance or sale of any
equity security of the Borrower and (2) the sale of the assets or Capital
Stock of O/E/N India Ltd. or WSNS, is at least $40,000,000, and (B) at least
$40,000,000 principal amount of outstanding Term Loans or, if less, the full
principal amount of oustanding Term Loans shall have been prepaid or shall
simultaneously be prepaid with such proceeds, and (b) for the purposes of the
definition of "Net Proceeds" (which relates to the amount of proceeds of
certain asset or stock sales that must be applied to prepay Loans), Section
2.09(c) (which relates to reductions in the Total Revolving Credit Commitment)
and Section 2.13(c) (which relates to the use of Excess Cash Flow to pay Term
Loans), for a complete fiscal quarter prior to a specified time if (i) (A) the
Leverage Ratio of Consolidated Oak and, prior to the closing of the Connector
Purchase, of Adjusted Oak is less than or equal to 0.55 to 1.00 on each day of
a complete fiscal quarter ended prior to such time (the "reference quarter")
and (B) the Interest Coverage Ratio of Consolidated Oak and, prior to the
closing of the Connector Purchase, of Adjusted Oak as of the last day of the
fiscal quarter immediately prior to the reference quarter and as of the last
day of the reference quarter was greater than or equal to 3.0 to 1.0, or (ii)
(A) the sum of the aggregate Net Proceeds received on or prior to such date
(without giving effect to the provisos in clauses (a) and (b) of the
definition of "Net Proceeds") from (1) the issuance or sale of any equity
security of the Borrower and (2) the sale of the assets or Capital Stock of
O/E/N India Ltd. or WSNS, is at least $40,000,000, and (B) at least
$40,000,000 principal amount of outstanding Term Loans or, if less, the full
principal amount of outstanding Term Loans shall have been prepaid or shall
simultaneously be prepaid with such proceeds; provided, however, that, prior
to the closing of the Connector Purchase, all calculations in connection with
such tests in respect of Consolidated Oak shall be made on a pro forma basis
as if the Borrower had borrowed Tranche B Term Loans in the full amount of the
Tranche B Commitments on the first day of the relevant fiscal period and had
made all scheduled principal payments with respect thereto during such period.
For the purposes of Section 6.05(d) (which relates to the right of the
Borrower to make acquisitions under certain circumstances), the Designated
Financial Tests shall be satisfied on a pro forma basis after giving effect to
an acquisition if (i) the Leverage Ratio of Consolidated Oak and, prior to the
closing of the Connector Purchase, of Adjusted Oak is less than or equal to
0.55 to 1.00 as of the date of consummation of such acquisition, giving effect
to such acquisition and the financing thereof, and (ii) the Interest Coverage
Ratio of Consolidated Oak and, prior to the closing of the Connector Purchase,
of Adjusted Oak was greater than or equal to 3.0 to 1.0 as of the last day of
the last complete fiscal quarter ended prior to such acquisition, as if such
acquisition and the financing thereof had been consummated on October 1, 1995,
or, if later, the first day of the four fiscal quarter period ended on such
last day.
"Determination Date" shall mean, on any date, the last day of the
most recent fiscal quarter for which financial statements and certificates
have been delivered pursuant to Section 5.04(a) or 5.04(b) and Section
5.04(c).
"dollars" or "$" shall mean lawful money of the United States of
America.
"Domestic Subsidiaries" shall mean all Subsidiaries incorporated or
organized under the laws of the United States of America, any State thereof or
the District of Columbia.
"EBITDA" shall mean, for any period, with respect to Consolidated
Oak, the Consolidated Net Income of the Borrower and the Subsidiaries, and
with respect to Adjusted Oak, the Consolidated Net Income of the Borrower and
the Non-Connector Subsidiaries, in each case for such period plus, to the
extent deducted in computing such Consolidated Net Income, without
duplication, the sum of (a) income tax expense, (b) interest expense, (c)
depreciation and amortization expense, (d) any special charges and any
extraordinary or non-recurring losses, (e) non-cash charges incurred in
connection with (i) the incremental expense of up to $2,000,000 related to the
write-up of Lasertron's inventory as a result of purchase accounting and the
charges related to in process research and development costs of Lasertron
immediately following the Acquisition, (ii) in the case of the EBITDA of
Consolidated Oak, the write off by ▇▇▇▇▇▇▇ in fiscal 1995 of up to $1,800,000
of deferred financing costs and booked original issue discount and (iii)
purchase accounting adjustments arising in connection with any acquisition
(other than the Acquisition and the Connector Purchase) consummated after the
date of this Agreement, (f) minority interests in the net income of Adjusted
Oak or Consolidated Oak, as the case may be, and (g) other non-cash items
reducing Consolidated Net Income, minus, to the extent added in computing such
Consolidated Net Income, without duplication, (i) interest income, (ii)
extraordinary or non-recurring gains and (iii) income of any person (other
than any Subsidiary) for any period in excess of dividends or distributions
actually received in cash from such person by the Borrower or a Subsidiary
during such period; provided, however, that for the fiscal quarters ending on
March 31, 1995, June 30, 1995, and September 30, 1995, EBITDA for the Borrower
and for Adjusted Oak shall be computed on a pro forma basis as if the
Acquisition had been completed on December 31, 1994.
"environment" shall mean ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, the workplace or as otherwise defined in any Environmental
Law.
"Environmental Claim" shall mean any written accusation, allegation,
notice of violation, claim, demand, order, directive, cost recovery action or
other cause of action by, or on behalf of, any Governmental Authority or any
person for damages, injunctive or equitable relief, personal injury (including
sickness, disease or death), Remedial Action costs, tangible or intangible
property damage, natural resource damages, nuisance, pollution, any adverse
effect on the environment caused by any Hazardous Material, or for fines,
penalties or restrictions, resulting from or based upon: (a) the existence, or
the continuation of the existence, of a Release (including sudden or non-
sudden, accidental or non-accidental Releases); (b) exposure to any Hazardous
Material; (c) the presence, use, handling, transportation, storage, treatment
or disposal of any Hazardous Material; or (d) the violation or alleged
violation of any Environmental Law or Environmental Permit.
"Environmental Law" shall mean any and all applicable present and
future treaties, laws, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the
environment, preservation or reclamation of natural resources, the management,
Release or threatened Release of any Hazardous Material or to health and
safety matters, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986, 42 U.S.C. Sec.Sec. 9601 et seq. (collectively
"CERCLA"), the Solid Waste Disposal Act, as amended by the Resource
Conservation and Recovery Act of 1976 and Hazardous and Solid Amendments of
1984, 42 U.S.C. Sec.Sec. 6901 et seq., the Federal Water Pollution Control
Act, as amended by the Clean Water Act of 1977, 33 U.S.C. Sec.Sec. 1251 et
seq., the Clean Air Act of 1970, as amended 42 U.S.C. Sec.Sec. 7401 et seq.,
the Toxic Substances Control Act of 1976, 15 U.S.C. Sec.Sec. 2601 et seq., the
Occupational Safety and Health Act of 1970, as amended, 29 U.S.C. Sec.Sec. 651
et seq., the Emergency Planning and Community Right-to-Know Act of 1986, 42
U.S.C. Sec.Sec. 11001 et seq., the Safe Drinking Water Act of 1974, as
amended, 42 U.S.C. Sec.Sec. 300(f) et seq., the Hazardous Materials
Transportation Act, 49 U.S.C. Sec.Sec. 1801 et seq., and any similar or
implementing state or local law, and all amendments or regulations promulgated
thereunder.
"Environmental Permit" shall mean any permit, approval,
authorization, certificate, license, variance, filing or permission required
by or from any Governmental Authority pursuant to any Environmental Law.
"ERISA" shall mean the Employee Retirement Income Security Act of
1974, as the same may be amended from time to time.
"ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single
employer under Section 414(b) or (c) of the Code, or solely for purposes of
Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.
"ERISA Event" shall mean (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder, with respect to a
Plan; (b) the adoption of any amendment to a Plan that would require the
provision of security pursuant to Section 401(a)(29) of the Code or Section
307 of ERISA; (c) the existence with respect to any Plan of an "accumulated
funding deficiency" (as defined in Section 412 of the Code or Section 302 of
ERISA), whether or not waived; (d) the filing pursuant to Section 412(d) of
the Code or Section 303(d) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Plan; (e) the incurrence of any
liability under Title IV of ERISA with respect to the termination of any Plan
or the withdrawal or partial withdrawal of the Borrower or any of its ERISA
Affiliates from any Plan or Multiemployer Plan; (f) the receipt by the
Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to the intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan; (g) the receipt by the Borrower or any ERISA
Affiliate of any notice concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent or
in reorganization, within the meaning of Title IV of ERISA; (h) the occurrence
of a "prohibited transaction" with respect to which the Borrower or any of its
Subsidiaries is a "disqualified person" (within the meaning of Section 4975 of
the Code) or with respect to which the Borrower or any such Subsidiary could
otherwise be liable; and (i) any other event or condition with respect to a
Plan or Multiemployer Plan that could reasonably be expected to result in
liability of the Borrower, other than contributions and payments in the
ordinary course of business pursuant to the terms of such Plan or
Multiemployer Plan.
"Eurodollar Borrowing" shall mean a Borrowing comprised of
Eurodollar Loans.
"Eurodollar Loan" shall mean any Eurodollar Revolving Loan or
Eurodollar Term Loan.
"Eurodollar Revolving Loan" shall mean any Revolving Loan bearing
interest at a rate determined by reference to the Adjusted LIBO Rate in
accordance with the provisions of Article II.
"Eurodollar Term Borrowing" shall mean a Borrowing comprised of
Eurodollar Term Loans.
"Eurodollar Term Loan" shall mean any Term Loan bearing interest at
a rate determined by reference to the Adjusted LIBO Rate in accordance with
the provisions of Article II.
"Event of Default" shall have the meaning assigned to such term in
Article VII.
"Excess Cash Flow" shall mean, for any fiscal year, EBITDA of
Adjusted Oak, prior to the Connector Purchase, and Consolidated Oak, after the
Connector Purchase, for such fiscal year, minus, without duplication, (a) Debt
Service of Adjusted Oak, prior to the Connector Purchase, and Consolidated
Oak, after the Connector Purchase, for such fiscal year, (b) any voluntary
prepayments of Term Loans during such fiscal year, (c) permitted Capital
Expenditures by the Borrower and the Non-Connector Subsidiaries, prior to the
Connector Purchase, or the Borrower and the Subsidiaries, after the Connector
Purchase, on a consolidated basis during such fiscal year which are paid in
cash, (d) taxes paid in cash by the Borrower and the Non-Connector
Subsidiaries, prior to the Connector Purchase, or the Borrower and the
Subsidiaries, after the Connector Purchase, on a consolidated basis during
such fiscal year, (e) an amount equal to any increase in Working Capital of
Adjusted Oak, prior to the Connector Purchase, or of Consolidated Oak, after
the Connector Purchase, for such fiscal year, and (f) to the extent included
in determining EBITDA, all items of revenue or income which did not result
from a cash payment to the Borrower and the Non-Connector Subsidiaries, prior
to the Connector Purchase, or the Borrower and the Subsidiaries, after the
Connector Purchase, during such fiscal year plus, without duplication, (i) an
amount equal to any decrease in Working Capital of Adjusted Oak, prior to the
Connector Purchase, or of Consolidated Oak, after the Connector Purchase for
such fiscal year and (ii) to the extent subtracted in determining EBITDA, all
items of expense which did not result from a cash payment by the Borrower and
the Non-Connector Subsidiaries, prior to the Connector Purchase, or the
Borrower and the Subsidiaries, after the Connector Purchase, during such
fiscal year.
"Existing Indebtedness" shall mean the Indebtedness of the Borrower
and the Subsidiaries listed in Schedule 1.01(a).
"Fee Letter" shall mean the Fee Letter dated August 1, 1995, between
the Borrower and the Administrative Agent.
"Fees" shall mean the Commitment Fees, the Administrative Agent's
Fees, the LC Participation Fees and the Issuing Bank Fees.
"Financial Officer" of any corporation shall mean the chief
financial officer, principal accounting officer, Treasurer or Controller, or
any vice president performing the functions of any such officer, of such
corporation.
"Foreign Subsidiary" shall mean any Subsidiary that is not a
Domestic Subsidiary.
"GAAP" shall mean generally accepted accounting principles applied
on a consistent basis.
"▇▇▇▇▇▇▇" shall mean ▇▇▇▇▇▇▇ Engineering Co., Inc., a Delaware
corporation.
"▇▇▇▇▇▇▇ Collateral" shall have the meaning given to the term
"Collateral" in the ▇▇▇▇▇▇▇ Credit Agreement.
"▇▇▇▇▇▇▇ Credit Agreement" shall mean the Credit Agreement dated as
of the date hereof among Connector, ▇▇▇▇▇▇▇, the lenders party thereto and
Chemical Bank, as issuing bank and as administrative agent and collateral
agent for the lenders party thereto.
"▇▇▇▇▇▇▇ Guarantee Agreement" shall have the meaning given to the
term "Guarantee Agreement" in the ▇▇▇▇▇▇▇ Credit Agreement.
"▇▇▇▇▇▇▇ Guarantors" shall have the meaning given to the term
"Guarantors" in the ▇▇▇▇▇▇▇ Credit Agreement.
"▇▇▇▇▇▇▇ Indemnity, Subrogation and Contribution Agreement" shall
have the meaning given to the term "Indemnity, Subrogation and Contribution
Agreement" in the ▇▇▇▇▇▇▇ Credit Agreement.
"▇▇▇▇▇▇▇ Obligations" shall have the meaning given to the term
"Obligations" in the ▇▇▇▇▇▇▇ Credit Agreement.
"▇▇▇▇▇▇▇ Secured Parties" shall have the meaning assigned to the
term "Secured Parties" in the ▇▇▇▇▇▇▇ Credit Agreement.
"Governmental Authority" shall mean any Federal, state, local or
foreign court or governmental agency, authority, instrumentality or regulatory
body.
"Guarantee" of or by any person shall mean any obligation,
contingent or otherwise, of such person guaranteeing or having the economic
effect of guaranteeing any Indebtedness of any other person (the "primary
obligor") in any manner, whether directly or indirectly, and including any
obligation of such person, direct or indirect, (a) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
to purchase (or to advance or supply funds for the purchase of) any security
for the payment of such Indebtedness, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such
Indebtedness of the payment of such Indebtedness or (c) to maintain working
capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay
such Indebtedness; provided, however, that the term Guarantee shall not
include endorsements for collection or deposit in the ordinary course of
business.
"Guarantee Agreement" shall mean the Guarantee Agreement,
substantially in the form of Exhibit D, made by the Guarantors in favor of the
Collateral Agent for the benefit of the Secured Parties.
"Guarantors" shall mean each person listed on Schedule 1.01(b) and
each other person that becomes party to the Guarantee Agreement as a
Guarantor, and the permitted successors and assigns of each such person.
"Hazardous Materials" shall mean all explosive or radioactive
substances or wastes, hazardous or toxic substances or wastes, pollutants,
solid, liquid or gaseous wastes, including petroleum or petroleum distillates,
asbestos or asbestos-containing materials, polychlorinated biphenyls ("PCBs")
or PCB-containing materials or equipment, radon gas, infectious or medical
wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.
"Inactive Subsidiary" shall mean any Subsidiary that (a) does not
carry on any business and (b) has total assets of not more than $10,000.
"Indebtedness" of any person shall mean, without duplication, (a)
all obligations of such person for borrowed money, (b) all obligations of such
person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such person upon which interest charges are customarily paid,
(d) all obligations of such person under conditional sale or other title
retention agreements relating to property or assets purchased by such person,
(e) all obligations of such person issued or assumed as the deferred purchase
price of property or services (excluding trade accounts payable and accrued
obligations incurred in the ordinary course of business), (f) all Indebtedness
of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such person, whether or not the obligations
secured thereby have been assumed, (g) all Guarantees by such person of
Indebtedness of others, (h) all Capital Lease Obligations of such person, (i)
all obligations of such person in respect of interest rate protection
agreements, foreign currency exchange agreements or other interest or exchange
rate hedging arrangements and (j) all obligations of such person as an account
party in respect of letters of credit and bankers' acceptances. The
Indebtedness of any person shall include the Indebtedness of any partnership
in which such person is a general partner.
"Indemnity, Subrogation and Contribution Agreement" shall mean the
Indemnity, Subrogation and Contribution Agreement, substantially in the form
of Exhibit E, among the Borrower, the Guarantors and the Collateral Agent.
"Interest Coverage Ratio" shall mean, with respect to any person,
the ratio as of the last day of any fiscal quarter, for the four fiscal
quarter period ended as of such day of (a) EBITDA minus Capital Expenditures
to (b) Interest Expense; provided, however, that for purposes of calculating
Interest Expense as of the last day of each of the fiscal quarters ending on
December 31, 1995, March 31, 1996, and June 30, 1996, the amount determined
pursuant to clause (b) above shall be determined by multiplying Interest
Expense for the period commencing October 1, 1995, and ending as of the end of
such fiscal period (i) by 4, in the case of the fiscal quarter ending December
31, 1995, (ii) by 2, in the case of the fiscal quarter ending March 31, 1996,
and (iii) by 4/3, in the case of the fiscal quarter ending June 30, 1996.
"Interest Expense" shall mean, with respect to Consolidated Oak or
Adjusted Oak, in each case on a consolidated basis for any period, interest
accrued or paid by the Borrower and the Subsidiaries, in the case of
Consolidated Oak, and the Borrower and the Non-Connector Subsidiaries, in the
case of Adjusted Oak, during such period in respect of Total Debt of such
person, excluding, in each case, amortization of deferred financing charges.
"Interest Payment Date" shall mean, with respect to any Loan, the
last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Eurodollar Borrowing with an Interest Period
of more than three months' duration, each day that would have been an Interest
Payment Date had successive Interest Periods of three months' duration been
applicable to such Borrowing, and, in addition, in the case of a Eurodollar
Borrowing, the date of any prepayment of such Borrowing or conversion of such
Borrowing to a Borrowing of a different Type.
"Interest Period" shall mean (a) as to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the
last day) in the calendar month that is 1, 2, 3 or 6 months thereafter, as the
Borrower may elect and (b) as to any ABR Borrowing, the period commencing on
the date of such Borrowing and ending on the earliest of (i) the next
succeeding March 31, June 30, September 30 or December 31, and (ii) the
Revolving Credit Maturity Date or the Term Loan Maturity Date, as applicable;
provided, however, that if any Interest Period would end on a day other than a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless, in the case of a Eurodollar Borrowing only, such next
succeeding Business Day would fall in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day. Interest
shall accrue from and including the first day of an Interest Period to but
excluding the last day of such Interest Period.
"Investors" shall have the meaning given to such term in the
definition of "Stockholders Agreement".
"Issuing Bank" shall mean (a) Chemical Bank, in its capacity as
issuer of Letters of Credit, and (b) any other Issuing Bank appointed under
Section 2.22(i).
"Issuing Bank Fees" shall have the meaning assigned to such term in
Section 2.05(c).
"Lasertron" shall mean Lasertron, Inc., a Massachusetts corporation.
"L/C Commitment" shall mean the commitment of each Issuing Bank to
issue Letters of Credit pursuant to Section 2.22.
"L/C Disbursement" shall mean a payment or disbursement made by any
Issuing Bank pursuant to a Letter of Credit.
"L/C Exposure" shall mean at any time the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate principal amount of all L/C Disbursements that have not yet been
reimbursed at such time. The L/C Exposure of any Revolving Credit Lender at
any time shall mean its Pro Rata Percentage of the aggregate L/C Exposure at
such time.
"L/C Participation Fee" shall have the meaning assigned to such term
in Section 2.05(c).
"Lenders" shall mean (a) the financial institutions listed on
Schedule 2.01 (other than any such financial institution that has ceased to be
a party hereto pursuant to an Assignment and Acceptance) and (b) any financial
institution that has become a party hereto pursuant to an Assignment and
Acceptance.
"Letter of Credit" shall mean any letter of credit issued pursuant
to Section 2.22.
"Leverage Ratio" shall mean, with respect to any person on any date,
the ratio of (a) Total Debt of such person as of such date to (b) the sum of
Consolidated Net Worth plus Total Debt, in each case of such person as of such
date.
"LIBO Rate" shall mean, with respect to any Eurodollar Borrowing,
the rate (rounded upwards, if necessary, to the next 1/16 of 1 percent) at
which dollar deposits approximately equal in principal amount to the
Administrative Agent's portion of such Eurodollar Borrowing and for a maturity
comparable to such Interest Period are offered to the principal London office
of the Administrative Agent in immediately available funds by major banks in
the London interbank market at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period.
"Lien" shall mean, with respect to any asset, (a) any mortgage, deed
of trust, lien, pledge, encumbrance, charge or security interest in or on such
asset, (b) the interest of a vendor or a lessor under any conditional sale
agreement, capital lease or title retention agreement (or any financing lease
having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.
"Loan Documents" shall mean this Agreement, the Letters of Credit,
the Guarantee Agreement, the Security Documents and the Indemnity, Subrogation
and Contribution Agreement.
"Loan Parties" shall mean the Borrower and the Guarantors.
"Loans" shall mean the Revolving Loans and the Term Loans.
"Management Stockholders Agreement" shall mean the Management
Stockholders Agreement dated as of December 23, 1992, among ▇▇▇▇▇▇▇
Engineering Acquisition Co., Inc., Connector, Connector Acquisition Company,
the Borrower, certain investors party thereto and certain members of the
management of ▇▇▇▇▇▇▇ party thereto.
"Margin Stock" shall have the meaning assigned to such term in
Regulation U.
"Material Adverse Effect" shall mean (a) a materially adverse effect
on the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrower and the Subsidiaries taken as a whole, or of the
Borrower and the Non-Connector Subsidiaries taken as a whole, (b) material
impairment of the ability of the Borrower or any Subsidiary to perform any of
its obligations under any Loan Document to which it is or will be a party or
(c) material impairment of the rights of or benefits available to the Lenders
under any Loan Document.
"Multiemployer Plan" shall mean a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.
"Net Proceeds" shall mean:
(a) 100 percent of the cash proceeds actually received by the
Borrower or any Non-Connector Subsidiary, prior to the Connector Purchase, or
by the Borrower or any Subsidiary, after the Connector Purchase (including,
when received, any cash payments in respect of principal of a note or
installment receivable evidencing or forming part of the purchase price or a
purchase price adjustment receivable or otherwise and including casualty
insurance settlements and condemnation awards, but only as and when received),
net of (i) attorneys' fees, accountants' fees, investment banking fees, survey
costs, title insurance premiums, and related search and recording charges,
transfer taxes, deed or mortgage recording taxes, required debt payments
(other than pursuant hereto), other customary expenses and brokerage,
consultant and other customary fees actually incurred in connection therewith
and (ii) taxes paid or payable as a result thereof (including withholding
taxes incurred in connection with cross-border transactions, if applicable,
and including taxes estimated by the Borrower to be payable as a result
thereof or as a result of such transactions), from any loss, damage,
destruction or condemnation, or any sale, transfer or other disposition
(including any sale and leaseback of assets and any mortgage or lease of real
property) to any person, of any asset or assets of the Borrower or any Non-
Connector Subsidiary (including any issuance or sale by any Non-Connector
Subsidiary of any of its equity securities), prior to the Connector Purchase,
or of the Borrower or any Subsidiary (including any issuance or sale by any
Subsidiary of any of its equity securities), after the Connector Purchase
(other than sales of assets expressly permitted by clause (a) of Section
6.05); provided, however, that (A) the Net Proceeds from any sale of tangible
personal property shall be reduced by an amount that the Borrower certifies in
writing to the Administrative Agent has been or will be reinvested by the
Borrower or the applicable Subsidiary in the purchase of like property
(provided that any amount not so reinvested within 90 days of receipt shall
immediately become Net Proceeds), (B) proceeds received from the sale of the
assets or Capital Stock of O/E/N India Ltd. or WSNS shall not constitute Net
Proceeds if the Designated Financial Tests had been satisfied for a complete
fiscal quarter prior to the date of such sale, and (C) with respect to any
fiscal year, no such proceeds realized in any fiscal year shall constitute Net
Proceeds except and only to the extent that all such proceeds shall, in the
aggregate, exceed $500,000 for such fiscal year; and
(b) 100 percent of the cash proceeds from the issuance or the sale
by the Borrower of any equity security of the Borrower, net of all taxes and
fees, discounts, commissions, costs and other expenses incurred in connection
with such issuance or sale; provided, however, that proceeds from any issuance
or sale of equity shall not constitute Net Proceeds if the Designated
Financial Tests had been satisfied for a complete fiscal quarter prior to the
date of such issuance or sale.
"Non-Connector Subsidiary" shall mean any Subsidiary that is not
Connector or a subsidiary of Connector.
"Obligations" shall mean, collectively, (a) the due and punctual
payment of (i) the principal of and premium, if any, and interest (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (ii) each payment required to be made by the Borrower under this
Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, (iii) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations
incurred during the pendency of any bankruptcy, insolvency, receivership or
other similar proceeding, regardless of whether allowed or allowable in such
proceeding), of the Loan Parties to the Secured Parties under this Agreement
and the other Loan Documents, (iv) any amount in respect of the foregoing that
the Administrative Agent, the Collateral Agent, any Issuing Bank or any
Lender, in its sole discretion, may elect to pay or advance under this
Agreement or any other Loan Document on behalf of any Loan Party after the
occurrence and during the continuation of a Default or an Event of Default and
(v) unless the applicable Lender otherwise agrees, all monetary obligations of
the Borrower and the Subsidiaries under each interest rate protection
agreement, foreign currency exchange agreement and other interest or exchange
rate hedging agreement with any Lender and (b) the due and punctual
performance of all covenants, agreements, obligations and liabilities of the
Loan Parties under or pursuant to this Agreement and the other Loan Documents.
"PBGC" shall mean the Pension Benefit Guaranty Corporation referred
to and defined in ERISA.
"Permitted Other Acquisitions" shall have the meaning given such
term in Section 6.05(d).
"Permitted Investments" shall mean:
(a) direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, (i) the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America) or (ii) any state
or municipality of the United States rated, at the date of acquisition, A or
higher by Standard & Poor's and A or higher by ▇▇▇▇▇'▇ Investors Service,
Inc., in each case maturing within one year from the date of acquisition
thereof;
(b) investments in commercial paper maturing within 270 days from
the date of acquisition thereof and having, at such date of acquisition, a
rating of A-1 or higher from Standard & Poor's or a rating of P-1 or higher
from ▇▇▇▇▇'▇ Investors Service, Inc.;
(c) any mutual fund or other pooled investment vehicle rated A or
higher by ▇▇▇▇▇'▇ Investors Service, Inc., and A or higher by Standard &
Poor's, which invests principally in obligations described above;
(d) investments in certificates of deposit, banker's acceptances and
time deposits maturing within one year from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts
issued or offered by, any domestic office of (i) any commercial bank organized
under the laws of the United States of America or any State thereof which has
a combined capital and surplus and undivided profits of not less than
$250,000,000 or (ii) any Lender; and
(e) other investment instruments approved in writing by the Required
Lenders and offered by financial institutions which have a combined capital
and surplus and undivided profits of not less than $250,000,000.
"Permitted Release" shall have the meaning given such term in
Section 5.10.
"person" shall mean any natural person, corporation, business trust,
joint venture, association, company, partnership, limited liability company or
government, or any agency or political subdivision thereof.
"Plan" shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 307 of ERISA, and in respect of which the Borrower
or any ERISA Affiliate is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an "employer" as defined in Section
3(5) of ERISA.
"Pledge Agreement" shall mean the Pledge Agreement, substantially in
the form of Exhibit F, between the Borrower, the Subsidiaries party thereto
and the Collateral Agent for the benefit of the Secured Parties and ▇▇▇▇▇▇▇
Secured Parties.
"Pro Rata Percentage" of any Revolving Credit Lender at any time
shall mean the percentage of the Total Revolving Credit Commitment
represented by such Lender's Revolving Credit Commitment. In the event the
Revolving Credit Commitments shall have expired or been terminated, the Pro
Rata Percentages shall be determined on the basis of the Revolving Credit
Commitments most recently in effect, but giving effect to any assignments
pursuant to Section 9.04.
"Register" shall have the meaning given such term in Section
9.04(d).
"Regulation G" shall mean Regulation G of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"Regulation U" shall mean Regulation U of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"Regulation X" shall mean Regulation X of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.
"Release" shall mean any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing, depositing, dispersing, emanating or migrating of any Hazardous
Material in, into, onto or through the environment.
"Remedial Action" shall mean: (a) "remedial action" as such term is
defined in CERCLA, 42 U.S.C. Section 9601(24); and (b) any other action
required by any Governmental Authority or voluntarily undertaken to (x) clean
up, remove, treat, ▇▇▇▇▇ or in any other way address any Hazardous Material in
the environment; (y) prevent the Release or threat of Release, or minimize the
further Release of any Hazardous Material so it does not migrate or endanger
or threaten to endanger public health, welfare or the environment; or (z)
perform studies and investigations in connection with, or as a precondition
to, clause (x) or (y) above.
"Reportable Event" shall mean any reportable event as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than a Plan maintained by an ERISA Affiliate that is considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Code Section 414).
"Required Lenders" shall mean, at any time, Lenders having Loans,
L/C Exposure and unused Revolving Credit Commitments, Tranche A Commitments
and Tranche B Commitments representing greater than 50 percent of the sum of
all Loans outstanding, L/C Exposure and unused Revolving Credit Commitments,
Tranche A Commitments and Tranche B Commitments at such time.
"Responsible Officer" of any corporation shall mean any executive
officer or Financial Officer of such corporation and any other officer or
similar official thereof responsible for the administration of the obligations
of such corporation in respect of this Agreement.
"Revolving Credit Borrowing" shall mean a Borrowing comprised of
Revolving Loans.
"Revolving Credit Commitment" shall mean, with respect to each
Lender, the commitment of such Lender to make Revolving Loans hereunder as set
forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which
such Lender assumed its Revolving Credit Commitment, as applicable, as the
same may be (a) reduced from time to time pursuant to Section 2.09 and (b)
reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04.
"Revolving Credit Exposure" shall mean, with respect to any Lender
at any time, the aggregate principal amount at such time of all outstanding
Revolving Loans of such Lender, plus the aggregate amount at such time of such
Lender's L/C Exposure.
"Revolving Credit Lender" shall mean a Lender with a Revolving
Credit Commitment.
"Revolving Credit Maturity Date" shall mean September 30, 2000.
"Revolving Loans" shall mean the revolving loans made by the Lenders
to the Borrower pursuant to clause (c) of Section 2.01. Each Revolving Loan
shall be a Eurodollar Revolving Loan or an ABR Revolving Loan.
"Sale and Lease-Back Transaction" shall mean any arrangement,
directly or indirectly, whereby the Borrower or any Subsidiary shall sell or
transfer to any person any property, real or personal, used or useful in its
business, whether now owned or hereafter acquired, and thereafter the Borrower
or any Subsidiary (other than, for so long as the ▇▇▇▇▇▇▇ Credit Agreement is
effective, ▇▇▇▇▇▇▇ or any of its subsidiaries) shall rent or lease such
property, or other property that it intends to use for substantially the same
purpose or purposes as the property being sold or transferred, from such
person or any of its Affiliates.
"Secured Parties" shall have the meaning assigned to such term in
the Pledge Agreement.
"Security Documents" shall mean the Pledge Agreement and each of the
other instruments and documents executed and delivered pursuant to the
foregoing or pursuant to Section 5.10.
"Statutory Reserves" shall mean a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including
any marginal, special, emergency or supplemental reserves) expressed as a
decimal established by the Board and any other banking authority, domestic or
foreign, to which the Administrative Agent or any Lender (including any
branch, Affiliate, or other fronting office making or holding a Loan) is
subject for Eurocurrency Liabilities (as defined in Regulation D of the
Board). Such reserve percentages shall include those imposed pursuant to such
Regulation D. Eurodollar Loans shall be deemed to constitute Eurocurrency
Liabilities and to be subject to such reserve requirements without benefit of
or credit for proration, exemptions or offsets that may be available from time
to time to any Lender under such Regulation D. Statutory Reserves shall be
adjusted automatically on and as of the effective date of any change in any
reserve percentage.
"Stockholders Agreement" shall mean the Stockholders Agreement dated
as of December 22, 1992, among Connector, the Borrower, certain investors from
time to time party thereto (the "Investors") and ▇▇▇▇.
"Stock Purchase Agreement" shall mean the Stock Purchase Agreement
among Lasertron, the stockholders of Lasertron party thereto and the Borrower
related to the acquisition of Lasertron by the Borrower and signed
contemporaneously with this Agreement.
"subsidiary" shall mean, with respect to any person (herein referred
to as the "parent"), any corporation, partnership, association or other
business entity of which securities or other ownership interests representing
more than 50 percent of the equity or more than 50 percent of the ordinary
voting power or more than 50 percent of the general partnership interests are,
at the time any determination is being made, owned, controlled or held by the
parent.
"Subsidiary" shall mean any subsidiary of the Borrower.
"Term Borrowing" shall mean a Borrowing comprised of Tranche A Term
Loans or Tranche B Term Loans.
"Term Loan Repayment Amounts" shall mean, for any period, the
Tranche A Term Loan Repayment Amounts and the Tranche B Term Loan Repayment
Amounts payable during such period.
"Term Loan Repayment Dates" shall mean the Tranche A Term Loan
Repayment Dates and the Tranche B Term Loan Repayment Dates.
"Term Loans" shall mean the Tranche A Term Loans and the Tranche B
Term Loans.
"Total Debt" shall mean, with respect to Consolidated Oak or
Adjusted Oak, in each case on a consolidated basis at any time, all
Indebtedness (other than Indebtedness of the type referred to in clause (i) of
the definition of the term "Indebtedness" or Indebtedness of the type referred
to in clauses (f) and (g) of such definition to the extent that the
Indebtedness of the other person referred to in such clauses (f) and (g) is
Indebtedness of the type referred to in clause (i)) of the Borrower and the
Subsidiaries, in the case of Consolidated Oak, and the Borrower and the Non-
Connector Subsidiaries, in the case of Adjusted Oak, in each case at such
time.
"Total Revolving Credit Commitment" shall mean, at any time, the
aggregate amount of the Revolving Credit Commitments, as in effect at such
time.
"Tranche A Commitment" shall mean, with respect to each Lender, the
commitment of such Lender to make a Tranche A Term Loan hereunder as set forth
on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Lender assumed its Tranche A Commitment, as applicable, as the same may be (a)
reduced from time to time pursuant to Section 2.09 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04.
"Tranche A Maturity Date" shall mean September 30, 2000.
"Tranche A Term Borrowing" shall mean a Borrowing comprised of
Tranche A Term Loans.
"Tranche A Term Loan Closing Date" shall mean the date on which
Tranche A Term Loans are made.
"Tranche A Term Loan Repayment Amount" shall have the meaning
assigned to such term in Section 2.11(a).
"Tranche A Term Loan Repayment Date" shall have the meaning assigned
to such term in Section 2.11(a).
"Tranche A Term Loans" shall mean the term loans made by the Lenders
to the Borrower pursuant to clause (a) of Section 2.01. Each Tranche A Term
Loan shall be either a Eurodollar Term Loan or an ABR Term Loan.
"Tranche B Commitment" shall mean, with respect to each Lender, the
commitment of such Lender to make a Tranche B Term Loan hereunder as set forth
on Schedule 2.01, or in the Assignment and Acceptance pursuant to which such
Lender assumed its Tranche B Commitment, as applicable, as the same may be (a)
reduced from time to time pursuant to Section 2.09 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04
"Tranche B Maturity Date" shall mean September 30, 2000.
"Tranche B Term Borrowing" shall mean a Borrowing comprised of
Tranche B Term Loans.
"Tranche B Term Loan Closing Date" shall mean the date on which
Tranche B Term Loans are made.
"Tranche B Term Loan Repayment Amount" shall have the meaning
assigned to such term in Section 2.11(b).
"Tranche B Term Loan Repayment Date" shall have the meaning assigned
to such term in Section 2.11(b).
"Tranche B Term Loans" shall mean the term loans made by the Lenders
to the Borrower pursuant to clause (b) of Section 2.01. Each Tranche B Term
Loan shall be either a Eurodollar Term Loan or an ABR Term Loan.
"Transactions" shall have the meaning assigned to such term in
Section 3.02.
"Type", when used in respect of any Loan or Borrowing, shall refer
to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, the term "Rate"
shall include the Adjusted LIBO Rate and the Alternate Base Rate.
"wholly owned Subsidiary" of any person shall mean a subsidiary of
such person of which securities (except for directors' qualifying shares) or
other ownership interests representing 100 percent of the equity or 100
percent of the ordinary voting power or 100 percent of the general partnership
interests are, at the time any determination is being made, owned, controlled
or held by such person or one or more wholly owned subsidiaries of such person
or by such person and one or more wholly owned subsidiaries of such person.
"Withdrawal Liability" shall mean liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan,
as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
"Working Capital" shall mean, with respect to any person and its
subsidiaries on a consolidated basis at any date of determination, Current
Assets for such person at such date of determination minus Current Liabilities
for such person at such date of determination; provided, however, that the
Working Capital of Adjusted Oak shall equal the Working Capital of the
Borrower minus the Working Capital of Connector, after eliminating all
intercompany items.
"WSNS" shall mean the Borrower's interest in the joint venture Video
44.
"WTD" shall mean Wuhan Telecommunication Devices Company, a Sino
foreign joint venture limited liability company.
SECTION 1.02. Terms Generally. The definitions in Section 1.01
shall apply equally to both the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words "include",
"includes" and "including" shall be deemed to be followed by the phrase
"without limitation". All references herein to Articles, Sections, Exhibits
and Schedules shall be deemed references to Articles and Sections of, and
Exhibits and Schedules to, this Agreement unless the context shall otherwise
require. Except as otherwise expressly provided herein, (a) any reference in
this Agreement to any Loan Document shall mean such document as amended,
restated, supplemented or otherwise modified from time to time and (b) all
terms of an accounting or financial nature shall be construed in accordance
with GAAP, as in effect from time to time; provided, however, that for
purposes of determining compliance with the covenants contained in Article VI,
all accounting terms herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with GAAP as in effect on
the date of this Agreement and applied on a basis consistent with the
application used in the financial statements referred to in Section 3.05(a).
ARTICLE II. THE CREDITS
SECTION 2.01. Commitments. Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, each Lender
agrees, severally and not jointly, (a) to make a Tranche A Term Loan to the
Borrower on the date of the closing of the Acquisition, but in no event later
than the termination of the Tranche A Commitment of such Lender in accordance
with the terms hereof, in an aggregate principal amount not to exceed its
Tranche A Commitment, (b) to make a Tranche B Term Loan to the Borrower on the
date of the closing of the Connector Purchase, but in no event prior to the
making of the Tranche A Term Loans or later than the termination of the
Tranche B Commitment of such Lender in accordance with the terms hereof, in an
aggregate principal amount not to exceed its Tranche B Commitment, and (c) to
make Revolving Loans to the Borrower, at any time and from time to time on or
after the date hereof, and until the earlier of the Revolving Credit Maturity
Date and the termination of the Revolving Credit Commitment of such Lender in
accordance with the terms hereof, in an aggregate principal amount at any time
outstanding that will not result in (i) such Lender's Revolving Credit
Exposure exceeding (ii) such Lender's Revolving Credit Commitment. Within the
limits set forth in clause (c) of the preceding sentence and subject to the
terms, conditions and limitations set forth herein, the Borrower may borrow,
pay or prepay and reborrow Revolving Loans. Amounts paid or prepaid in
respect of Term Loans may not be reborrowed.
SECTION 2.02. Loans. (a) Each Loan shall be made as part of a
Borrowing consisting of Loans made by the Lenders ratably in accordance with
their applicable Commitments; provided, however, that the failure of any
Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender). Except for Loans deemed made
pursuant to Section 2.02(f), the Loans comprising any Borrowing shall be in an
aggregate principal amount that is (i) an integral multiple of $1,000,000 or
(ii) equal to the remaining available balance of the applicable Commitments.
(b) Subject to Sections 2.08 and 2.15, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may
request pursuant to Section 2.03. Each Lender may at its option make any
Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided, however, that any exercise of such option
shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement. Borrowings of more than one Type
may be outstanding at the same time; provided, however, that the Borrower
shall not be entitled to request any Borrowing that, if made, would result in
more than ten Eurodollar Borrowings outstanding hereunder at any time. For
purposes of the foregoing, Borrowings having different Interest Periods,
regardless of whether they commence on the same date, shall be considered
separate Borrowings.
(c) Each Lender shall make each Loan to be made by it hereunder on
the proposed date thereof by wire transfer of immediately available funds to
such account in New York City as the Administrative Agent may designate not
later than 12:00 (noon), New York City time, and the Administrative Agent
shall by 12:00 (noon), New York City time, credit the amounts so received to
an account with the Administrative Agent designated by the Borrower in the
applicable Borrowing Request, which account must be in the name of the
Borrower or, if a Borrowing shall not occur on such date because any condition
precedent herein specified shall not have been met, return the amounts so
received to the respective Lenders.
(d) Unless the Administrative Agent shall have received notice from
a Lender prior to the date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender's portion of such Borrowing,
the Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such Borrowing in
accordance with paragraph (c) above and the Administrative Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If the Administrative Agent shall have so made funds
available then, to the extent that such Lender shall not have made such
portion available to the Administrative Agent, such Lender and the Borrower
severally agree to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the
date such amount is made available to the Borrower until the date such amount
is repaid to the Administrative Agent at (i) in the case of the Borrower, the
interest rate applicable at the time to the Loans comprising such Borrowing
and (ii) in the case of such Lender, a rate determined by the Administrative
Agent to represent its cost of overnight or short-term funds (which
determination shall be conclusive absent manifest error). If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
shall constitute such Lender's Loan as part of such Borrowing for purposes of
this Agreement.
(e) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request any Borrowing if the Interest Period
requested with respect thereto would end after the Revolving Credit Maturity
Date.
(f) If any Issuing Bank shall not have received from the Borrower
any payment required to be made to such Issuing Bank pursuant to Section
2.22(e) within the time specified in such Section, such Issuing Bank will
promptly notify the Administrative Agent and the Administrative Agent will
promptly notify each Revolving Credit Lender of the amount of the L/C
Disbursement which shall not have been reimbursed and its Pro Rata Percentage
thereof. Each Revolving Credit Lender shall pay by wire transfer of
immediately available funds to the Administrative Agent not later than 2:00
p.m., New York City time, on such date (or, if such Revolving Credit Lender
shall have received such notice later than 12:00 (noon), New York City time,
on any day, not later than 10:00 a.m., New York City time, on the immediately
following Business Day), an amount equal to such Lender's Pro Rata Percentage
of such L/C Disbursement (it being understood that such amount shall be deemed
to constitute an ABR Revolving Loan of such Lender and such payment shall be
deemed to have reduced the L/C Exposure), and the Administrative Agent will
promptly pay to such Issuing Bank amounts so received by it from the Revolving
Credit Lenders. The Administrative Agent will promptly pay to such Issuing
Bank any amounts received by it from the Borrower pursuant to Section 2.22(e)
prior to the time that any Revolving Credit Lender makes any payment pursuant
to this paragraph (f); any such amounts received by the Administrative Agent
thereafter will be promptly remitted by the Administrative Agent to the
Revolving Credit Lenders that shall have made such payments and to such
Issuing Bank, as their interests may appear. If any Revolving Credit Lender
shall not have made its Pro Rata Percentage of such L/C Disbursement available
to the Administrative Agent as provided above, such Lender and the Borrower
severally agree to pay interest on such amount, for each day from and
including the date such amount is required to be paid in accordance with this
paragraph to but excluding the date such amount is paid, to the Administrative
Agent at (i) in the case of the Borrower, a rate per annum equal to the
interest rate applicable to Revolving Loans pursuant to Section 2.06, and (ii)
in the case of such Lender, for the first such day, the Federal Funds
Effective Rate, and for each day thereafter, the Alternate Base Rate.
SECTION 2.03. Borrowing Procedure. In order to request a Borrowing
(other than a deemed Borrowing pursuant to Section 2.02(f), as to which this
Section 2.03 shall not apply), the Borrower shall hand deliver or telecopy to
the Administrative Agent a duly completed Borrowing Request (a) in the case of
a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before a proposed Borrowing, and (b) in the case of an ABR
Borrowing, not later than 11:00 a.m., New York City time, on the same day as
the proposed Borrowing. Each Borrowing Request shall be irrevocable, shall be
signed by or on behalf of the Borrower and shall specify the following
information: (i) whether the Borrowing then being requested is to be a Term
Borrowing or a Revolving Credit Borrowing, and whether such Borrowing is to be
a Eurodollar Borrowing or an ABR Borrowing; provided, however, that, unless
the Required Lenders otherwise agree, no Eurodollar Borrowing shall be
requested or made if a Default or Event of Default has occurred and is
continuing; (ii) the date of such Borrowing (which shall be a Business Day),
(iii) the number and location of the account to which funds are to be
disbursed (which shall be an account that complies with the requirements of
Section 2.02(c)); (iv) the amount of such Borrowing; and (v) if such Borrowing
is to be a Eurodollar Borrowing, the Interest Period with respect thereto;
provided, however, that, notwithstanding any contrary specification in any
Borrowing Request, each requested Borrowing shall comply with the requirements
set forth in Section 2.02. If no election as to the Type of Borrowing is
specified in any such notice, then the requested Borrowing shall be an ABR
Borrowing. If no Interest Period with respect to any Eurodollar Borrowing is
specified in any such notice, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration. The Administrative Agent
shall promptly advise the applicable Lenders of any notice given pursuant to
this Section 2.03 (and the contents thereof), and of each Lender's portion of
the requested Borrowing.
SECTION 2.04. Evidence of Debt; Repayment of Loans. (a) The
Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender the principal amount of each Term Loan of such
Lender as provided in Section 2.11 and the then unpaid principal amount of
each Revolving Loan on the Revolving Credit Maturity Date.
(b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender from time to time,
including the amounts of principal and interest payable and paid such Lender
from time to time under this Agreement.
(c) The Administrative Agent shall maintain accounts in which it
will record (i) the amount of each Loan made hereunder, the Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to
each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder from the Borrower and each Lender's share
thereof.
(d) The entries made in the accounts maintained pursuant to
paragraphs (b) and (c) above shall be prima facie evidence of the existence
and amounts of the obligations therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligations of the
Borrower to repay the Loans in accordance with their terms.
(e) Notwithstanding any other provision of this Agreement, in the
event any Lender shall request and receive a promissory note payable to such
Lender and its registered assigns, the interests represented by such note
shall at all times (including after any assignment of all or part of such
interests pursuant to Section 9.04) be represented by one or more promissory
notes payable to the payee named therein or its registered assigns.
SECTION 2.05. Fees. (a) The Borrower agrees to pay to each
Lender, through the Administrative Agent, on the date hereof, on the last day
of March, June, September and December in each year and on each date on which
any Commitment of such Lender shall expire or be terminated as provided
herein, a commitment fee (a "Commitment Fee") equal to the Applicable
Percentage per annum in effect from time to time on the average daily unused
amount of the Commitments of such Lender in effect during the preceding
quarter (or other period commencing with the date of effectiveness of the
Commitments of such Lender or ending with the Revolving Credit Maturity Date
or the date on which the Commitments of such Lender shall expire or be
terminated). All Commitment Fees shall be computed on the basis of the actual
number of days elapsed in a year of 360 days. The Commitments of each Lender
shall be deemed to have become effective on the date of acceptance by the
Borrower of a commitment of such Lender in respect of the credit facilities
established by this Agreement and shall cease to accrue on the date on which
the last of the Commitments of such Lender shall expire or be terminated as
provided herein.
(b) The Borrower agrees to pay to the Administrative Agent, for its
own account, the fees set forth in the Fee Letter at the times and in the
amounts specified therein (the "Administrative Agent Fees").
(c) The Borrower agrees to pay (i) to each Revolving Credit Lender,
through the Administrative Agent, on the last day of March, June, September
and December of each year and on the date on which the Revolving Credit
Commitment of such Lender shall have been terminated as provided herein and no
Letters of Credit shall remain outstanding, a fee (an "L/C Participation Fee")
on such Lender's Pro Rata Percentage of the average daily aggregate L/C
Exposure (excluding the portion thereof attributable to unreimbursed L/C
Disbursements) during the preceding quarter (or shorter period commencing with
the date hereof or ending with the Revolving Credit Maturity Date or the date
on which no Letters of Credit shall remain outstanding and the Revolving
Credit Commitments shall have been terminated) at a rate equal to the
Applicable Percentage from time to time used to determine the interest rate on
Revolving Credit Borrowings comprised of Eurodollar Loans pursuant to Section
2.06, and (ii) to each Issuing Bank with respect to each Letter of Credit
issued by such Issuing Bank the fronting fees separately agreed upon by the
Borrower and such Issuing Bank and the standard issuance and drawing fees
specified from time to time by such Issuing Bank (the "Issuing Bank Fees").
All L/C Participation Fees and Issuing Bank Fees shall be computed on the
basis of the actual number of days elapsed in a year of 360 days.
(d) All Fees shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution, if and as
appropriate, among the Lenders, except that Issuing Bank Fees shall be paid
directly to the Issuing Bank entitled thereto. Once paid, none of the Fees
shall be refundable.
SECTION 2.06. Interest on Loans. (a) Subject to the provisions of
Section 2.07, the Loans comprising each ABR Borrowing shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 365
or 366 days, as the case may be, when the Alternate Base Rate is determined by
reference to the Prime Rate and over a year of 360 days at all other times) at
a rate per annum equal to the Alternate Base Rate.
(b) Subject to the provisions of Section 2.07, the Loans comprising
each Eurodollar Borrowing shall bear interest (computed on the basis of the
actual number of days elapsed over a year of 360 days) at a rate per annum
equal to the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Percentage in effect from time to time.
(c) Interest on each Loan shall be payable on the Interest Payment
Dates applicable to such Loan except as otherwise provided in this Agreement.
The applicable Alternate Base Rate or Adjusted LIBO Rate for each Interest
Period or day within an Interest Period, as the case may be, shall be
determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error.
SECTION 2.07. Default Interest. If the Borrower shall default in
the payment of the principal of or interest on any Loan or any other amount
becoming due hereunder, by acceleration or otherwise, or under any other Loan
Document, the Borrower shall on demand from time to time pay interest, to the
extent permitted by law, on such defaulted amount to but excluding the date of
actual payment (after as well as before judgment) (a) in the case of overdue
principal prior to the end of the Interest Period applicable to any Loan, at
the rate otherwise applicable to such Loan pursuant to Section 2.06 plus 2.00
percent per annum and (b) in all other cases, at a rate per annum (computed on
the basis of the actual number of days elapsed over a year of 365 or 366 days,
as the case may be, when determined by reference to the Prime Rate and over a
year of 360 days at all other times) equal to the sum of the Alternate Base
Rate plus 2.00 percent.
SECTION 2.08. Alternate Rate of Interest. In the event, and on
each occasion, that on the day two Business Days prior to the commencement of
any Interest Period for a Eurodollar Borrowing the Administrative Agent shall
have determined that dollar deposits in the principal amounts of the Loans
comprising such Borrowing are not generally available in the London interbank
market, or that the rates at which such dollar deposits are being offered will
not adequately and fairly reflect the cost to any Lender of making or
maintaining its Eurodollar Loan during such Interest Period, or that
reasonable means do not exist for ascertaining the Adjusted LIBO Rate, the
Administrative Agent shall, as soon as practicable thereafter, give written or
telecopy notice of such determination to the Borrower and the Lenders. In the
event of any such determination, until the Administrative Agent shall have
advised the Borrower and the Lenders that the circumstances giving rise to
such notice no longer exist, any request by the Borrower for a Eurodollar
Borrowing pursuant to Section 2.03 or 2.10 shall be deemed to be a request for
an ABR Borrowing. Each determination by the Administrative Agent hereunder
shall be conclusive absent manifest error.
SECTION 2.09. Termination and Reduction of Commitments. (a) The
Tranche A Commitments shall automatically terminate at 5:00 p.m., New York
City time, on the earlier of the date of the closing of the Acquisition and
September 29, 1995. The Tranche B Commitments shall automatically terminate
at 5:00 p.m., New York City time, on the earlier of the date of the closing of
the Connector Purchase and September 30, 1998. The Revolving Credit
Commitments and the L/C Commitment shall automatically terminate on the
Revolving Credit Maturity Date. Notwithstanding the foregoing, all the
Commitments shall automatically terminate at 5:00 p.m., New York City time, on
September 29, 1995, if the first Credit Event shall not have occurred by such
time.
(b) Upon at least three Business Days' prior irrevocable written or
telecopy notice to the Administrative Agent, the Borrower may at any time in
whole permanently terminate, or from time to time in part permanently reduce,
the Tranche A Commitments, the Tranche B Commitments or the Revolving Credit
Commitments; provided, however, that (i) each partial reduction of the Tranche
A Commitments, the Tranche B Commitments or the Revolving Credit Commitments
shall be in an integral multiple of $1,000,000 and in a minimum amount of
$5,000,000, (ii) the Total Revolving Credit Commitment shall not be reduced to
an amount that is less than the Aggregate Revolving Credit Exposure at the
time, unless Section 2.13(a) is complied with, and (iii) the Borrower may not
in any event terminate or reduce the Tranche B Commitments prior to the
closing of the Connector Purchase.
(c) The Total Revolving Credit Commitment shall be automatically
and permanently reduced by $10,000,000 on each of the second and third
anniversaries of the Closing Date unless the Designated Financial Tests shall
have been satisfied for a complete fiscal quarter prior to the due date for
such reduction.
(d) Each reduction in the Tranche A Commitments, the Tranche B
Commitments or the Revolving Credit Commitments hereunder shall be made
ratably among the Lenders in accordance with their respective applicable
Commitments. The Borrower shall pay to the Administrative Agent for the
account of the applicable Lenders, on the date of each termination or
reduction, the Commitment Fees on the amount of the Commitments so terminated
or reduced accrued to but excluding the date of such termination or reduction.
SECTION 2.10. Conversion and Continuation of Borrowings. The
Borrower shall have the right at any time upon prior irrevocable notice to the
Administrative Agent (a) not later than 11:00 a.m., New York City time, on the
date of conversion, to convert one or more Eurodollar Borrowings into an ABR
Borrowing, (b) not later than 11:00 a.m., New York City time, three Business
Days prior to conversion or continuation, to convert one or more ABR
Borrowings into Eurodollar Borrowings or to continue one or more Eurodollar
Borrowings as a Eurodollar Borrowing for an additional Interest Period, and
(c) not later than 11:00 a.m., New York City time, three Business Days prior
to conversion, to convert the Interest Period with respect to any Eurodollar
Borrowing to another permissible Interest Period, subject in each case to the
following:
(i) each conversion or continuation shall be made pro rata among the
Lenders in accordance with the respective principal amounts of the Loans
comprising the converted or continued Borrowing;
(ii) if less than all the outstanding principal amount of any
Borrowing shall be converted or continued, then each resulting Borrowing shall
satisfy the limitations specified in Sections 2.02(a) and 2.02(b) regarding
the principal amount and maximum number of Borrowings of the relevant Type;
(iii) each conversion shall be effected by each Lender and the
Administrative Agent by recording for the account of such Lender the new Loan
of such Lender resulting from such conversion and reducing the Loan or Loans
(or portion thereof) of such Lender being converted by an equivalent principal
amount; accrued interest on any Eurodollar Loan (or portion thereof) being
converted shall be paid by the Borrower at the time of conversion;
(iv) if any Eurodollar Borrowing is converted at a time other than
the end of the Interest Period applicable thereto, the Borrower shall pay,
upon demand, any amounts due to the Lenders pursuant to Section 2.16;
(v) any portion of a Borrowing maturing or required to be repaid in
less than one month may not be converted into or continued as a Eurodollar
Borrowing;
(vi) any portion of a Eurodollar Borrowing that cannot be converted
into or continued as a Eurodollar Borrowing by reason of the immediately
preceding clause shall be automatically converted at the end of the Interest
Period in effect for such Borrowing into an ABR Borrowing;
(vii) no Interest Period may be selected for any Eurodollar Term
Borrowing that would end later than a Term Loan Repayment Date occurring on or
after the first day of such Interest Period if, after giving effect to such
selection, the aggregate outstanding amount of (A) the Eurodollar Term
Borrowings with Interest Periods ending on or prior to such Term Loan
Repayment Date and (B) the ABR Term Borrowings would not be at least equal to
the principal amount of Term Borrowings to be paid on such Term Loan Repayment
Date; and
(viii) no Borrowing may be converted to or continued as a Eurodollar
Borrowing (A) unless the Required Lenders otherwise consent, if an Event of
Default shall have occurred and be continuing or (B) if a Default shall have
occurred and be continuing and the Required Lenders shall have determined that
such conversion or continuation is not appropriate.
Each notice pursuant to this Section 2.10 shall be irrevocable and
shall refer to this Agreement and specify (i) the identity and amount of the
Borrowing or Borrowings that the Borrower requests be converted or continued,
(ii) whether such Borrowing or Borrowings are to be converted to or continued
as a Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a
conversion, the date of such conversion (which shall be a Business Day) and
(iv) if such Borrowing or Borrowings are to be converted to or continued as a
Eurodollar Borrowing, the Interest Period with respect thereto. If no
Interest Period is specified in any such notice with respect to any conversion
to or continuation as a Eurodollar Borrowing, the Borrower shall be deemed to
have selected an Interest Period of one month's duration. The Administrative
Agent shall advise the Lenders of any notice given pursuant to this Section
2.10 and of each Lender's portion of any converted or continued Borrowing. If
the Borrower shall not have given notice in accordance with this Section 2.10
to continue any Borrowing into a subsequent Interest Period (and shall not
otherwise have given notice in accordance with this Section 2.10 to convert
such Borrowing), such Borrowing shall, at the end of the Interest Period
applicable thereto (unless repaid pursuant to the terms hereof), automatically
be continued into a new Interest Period as an ABR Borrowing.
SECTION 2.11. Repayment of Term Borrowings. (a) (i) The Borrower
shall repay the Tranche A Term Borrowings in 20 consecutive installments
payable on the dates (each such date being a "Tranche A Term Loan Repayment
Date"), and in the amounts (each such amount, as adjusted from time to time
pursuant to Sections 2.12 and 2.13(d), being a "Tranche A Term Loan Repayment
Amount") set forth below:
Date Amount
--------- ------------
12/31/1995 $2,500,000
3/31/1996 $2,500,000
6/30/1996 $2,500,000
9/30/1996 $2,500,000
2/31/1996 $2,500,000
3/31/1997 $2,500,000
6/30/1997 $2,500,000
9/30/1997 $2,500,000
12/31/1997 $2,500,000
3/31/1998 $2,500,000
6/30/1998 $2,500,000
9/30/1998 $2,500,000
12/31/1998 $5,000,000
3/31/1999 $5,000,000
6/30/1999 $5,000,000
9/30/1999 $5,000,000
12/31/1999 $2,500,000
3/31/2000 $2,500,000
6/30/2000 $2,500,000
9/30/2000 $2,500,000
(b) The Borrower shall repay the Tranche B Term Borrowings in equal
quarterly installments on the last day of each fiscal quarter of the Borrower,
commencing on the last day of the first complete fiscal quarter of the
Borrower beginning after the date of the Tranche B Term Borrowings and ending
on and including the Tranche B Maturity Date (each such date being a "Tranche
B Term Loan Repayment Date"), each such installment to equal the original
amount of the first Tranche B Term Borrowings divided by the number of Tranche
B Term Loan Repayment Dates (each such amount, as adjusted from time to time
pursuant to Sections 2.12 and 2.13(d), being a "Tranche B Term Loan Repayment
Amount").
(c) To the extent not previously paid, all Tranche A Term Loans and
Tranche B Term Loans shall be due and payable on the Tranche A Maturity Date
and Tranche B Maturity Date, respectively, together with accrued and unpaid
interest on the principal amount to be paid to but excluding the date of
payment.
(d) All repayments of Eurodollar Borrowings pursuant to this
Section 2.11 shall be accompanied by accrued and unpaid interest thereon to
but excluding the date of such repayment. All repayments pursuant to this
Section 2.11 shall be subject to Section 2.16, but shall otherwise be without
premium or penalty.
SECTION 2.12. Optional Prepayments. (a) The Borrower shall have
the right at any time and from time to time to prepay any Borrowing, in whole
or in part, (i) in the case of a Eurodollar Borrowing, upon at least three
Business Days' prior written or telecopy notice (or telephone notice promptly
confirmed by written or telecopy notice) to the Administrative Agent given
before 11:00 a.m., New York City time and (ii) in the case of an ABR
Borrowing, by written or telecopy notice (or telephone notice promptly
confirmed by written or telecopy notice) to the Administrative Agent given
before 11:00 a.m., New York City time, on the date of repayment; provided,
however, that each partial prepayment shall be in an amount that is an
integral multiple of $1,000,000.
(b) Optional prepayments of Term Loans shall be allocated pro rata
between the then-outstanding Tranche A Term Loans and Tranche B Term Loans and
applied pro rata against the remaining scheduled installments of principal due
in respect of the Tranche A Term Loans and Tranche B Term Loans under Sections
2.11(a) and (b), respectively.
(c) Each notice of prepayment shall specify the prepayment date and
the principal amount of each Borrowing (or portion thereof) to be prepaid,
shall be irrevocable and shall commit the Borrower to prepay such Borrowing by
the amount stated therein on the date stated therein. All prepayments under
this Section 2.12 shall be subject to Section 2.16 but otherwise without
premium or penalty. All prepayments of Eurodollar Borrowings under this
Section 2.12 shall be accompanied by accrued and unpaid interest on the
principal amount being prepaid to but excluding the date of payment.
SECTION 2.13. Mandatory Prepayments. (a) In the event of any
termination of all the Revolving Credit Commitments, the Borrower shall repay
or prepay all its outstanding Revolving Credit Borrowings on the date of such
termination and cash collateralize the entire L/C Exposure pursuant to Section
2.22(j). In the event of any reduction of the Revolving Credit Commitments,
then (i) at or prior to the effective date of such reduction, the
Administrative Agent shall notify the Borrower and the Revolving Credit
Lenders of the Aggregate Revolving Credit Exposure after giving effect thereto
and (ii) if the Aggregate Revolving Credit Exposure would exceed the Total
Revolving Credit Commitment after giving effect to such reduction, then the
Borrower shall, on the date of such reduction, repay or prepay Revolving
Credit Borrowings in an amount sufficient to eliminate such excess, and if,
after giving effect to such payment or prepayment, the aggregate L/C Exposure
of all the Lenders would exceed the Total Revolving Credit Commitment, the
Borrower shall, on such date, cash collateralize, pursuant to Section 2.22(j),
such excess aggregate L/C Exposure or cause the termination of outstanding
Letters of Credit in an amount sufficient to eliminate such excess.
(b) The Borrower shall apply all Net Proceeds promptly upon receipt
thereof by the Borrower or any Subsidiary to prepay outstanding Term Loans in
accordance with paragraph (d) below.
(c) No later than the earlier of (i) 90 days after the end of each
fiscal year of the Borrower, commencing with the fiscal year ending on
December 31, 1996, and (ii) the date on which the financial statements with
respect to such fiscal year are delivered pursuant to Section 5.04(a), the
Borrower shall prepay outstanding Term Loans in accordance with Section
2.13(d) in an aggregate principal amount equal to 50 percent of Excess Cash
Flow for such fiscal year, unless the Designated Financial Tests shall have,
for a period of at least one complete fiscal quarter, been satisfied.
(d) Mandatory prepayments of outstanding Term Loans under this
Agreement shall be allocated pro rata between the then-outstanding Tranche A
Term Loans and Tranche B Term Loans, and applied pro rata against the
remaining scheduled installments of principal due in respect of Tranche A Term
Loans and Tranche B Term Loans under Sections 2.11(a) and (b), respectively.
Notwithstanding anything in this Agreement to the contrary, subsequent to the
closing of the Connector Purchase, all prepayments under this Section 2.13
shall be allocated pro rata among the then outstanding Tranche A Term Loans,
Tranche B Term Loans and term loans made under the ▇▇▇▇▇▇▇ Credit Agreement.
(e) The Borrower shall deliver to the Administrative Agent, at the
time of each prepayment required under this Section 2.13, (i) a certificate
signed by a Financial Officer of the Borrower setting forth in reasonable
detail the calculation of the amount of such prepayment and (ii) to the extent
practicable, at least three days prior written notice of such prepayment.
Each notice of prepayment shall specify the prepayment date, the Type of each
Loan being prepaid and the principal amount of each Loan (or portion thereof)
to be prepaid. All prepayments of Eurodollar Borrowings under this Section
2.13 shall be accompanied by accrued and unpaid interest to but excluding the
date of payment. All prepayments of Borrowings under this Section 2.13 shall
be subject to Section 2.16, but shall otherwise be without premium or penalty.
(f) Amounts to be applied pursuant to this Section 2.13 to the
prepayment of Term Loans and Revolving Loans shall be applied, as applicable,
first to reduce outstanding ABR Term Loans and ABR Revolving Loans. Any
amounts remaining after each such application shall, at the option of the
Borrower, be applied to prepay Eurodollar Term Loans or Eurodollar Revolving
Loans, as the case may be, immediately and/or shall be deposited in the
Prepayment Account (as defined below). The Administrative Agent shall apply
any cash deposited in the Prepayment Account (i) allocable to Term Loans to
prepay Eurodollar Term Loans and (ii) allocable to Revolving Loans to prepay
Eurodollar Revolving Loans, in each case on the last day of their respective
Interest Periods (or, at the direction of the Borrower, on any earlier date)
until all outstanding Term Loans or Revolving Loans, as the case may be, have
been prepaid or until all the allocable cash on deposit with respect to such
Loans has been exhausted. For purposes of this Agreement, the term
"Prepayment Account" shall mean an account established by the Borrower with
the Administrative Agent and over which the Administrative Agent shall have
exclusive dominion and control, including the exclusive right of withdrawal
for application in accordance with this paragraph (h). The Administrative
Agent will, at the request of the Borrower, invest amounts on deposit in the
Prepayment Account in Permitted Investments that mature prior to the last day
of the applicable Interest Periods of the Eurodollar Term Borrowings or
Eurodollar Revolving Borrowings to be prepaid, as the case may be; provided,
however, that (i) the Administrative Agent shall not be required to make any
investment that, in its sole judgment, would require or cause the
Administrative Agent to be in, or would result in any, violation of any law,
statute, rule or regulation and (ii) the Administrative Agent shall have no
obligation to invest amounts on deposit in the Prepayment Account if a Default
or Event of Default shall have occurred and be continuing. The Borrower shall
indemnify the Administrative Agent for any losses relating to the investments
so that the amount available to prepay Eurodollar Borrowings on the last day
of the applicable Interest Period is not less than the amount that would have
been available had no investments been made pursuant thereto. Other than any
interest earned on such investments, the Prepayment Account shall not bear
interest. Interest or profits, if any, on such investments shall be deposited
in the Prepayment Account and reinvested and disbursed as specified above. If
the maturity of the Loans has been accelerated pursuant to Article VII, the
Administrative Agent may, in its sole discretion, apply all amounts on deposit
in the Prepayment Account to satisfy any of the Obligations. The Borrower
hereby grants to the Administrative Agent, for its benefit and the benefit of
the Issuing Banks and the Lenders, a security interest in the Prepayment
Account to secure the Obligations.
SECTION 2.14. Reserve Requirements; Change in Circumstances. (a)
Notwithstanding any other provision of this Agreement, if after the date of
this Agreement any change in applicable law or regulation or in the
interpretation or administration thereof by any Governmental Authority charged
with the interpretation or administration thereof (whether or not having the
force of law) shall change the basis of taxation of payments to any Lender or
any Issuing Bank of the principal of or interest on any Eurodollar Loan made
by such Lender or any Fees or other amounts payable hereunder (other than
changes in respect of taxes imposed on the overall net income of such Lender
or such Issuing Bank by the jurisdiction in which such Lender or such Issuing
Bank has its principal office or by any political subdivision or taxing
authority therein), or shall impose, modify or deem applicable any reserve,
special deposit or similar requirement against assets of, deposits with or for
the account of or credit extended by any Lender or any Issuing Bank (except
any such reserve requirement which is reflected in the Adjusted LIBO Rate) or
shall impose on such Lender or such Issuing Bank or the London interbank
market any other condition affecting this Agreement or Eurodollar Loans made
by such Lender or any Letter of Credit or participation therein, and the
result of any of the foregoing shall be to increase the cost to such Lender or
such Issuing Bank of making or maintaining any Eurodollar Loan or increase the
cost to any Lender or such Issuing Bank of issuing or maintaining any Letter
of Credit or purchasing or maintaining a participation therein or to reduce
the amount of any sum received or receivable by such Lender or such Issuing
Bank hereunder (whether of principal, interest or otherwise) by an amount
deemed by such Lender or such Issuing Bank to be material, then the Borrower
will pay to such Lender or such Issuing Bank, as the case may be, upon demand
such additional amount or amounts as will compensate such Lender or such
Issuing Bank, as the case may be, for such additional costs incurred or
reduction suffered.
(b) If any Lender or any Issuing Bank shall have determined that
the adoption after the date hereof of any law, rule, regulation, agreement or
guideline regarding capital adequacy, or any change after the date hereof in
any such law, rule, regulation, agreement or guideline (whether such law,
rule, regulation, agreement or guideline has been adopted) or in the
interpretation or administration thereof by any Governmental Authority charged
with the interpretation or administration thereof, or compliance by any Lender
(or any lending office of such Lender) or any Issuing Bank or any Lender's or
any Issuing Bank's holding company with any request or directive regarding
capital adequacy (whether or not having the force of law) of any Governmental
Authority has or would have the effect of reducing the rate of return on such
Lender's or such Issuing Bank's capital or on the capital of such Lender's or
such Issuing Bank's holding company, if any, as a consequence of this
Agreement or the Loans made or participations in Letters of Credit purchased
by such Lender pursuant hereto or the Letters of Credit issued by such Issuing
Bank pursuant hereto to a level below that which such Lender or such Issuing
Bank or such Lender's or such Issuing Bank's holding company could have
achieved but for such applicability, adoption, change or compliance (taking
into consideration such Lender's or such Issuing Bank's policies and the
policies of such Lender's or such Issuing Bank's holding company with respect
to capital adequacy) by an amount deemed by such Lender or such Issuing Bank
to be material, then from time to time the Borrower shall pay to such Lender
or such Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or such Issuing Bank or such Lender's or the
Issuing Bank's holding company for any such reduction suffered.
(c) A certificate of a Lender or any Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or such Issuing Bank or
its holding company, as applicable, as specified in paragraph (a) or (b) above
shall be delivered to the Borrower and shall be conclusive absent manifest
error. The Borrower shall pay such Lender or such Issuing Bank the amount
shown as due on any such certificate delivered by it within 10 days after its
receipt of the same.
(d) Failure or delay on the part of any Lender or any Issuing Bank
to demand compensation for any increased costs or reduction in amounts
received or receivable or reduction in return on capital shall not constitute
a waiver of such Lender's or such Issuing Bank's right to demand such
compensation; provided, however, that any Lender or any Issuing Bank may not
demand compensation under this Section 2.14 for any period commencing earlier
than 180 days prior to such demand. The protection of this Section 2.14 shall
be available to each Lender and each Issuing Bank regardless of any possible
contention of the invalidity or inapplicability of the law, rule, regulation,
agreement, guideline or other change or condition that shall have occurred or
been imposed.
SECTION 2.15. Change in Legality. (a) Notwithstanding any other
provision of this Agreement, if, after the date hereof, any change in any law
or regulation or in the interpretation thereof by any Governmental Authority
charged with the administration or interpretation thereof shall make it
unlawful for any Lender to make or maintain any Eurodollar Loan or to give
effect to its obligations as contemplated hereby with respect to any
Eurodollar Loan, then, by written notice to the Borrower and to the
Administrative Agent:
(i) such Lender may declare that Eurodollar Loans will not
thereafter (for the duration of such unlawfulness) be made by such Lender
hereunder (or be continued for additional Interest Periods and ABR Loans will
not thereafter (for such duration) be converted into Eurodollar Loans),
whereupon any request for a Eurodollar Borrowing (or to convert an ABR
Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for
an additional Interest Period) shall, as to such Lender only, be deemed a
request for an ABR Loan (or a request to continue an ABR Loan as such for an
additional Interest Period or to convert a Eurodollar Loan into an ABR Loan,
as the case may be), unless such declaration shall be subsequently withdrawn;
and
(ii) such Lender may require that all outstanding Eurodollar Loans
made by it be converted to ABR Loans, in which event all such Eurodollar Loans
shall be automatically converted to ABR Loans as of the effective date of such
notice as provided in paragraph (b) below.
In the event any Lender shall exercise its rights under (i) or (ii) above, all
payments and prepayments of principal that would otherwise have been applied
to repay the Eurodollar Loans that would have been made by such Lender or the
converted Eurodollar Loans of such Lender shall instead be applied to repay
the ABR Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans.
(b) For purposes of this Section 2.15, a notice to the Borrower by
any Lender shall be effective as to each Eurodollar Loan made by such Lender,
if lawful, on the last day of the Interest Period currently applicable to such
Eurodollar Loan; in all other cases such notice shall be effective on the date
of receipt by the Borrower.
SECTION 2.16. Indemnity. The Borrower shall indemnify each Lender
against any loss or expense that such Lender may sustain or incur as a
consequence of any event, other than a default by such Lender in the
performance of its obligations hereunder, which results in (a) such Lender
receiving or being deemed to receive any amount on account of the principal of
any Eurodollar Loan prior to the end of the Interest Period in effect
therefor, (b) the conversion of any Eurodollar Loan to an ABR Loan, or the
conversion of the Interest Period with respect to any Eurodollar Loan, in each
case other than on the last day of the Interest Period in effect therefor, or
(c) any Eurodollar Loan to be made by such Lender (including any Eurodollar
Loan to be made pursuant to a conversion or continuation under Section 2.10)
not being made after notice of such Loan shall have been given by the Borrower
hereunder (any of the events referred to in this sentence being called a
"Breakage Event"). Such loss shall include an amount equal to the excess, as
reasonably determined by such Lender, of (i) its cost of obtaining funds for
the Eurodollar Loan that is the subject of such Breakage Event for the period
from the date of such Breakage Event to the last day of the Interest Period in
effect (or that would have been in effect) for such Loan over (ii) the amount
of interest likely to be realized by such Lender in redeploying the funds
released or not utilized by reason of such Breakage Event for such period. A
certificate of any Lender setting forth any amount or amounts which such
Lender is entitled to receive pursuant to this Section 2.16 shall be delivered
to the Borrower and shall be conclusive absent manifest error.
SECTION 2.17. Pro Rata Treatment. Except as required under Section
2.14, 2.15 or 2.16, each Borrowing, each payment or prepayment of principal of
any Borrowing, each payment of interest on the Loans, each payment of the
Commitment Fees, each reduction of the Tranche A Commitments, Tranche B
Commitments or the Revolving Credit Commitments and each refinancing of any
Borrowing with, conversion of any Borrowing to or continuation of any
Borrowing as a Borrowing of any Type shall be allocated pro rata among the
Lenders in accordance with their respective applicable Commitments (or, if
such Commitments shall have expired or been terminated, in accordance with the
respective principal amounts of their outstanding Loans). Each Lender agrees
that in computing such Lender's portion of any Borrowing to be made hereunder,
the Administrative Agent may, in its discretion, round each Lender's
percentage of such Borrowing to the next higher or lower whole dollar amount.
SECTION 2.18. Sharing of Setoffs. Each Lender agrees that if it
shall, through the exercise of a right of banker's lien, setoff or
counterclaim against the Borrower, or pursuant to a secured claim under
Section 506 of Title 11 of the United States Code or other security or
interest arising from, or in lieu of, such secured claim, received by such
Lender under any applicable bankruptcy, insolvency or other similar law or
otherwise, or by any other means, obtain payment (voluntary or involuntary) in
respect of any Loan or Loans or L/C Disbursement as a result of which the
unpaid principal portion of its Tranche A Term Loans, Tranche B Term Loans and
Revolving Loans and participations in L/C Disbursements shall be
proportionately less than the unpaid principal portion of the Tranche A Term
Loans, Tranche B Term Loans and Revolving Loans and participations in L/C
Disbursements of any other Lender, it shall be deemed simultaneously to have
purchased from such other Lender at face value, and shall promptly pay to such
other Lender the purchase price for, a participation in the Tranche A Term
Loans, Tranche B Term Loans and Revolving Loans and L/C Exposure, as the case
may be of such other Lender, so that the aggregate unpaid principal amount of
the Tranche A Term Loans, Tranche B Term Loans and Revolving Loans and L/C
Exposure and participations in Tranche A Term Loans, Tranche B Term Loans and
Revolving Loans and L/C Exposure held by each Lender shall be in the same
proportion to the aggregate unpaid principal amount of all Tranche A Term
Loans, Tranche B Term Loans and Revolving Loans and L/C Exposure then
outstanding as the principal amount of its Tranche A Term Loans, Tranche B
Term Loans and Revolving Loans and L/C Exposure prior to such exercise of
banker's lien, setoff or counterclaim or other event was to the principal
amount of all Tranche A Term Loans, Tranche B Term Loans and Revolving Loans
and L/C Exposure outstanding prior to such exercise of banker's lien, setoff
or counterclaim or other event; provided, however, that if any such purchase
or purchases or adjustments shall be made pursuant to this Section and the
payment giving rise thereto shall thereafter be recovered, such purchase or
purchases or adjustments shall be rescinded to the extent of such recovery and
the purchase price or prices or adjustment restored without interest. The
Borrower expressly consents to the foregoing arrangements and agrees that any
Lender holding a participation in a Term Loan or Revolving Loan or L/C
Disbursement deemed to have been so purchased may exercise any and all rights
of banker's lien, setoff or counterclaim with respect to any and all moneys
owing by the Borrower to such Lender by reason thereof as fully as if such
Lender had made a Loan directly to the Borrower in the amount of such
participation.
SECTION 2.19. Payments. (a) The Borrower shall make each payment
(including principal of or interest on any Borrowing or any L/C Disbursement
or any Fees or other amounts) hereunder and under any other Loan Document not
later than 12:00 (noon), New York City time, on the date when due in
immediately available dollars, without setoff, defense or counterclaim. Each
such payment (other than Issuing Bank Fees, which shall be paid directly to
the Issuing Bank entitled thereto) shall be made to the Administrative Agent
at its offices at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇.
(b) Whenever any payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a
Business Day, such payment may be made on the next succeeding Business Day,
and such extension of time shall in such case be included in the computation
of interest or Fees, if applicable.
SECTION 2.20. Taxes. (a) Any and all payments by the Borrower
hereunder and under any other Loan Document shall be made, in accordance with
Section 2.19, free and clear of and without deduction for any and all current
or future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding (i) income taxes imposed on the
net income of the Administrative Agent, any Lender or any Issuing Bank (or any
transferee or assignee thereof, including a participation holder (any such
entity a "Transferee")) and (ii) franchise taxes imposed on the net income of
the Administrative Agent, any Lender or any Issuing Bank (or Transferee), in
each case by the jurisdiction under the laws of which the Administrative
Agent, such Lender or such Issuing Bank (or Transferee) is organized or any
political subdivision thereof (all such nonexcluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities, collectively or
individually, being called "Taxes"). If the Borrower shall be required to
deduct any Taxes from or in respect of any sum payable hereunder or under any
other Loan Document to the Administrative Agent, any Lender or any Issuing
Bank (or any Transferee), (i) the sum payable shall be increased by the amount
(an "additional amount") necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section 2.20) the Administrative Agent, such Lender or such Issuing Bank
(or Transferee), as the case may be, shall receive an amount equal to the sum
it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions and (iii) the Borrower shall pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable
law.
(b) In addition, the Borrower agrees to pay to the relevant
Governmental Authority in accordance with applicable law any current or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or under any other
Loan Document or from the execution, delivery or registration of, or otherwise
with respect to, this Agreement or any other Loan Document ("Other Taxes").
(c) The Borrower will indemnify the Administrative Agent, each
Lender and each Issuing Bank (or Transferee) for the full amount of Taxes and
Other Taxes paid by the Administrative Agent, such Lender or such Issuing Bank
(or Transferee), as the case may be, and any liability (including penalties,
interest and expenses (including reasonable attorney's fees and expenses),
other than penalties, interest or expenses arising out of the gross negligence
of such person), net of any related payments under paragraph (a) or (b) above,
arising therefrom or with respect thereto, whether or not such Taxes or Other
Taxes were correctly or legally asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability
prepared by the Administrative Agent, a Lender or an Issuing Bank (or
Transferee), or the Administrative Agent on its behalf, absent manifest error,
shall be final, conclusive and binding for all purposes. Such indemnification
shall be made within 30 days after the date the Administrative Agent, any
Lender or any Issuing Bank (or Transferee), as the case may be, makes written
demand therefor.
(d) If the Administrative Agent, any Lender or any Issuing Bank (or
Transferee) receives a refund in respect of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 2.20, it shall
within 30 days from the date of such receipt pay over such refund to the
Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 2.20 with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent, such Lender or such Issuing Bank (or
Transferee) and without interest (other than interest paid by the relevant
Governmental Authority with respect to such refund); provided, however, that
the Borrower, upon the request of the Administrative Agent, such Lender or
such Issuing Bank (or Transferee), shall repay the amount paid over to the
Borrower (plus penalties, interest or other charges) to the Administrative
Agent, such Lender or such Issuing Bank (or Transferee) in the event the
Administrative Agent, such Lender or such Issuing Bank (or Transferee) is
required to repay such refund to such Governmental Authority.
(e) As soon as practicable after the date of any payment of Taxes
or Other Taxes by the Borrower to the relevant Governmental Authority, the
Borrower will deliver to the Administrative Agent, at its address referred to
in Section 9.01, the original or a certified copy of a receipt issued by such
Governmental Authority evidencing payment thereof.
(f) Without prejudice to the survival of any other agreement
contained herein, the agreements and obligations contained in this Section
2.20 shall survive the payment in full of the principal of and interest on all
Loans made hereunder, the expiration or cancellation of all Letters of Credit
and the reimbursement of all draws thereunder.
(g) Each Lender (or Transferee) that is organized under the laws of
a jurisdiction other than the United States, any State thereof or the District
of Columbia (a "Non-U.S. Lender") shall deliver to the Borrower and the
Administrative Agent two copies of either United States Internal Revenue
Service Form 1001 or Form 4224, or, in the case of a Non-U.S. Lender claiming
exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of
the Code with respect to payments of "portfolio interest", a Form W-8, or any
subsequent versions thereof or successors thereto (and, if such Non-U.S.
Lender delivers a Form W-8, a certificate representing that such Non-U.S.
Lender is not a bank for purposes of Section 881(c) of the Code, is not a 10-
percent shareholder (within the meaning of Section 871(h)(3)(B) of the Code)
of the Borrower and is not a controlled foreign corporation related to the
Borrower (within the meaning of Section 864(d)(4) of the Code)), properly
completed and duly executed by such Non-U.S. Lender claiming complete
exemption from, or reduced rate of, U.S. Federal withholding tax on payments
by the Borrower under this Agreement and the other Loan Documents. Such forms
shall be delivered by each Non-U.S. Lender on or before the date it becomes a
party to this Agreement (or, in the case of a Transferee that is a
participation holder, on or before the date such participation holder becomes
a Transferee hereunder) and on or before the date, if any, such Non-U.S.
Lender changes its applicable lending office by designating a different
lending office (a "New Lending Office"). In addition, each Non-U.S. Lender
shall deliver such forms promptly upon the obsolescence or invalidity of any
form previously delivered by such Non-U.S. Lender. Notwithstanding any other
provision of this Section 2.20(g), a Non-U.S. Lender shall not be required to
deliver any form pursuant to this Section 2.20(g) that such Non-U.S. Lender
is not legally able to deliver.
(h) The Borrower shall not be required to indemnify any Non-U.S.
Lender or to pay any additional amounts to any Non-U.S. Lender, in respect of
United States Federal withholding tax pursuant to paragraph (a) or (c) above
to the extent that (i) the obligation to withhold amounts with respect to
United States Federal withholding tax existed on the date such Non-U.S. Lender
became a party to this Agreement (or, in the case of a Transferee that is a
participation holder, on the date such participation holder became a
Transferee hereunder) or, with respect to payments to a New Lending Office,
the date such Non-U.S. Lender designated such New Lending Office with respect
to a Loan; provided, however, that this paragraph (h) shall not apply (x) to
any Transferee or New Lending Office that becomes a Transferee or New Lending
Office as a result of an assignment, participation, transfer or designation
made at the request of the Borrower and (y) to the extent the indemnity
payment or additional amounts any Transferee, or any Lender (or Transferee),
acting through a New Lending Office, would be entitled to receive (without
regard to this paragraph (h)) do not exceed the indemnity payment or
additional amounts that the person making the assignment, participation or
transfer to such Transferee, or Lender (or Transferee) making the designation
of such New Lending Office, would have been entitled to receive in the absence
of such assignment, participation, transfer or designation or (ii) the
obligation to pay such additional amounts would not have arisen but for a
failure by such Non-U.S. Lender to comply with the provisions of paragraph (g)
above.
(i) Nothing contained in this Section 2.20 shall require any Lender
or any Issuing Bank (or any Transferee) or the Administrative Agent to make
available any of its tax returns (or any other information that it deems to be
confidential or proprietary).
SECTION 2.21. Assignment of Commitments Under Certain
Circumstances; Duty to Mitigate. (a) In the event (i) any Lender or any
Issuing Bank delivers a certificate requesting compensation pursuant to
Section 2.14, (ii) any Lender or any Issuing Bank delivers a notice described
in Section 2.15 or (iii) the Borrower is required to pay any additional amount
to any Lender or any Issuing Bank or any Governmental Authority on account of
any Lender or any Issuing Bank pursuant to Section 2.20, the Borrower may, at
its sole expense and effort, upon notice to such Lender or such Issuing Bank
and the Administrative Agent, require such Lender or such Issuing Bank to
transfer and assign, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement to an assignee that shall assume such
assigned obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided, however, that (x) such assignment shall
not conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, (y) the Borrower shall have
received the prior written consent of the Administrative Agent (and, if a
Revolving Credit Commitment is being assigned, of each Issuing Bank), which
consent shall not unreasonably be withheld, and (z) the Borrower or such
assignee shall have paid to the affected Lender or Issuing Bank in immediately
available funds an amount equal to the sum of the principal of and interest
accrued to the date of such payment on the outstanding Loans and
participations in L/C Disbursements of such Lender or such Issuing Bank plus
all Fees and other amounts accrued for the account of such Lender or such
Issuing Bank hereunder (including any amounts under Sections 2.14, 2.15 and
2.16); provided further that, if prior to any such transfer and assignment the
circumstances or event that resulted in such Lender's or such Issuing Bank's
claim for compensation under Section 2.14 or notice under Section 2.15 or the
amounts paid pursuant to Section 2.20, as the case may be, cease to cause such
Lender or such Issuing Bank to suffer increased costs or reductions in amounts
received or receivable or reduction in return on capital, or cease to have the
consequences specified in Section 2.15, or cease to result in amounts being
payable under Section 2.20, as the case may be (including as a result of any
action taken by such Lender or such Issuing Bank pursuant to paragraph (b)
below), or if such Lender or such Issuing Bank shall waive its right to claim
further compensation under Section 2.14 in respect of such circumstances or
event or shall withdraw its notice under Section 2.15 or shall waive its right
to further payments under Section 2.20 in respect of such circumstances or
event, as the case may be, then such Lender or such Issuing Bank shall not
thereafter be required to make any such transfer and assignment hereunder.
(b) If (i) any Lender or the Issuing Bank shall request
compensation under Section 2.14, (ii) any Lender or any Issuing Bank delivers
a notice described in Section 2.15 or (iii) the Borrower is required to pay
any additional amount to any Lender or any Issuing Bank or any Governmental
Authority on account of any Lender or any Issuing Bank, pursuant to Section
2.20 (including as a result of any exercise by a Lender of its option
described in Section 2.02(b)), then such Lender or such Issuing Bank shall use
reasonable efforts (which shall not require such Lender or such Issuing Bank
to incur an unreimbursed loss or unreimbursed cost or expense or otherwise
take any action inconsistent with its internal policies or legal or regulatory
restrictions or suffer any disadvantage or burden deemed by it to be
significant) (x) to file any certificate or document reasonably requested in
writing by the Borrower or (y) to assign its rights and delegate and transfer
its obligations hereunder to another of its offices, branches or affiliates,
if such filing or assignment would reduce its claims for compensation under
Section 2.14 or enable it to withdraw its notice pursuant to Section 2.15 or
would reduce amounts payable pursuant to Section 2.20, as the case may be, in
the future. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender or any Issuing Bank in connection with any
such filing or assignment, delegation and transfer.
SECTION 2.22. Letters of Credit. (a) General. The Borrower may
request any Issuing Bank to issue a Letter of Credit, in a form reasonably
acceptable to the Administrative Agent and such Issuing Bank, appropriately
completed, for the account of the Borrower, at any time and from time to time
while the Revolving Credit Commitments remain in effect. This Section 2.22
shall not be construed to impose an obligation upon any Issuing Bank to issue
any Letter of Credit that is inconsistent with the terms and conditions of
this Agreement.
(b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. In order to request the issuance of a Letter of Credit (or to
amend, renew or extend an existing Letter of Credit), the Borrower shall hand
deliver or telecopy to the applicable Issuing Bank and the Administrative
Agent (reasonably in advance of the requested date of issuance, amendment,
renewal or extension) a notice requesting the issuance of a Letter of Credit,
or identifying the Letter of Credit to be amended, renewed or extended, the
date of issuance, amendment, renewal or extension, the date on which such
Letter of Credit is to expire (which shall comply with paragraph (c) below),
the amount of such Letter of Credit, the name and address of the beneficiary
thereof and such other information as shall be necessary to prepare such
Letter of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if, and upon issuance, amendment, renewal or extension of each
Letter of Credit the Borrower shall be deemed to represent and warrant that,
after giving effect to such issuance, amendment, renewal or extension (A) the
L/C Exposure shall not exceed $5,000,000 and (B) the Aggregate Revolving
Credit Exposure shall not exceed the Total Revolving Credit Commitment.
(c) Expiration Date. Each Letter of Credit shall expire at the
close of business on the earlier of the date one year after the date of the
issuance of such Letter of Credit and the date that is five Business Days
prior to the Revolving Credit Maturity Date, unless such Letter of Credit
expires by its terms on an earlier date.
(d) Participations. By the issuance of a Letter of Credit and
without any further action on the part of the applicable Issuing Bank or the
Lenders, such Issuing Bank hereby grants to each Lender, and each such Lender
hereby acquires from such Issuing Bank, a participation in such Letter of
Credit equal to such Lender's Pro Rata Percentage of the aggregate amount
available to be drawn under such Letter of Credit, effective upon the issuance
of such Letter of Credit. In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of any Issuing Bank, such Lender's
Pro Rata Percentage of each L/C Disbursement made by such Issuing Bank and not
reimbursed by the Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as
provided in Section 2.02(f). Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including the occurrence and continuance of a
Default or an Event of Default, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.
(e) Reimbursement. If any Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, the Borrower shall pay to the
Administrative Agent an amount equal to such L/C Disbursement not later than
two hours after the Borrower shall have received notice from the Issuing Bank
that payment of such draft will be made, or, if the Borrower shall have
received such notice later than 10:00 a.m., New York City time, on any
Business Day, not later than 10:00 a.m., New York City time, on the
immediately following Business Day.
(f) Obligations Absolute. The Borrower's obligations to reimburse
L/C Disbursements as provided in paragraph (e) above shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement, under any and all circumstances whatsoever,
and irrespective of:
(i) any lack of validity or enforceability of any Letter of Credit
or any Loan Document, or any term or provision therein;
(ii) any amendment or waiver of or any consent to departure from all
or any of the provisions of any Letter of Credit or any Loan Document;
(iii) the existence of any claim, setoff, defense or other right that
the Borrower, any other party guaranteeing, or otherwise obligated with, the
Borrower, any Subsidiary or other Affiliate thereof or any other person may at
any time have against the beneficiary under any Letter of Credit, the
applicable Issuing Bank, the Administrative Agent or any Lender or any other
person, whether in connection with this Agreement, any other Loan Document or
any other related or unrelated agreement or transaction;
(iv) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any respect;
(v) payment by the applicable Issuing Bank under a Letter of Credit
against presentation of a draft or other document that does not comply with
the terms of such Letter of Credit; and
(vi) any other act or omission to act or delay of any kind of the
applicable Issuing Bank, the Lenders, the Administrative Agent or any other
person or any other event or circumstance whatsoever, whether or not similar
to any of the foregoing, that might, but for the provisions of this Section
2.22, constitute a legal or equitable discharge of the Borrower's obligations
hereunder.
Without limiting the generality of the foregoing, it is expressly
understood and agreed that the absolute and unconditional obligation of the
Borrower hereunder to reimburse L/C Disbursements will not be excused by the
gross negligence or wilful misconduct of the applicable Issuing Bank.
However, the foregoing shall not be construed to excuse any Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by such Issuing Bank's gross negligence or wilful misconduct
or failure to examine drafts and other documents presented under a Letter of
Credit to determine whether such drafts and other documents presented under a
Letter of Credit comply with the terms thereof; it is understood that any
Issuing Bank may accept documents that appear on their face to be in order,
without responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of
Credit (i) any Issuing Bank's exclusive reliance on the documents presented to
it under such Letter of Credit as to any and all matters set forth therein,
including reliance on the amount of any draft presented under such Letter of
Credit, whether or not the amount due to the beneficiary thereunder equals the
amount of such draft and whether or not any document presented pursuant to
such Letter of Credit proves to be insufficient in any respect, if such
document on its face appears to be in order, and whether or not any other
statement or any other document presented pursuant to such Letter of Credit
proves to be forged or invalid or any statement therein proves to be
inaccurate or untrue in any respect whatsoever and (ii) any noncompliance in
any immaterial respect of the documents presented under such Letter of Credit
with the terms thereof shall, in each case, be deemed not to constitute wilful
misconduct or gross negligence of the applicable Issuing Bank.
(g) Disbursement Procedures. Each Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit issued by such Issuing Bank. Each
Issuing Bank shall as promptly as possible give telephonic notification,
confirmed by telecopy, to the Administrative Agent and the Borrower of such
demand for payment and whether such Issuing Bank has made or will make an L/C
Disbursement thereunder; provided, however, that any failure to give or delay
in giving such notice shall not relieve the Borrower of its obligation to
reimburse such Issuing Bank and the Revolving Credit Lenders with respect to
any such L/C Disbursement. The Administrative Agent shall promptly give each
Revolving Credit Lender notice thereof.
(h) Interim Interest. If any Issuing Bank shall make any L/C
Disbursement in respect of a Letter of Credit, then, unless the Borrower shall
reimburse such L/C Disbursement in full on such date, the unpaid amount
thereof shall bear interest for the account of such Issuing Bank, for each day
from and including the date of such L/C Disbursement, to but excluding the
earlier of the date of payment by the Borrower or the date on which interest
shall commence to accrue thereon as provided in Section 2.02(f), at the rate
per annum that would apply to such amount if such amount were an ABR Loan.
(i) Resignation or Removal of any Issuing Bank; Additional Issuing
Banks. Any Issuing Bank may resign at any time by giving 180 days' prior
written notice to the Administrative Agent, the Lenders and the Borrower, and
may be removed at any time by the Borrower by notice to such Issuing Bank, the
Administrative Agent and the Lenders. The Borrower may appoint additional
Issuing Banks reasonably satisfactory to the Administrative Agent, and upon
the acceptance of any appointment as an Issuing Bank hereunder by a Lender
that shall agree to serve as an Issuing Bank, such successor shall succeed to
and become vested with all the interests, rights and obligations of an Issuing
Bank; provided, however, that there shall not be more than three Issuing Banks
at any time. Upon resignation or removal, an Issuing Bank shall be discharged
from its obligations to issue additional Letters of Credit hereunder. At the
time such resignation or removal shall become effective, the Borrower shall
pay all accrued and unpaid Issuing Bank Fees due to such Issuing Bank. The
acceptance of any appointment as an Issuing Bank hereunder by a Lender shall
be evidenced by an agreement entered into by such Lender, in a form
satisfactory to the Borrower and the Administrative Agent, and, from and after
the effective date of such agreement, (i) such Lender shall have all the
rights and obligations of an Issuing Bank under this Agreement and the other
Loan Documents and (ii) references herein and in the other Loan Documents to
the term "Issuing Bank" shall be deemed to refer to such additional Issuing
Bank and to any previously appointed Issuing Bank, or to such successor and
all previously appointed Issuing Banks, as the context shall require. After
the resignation or removal of an Issuing Bank hereunder, such Issuing Bank
shall remain a party hereto and shall continue to have all the rights and
obligations of an Issuing Bank under this Agreement and the other Loan
Documents with respect to Letters of Credit issued by it prior to such
resignation or removal, but shall not be required to issue additional Letters
of Credit.
(j) Cash Collateralization. If (i) any Event of Default shall
occur and be continuing and the Administrative Agent or the Required Lenders
shall demand that the L/C Exposure be cash collateralized, (ii) the maturity
of the Loans shall be accelerated pursuant to Article VIII or (iii) the
Borrower shall be required to provide cash collateral for a portion of the L/C
Exposure pursuant to Section 2.13(a), the Borrower shall deposit in an account
with the Collateral Agent, for the benefit of the Revolving Credit Lenders, an
amount in cash equal to the L/C Exposure (or, in the case of a deposit
pursuant to clause (iii) above, the portion of the L/C Exposure required to be
collateralized) as of such date. Such deposit shall be held by the Collateral
Agent as collateral for the payment and performance of the Obligations. The
Collateral Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest
earned on the investment of such deposits in Permitted Investments, which
investments shall be made at the option and sole discretion of the Collateral
Agent, such deposits shall not bear interest. Interest or profits, if any, on
such investments shall accumulate in such account. Moneys in such account
shall (i) automatically be applied by the Administrative Agent to reimburse
each Issuing Bank for L/C Disbursements for which it has not been reimbursed,
(ii) be held for the satisfaction of the reimbursement obligations of the
Borrower for the L/C Exposure at such time and (iii) if the maturity of the
Loans has been accelerated (but subject to the consent of Revolving Credit
Lenders holding participations in outstanding Letters of Credit representing
greater than 50 percent of the aggregate undrawn amount of all outstanding
Letters of Credit), be applied to satisfy other Obligations. If the Borrower
is required to provide an amount of cash collateral hereunder (x) as a result
of the occurrence of an Event of Default, such amount (to the extent not
applied as aforesaid) shall be returned to the Borrower within three Business
Days after all Events of Default have been cured or waived and or (y) pursuant
to Section 2.13(a), such amount (to the extent not applied as aforesaid) shall
be returned to the Borrower within three Business Days after the elimination
the excess of the aggregate L/C Exposure over the Total Revolving Credit
Commitment.
(k) Existing Letters of Credit. The letters of credit listed on
Schedule 6.01 and issued by the Bank of Boston shall be deemed to be Letters
of Credit and, only as to such Letters of Credit, The First National Bank of
Boston will serve as Issuing Bank.
ARTICLE III. REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Administrative Agent,
the Collateral Agent, each Issuing Bank and each of the Lenders that:
SECTION 3.01. Organization; Powers. Each of the Borrower and each
of the Subsidiaries (a) is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization, (b)
has all requisite power and authority to own its property and assets and to
carry on its business as now conducted and as proposed to be conducted, (c) is
qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required, except where the failure so to qualify
could not reasonably be expected to result in a Material Adverse Effect, and
(d) has the corporate power and authority to execute, deliver and perform its
obligations under each of the Loan Documents and each other agreement or
instrument contemplated hereby to which it is or will be a party and, in the
case of the Borrower, to borrow hereunder.
SECTION 3.02. Authorization. The execution, delivery and
performance by each Loan Party of each of the Loan Documents and the
borrowings hereunder, and of the Stock Purchase Agreement and all other
transactions in connection therewith (collectively, the "Transactions") (a)
have been duly authorized by all requisite corporate and, if required,
stockholder action and (b) will not (i) violate (A) any provision of law,
statute, rule or regulation, or of the certificate or articles of
incorporation or other constitutive documents or by-laws of the Borrower or
any Subsidiary, (B) any order of any Governmental Authority or (C) any
provision of any indenture, agreement or other instrument to which the
Borrower or any Subsidiary is a party or by which any of them or any of their
property is or may be bound, (ii) be in conflict with, result in a breach of
or constitute (alone or with notice or lapse of time or both) a default under,
or give rise to any right to accelerate or to require the prepayment,
repurchase or redemption of any obligation under any such indenture, agreement
or other instrument or (iii) result in the creation or imposition of any Lien
upon or with respect to any property or assets now owned or hereafter acquired
by the Borrower or any Subsidiary (other than any Lien created under the
Security Documents), other than, in the case of clause (b)(i)(A), for
violations by persons other than the Borrower and the Subsidiaries of Chinese
law applicable to the Acquisition, which violations, individually and in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
SECTION 3.03. Enforceability. This Agreement has been duly
executed and delivered by the Borrower and constitutes, and each other Loan
Document when executed and delivered by the each Loan Party party thereto will
constitute, a legal, valid and binding obligation of such Loan Party
enforceable against such Loan Party in accordance with its terms, except as
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the enforcement of creditors' rights generally and general
principles of equity.
SECTION 3.04. Governmental Approvals. No action, consent or
approval of, registration or filing with or any other action by any
Governmental Authority is or will be required in connection with the
Acquisition or the Transactions, except such as have been made or obtained and
are in full force and effect and other than the expiration of the ▇▇▇▇-▇▇▇▇▇-
▇▇▇▇▇▇ waiting period, which shall expire prior to the consummation of the
Acquisition, and other than consents or approvals of Chinese Governmental
Authorities necessary for certain persons to sell shares of Lasertron to the
Borrower in the Acquisition.
SECTION 3.05. Financial Statements. (a) The Borrower has
heretofore furnished to the Lenders its consolidated and consolidating balance
sheets and statements of income and changes in financial condition (a) as of
and for the fiscal years ended December 31, 1994, December 31, 1993, and
December 31, 1992, audited, in the case of consolidated financial statements,
by and accompanied by the opinion of Price Waterhouse LLP, independent public
accountants, and (b) as of and for the fiscal quarter and the portion of the
fiscal year ended June 30, 1995, certified by its chief accounting officer.
Such financial statements present fairly in all material respects the
financial condition and results of operations of the Borrower and its
consolidated Subsidiaries as of such dates and for such periods. Such balance
sheets and the notes thereto disclose all material liabilities, direct or
contingent, of the Borrower and its consolidated Subsidiaries as of the dates
thereof required to be disclosed therein in accordance with GAAP. Such
financial statements were prepared in accordance with GAAP applied on a
consistent basis, except, in the case of the statements referred to in clause
(b) above, for the absence of footnotes and for normal year-end adjustments.
(b) The Borrower has heretofore furnished to the Lenders a pro
forma consolidated balance sheet of the Borrower as of June 30, 1995, prepared
as if the Acquisition had occurred on such date, and a pro forma income
statement for the two fiscal quarters of the Borrower ended as of June 30,
1995, prepared as if the Acquisition had occurred on December 31, 1994. Such
pro forma balance sheet and income statement have been prepared in good faith
by the Borrower, based upon the assumptions used to prepare the pro forma
financial information contained in the Confidential Information Memorandum
(which assumptions are believed by the Borrower on the date thereof and on the
Closing Date to be reasonable), are based on the best information available to
the Borrower as of the date of delivery thereof and on the Closing Date,
accurately reflect all adjustments required to be made to give effect to the
Acquisition and the Borrowings in connection therewith and the application of
the proceeds of such Borrowings and present fairly in all material respects on
a pro forma basis the estimated consolidated financial position of the
Borrower and it consolidated Subsidiaries as of June 30, 1995, and the
estimated consolidated results of operations of the Borrower and the
Subsidiaries for the two fiscal quarters ended June 30, 1995, assuming that
the Acquisition and such Borrowings had actually occurred at June 30, 1994,
and December 31, 1994, respectively.
(c) The Borrower has heretofore furnished to the Lenders
Lasertron's consolidated and consolidating balance sheets and statements of
income and changes in financial condition (a) as of and for the fiscal year
ended January 31, 1995, in the case of the consolidated financial statements,
audited by and accompanied by the opinion of KPMG Peat Marwick, independent
public accountants, and (b) as of and for the fiscal quarter and the portion
of the fiscal year ended July 31, 1995, certified by its chief financial
officer. Such financial statements present fairly in all material respects
the financial condition and results of operations of Lasertron and its
consolidated subsidiaries as of such dates and for such periods. Such balance
sheets and the notes thereto disclose all material liabilities, direct or
contingent, of Lasertron and its consolidated subsidiaries as of the dates
thereof required to be disclosed therein in accordance with GAAP. Such
financial statements were prepared in accordance with GAAP applied on a
consistent basis.
SECTION 3.06. No Material Adverse Change. There has been no
material adverse change in the business, assets, operations, prospects,
condition, financial or otherwise, of the Borrower and the Subsidiaries, taken
as a whole, and, prior to the Connector Purchase, of the Borrower and the Non-
Connector Subsidiaries, taken as a whole, since December 31, 1994.
SECTION 3.07. Title to Properties; Possession Under Leases. (a)
Each of the Borrower and the Subsidiaries has good and marketable title to, or
valid leasehold interests in, all its material properties and assets, except
for minor defects in title that do not interfere with its ability to conduct
its business as currently conducted or to utilize such properties and assets
for their intended purposes. All such material properties and assets are free
and clear of Liens, other than Liens expressly permitted by Section 6.02.
(b) Each of the Borrower and the Subsidiaries has complied in all
material respects with all obligations under all material leases to which it
is a party and all such leases are in full force and effect. Each of the
Borrower and the Subsidiaries enjoys peaceful and undisturbed possession under
all such material leases.
SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth as of the
Closing Date a list of (a) all Subsidiaries and the percentage ownership
interest of the Borrower therein and (b) all subsidiaries of Lasertron and the
percentage ownership of Lasertron therein. With respect to each person listed
thereon, Schedule 3.08 indicates whether such person is as of the Closing
Date, or will immediately following the consummation of the Acquisition be, an
Inactive Subsidiary. The shares of capital stock or other ownership interests
so indicated on Schedule 3.08 are fully paid and non-assessable and as of the
Closing Date are owned by the Borrower, directly or indirectly, free and clear
of all Liens.
SECTION 3.09. Litigation; Compliance with Laws. (a) There are not
any actions, suits or proceedings at law or in equity or by or before any
Governmental Authority, or any investigations by any Governmental Authority,
now pending or, to the knowledge of the Borrower, threatened against or
affecting the Borrower or any Subsidiary or any business, property or rights
of any such person (i) that involve any Loan Document, the Transactions, the
Stock Purchase Agreement or the Acquisition or (ii) as to which there is a
reasonable possibility of an adverse determination and which, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.
(b) None of the Borrower or any of the Subsidiaries or any of their
respective material properties or assets is in violation of, nor will the
continued operation of their businesses and their material properties and
assets as currently conducted violate, any law, rule or regulation, judgment,
writ, injunction, decree or order of any Governmental Authority, where such
violation could reasonably be expected to result in a Material Adverse Effect.
SECTION 3.10. Agreements. (a) Neither the Borrower nor any of the
Subsidiaries is a party to any agreement or instrument or subject to any
corporate restriction that has resulted or could reasonably be expected to
result in a Material Adverse Effect.
(b) Neither the Borrower nor any of the Subsidiaries is in default
in any manner under (i) any provision of any indenture or other agreement or
instrument evidencing Indebtedness, or any other material agreement or
instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, where such default could reasonably be expected to
result in a Material Adverse Effect or (ii) the Stock Purchase Agreement.
SECTION 3.11. Federal Reserve Regulations. (a) Neither the
Borrower nor any of the Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
buying or carrying Margin Stock.
(b) No part of the proceeds of any Loan or any Letter of Credit
will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, for any purpose that entails a violation of, or
that is inconsistent with, the provisions of the Regulations of the Board,
including Regulation G, U or X.
SECTION 3.12. Investment Company Act; Public Utility Holding
Company Act. Neither the Borrower nor any Subsidiary is (a) an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940 or (b) a "holding company" as defined in, or subject to regulation
under, the Public Utility Holding Company Act of 1935.
SECTION 3.13. Use of Proceeds. The Borrower will use the proceeds
of the Loans and will request the issuance of Letters of Credit only for the
purposes specified in the preamble to this Agreement.
SECTION 3.14. Tax Returns. Each of the Borrower and the
Subsidiaries has filed or caused to be filed all Federal, state, local and
foreign tax returns or materials required to have been filed by it and has
paid or caused to be paid all taxes due and payable by it and all assessments
received by it, except taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, shall have set aside on its books adequate reserves.
SECTION 3.15. No Material Misstatements. None of (a) the
Confidential Information Memorandum or (b) any other information, report,
financial statement, exhibit or schedule furnished by or on behalf of the
Borrower or Lasertron to the Administrative Agent or any Lender in connection
with the negotiation of any Loan Document or included therein or delivered
pursuant thereto contained, contains or will contain any material misstatement
of fact or omitted, omits or will omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which
they were, are or will be made, not misleading; provided, however, that to the
extent any such information, report, financial statement, exhibit or schedule
was based upon or constitutes a forecast or projection, the Borrower
represents only that it acted in good faith and utilized reasonable
assumptions and due care in the preparation of such information, report,
financial statement, exhibit or schedule.
SECTION 3.16. Employee Benefit Plans. Each of the Borrower and the
ERISA Affiliates is in compliance in all material respects with the applicable
provisions of ERISA and the Code and the regulations and published
interpretations thereunder. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
could reasonably be expected to result in material liability of the Borrower
or any of the ERISA Affiliates. The present value of all benefit liabilities
under each Plan (based on those assumptions used to fund such Plan) did not,
as of the last annual valuation date applicable thereto, exceed by more than
$6,000,000 the fair market value of the assets of such Plan, and the present
value of all benefit liabilities of all underfunded Plans (based on those
assumptions used to fund each such Plan) did not, as of the last annual
valuation dates applicable thereto, exceed by more than $6,000,000 the fair
market value of the assets of all such underfunded Plans.
SECTION 3.17. Environmental Matters. Except as set forth in
Schedule 3.17:
(a) the properties owned or operated by the Borrower and the
Subsidiaries (the "Properties") do not contain any Hazardous Materials in
amounts or concentrations which (i) constitute, or constituted a violation of,
or (ii) is reasonably likely to give rise to liability under, Environmental
Laws, which violations and liabilities, in the aggregate, could result in a
Material Adverse Effect;
(b) the Properties and all operations of the Borrower and the
Subsidiaries are in compliance, and in the last three years have been in
compliance, with all Environmental Laws and all necessary Environmental
Permits have been obtained and are in effect, except to the extent that such
non-compliance or failure to obtain any necessary permits, in the aggregate,
could not result in a Material Adverse Effect;
(c) there have been no Releases or threatened Releases at, from,
under or proximate to the Properties or otherwise in connection with the
operations of the Borrower or the Subsidiaries, which Releases or threatened
Releases, in the aggregate, could result in a Material Adverse Effect;
(d) neither the Borrower nor any of the Subsidiaries has received
any notice of an Environmental Claim in connection with the Properties or the
operations of the Borrower or the Subsidiaries or with regard to any person
whose liabilities for environmental matters the Borrower or the Subsidiaries
has retained or assumed, in whole or in part, contractually, by operation of
law or otherwise, which, in the aggregate, could result in a Material Adverse
Effect, nor do the Borrower or the Subsidiaries have reason to believe that
any such notice will be received or is being threatened; and
(e) Hazardous Materials have not been transported from the
Properties, nor have Hazardous Materials been generated, treated, stored or
disposed of at, on or under any of the Properties in a manner that could give
rise to liability under any Environmental Law, nor have the Borrower or the
Subsidiaries retained or assumed any liability, contractually, by operation of
law or otherwise, with respect to the generation, treatment, storage or
disposal of Hazardous Materials, which transportation, generation, treatment,
storage or disposal, or retained or assumed liabilities, in the aggregate,
could result in a Material Adverse Effect.
SECTION 3.18. Insurance. Schedule 3.18 sets forth a true, complete
and correct description of all insurance maintained by the Borrower or by the
Borrower for its Subsidiaries as of the date hereof and the Closing Date. As
of each such date, such insurance is in full force and effect and all premiums
have been duly paid. The Borrower and its Subsidiaries have insurance in such
amounts and covering such risks and liabilities as are in accordance with
normal industry practice.
SECTION 3.19. Security Documents. The Pledge Agreement is
effective to create in favor of the Collateral Agent, for the ratable benefit
of the Secured Parties, a legal, valid and enforceable security interest in
the Collateral (as defined in the Pledge Agreement) and, when the Collateral
is delivered to the Collateral Agent, the Pledge Agreement shall constitute a
fully perfected first priority Lien on, and security interest in, all right,
title and interest of the pledgor thereunder in such Collateral, in each case
prior and superior in right to any other person. No Liens, other than those
created pursuant to the Loan Documents and other than the Connector Pledge,
exist on the Capital Stock of the Subsidiaries.
SECTION 3.20. Labor Matters. As of the date hereof and the Closing
Date, there are no strikes, lockouts or slowdowns against the Borrower or any
Subsidiary pending or, to the knowledge of the Borrower, threatened. The
hours worked by and payments made to employees of the Borrower and the
Subsidiaries have not been in violation of the Fair Labor Standards Act or any
other applicable Federal, state, local or foreign law dealing with such
matters, other than such violations that, individually and in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. All
payments due from the Borrower or any Subsidiary, or for which any claim may
be made against the Borrower or any Subsidiary, on account of wages and
employee health and welfare insurance and other benefits, have been paid or
accruals have been made on the books of the Borrower or such Subsidiary to
cover such payments. The consummation of the Transactions will not give rise
to any right of termination or right of renegotiation on the part of any union
under any collective bargaining agreement to which the Borrower or any
Subsidiary is bound.
SECTION 3.21. Solvency. Immediately after the consummation of the
Transactions to occur on the Closing Date and immediately following the making
of each Loan made on the Closing Date and after giving effect to the
application of the proceeds of such Loans, (i) the fair value of the assets of
each Loan Party, at a fair valuation, will exceed its probable liability on
its debts and liabilities, subordinated, contingent or otherwise; (ii) the
present fair saleable value of the property of each Loan Party will be greater
than the amount that will be required to pay the probable liability of its
debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured; (iii) each Loan Party
will be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; and (iv)
each Loan Party will not have unreasonably small capital with which to conduct
the business in which it is engaged as such business is now conducted and is
proposed to be conducted following the Closing Date.
ARTICLE IV. CONDITIONS OF LENDING
The obligations of the Lenders to make Loans and of the Issuing
Banks to issue Letters of Credit hereunder are subject to the satisfaction of
the following conditions:
SECTION 4.01. All Credit Events. On the date of each Borrowing
(other than a Borrowing that results from the conversion or continuation of an
existing Borrowing) and on the date of each issuance of a Letter of Credit
(each such event being called a "Credit Event"):
(a) The Administrative Agent shall have received a notice of such
Borrowing as required by Section 2.03 or, in the case of the issuance of a
Letter of Credit, the applicable Issuing Bank and the Administrative Agent
shall have received a notice requesting the issuance of such Letter of Credit
as required by Section 2.22(b).
(b) The representations and warranties set forth in Article III
hereof shall be true and correct in all material respects on and as of the
date of such Credit Event with the same effect as though made on and as of
such date, except to the extent such representations and warranties expressly
relate to an earlier date.
(c) The Borrower shall be in compliance with all the terms and
provisions set forth herein and in each other Loan Document on its part to be
observed or performed, and at the time of and immediately after such Credit
Event, no Event of Default or Default shall have occurred and be continuing.
Except as expressly provided in paragraph (b) above, each Credit Event shall
be deemed to constitute a representation and warranty by the Borrower on the
date of such Credit Event as to the matters specified in paragraphs (b) and
(c) of this Section 4.01.
SECTION 4.02. First Credit Event. On the Closing Date:
(a) The Administrative Agent shall have received, on behalf of
itself, the Lenders and the Issuing Banks, a favorable written opinion of
Ropes & ▇▇▇▇, counsel for the Borrower, substantially to the effect set forth
in Exhibit G, (i) dated the Closing Date, (ii) addressed to the Issuing Banks,
the Administrative Agent and the Lenders, and (iii) covering such other
matters relating to the Loan Documents and the Transactions as the
Administrative Agent shall reasonably request, and the Borrower hereby
requests such counsel to deliver such opinion.
(b) All legal matters incident to this Agreement, the Borrowings
and extensions of credit hereunder and the other Loan Documents shall be
satisfactory to the Administrative Agent, the Lenders and their counsel, the
Issuing Banks and Cravath, Swaine & ▇▇▇▇▇, counsel for the Administrative
Agent.
(c) The Administrative Agent shall have received (i) a copy of the
certificate or articles of incorporation, including all amendments thereto, of
each Loan Party, certified as of a recent date by the Secretary of State or
other applicable Governmental Authority of the state of its organization, and
a certificate as to the good standing of each Loan Party as of a recent date,
from such Secretary of State; (ii) a certificate of the Secretary or Assistant
Secretary of each Loan Party dated the Closing Date and certifying (A) that
attached thereto is a true and complete copy of the by-laws of such Loan Party
as in effect on the Closing Date and at all times since a date prior to the
date of the resolutions described in clause (B) below, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the Board
of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party and, in the
case of the Borrower, the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and effect, (C)
that the certificate or articles of incorporation of such Loan Party have not
been amended since the date of the last amendment thereto shown on the
certificate of good standing furnished pursuant to clause (i) above, and (D)
as to the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of
such Loan Party; (iii) a certificate of another officer as to the incumbency
and specimen signature of the Secretary or Assistant Secretary executing the
certificate pursuant to (ii) above; and (iv) such other documents as the
Lenders, the Issuing Banks or Cravath, Swaine & ▇▇▇▇▇, counsel for the
Administrative Agent, may reasonably request.
(d) The Administrative Agent shall have received a certificate,
dated the Closing Date and signed by a Financial Officer of the Borrower,
confirming compliance with the conditions precedent set forth in paragraphs
(b) and (c) of Section 4.01.
(e) The Administrative Agent shall have received all Fees and other
amounts due and payable on or prior to the Closing Date, including, to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower hereunder or under any other
Loan Document.
(f) The Pledge Agreement shall have been duly executed by the
parties thereto and delivered to the Collateral Agent and shall be in full
force and effect, and all the outstanding capital stock of the Non-Connector
Subsidiaries (other than the Inactive Subsidiaries) shall have been duly and
validly pledged thereunder to the Collateral Agent for the ratable benefit of
the Secured Parties and ▇▇▇▇▇▇▇ Secured Parties and certificates representing
such shares, accompanied by undated stock powers endorsed in blank, shall be
in the actual possession of the Collateral Agent; provided, however, that (i)
neither the Borrower nor any Domestic Subsidiary shall be required to pledge
more than 65 percent of the capital stock of any Foreign Subsidiary and (ii)
no Foreign Subsidiary shall be required to pledge the capital stock of any of
its Subsidiaries.
(g) Each of the Guarantee Agreement and the Indemnity, Subrogation
and Contribution Agreement shall have been duly executed by the parties
thereto and shall have been delivered to the Collateral Agent and shall be in
full force and effect.
(h) After giving effect to the Borrowings hereunder on the Closing
Date and the application of the proceeds thereof, the Borrower and the
Subsidiaries shall have no Indebtedness other than the Loans hereunder,
Indebtedness under the ▇▇▇▇▇▇▇ Credit Agreement and Indebtedness otherwise
permitted under Section 6.01. All agreements, commitments, security interests
and other rights and obligations in respect of the Existing Indebtedness shall
have been terminated and all amounts due in respect thereof shall have been
paid in full from the proceeds of the Loans and the proceeds of borrowings
under the ▇▇▇▇▇▇▇ Credit Agreement, in each case made on the Closing Date,
except as set forth on Schedule 6.01 and Schedule 6.02.
(i) The likely tax position and the contingent tax and other
liabilities of the Borrower and the Subsidiaries and the plans of the Borrower
with respect thereto shall not have changed in any material respect since the
date of the Confidential Information Memorandum.
(j) The likely amount and nature of any environmental and employee
health and safety exposures to which the Borrower and the Subsidiaries may be
subject and the plans of the Borrower with respect thereto shall not have
changed in any material respect since the date of the Confidential Information
Memorandum.
(k) All approvals and consents of Governmental Authorities and
third parties required in connection with the Acquisition and the other
Transactions shall have been obtained (except as described in Section 3.04)
and all applicable appeal periods shall have expired, and there shall be no
action, pending or threatened, by or before any Governmental Authority that
has or could have a reasonable likelihood of restraining, preventing or
imposing burdensome conditions on the Acquisition or the other Transactions.
(l) The Lenders shall have received the financial statements
referred to in Section 3.05 and all other financial information reasonably
requested by the Administrative Agent.
SECTION 4.03. Tranche A Term Borrowing. On the date on which the
Tranche A Term Loans are made, the Acquisition shall have been or shall
simultaneously be consummated in accordance with applicable law and the terms
of the Stock Purchase Agreement and all related documentation (without giving
effect to any waiver or amendment of the Stock Purchase Agreement or the
closing conditions set forth therein that shall not have been approved by the
Required Lenders) which shall not have changed in any material respect from
the terms and the documentation previously delivered to the Lenders.
SECTION 4.04. Tranche B Term Borrowing. On the date on which
Tranche B Term Loans are made, the Connector Purchase shall have been or shall
simultaneously be completed and the Connector Pledge shall have been released
in accordance with the Stockholders Agreement (without giving effect to any
waiver or amendment of the provisions of the Stockholders Agreement that
relate to the Connector Purchase that shall not have been approved by the
Required Lenders).
ARTICLE V. AFFIRMATIVE COVENANTS
The Borrower covenants and agrees with each Lender that so long as
this Agreement shall remain in effect and until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document shall have been paid
in full and all Letters of Credit have been canceled or have expired and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing, the Borrower will, and will cause
each of the Subsidiaries to:
SECTION 5.01. Existence; Businesses and Properties. (a) Do or
cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except as otherwise expressly permitted
under Section 6.05.
(b) Do or cause to be done all things necessary to obtain,
preserve, renew, extend and keep in full force and effect the rights,
licenses, permits, franchises, authorizations, patents, copyrights, trademarks
and trade names material to the conduct of its business; maintain and operate
such business in substantially the manner in which it is presently conducted
and operated; comply in all material respects with all applicable laws, rules,
regulations and decrees and orders of any Governmental Authority, whether now
in effect or hereafter enacted; and at all times maintain and preserve all
property material to the conduct of such business and keep such property in
good repair, working order and condition and from time to time make, or cause
to be made, all needful and proper repairs, renewals, additions, improvements
and replacements thereto necessary in order that the business carried on in
connection therewith may be properly conducted at all times.
SECTION 5.02. Insurance. Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers; maintain
such other insurance, to such extent and against such risks, including fire
and other risks insured against by extended coverage, as is customary with
companies in the same or similar businesses operating in the same or similar
locations, including public liability insurance against claims for personal
injury or death or property damage occurring upon, in, about or in connection
with the use of any properties owned, occupied or controlled by it; and
maintain such other insurance as may be required by law.
SECTION 5.03. Obligations and Taxes. Pay and perform its
Indebtedness and other obligations promptly and in accordance with their terms
and pay and discharge promptly when due all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits
or in respect of its property, before the same shall become delinquent or in
default, as well as all lawful claims for labor, materials and supplies or
otherwise that, if unpaid, might give rise to a Lien upon such properties or
any part thereof; provided, however, that such payment and discharge shall not
be required with respect to any such tax, assessment, charge, levy or claim so
long as the validity or amount thereof shall be contested in good faith by
appropriate proceedings and the Borrower shall have set aside on its books
adequate reserves with respect thereto in accordance with GAAP and such
contest operates to suspend collection of the contested obligation, tax,
assessment or charge and enforcement of a Lien.
SECTION 5.04. Financial Statements, Reports, etc. In the case of
the Borrower, furnish to the Administrative Agent and each Lender:
(a) within 90 days after the end of each fiscal year, its
consolidated and consolidating balance sheets and related statements of
operations, stockholders' equity and cash flows showing the financial
condition of the Borrower and its consolidated Subsidiaries as of the close of
such fiscal year and the results of its operations and the operations of such
Subsidiaries during such year, audited, in the case of the consolidated
financial statements, by Price Waterhouse LLP or other independent public
accountants of recognized national standing acceptable to the Required Lenders
and accompanied by an opinion of such accountants (which shall not be
qualified in any material respect) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of the Borrower and the Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied and, in the
case of the consolidating financial statements, certified by a Financial
Officer of the Borrower as presenting fairly in all material respects the
financial condition and results of operations of the Borrower and the
Subsidiaries on a consolidating basis in accordance with GAAP consistently
applied;
(b) within 45 days after the end of each of the first three fiscal
quarters of each fiscal year, its consolidated and consolidating balance
sheets and related statements of operations, stockholders' equity and cash
flows showing the financial condition of the Borrower and its consolidated
Subsidiaries as of the close of such fiscal quarter and the results of its
operations and the operations of such Subsidiaries during such fiscal quarter
and the then elapsed portion of the fiscal year, all certified by one of its
Financial Officers as presenting fairly in all material respects the financial
condition and results of operations of the Borrower and the Subsidiaries on a
consolidated and a consolidating basis in accordance with GAAP consistently
applied, subject to normal year-end audit adjustments and the absence of
footnotes;
(c) concurrently with any delivery of financial statements under
sub-paragraph (a) or (b) above, a certificate of the accounting firm or
Financial Officer opining on or certifying such statements (which certificate,
when furnished by an accounting firm, may be limited to accounting matters and
disclaim responsibility for legal interpretations) (i) certifying that no
Event of Default or Default has occurred or, if such an Event of Default or
Default has occurred, specifying the nature and extent thereof and any
corrective action taken or proposed to be taken with respect thereto (it being
understood that such certificate, when given by an accounting firm, may be
limited to their knowledge as obtained in the course of their audit and
without special investigation) and (ii) setting forth computations in
reasonable detail satisfactory to the Administrative Agent showing the
Leverage Ratio and the Interest Coverage Ratio as of the last day of the
fiscal year or fiscal quarter to which such statements relate and
demonstrating compliance with the covenants contained in Sections 6.10, 6.11,
6.12 and 6.13 (it being understood that the information required by this
clause (ii) may be provided in a certificate of a Financial Officer on behalf
of the Borrower instead of from the accounting firm);
(d) promptly after the same become publicly available, copies of all
periodic and other reports, proxy statements and other materials filed by the
Borrower or any Subsidiary with the Securities and Exchange Commission, or any
Governmental Authority succeeding to any or all of the functions of said
Commission, or with any national securities exchange, or distributed to its
shareholders, as the case may be;
(e) if, as a result of any change in accounting principles and
policies from those as in effect on the date hereof, the consolidated and
consolidating financial statements of the Borrower and the Subsidiaries
delivered pursuant to paragraph (a) or (b) above will differ in any material
respect from the consolidated or consolidating financial statements that would
have been delivered pursuant to such clauses had no such change in accounting
principles and policies been made, then together with the first delivery of
financial statements pursuant to paragraph (a) and (b) above following such
change, a schedule prepared by a Financial Officer of the Borrower reconciling
such changes to what the financial statements would have been without such
changes;
(f) concurrently with the delivery of financial statement under
subparagraph (a) above, a copy of an operating and capital expenditure budget
for the next succeeding fiscal year;
(g) promptly upon the creation or acquisition of any Subsidiary or
upon any Inactive Subsidiary ceasing to be an Inactive Subsidiary, a
certificate from a Responsible Officer of the Borrower, identifying such
Subsidiary and the ownership interest of the Borrower and the Subsidiaries
therein;
(h) simultaneously with the delivery of any financial statements
pursuant to subparagraph (a) or (b) above, a balance sheet and related
statements of operations, cash flows and stockholder's equity for each
unconsolidated Subsidiary for the applicable period;
(i) promptly, a copy of all reports submitted in connection with any
material interim or special audit made by independent accountants of the books
of the Borrower or any Subsidiary; and
(j) promptly, from time to time, such other information regarding
the operations, business affairs and financial condition of the Borrower or
any Subsidiary, or compliance with the terms of any Loan Document, as the
Administrative Agent or any Lender may reasonably request.
SECTION 5.05. Litigation and Other Notices. Furnish to the
Administrative Agent, Issuing Bank and each Lender prompt written notice of
the following:
(a) any Event of Default or Default, specifying the nature and
extent thereof and the corrective action (if any) taken or proposed to be
taken with respect thereto;
(b) the filing or commencement of, or any threat or notice of
intention of any person to file or commence, any action, suit or proceeding,
whether at law or in equity or by or before any Governmental Authority,
against the Borrower or any Affiliate thereof that could reasonably be
expected to result in a Material Adverse Effect; and
(c) any development that has resulted in, or could reasonably be
expected to result in, a Material Adverse Effect.
SECTION 5.06. Employee Benefits. (a) Comply in all material
respects with the applicable provisions of ERISA and the Code and (b) furnish
to the Administrative Agent as soon as possible after, and in any event within
10 days after any Responsible Officer of the Borrower or any ERISA Affiliate
knows or has reason to know that, any ERISA Event has occurred that, alone or
together with any other ERISA Event could reasonably be expected to result in
liability of the Borrower in an aggregate amount exceeding $1,000,000 or
requiring payments exceeding $500,000 in any year, a statement of a Financial
Officer of the Borrower setting forth details as to such ERISA Event and the
action, if any, that the Borrower proposes to take with respect thereto.
SECTION 5.07. Maintaining Records; Access to Properties and
Inspections. Keep proper books of record and account in which full, true and
correct entries in conformity with GAAP and all requirements of law are made
of all dealings and transactions in relation to its business and activities.
Each Loan Party will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender to visit
and inspect the financial records and the properties of the Borrower or any
Subsidiary at reasonable times and as often as reasonably requested and to
make extracts from and copies of such financial records, and permit any
representatives designated by the Administrative Agent or any Lender to
discuss the affairs, finances and condition of the Borrower or any Subsidiary
with the officers thereof and independent accountants therefor.
SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans and
request the issuance of Letters of Credit only for the purposes set forth in
the preamble to this Agreement.
SECTION 5.09. Compliance with Environmental Laws. Comply, and
cause all lessees and other persons occupying its Properties to comply, in all
material respects with all Environmental Laws and Environmental Permits
applicable to its operations and Properties; obtain and renew all material
Environmental Permits necessary for its operations and Properties; and conduct
any Remedial Action in accordance with Environmental Laws; provided, however,
that neither the Borrower nor any of the Subsidiaries shall be required to
undertake any Remedial Action to the extent that its obligation to do so is
being contested in good faith and by proper proceedings and appropriate
reserves are being maintained with respect to such circumstances.
SECTION 5.10. Further Assurances. Execute any and all further
documents and instruments, and take all further action that may be required
under applicable law, or that the Required Lenders, the Administrative Agent
or the Collateral Agent may reasonably request, in order to grant, preserve,
protect and perfect the validity and first priority of the security interests
created or intended to be created by the Security Documents. The Borrower
will cause any subsequently acquired or organized Domestic Subsidiary (other
than any Inactive Subsidiary) to become party (a) as a Guarantor to the
Guarantee Agreement, the Indemnity, Subrogation and Contribution Agreement and
each applicable Security Document in favor of the Collateral Agent and (b) as
a ▇▇▇▇▇▇▇ Guarantor to the ▇▇▇▇▇▇▇ Guarantee Agreement and the ▇▇▇▇▇▇▇
Indemnity, Subrogation and Contribution Agreement. Contemporaneously with the
closing of the Connector Purchase, the Borrower will cause each of ▇▇▇▇▇▇▇ and
the ▇▇▇▇▇▇▇ Guarantors to become party as a Guarantor to the Guarantee
Agreement and to the Indemnity, Subrogation and Contribution Agreement. In
addition, the Borrower will, at its cost and expense, promptly following the
date of acquisition by the Borrower or any Subsidiary (other than, prior to
the Connector Purchase, ▇▇▇▇▇▇▇ or a ▇▇▇▇▇▇▇ Guarantor) of any new subsidiary
(other than any Inactive Subsidiary, unless the Collateral Agent shall have
requested a pledge of Capital Stock of such Inactive Subsidiary), secure the
Obligations and the ▇▇▇▇▇▇▇ Obligations by creating, or causing to be pledged
or created, perfected security interests in all the issued and outstanding
Capital Stock of such subsidiary pursuant to the Pledge Agreement; provided,
however, that (a) no more than 65 percent of the Capital Stock of any Foreign
Subsidiary shall be required to be pledged pursuant to this Section 5.10 and
(b) no Foreign Subsidiary shall be required to pledge any stock of any other
Foreign Subsidiary pursuant to this Section 5.10. In addition, unless the
Permitted Release shall have occurred, the Borrower shall at its cost and
expense, contemporaneously with the Connector Purchase, (x) cause the ▇▇▇▇▇▇▇
Collateral (other than any shares of ▇▇▇▇▇▇▇ not held by Connector) to secure
the Obligations, and (y) secure the Obligations and the ▇▇▇▇▇▇▇ Obligations by
pledging or creating perfected first priority security interests with respect
to 100 percent of the issued and outstanding Capital Stock of Connector. Such
security interests and Liens will be created under the Security Documents and
other security agreements, instruments and documents in form and substance
reasonably satisfactory to the Collateral Agent, and the Borrower shall
deliver or cause to be delivered to the Lenders all such instruments and
documents (including legal opinions and lien searches) as the Collateral Agent
shall reasonably request to evidence compliance with this Section 5.10. The
Borrower agrees to provide such evidence as the Collateral Agent shall
reasonably request as to the perfection and priority status of each such
security interest. Notwithstanding anything to the contrary herein or in the
Security Documents, if no Default or Event of Default shall have occurred and
be continuing before and after giving effect to the Connector Purchase, the
Collateral Agent shall release the security interests and Liens on the
Collateral upon the closing of the Connector Purchase (the "Permitted
Release").
ARTICLE VI. NEGATIVE COVENANTS
The Borrower covenants and agrees with each Lender that, so long as
this Agreement shall remain in effect and until the Commitments have been
terminated and the principal of and interest on each Loan, all Fees and all
other expenses or amounts payable under any Loan Document have been paid in
full and all Letters of Credit have been cancelled or have expired and all
amounts drawn thereunder have been reimbursed in full, unless the Required
Lenders shall otherwise consent in writing, the Borrower will not, and will
not cause or permit any of the Subsidiaries to:
SECTION 6.01. Indebtedness. Incur, create, assume or permit to
exist any Indebtedness, except:
(a) Indebtedness for borrowed money existing on the date hereof and
set forth in Schedule 6.01, but not any extensions, renewals or replacements
of such Indebtedness;
(b) Indebtedness created hereunder;
(c) so long as the ▇▇▇▇▇▇▇ Credit Agreement is effective,
Indebtedness of Connector and its subsidiaries permitted by the ▇▇▇▇▇▇▇ Credit
Agreement;
(d) (i) in the case of the Borrower, Indebtedness owed to any wholly
owned Subsidiary that is a Guarantor and (ii) in the case of any Subsidiary,
Indebtedness owed to the Borrower or any wholly owned Subsidiary that is a
Guarantor, in each of clauses (i) and (ii) only if such Indebtedness is
evidenced by a note or notes which are pledged to the Collateral Agent under
the Pledge Agreement;
(e) in the case of the Borrower, Indebtedness described in clause
(i) of the definition of "Indebtedness" entered into in the ordinary course of
business on terms and with counterparties reasonably satisfactory to the
Administrative Agent;
(f) Indebtedness of Lasertron and its subsidiaries incurred after
the date hereof and prior to the closing of the Acquisition and not incurred
in violation of the Stock Purchase Agreement;
(g) purchase money Indebtedness incurred in the ordinary course of
business after the date hereof to finance Capital Expenditures permitted under
Section 6.10 in a principal amount at any time outstanding not in excess of
(i) $10,000,000 less (ii) the amount of all Capital Lease Obligations incurred
pursuant to clause (h) below and outstanding at such time; provided, however,
that such Indebtedness is incurred within 90 days after the making of the
Capital Expenditure so financed;
(h) Capital Lease Obligations incurred in the ordinary course of
business after the date hereof to finance Capital Expenditures permitted under
Section 6.10 in a principal amount at any time outstanding not in excess of
(i) $10,000,000 less (ii) the principal amount of all purchase money
indebtedness incurred pursuant to clause (g) above and outstanding at such
time;
(i) in the case of the Borrower or any Guarantor, Guarantees of
Indebtedness permitted under clause (e), (g) or (h) above;
(j) Indebtedness of Foreign Subsidiaries not in excess of $5,000,000
principal amount at any time outstanding;
(k) Indebtedness of Foreign Subsidiaries to Guarantors described in
Section 6.04(k); and
(l) other unsecured Indebtedness of the Borrower not in excess of
$5,000,000 principal amount at any time outstanding.
SECTION 6.02. Liens. Create, incur, assume or permit to exist any
Lien on any property or assets (including stock or other securities of any
person, including any Subsidiary) now owned or hereafter acquired by it or on
any income or revenues or rights in respect of any thereof, except:
(a) Liens on property or assets of the Borrower and its Subsidiaries
existing on the date hereof and set forth in Schedule 6.02; provided, however,
that such Liens shall secure only those obligations which they secure on the
date hereof;
(b) any Lien created under the Loan Documents;
(c) any Lien existing on any property or asset prior to the
acquisition thereof by the Borrower or any Subsidiary; provided, however, that
(i) such Lien is not created in contemplation of or in connection with such
acquisition and (ii) such Lien does not apply to any other property or assets
of the Borrower or any Subsidiary;
(d) Liens for taxes, assessments and other government charges not
yet due or which are being contested in compliance with Section 5.03;
(e) carriers', warehousemen's, mechanics', materialmen's,
repairmen's or other like Liens arising in the ordinary course of business and
securing obligations that are not due and payable or which are being contested
in compliance with Section 5.03;
(f) pledges and deposits made in the ordinary course of business in
compliance with workmen's compensation, unemployment insurance and other
social security laws or regulations;
(g) deposits to secure the performance of bids, trade contracts
(other than for Indebtedness), leases (other than Capital Lease Obligations),
statutory obligations, surety and appeal bonds, performance bonds and other
obligations of a like nature incurred in the ordinary course of business;
(h) zoning restrictions, easements, rights-of-way, restrictions on
use of real property and other similar encumbrances incurred in the ordinary
course of business which, in the aggregate, are not substantial in amount and
do not materially detract from the value of the property subject thereto or
interfere with the ordinary conduct of the business of the Borrower or any of
its Subsidiaries;
(i) purchase money security interests in real property, improvements
thereto or equipment hereafter acquired (or, in the case of improvements,
constructed) by the Borrower or any Subsidiary; provided, however, that (i)
such security interests secure Indebtedness permitted by Section 6.01(g), (ii)
such security interests are incurred, and the Indebtedness secured thereby is
created, within 90 days after such acquisition (or construction), (iii) the
Indebtedness secured thereby is not less than 50 percent nor more than 100
percent of the lesser of the cost or the fair market value of such real
property, improvements or equipment at the time of such acquisition (or
construction) and (iv) such security interests do not apply to any other
property or assets of the Borrower or any Subsidiary;
(j) Liens represented by the interests of the lessors in respect of
Capital Lease Obligations incurred pursuant to Section 6.01(h);
(k) Liens represented by Sale and Lease-Back Transactions incurred
pursuant to Section 6.03;
(l) prior to the Connector Purchase, the Connector Pledge;
(m) any Lien incurred by Lasertron or any of its subsidiaries after
the date hereof and prior to the closing of the Acquisition and not incurred
in violation of the Stock Purchase Agreement;
(n) so long as the ▇▇▇▇▇▇▇ Credit Agreement is effective, any Lien
on the assets of ▇▇▇▇▇▇▇ and its subsidiaries permitted by the ▇▇▇▇▇▇▇ Credit
Agreement; and
(o) Liens on assets of Foreign Subsidiaries that only secure
Indebtedness permitted under Section 6.01(j).
SECTION 6.03. Sale and Lease-Back Transactions. Enter into any
Sale and Lease-Back Transaction if, after giving effect thereto, the aggregate
Attributable Debt for all outstanding Sale and Lease-Back Transactions would
exceed $10,000,000.
SECTION 6.04. Investments, Loans and Advances. Purchase, hold or
acquire any capital stock, evidences of indebtedness or other securities of,
make or permit to exist any loans or advances to, or make or permit to exist
any investment or any other interest in, any other person, except:
(a) investments by the Borrower existing or committed to on the date
hereof in the capital stock of the Subsidiaries;
(b) Permitted Investments;
(c) the Connector Purchase;
(d) so long as the ▇▇▇▇▇▇▇ Credit Agreement is effective,
investments, loans or advances by Connector and its subsidiaries permitted by
the ▇▇▇▇▇▇▇ Credit Agreement;
(e) investments, loans or advances in or to Guarantors; provided,
however, that in no event shall proceeds of the Loans be invested, loaned or
advanced in or to Connector and its subsidiaries other than pursuant to the
Connector Purchase;
(f) the Acquisition;
(g) Permitted Other Acquisitions;
(h) investments by Lasertron existing or committed to on the date
hereof;
(i) the purchase by the Borrower of shares of the Capital Stock of
▇▇▇▇▇▇▇ pursuant to the Management Stockholders Agreement; provided, however,
that the cash consideration paid by the Borrower for such shares shall not
exceed $1,000,000 in any fiscal year;
(j) loans to officers or employees of the Borrower in the ordinary
course not in excess of $1,000,000 principal amount at any time outstanding;
(k) additional loans and advances from the Borrower or any Guarantor
to Subsidiaries listed on Schedule 6.04(k) not in excess of $20,000,000
aggregate principal amount outstanding at any time minus loans and advances
pursuant to Section 6.04(f) of the ▇▇▇▇▇▇ Credit Agreement; provided, however,
that all such loans and advances are evidenced by a note or notes which are
pledged to the Collateral Agent under the Pledge Agreement;
(l) additional investments in, or loans or advances to, WTD in a net
amount not in excess of $1,000,000 outstanding at any time (in addition to
those described in clause (h) of this Section 6.04);
(m) investments in, or loans or advances to, foreign joint ventures
existing or committed to on the date hereof; and
(n) other investments in, or loans or advances to, or Guarantees of
Indebtedness of, Subsidiaries or foreign joint ventures in a net amount not in
excess of $10,000,000 outstanding at any time.
SECTION 6.05. Mergers, Consolidations, Sales of Assets and
Acquisitions. Merge into or consolidate with any other person, or permit any
other person to merge into or consolidate with it, or sell, transfer, lease or
otherwise dispose of (in one transaction or in a series of transactions) all
or any substantial part of its assets (whether now owned or hereafter
acquired) or any Capital Stock of any Subsidiary, or purchase, lease or
otherwise acquire (in one transaction or a series of transactions) all or any
substantial part of the assets of any other person, except that this Section
6.05 shall not prohibit:
(a) the purchase and sale of inventory in the ordinary course of
business by the Borrower or any Subsidiary;
(b) if at the time thereof and immediately after giving effect
thereto no Event of Default or Default shall have occurred and be continuing
(i) the merger of any wholly owned Subsidiary into the Borrower in a
transaction in which the Borrower is the surviving corporation and (ii) the
merger or consolidation of any wholly owned Subsidiary into or with any other
wholly owned Subsidiary in a transaction in which the surviving entity is a
wholly owned Subsidiary (which shall be a Domestic Subsidiary if the non-
surviving person shall be a Domestic Subsidiary) or the dissolution or
liquidation of a wholly owned Subsidiary, and, in the case of each of clauses
(i) and (ii), no person other than the Borrower or a wholly owned Subsidiary
receives any consideration;
(c) the Acquisition;
(d) the acquisition of another person or all or a substantial part
of its assets if (i) the acquired person is engaged in the same business as
the Borrower or another business reasonably related thereto, and (ii) at the
time of and after giving effect to such acquisition, no Event of Default or
Default has occurred and is continuing, and (iii) after giving effect to such
acquisition, the Borrower shall be in compliance, on a pro forma basis, with
Sections 6.10, 6.11, 6.12 and 6.13, and (iv) such acquisition is approved by
the board of directors of the acquired person prior to the commencement of any
tender offer or the acquisition by the Borrower of any shares of Capital Stock
thereof, and (v) after giving effect to such acquisition, the Borrower
controls the dividend policy of the Capital Stock of the acquired person and
owns at least 80 percent of the common equity thereof and (vi) (A) on the date
of such acquisition and after giving effect thereto the Designated Financial
Tests are satisfied on an actual and, unless the Borrower is relying on clause
(a)(ii) of the definition of "Designated Financial Tests", pro forma basis, or
(B) the consideration used consists solely of Capital Stock of the Borrower,
or (C) the aggregate consideration paid after the Closing Date for
acquisitions (other than acquisitions meeting the requirements of clause (A)
or (B) above) is not in excess of $10,000,000; provided, however, that the
aggregate consideration paid under this clause (d)(otherwise than in the form
of Capital Stock of the Borrower) after the Closing Date for the acquisition
of persons not incorporated or organized under the laws of the United States
of America, any State thereof or the District of Columbia shall not in any
event exceed $10,000,000 (the foregoing collectively defined as "Permitted
Other Acquisitions");
(e) the sale by the Borrower or any Subsidiary of the assets of or
Capital Stock in O/E/N India Ltd., WSNS or Nordco Inc.; and
(f) sales or other dispositions by the Borrower or any Subsidiary of
assets (other than receivables, except to the extent disposed of incidentally
in connection with an asset disposition otherwise permitted hereby), for
consideration in an aggregate amount not exceeding $25,000,000; provided,
however, that (i) each such disposition shall be for a consideration
determined in good faith by the board of directors or senior management of the
Borrower to be at least equal to the fair market value (if any) of the asset
sold, (ii) the aggregate amount of all non-cash consideration included in the
proceeds of any such disposition may not exceed 20 percent of the fair market
value of such proceeds (provided that obligations of the type referred to in
clause (a) of the definition of "Permitted Investments" shall not be deemed
non-cash proceeds if such obligations are promptly sold for cash and the
proceeds of such sale are included in the calculation of Net Proceeds from
such sale), (iii) the aggregate Net Proceeds of all such dispositions under
this clause (f) shall be applied in accordance with Section 2.13(b), and (iv)
no Default or Event of Default shall have occurred and be continuing
immediately prior to or after such disposition.
SECTION 6.06. Dividends and Distributions; Restrictions on Ability
of Subsidiaries to Pay Dividends. (a) Declare or pay, directly or
indirectly, any dividend or make any other distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, with respect to any shares of its Capital Stock or directly or
indirectly redeem, purchase, retire or otherwise acquire for value (or permit
any Subsidiary to purchase or acquire) any shares of any class of its Capital
Stock or set aside any amount for any such purpose; provided, however, that
(i) any Subsidiary may declare and pay dividends or make other distributions
to the Borrower, (ii) Connector and its subsidiaries may declare and pay
dividends and make other distributions with respect to their Capital Stock,
(iii) the Borrower may repurchase its common stock for aggregate consideration
not in excess of $1,000,000 in any fiscal year for use in connection with its
supplemental retirement income plan and (iv) if at the time thereof and
immediately after giving effect thereto no Default or Event of Default shall
have occurred and be continuing, the Borrower may repurchase stock or options
from former officers and former employees (or their legal representatives) in
the ordinary course of business in accordance with any duly instituted stock
option plan.
(b) Permit its subsidiaries to, directly or indirectly, create or
otherwise cause or suffer to exist or become effective any encumbrance or
restriction on the ability of any such subsidiary to, except pursuant to the
Stockholders Agreement, (i) pay any dividends or make any other distributions
on its Capital Stock or any other interest or (ii) make or repay any loans or
advances to the Borrower or the parent of such subsidiary.
SECTION 6.07. Transactions with Affiliates. Sell or transfer any
property or assets to, or purchase or acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates (other
than transactions between or among the Borrower and the wholly owned
Subsidiaries), except that (a) the Borrower or any Subsidiary may engage in
any of the foregoing transactions at prices and on terms and conditions not
less favorable to the Borrower or such Subsidiary than could be obtained on an
arm's-length basis from unrelated third parties and (b) Connector may pay,
pursuant to Section 4.1 of the Stockholders Agreement, (i) management fees to
the Borrower in an amount not to exceed $450,000 per annum and (ii) the
reasonable out-of-pocket and travel and lodging costs of certain of its
directors in connection with the attendance at meetings of the directors of
Connector in each Fiscal Year.
SECTION 6.08. Business of Borrower and Subsidiaries. Engage at any
time in any business or business activity other than the business currently
conducted by it and business activities reasonably incidental or related
thereto.
SECTION 6.09. Indebtedness and Other Material Agreements. (a)
Amend or modify, or grant any waiver or release under (i) any instruments,
agreements or documents evidencing or in connection with Indebtedness of the
Borrower and the Subsidiaries, (ii) any agreements material to the business of
the Borrower and the Subsidiaries, or (iii) the Stockholders Agreement, except
with respect to amendments of or waivers under Section 4.3, 4.4, 4.5, 4.6, 4.7
or 4.9 of the Stockholders Agreement and relating to the subject matters of
such sections as in effect on the date of the Agreement.
(b) Amend or modify in any manner adverse to the Lenders, or grant
any waiver or release under or terminate in any manner (if such action shall
be adverse to the Lenders), the Stock Purchase Agreement or the certificate of
incorporation or bylaws of the Borrower or any Subsidiary.
SECTION 6.10. Capital Expenditures. Permit Consolidated Oak or,
prior to the Connector Purchase, Adjusted Oak to make any Capital
Expenditures, on a consolidated basis, in any fiscal year to exceed the amount
set forth below for Consolidated Oak or Adjusted Oak, as applicable:
Fiscal Year: Consolidated Oak: Adjusted Oak:
----------- ---------------- ------------
1995 $21,000,000 $13,000,000
1996 $25,000,000 $15,000,000
1997 $30,000,000 $18,000,000
1998 $34,000,000 $20,000,000
1999 $38,000,000 $22,000,000
2000 $42,000,000 $24,000,000
SECTION 6.11. Leverage Ratio. Permit the Leverage Ratio of
Consolidated Oak or, prior to the Connector Purchase, Adjusted Oak to exceed,
as of December 31, 1995, and as of the last day of each fiscal quarter
thereafter, 0.55 to 1.00.
SECTION 6.12. Interest Coverage Ratio. Permit the Interest
Coverage Ratio of Consolidated Oak or, prior to the Connector Purchase,
Adjusted Oak, as of December 31, 1995, and as of the last day of each fiscal
quarter thereafter, which last day occurs in any period set forth below, to be
less than the ratio set forth below for such period for Consolidated Oak or
Adjusted Oak, as applicable:
From To
and and Consolidated
Including: Including Oak Adjusted Oak
---------- --------- ------------ ------------
December 31, 1995 June 30, 1996 3.0 to 1.0 2.5 to 1.0
September 30, 1996 3.0 to 1.0 3.0 to 1.0
and thereafter
SECTION 6.13. Consolidated Net Worth. Permit the Consolidated Net
Worth of the Borrower and the Subsidiaries as of December 31, 1995, or as of
the last day of any fiscal quarter thereafter to be less than the sum of (a)
$190,000,000, plus (b) 50 percent of the aggregate Consolidated Net Income of
the Borrower and the Subsidiaries for each complete fiscal year, commencing on
or after January 1, 1996 and ending prior to such date (excluding any fiscal
year for which Consolidated Net Income shall be negative).
SECTION 6.14. Fiscal Year. Cause its fiscal year to end on other
than December 31 of each year.
ARTICLE VII. EVENTS OF DEFAULT
In case of the happening of any of the following events ("Events of
Default"):
(a) any representation or warranty made or deemed made in or in
connection with any Loan Document or the borrowings or issuances of Letters of
Credit hereunder, or any representation, warranty, statement or information
contained in any report, certificate, financial statement or other instrument
furnished in connection with or pursuant to any Loan Document, shall prove to
have been false or misleading in any material respect when so made, deemed
made or furnished;
(b) default shall be made in the payment of any principal of any
Loan or the reimbursement with respect to any L/C Disbursement when and as the
same shall become due and payable, whether at the due date thereof or at a
date fixed for prepayment thereof or by acceleration thereof or otherwise,
and, in the case of default in reimbursement, such default shall continue
unremedied for a period of one Business Day;
(c) default shall be made in the payment of any interest on any Loan
or any Fee or L/C Disbursement or any other amount (other than an amount
referred to in (b) above) due under any Loan Document, when and as the same
shall become due and payable, and such default shall continue unremedied for a
period of three Business Days;
(d) default shall be made in the due observance or performance by
the Borrower or any Subsidiary of any covenant, condition or agreement
contained in Section 5.01(a), 5.05 or 5.08 or in Article VI;
(e) default shall be made in the due observance or performance by
the Borrower or any Subsidiary of any covenant, condition or agreement
contained in any Loan Document (other than those specified in (b), (c) or (d)
above) and such default shall continue unremedied for a period of 30 days
after notice thereof from the Administrative Agent or any Lender to the
Borrower;
(f) the Borrower or any Subsidiary shall (i) fail to pay any
principal or interest, regardless of amount, due in respect of any
Indebtedness in a principal amount in excess of $500,000, when and as the same
shall become due and payable, or (ii) fail to observe or perform any other
term, covenant, condition or agreement contained in any agreement or
instrument evidencing or governing any such Indebtedness if the effect of any
failure referred to in this clause (ii) is to cause, or to permit the holder
or holders of such Indebtedness or a trustee on its or their behalf (with or
without the giving of notice, the lapse of time or both) to cause, such
Indebtedness to become due prior to its stated maturity;
(g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i)
relief in respect of the Borrower or any Subsidiary, or of a substantial part
of the property or assets of the Borrower or a Subsidiary, under Title 11 of
the United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any Subsidiary or for a
substantial part of the property or assets of the Borrower or a Subsidiary or
(iii) the winding-up or liquidation of the Borrower or any Subsidiary; and
such proceeding or petition shall continue undismissed for 60 days or an order
or decree approving or ordering any of the foregoing shall be entered;
(h) the Borrower or any Subsidiary shall (i) voluntarily commence
any proceeding or file any petition seeking relief under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other
Federal, state or foreign bankruptcy, insolvency, receivership or similar law,
(ii) consent to the institution of, or fail to contest in a timely and
appropriate manner, any proceeding or the filing of any petition described in
(g) above, (iii) apply for or consent to the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for the
Borrower or any Subsidiary or for a substantial part of the property or assets
of the Borrower or any Subsidiary, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, (vi) become unable, admit in
writing its inability or fail generally to pay its debts as they become due or
(vii) take any action for the purpose of effecting any of the foregoing;
(i) one or more judgments for the payment of money in an aggregate
amount in excess of $1,000,000 shall be rendered against the Borrower, any
Subsidiary or any combination thereof and the same shall remain undischarged
for a period of 30 consecutive days during which execution shall not be
effectively stayed, or any action shall be legally taken by a judgment
creditor to levy upon assets or properties of the Borrower or any Subsidiary
to enforce any such judgment;
(j) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other such ERISA Events, could
reasonably be expected to result in liability of the Borrower and its ERISA
Affiliates in an aggregate amount exceeding $1,000,000 or requires payments
exceeding $500,000 in any year;
(k) (i) any Loan Document shall for any reason be asserted by the
Borrower or any Loan Party not to be a legal, valid and binding obligation of
any party thereto, or (ii) any security interest purported to be created by
any Security Document shall cease to be, or shall be asserted by the Borrower
or any other Loan Party not to be, a valid, perfected, first priority (except
as otherwise expressly provided in this Agreement or such Security Document)
security interest in the securities, assets or properties covered thereby,
except to the extent that any such loss of perfection or priority results from
the failure of the Collateral Agent to maintain possession of certificates
representing securities pledged under the Pledge Agreement;
(l) the Borrower or any Subsidiary shall default in the due
observance or performance of any covenant, condition or agreement contained in
the Stockholders Agreement, unless such default has been waived pursuant to
the terms thereof and unless such waiver is permitted by Section 6.09(a)(iii);
(m) there shall occur any Event of Default (as defined therein)
under the ▇▇▇▇▇▇▇ Credit Agreement; or
(n) there shall have occurred a Change in Control;
then, and in every such event (other than an event with respect to the
Borrower described in paragraph (g) or (h) above), and at any time thereafter
during the continuance of such event, the Administrative Agent at the request
of the Required Lenders, shall, by notice to the Borrower, take either or both
of the following actions, at the same or different times: (i) terminate
forthwith the obligations of the Lenders to make Loans and of the Issuing
Banks to issue Letters of Credit hereunder and (ii) declare the Loans then
outstanding to be forthwith due and payable in whole or in part, whereupon the
principal of the Loans so declared to be due and payable, together with
accrued interest thereon and any unpaid accrued Fees and all other liabilities
of the Borrower accrued hereunder and under any other Loan Document, shall
become forthwith due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived by the
Borrower, anything contained herein or in any other Loan Document to the
contrary notwithstanding; and in any event with respect to the Borrower
described in paragraph (g) or (h) above, the obligations of the Lenders to
make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and any unpaid accrued Fees and all
other liabilities of the Borrower accrued hereunder and under any other Loan
Document, shall automatically become due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Borrower, anything contained herein or in any other
Loan Document to the contrary notwithstanding.
ARTICLE VIII. THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT
In order to expedite the transactions contemplated by this
Agreement, Chemical Bank is hereby appointed to act as Administrative Agent
and Collateral Agent on behalf of the Lenders and the Issuing Banks (for
purposes of this Article VIII, the Administrative Agent and the Collateral
Agent are referred to collectively as the "Agents"). Each of the Lenders and
each assignee of any such Lender, hereby irrevocably authorizes the Agents to
take such actions on behalf of such Lender or assignee or such Issuing Bank
and to exercise such powers as are specifically delegated to the Agents by the
terms and provisions hereof and of the other Loan Documents, together with
such actions and powers as are reasonably incidental thereto. The
Administrative Agent is hereby expressly authorized by the Lenders and the
Issuing Banks, without hereby limiting any implied authority, (a) to receive
on behalf of the Lenders and the Issuing Banks all payments of principal of
and interest on the Loans, all payments in respect of L/C Disbursements and
all other amounts due to the Lenders hereunder, and promptly to distribute to
each Lender or each Issuing Bank its proper share of each payment so received;
(b) to give notice on behalf of each of the Lenders to the Borrower of any
Event of Default specified in this Agreement of which the Administrative Agent
has actual knowledge acquired in connection with its agency hereunder; and (c)
to distribute to each Lender copies of all notices, financial statements and
other materials delivered by the Borrower pursuant to this Agreement as
received by the Administrative Agent. Without limiting the generality of the
foregoing, the Agents are hereby expressly authorized to execute any and all
documents (including releases) with respect to the Collateral and the rights
of the Secured Parties with respect thereto, as contemplated by and in
accordance with the provisions of this Agreement and the Security Documents.
Neither the Agents nor any of their respective directors, officers,
employees or agents shall be liable as such for any action taken or omitted by
any of them except for its or his own gross negligence or wilful misconduct,
or be responsible for any statement, warranty or representation herein or the
contents of any document delivered in connection herewith, or be required to
ascertain or to make any inquiry concerning the performance or observance by
the Borrower or any other Loan Party of any of the terms, conditions,
covenants or agreements contained in any Loan Document. The Agents shall not
be responsible to the Lenders for the due execution, genuineness, validity,
enforceability or effectiveness of this Agreement or any other Loan Documents,
instruments or agreements. The Agents shall in all cases be fully protected
in acting, or refraining from acting, in accordance with written instructions
signed by the Required Lenders and, except as otherwise specifically provided
herein, such instructions and any action or inaction pursuant thereto shall be
binding on all the Lenders. Each Agent shall, in the absence of knowledge to
the contrary, be entitled to rely on any instrument or document believed by it
in good faith to be genuine and correct and to have been signed or sent by the
proper person or persons. Neither the Agents nor any of their respective
directors, officers, employees or agents shall have any responsibility to the
Borrower or any other Loan Party on account of the failure of or delay in
performance or breach by any Lender or any Issuing Bank of any of its
obligations hereunder or to any Lender or any Issuing Bank on account of the
failure of or delay in performance or breach by any other Lender or any other
Issuing Bank or the Borrower or any other Loan Party of any of their
respective obligations hereunder or under any other Loan Document or in
connection herewith or therewith. Each of the Agents may execute any and all
duties hereunder by or through agents or employees and shall be entitled to
rely upon the advice of legal counsel selected by it with respect to all
matters arising hereunder and shall not be liable for any action taken or
suffered in good faith by it in accordance with the advice of such counsel.
The Lenders hereby acknowledge that neither Agent shall be under any
duty to take any discretionary action permitted to be taken by it pursuant to
the provisions of this Agreement unless it shall be requested in writing to do
so by the Required Lenders.
Subject to the appointment and acceptance of a successor Agent as
provided below, either Agent may resign at any time by notifying the Lenders
and the Borrower. Upon any such resignation, the Required Lenders shall have
the right to appoint a successor. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Agent gives notice of its resignation, then
the retiring Agent may, on behalf of the Lenders, appoint a successor Agent
which shall be a bank with an office in New York, New York, having a combined
capital and surplus of at least $500,000,000 or an Affiliate of any such bank.
Upon the acceptance of any appointment as Agent hereunder by a successor bank,
such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent and the retiring Agent shall be
discharged from its duties and obligations hereunder. After the Agent's
resignation hereunder, the provisions of this Article and Section 9.05 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 Agent.
With respect to the Loans made by it hereunder, each Agent in its
individual capacity and not as Agent shall have the same rights and powers as
any other Lender and may exercise the same as though it were not an Agent, and
the Agents and their Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary
or other Affiliate thereof as if it were not an Agent.
Each Lender agrees (a) to reimburse the Agents, on demand, in the
amount of its pro rata share (based on its Commitments hereunder) of any
expenses incurred for the benefit of the Lenders by the Agents, including
counsel fees and compensation of agents and employees paid for services
rendered on behalf of the Lenders, that shall not have been reimbursed by the
Borrower and (b) to indemnify and hold harmless each Agent and any of its
directors, officers, employees or agents, on demand, in the amount of such pro
rata share, from and against any and all liabilities, taxes, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on,
incurred by or asserted against it in its capacity as Agent or any of them in
any way relating to or arising out of this Agreement or any other Loan
Document or any action taken or omitted by it or any of them under this
Agreement or any other Loan Document, to the extent the same shall not have
been reimbursed by the Borrower; provided, however, that no Lender shall be
liable to an Agent or any such other indemnified person for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from the gross negligence or
wilful misconduct of such Agent or any of its directors, officers, employees
or agents.
Each Lender acknowledges that it has, independently and without
reliance upon the Agents or any other Lender and based on such documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Agents or any other Lender
and based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement or any other Loan Document, any related
agreement or any document furnished hereunder or thereunder.
ARTICLE IX. MISCELLANEOUS
SECTION 9.01. Notices. Notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopy,
as follows:
(a) if to the Borrower, to it at Bay Colony Corporate Center, ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention of ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (Telecopy No.
(▇▇▇) ▇▇▇-▇▇▇▇);
(b) if to the Administrative Agent, to Chemical Bank Agency
Services, Grand Central Tower, ▇▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇,
Attention of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ (Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇), with a copy to
Chemical Bank, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Attention of ▇▇▇ ▇.
▇▇▇▇▇ (Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇); and
(c) if to a Lender, to it at its address (or telecopy number) set
forth in Schedule 2.01 or in the Assignment and Acceptance pursuant to which
such Lender shall have become a party hereto.
All notices and other communications given to any party hereto in accordance
with the provisions of this Agreement shall be deemed to have been given on
the date of receipt if delivered by hand or overnight courier service or sent
by telecopy or on the date five Business Days after dispatch by certified or
registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 9.01 or in accordance
with the latest unrevoked direction from such party given in accordance with
this Section 9.01.
SECTION 9.02. Survival of Agreement. All covenants, agreements,
representations and warranties made by the Borrower herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and the Issuing Banks and shall survive
the making by the Lenders of the Loans and the issuance of Letters of Credit
by the Issuing Banks, regardless of any investigation made by the Lenders or
the Issuing Banks or on their behalf, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
Fee or any other amount payable under this Agreement or any other Loan
Document is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not been terminated. The provisions of
Sections 2.14, 2.16, 2.20 and 9.05 shall remain operative and in full force
and effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the expiration of any Letter of
Credit, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on
behalf of the Administrative Agent, the Collateral Agent, any Lender or any
Issuing Bank.
SECTION 9.03. Binding Effect. This Agreement shall become
effective when it shall have been executed by the Borrower and the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective permitted successors
and assigns.
SECTION 9.04. Successors and Assigns. (a) Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of the Borrower, the
Administrative Agent, the Issuing Banks or the Lenders that are contained in
this Agreement shall bind and inure to the benefit of their respective
successors and assigns.
(b) Each Lender may assign to one or more assignees all or a
portion of its interests, rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it); provided, however, that (i) except in the case of an assignment to a
Lender or an Affiliate of such Lender, (x) the Borrower and the Administrative
Agent (and, in the case of any assignment of a Revolving Credit Commitment,
each Issuing Bank) must give their prior written consent to such assignment
(which consent shall not be unreasonably withheld) and (y) the amount of the
Commitment of the assigning Lender subject to each such assignment (determined
as of the date the Assignment and Acceptance with respect to such assignment
is delivered to the Administrative Agent) shall not be less than $10,000,000
(or, if less, the entire remaining amount of such Lender's Commitment), (ii)
each such assignment shall be the same percentage of all the assigning
Lender's rights and obligations under this Agreement and the ▇▇▇▇▇▇▇ Credit
Agreement and all of the Commitments and Loans hereunder shall be assigned pro
rata, (iii) the parties to each such assignment shall execute and deliver to
the Administrative Agent an Assignment and Acceptance, together with a
processing and recordation fee of $3,500 and (iv) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Upon acceptance and recording pursuant to paragraph (e) below,
from and after the effective date specified in each Assignment and Acceptance,
which effective date shall be at least five Business Days after the execution
thereof, (A) the assignee thereunder shall be a party hereto and, to the
extent of the interest assigned by such Assignment and Acceptance, have the
rights and obligations of a Lender under this Agreement and (B) the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or
the remaining portion of an assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits of Sections 2.14, 2.16, 2.20 and 9.05,
as well as to any Fees accrued for its account and not yet paid).
(c) By executing and delivering an Assignment and Acceptance, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner
of the interest being assigned thereby free and clear of any adverse claim and
that its Tranche A Commitment, Tranche B Commitment and Revolving Credit
Commitment, and the outstanding balances of its Term Loans and Revolving
Loans, in each case without giving effect to assignments thereof which have
not become effective, are as set forth in such Assignment and Acceptance, (ii)
except as set forth in (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto, or the financial condition
of the Borrower or any Subsidiary or the performance or observance by the
Borrower or any Subsidiary of any of its obligations under this Agreement, any
other Loan Document or any other instrument or document furnished pursuant
hereto; (iii) such assignee represents and warrants that it is legally
authorized to enter into such Assignment and Acceptance; (iv) such assignee
confirms that it has received a copy of this Agreement, together with copies
of the most recent financial statements referred to in Section 3.05 or
delivered pursuant to Section 5.04 and such other documents and information as
it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon the Administrative Agent, the
Collateral Agent, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under this
Agreement; (vi) such assignee appoints and authorizes the Administrative Agent
and the Collateral Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement as are delegated to the
Administrative Agent and the Collateral Agent, respectively, by the terms
hereof, together with such powers as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms
all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.
(d) The Administrative Agent, acting for this purpose as an agent
of the Borrower, shall maintain at one of its offices in The City of New York
a copy of each Assignment and Acceptance delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amount of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the "Register"). The entries in the Register
shall be conclusive and the Borrower, the Administrative Agent, the Issuing
Banks, the Collateral Agent and the Lenders may treat each person whose name
is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for inspection by the Borrower, any Issuing
Bank, the Collateral Agent and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.
(e) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of the Borrower,
each Issuing Bank and the Administrative Agent to such assignment, the
Administrative Agent shall (i) accept such Assignment and Acceptance, (ii)
record the information contained therein in the Register and (iii) give prompt
notice thereof to the Lenders and the Issuing Bank. No assignment shall be
effective unless it has been recorded in the Register as provided in this
paragraph (e).
(f) Each Lender may without the consent of the Borrower, any
Issuing Bank or the Administrative Agent sell participations to one or more
banks or other entities in all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the
Loans owing to it); provided, however, that (i) such Lender's obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations, (iii) the participating banks or other entities shall be entitled
to the benefit of the cost protection provisions contained in Sections 2.14,
2.16 and 2.20 to the same extent as if they were Lenders (but the liability of
the Borrower under such Sections shall not be greater than its liability
thereunder to the selling Lender) and (iv) the Borrower, the Administrative
Agent, the Issuing Banks and the Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement, and such Lender shall retain the sole right
to enforce the obligations of the Borrower relating to the Loans or L/C
Disbursements and to approve any amendment, modification or waiver of any
provision of this Agreement (other than amendments, modifications or waivers
decreasing any fees payable hereunder or the amount of principal of or the
rate at which interest is payable on the Loans, extending any scheduled
principal payment date or date fixed for the payment of interest on the Loans
or changing or extending the Commitments).
(g) Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant
to this Section 9.04, disclose to the assignee or participant or proposed
assignee or participant any information relating to the Borrower furnished to
such Lender by or on behalf of the Borrower; provided, however, that, prior to
any such disclosure of information designated by the Borrower as confidential,
each such assignee or participant or proposed assignee or participant shall
execute an agreement whereby such assignee or participant shall agree (subject
to customary exceptions) to preserve the confidentiality of such confidential
information on terms no less restrictive than those applicable to the Lenders
pursuant to Section 9.16.
(h) Any Lender may at any time assign all or any portion of its
rights under this Agreement to a Federal Reserve Bank to secure extensions of
credit by such Federal Reserve Bank to such Lender; provided, however, that no
such assignment shall release a Lender from any of its obligations hereunder
or substitute any such Bank for such Lender as a party hereto. In order to
facilitate such an assignment to a Federal Reserve Bank, the Borrower shall,
at the request of the assigning Lender, duly execute and deliver to the
assigning Lender a promissory note or notes evidencing the Loans made to the
Borrower by the assigning Lender hereunder.
(i) The Borrower shall not assign or delegate any of its rights or
duties hereunder without the prior written consent of the Administrative
Agent, each Issuing Bank and each Lender, and any attempted assignment without
such consent shall be null and void.
(j) In the event that Standard & Poor's Ratings Group, ▇▇▇▇▇'▇
Investors Service, Inc., and ▇▇▇▇▇▇▇▇'▇ BankWatch (or InsuranceWatch Ratings
Service, in the case of Lenders that are insurance companies (or Best's
Insurance Reports, if such insurance company is not rated by InsuranceWatch
Ratings Service)) shall, after the date that any Lender becomes a Lender,
downgrade the long-term certificate deposit ratings of such Lender, and the
resulting ratings shall be below BBB-, Baa3 and C (or BB, in the case of a
Lender that is an insurance company (or B, in the case of an insurance company
not rated by InsuranceWatch Ratings Service)), then any Issuing Bank shall
have the right, but not the obligation, at its own expense, upon notice to
such Lender and the Administrative Agent, to replace (or to request the
Borrower to use its reasonable efforts to replace) such Lender with an
assignee (in accordance with and subject to the restrictions contained in
paragraph (b) above), and such Lender hereby agrees to transfer and assign
without recourse (in accordance with and subject to the restrictions contained
in paragraph (b) above) all its interests, rights and obligations in respect
of its Revolving Credit Commitment to such assignee; provided, however, that
(i) no such assignment shall conflict with any law, rule and regulation or
order of any Governmental Authority and (ii) such Issuing Bank or such
assignee, as the case may be, shall pay to such Lender in immediately
available funds on the date of such assignment the principal of and interest
accrued to the date of payment on the Loans made by such Lender hereunder and
all other amounts accrued for such Lender's account or owned to it hereunder.
SECTION 9.05. Expenses; Indemnity. (a) The Borrower agrees to pay
all reasonable out-of-pocket expenses incurred by the Administrative Agent,
the Collateral Agent and the Issuing Banks in connection with the syndication
of the credit facilities provided for herein and under the ▇▇▇▇▇▇▇ Credit
Agreement and the preparation and administration of this Agreement, the
▇▇▇▇▇▇▇ Credit Agreement and the other Loan Documents (as defined herein and
under the ▇▇▇▇▇▇▇ Credit Agreement) or in connection with any amendments,
modifications or waivers of the provisions hereof or of any other Loan
Document (whether or not the transactions thereby contemplated shall be
consummated) or incurred by the Administrative Agent, the Collateral Agent or
any Lender in connection with the enforcement or protection of its rights in
connection with this Agreement and the other Loan Documents or in connection
with the Loans made or Letters of Credit issued hereunder, including the
reasonable fees, charges and disbursements of Cravath, Swaine & ▇▇▇▇▇, counsel
for the Administrative Agent and the Collateral Agent, and, in connection with
any such enforcement or protection, the fees, charges and disbursements of any
other counsel for the Administrative Agent, the Collateral Agent or any
Lender.
(b) The Borrower agrees to indemnify the Administrative Agent, the
Collateral Agent, each Lender and each Issuing Bank, each Affiliate of any of
the foregoing persons and each of their respective directors, officers,
employees and agents (each such person being called an "Indemnitee") against,
and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including reasonable counsel fees,
charges and disbursements, incurred by or asserted against any Indemnitee
arising out of, in any way connected with, or as a result of (i) the execution
or delivery of this Agreement or any other Loan Document or any agreement or
instrument contemplated thereby, the performance by the parties thereto of
their respective obligations thereunder or the consummation of the
Transactions and the other transactions contemplated thereby, (ii) the use of
the proceeds of the Loans or issuance of Letters of Credit, (iii) any claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether or not any Indemnitee is a party thereto, or (iv) any actual or
alleged presence or Release of Hazardous Materials on any property owned or
operated by the Borrower or any of the Subsidiaries, or any Environmental
Claim related in any way to the Borrower or the Subsidiaries; provided,
however, that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses
resulted from the gross negligence or wilful misconduct of such Indemnitee.
(c) The provisions of this Section 9.05 shall remain operative and
in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the
expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, the Collateral
Agent, any Lender or any Issuing Bank. All amounts due under this Section
9.05 shall be payable on written demand therefor.
SECTION 9.06. Right of Setoff. Subject to Section 2.18, if an
Event of Default shall have occurred and be continuing, each Lender is hereby
authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Lender to or for the credit or the account of the Borrower
against any of and all the obligations of the Borrower now or hereafter
existing under this Agreement and other Loan Documents held by such Lender,
irrespective of whether or not such Lender shall have made any demand under
this Agreement or such other Loan Document and although such obligations may
be unmatured. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender
may have.
SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS (OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER
LOAN DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH
LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS (1993 REVISION), INTERNATIONAL
CHAMBER OF COMMERCE, PUBLICATION NO. 500 (THE "UNIFORM CUSTOMS") AND, AS TO
MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW
YORK.
SECTION 9.08. Waivers; Amendment. (a) No failure or delay of the
Administrative Agent, the Collateral Agent, any Lender or any Issuing Bank in
exercising any power or right hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the
Administrative Agent, the Collateral Agent, the Issuing Banks and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to
any departure by the Borrower therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) below, and then such waiver or
consent shall be effective only in the specific instance and for the purpose
for which given. No notice or demand on the Borrower in any case shall
entitle the Borrower to any other or further notice or demand in similar or
other circumstances.
(b) Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing
entered into by the Borrower and the Required Lenders; provided, however, that
no such agreement shall (i) decrease the principal amount of, or extend the
maturity of any Loan or any scheduled principal payment date or date for the
payment of any interest on any Loan or any date for reimbursement of an L/C
Disbursement, or waive or excuse any such payment or any part thereof, or
decrease the rate of interest on any Loan or L/C Disbursement, without the
prior written consent of each Lender directly affected thereby, (ii) change or
extend the Commitment or decrease the Commitment Fees of any Lender without
the prior written consent of such Lender, (iii) amend or modify the provisions
of Section 2.17, 2.18 or 9.04(i), the provisions of this Section 9.08, the
definition of the term "Required Lenders", or release all or any substantial
part of the Collateral, other than the Permitted Release, or release any
Guarantor or ▇▇▇▇▇▇▇ Guarantor from the Guarantee Agreement or ▇▇▇▇▇▇▇
Guarantee Agreement, as applicable, unless all or substantially all of the
Capital Stock of such Guarantor or ▇▇▇▇▇▇▇ Guarantor is sold in a transaction
permitted by this Agreement, in each case without the prior written consent of
each Lender or (iv) amend, modify or otherwise affect the rights or duties of
the Administrative Agent, the Collateral Agent or any Issuing Bank hereunder
or under any other Loan Document without the prior written consent of the
Administrative Agent, the Collateral Agent or each Issuing Bank.
SECTION 9.09. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any
Loan or participation in any L/C Disbursement, together with all fees, charges
and other amounts which are treated as interest on such Loan or participation
in such L/C Disbursement under applicable law (collectively the "Charges"),
shall exceed the maximum lawful rate (the "Maximum Rate") which may be
contracted for, charged, taken, received or reserved by the Lender holding
such Loan or participation in accordance with applicable law, the rate of
interest payable in respect of such Loan or participation hereunder, together
with all Charges payable in respect thereof, shall be limited to the Maximum
Rate and, to the extent lawful, the interest and Charges that would have been
payable in respect of such Loan or participation but were not payable as a
result of the operation of this Section shall be cumulated and the interest
and Charges payable to such Lender in respect of other Loans or participations
or periods shall be increased (but not above the Maximum Rate therefor) until
such cumulated amount, together with interest thereon at the Federal Funds
Effective Rate to the date of repayment, shall have been received by such
Lender.
SECTION 9.10. Entire Agreement. This Agreement, the Fee Letter and
the other Loan Documents constitute the entire contract between the parties
relative to the subject matter hereof. Any other previous agreement among the
parties with respect to the subject matter hereof is superseded by this
Agreement and the other Loan Documents. Nothing in this Agreement or in the
other Loan Documents, expressed or implied, is intended to confer upon any
party other than the parties hereto and thereto any rights, remedies,
obligations or liabilities under or by reason of this Agreement or the other
Loan Documents.
SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER
LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS,
AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS Section 9.11.
SECTION 9.12. Severability. In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.
SECTION 9.13. Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in
Section 9.03. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.
SECTION 9.14. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting, this Agreement.
SECTION 9.15. Jurisdiction; Consent to Service of Process. (a)
The Borrower hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or the other Loan Documents, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of
any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement
shall affect any right that the Administrative Agent, the Collateral Agent,
any Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or the other Loan Documents against the
Borrower or its properties in the courts of any jurisdiction.
(b) The Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or the other Loan
Documents in any New York State or Federal court. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in
any such court.
(c) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
SECTION 9.16. Confidentiality. The Administrative Agent, the
Collateral Agent, each Issuing Bank and each of the Lenders agrees to keep
confidential (and to use its best efforts to cause its respective agents and
representatives to keep confidential) the Information (as defined below) and
all copies thereof, extracts therefrom and analyses or other materials based
thereon, except that the Administrative Agent, the Collateral Agent, each
Issuing Bank or any Lender shall be permitted to disclose Information (a) to
such of its respective officers, directors, employees, agents, affiliates and
representatives as need to know such Information, (b) to the extent requested
by any regulatory authority, (c) to the extent otherwise required by
applicable laws and regulations or by any subpoena or similar legal process,
(d) in connection with any suit, action or proceeding relating to the
enforcement of its rights hereunder or under the other Loan Documents or (e)
to the extent such Information (i) becomes publicly available other than as a
result of a breach of this Section 9.16 or (ii) becomes available to the
Administrative Agent, each Issuing Bank, any Lender or the Collateral Agent on
a nonconfidential basis from a source other than the Borrower. For the
purposes of this Section, "Information" shall mean all financial statements,
certificates, reports, agreements and information (including all analyses,
compilations and studies prepared by the Administrative Agent, the Collateral
Agent, each Issuing Bank or any Lender based on any of the foregoing) that are
received from the Borrower and related to the Borrower, any shareholder of the
Borrower or any employee, customer or supplier of the Borrower, other than any
of the foregoing that were available to the Administrative Agent, the
Collateral Agent, each Issuing Bank or any Lender on a nonconfidential basis
prior to its disclosure thereto by the Borrower, and which are in the case of
Information provided after the date hereof, clearly identified at the time of
delivery as confidential. The provisions of this Section 9.16 shall remain
operative and in full force and effect regardless of the expiration and term
of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and
year first above written.
OAK INDUSTRIES INC.,
by /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
TITLE: SENIOR VICE PRESIDENT
CHEMICAL BANK, individually
and as Administrative Agent,
Collateral Agent and Issuing Bank,
by /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: MANAGING DIRECTOR
THE FIRST NATIONAL BANK OF BOSTON,
by /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
NAME: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
TITLE: DIRECTOR
MELLON BANK, N.A.,
by /S/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇
TITLE: FIRST VICE PRESIDENT
THE CHASE MANHATTAN BANK
(National Association),
by /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇. ▇▇▇▇▇
TITLE: VICE PRESIDENT
FIRST UNION NATIONAL BANK OF
NORTH CAROLINA,
by /S/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: VICE PRESIDENT
FLEET BANK OF MASSACHUSETTS, N.A.,
by /S/ ▇▇▇▇▇▇▇ READ
NAME: ▇▇▇▇▇▇▇ READ
TITLE: SENIOR VICE PRESIDENT
LTCB TRUST CO.,
by /S/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
TITLE: EXECUTIVE VICE PRESIDENT
NATIONSBANK OF TEXAS, N.A.,
by /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: VICE PRESIDENT
THE TORONTO DOMINION BANK,
by /S/ ▇▇▇▇ ▇▇▇▇▇▇▇
NAME: ▇▇▇▇ ▇▇▇▇▇▇▇
TITLE: MGR. CR ADMIN.
ABN AMRO BANK N.V., Boston Branch,
by /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇. ▇▇▇▇▇
TITLE: VICE PRESIDENT
by /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: ASSISTANT VICE PRESIDENT
BHF-BANK AG,
by /S/ ▇▇▇▇ ▇▇▇▇▇
NAME: ▇▇▇▇ ▇▇▇▇▇
TITLE: ASSISTANT VICE PRESIDENT
by /S/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇
TITLE: VICE PRESIDENT
CREDIT LYONNAIS CAYMAN ISLAND BRANCH,
by /S/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
TITLE: AUTHORIZED SIGNATURE
CREDIT LYONNAIS NEW YORK BRANCH,
by /S/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
TITLE: SENIOR VICE PRESIDENT
THE MITSUBISHI BANK, LIMITED,
NEW YORK BRANCH,
by /S/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: VICE PRESIDENT
THE ROYAL BANK OF SCOTLAND
PLC-NEW YORK BRANCH,
by /S/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
TITLE: VICE PRESIDENT & DEPUTY MANAGER
NBD BANK,
by /S/ ▇▇▇▇ ▇. ▇▇▇▇
NAME: ▇▇▇▇ ▇. ▇▇▇▇
TITLE: VICE PRESIDENT
NORWEST BANK ARIZONA, NATIONAL
ASSOCIATION,
by /S/ ▇▇▇ ▇▇▇▇▇▇▇▇
NAME: ▇▇▇ ▇▇▇▇▇▇▇▇
TITLE: VICE PRESIDENT
