Document:

Exhibit 10.1

 

EXECUTION VERSION

 

Published Revolver CUSIP Number: 87952JAF0

Published Transaction CUSIP Number: 87952JAE3

 

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

among

 

TELETECH HOLDINGS, INC.,

as US Borrower

 

and

 

THE FOREIGN BORROWERS NAMED HEREIN,

collectively, as Borrowers

 

THE LENDERS NAMED HEREIN,

as Lenders

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent, Swing Line Lender and Fronting Lender

 

KEYBANK NATIONAL ASSOCIATION,

BANK OF AMERICA, N.A.,

BBVA COMPASS

and

HSBC BANK USA, NATIONAL ASSOCIATION,

each as Documentation Agent

 

WELLS FARGO SECURITIES, LLC,

KEYBANK NATIONAL ASSOCIATION,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

BBVA COMPASS

and

HSBC BANK USA, NATIONAL ASSOCIATION,

as Joint Lead Arrangers

 

 

dated as of
 June 3, 2013

 

 

 

 

 

	
ARTICLE I.
    	
DEFINITIONS
    	
2
    
	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
2
    
	
 
    	
 
    	
 
    
	
Section 1.2
    	
Accounting   Terms
    	
28
    
	
 
    	
 
    	
 
    
	
Section 1.3
    	
Terms   Generally
    	
29
    
	
 
    	
 
    	
 
    
	
Section 1.4
    	
Confirmation   of Recitals
    	
29
    
	
 
    	
 
    
	
ARTICLE II.
    	
AMOUNT   AND TERMS OF CREDIT
    	
29
    
	
 
    	
 
    
	
Section 2.1
    	
Amount   and Nature of Credit
    	
29
    
	
 
    	
 
    	
 
    
	
Section 2.2
    	
Revolving   Credit Commitment
    	
29
    
	
 
    	
 
    	
 
    
	
Section 2.3
    	
Interest
    	
36
    
	
 
    	
 
    	
 
    
	
Section 2.4
    	
Evidence   of Indebtedness
    	
37
    
	
 
    	
 
    	
 
    
	
Section 2.5
    	
Notice   of Credit Event; Funding of Loans
    	
38
    
	
 
    	
 
    	
 
    
	
Section 2.6
    	
Payment   on Loans and Other Obligations
    	
40
    
	
 
    	
 
    	
 
    
	
Section 2.7
    	
Prepayment
    	
41
    
	
 
    	
 
    	
 
    
	
Section 2.8
    	
Commitment   and Other Fees
    	
42
    
	
 
    	
 
    	
 
    
	
Section 2.9
    	
Modifications   to Commitment
    	
43
    
	
 
    	
 
    	
 
    
	
Section 2.10
    	
Computation   of Interest and Fees
    	
44
    
	
 
    	
 
    	
 
    
	
Section 2.11
    	
Mandatory   Payments
    	
44
    
	
 
    	
 
    	
 
    
	
Section 2.12
    	
Liability   of Borrowers
    	
45
    
	
 
    	
 
    	
 
    
	
Section 2.13
    	
Addition   of Foreign Borrowers and Foreign Guarantors of Payment
    	
47
    
	
 
    	
 
    	
 
    
	
Section 2.14
    	
Grant   of Additional Security Interests from US Borrower and Domestic Guarantors of   Payment
    	
49
    
	
 
    	
 
    	
 
    
	
Section 2.15
    	
Extension   of Commitment
    	
49
    
	
 
    	
 
    
	
ARTICLE III.
    	
ADDITIONAL   PROVISIONS RELATING TO LIBOR FIXED RATE LOANS; INCREASED CAPITAL; TAXES
    	
49
    
	
 
    	
 
    
	
Section 3.1
    	
Requirements   of Law
    	
49
    
	
 
    	
 
    	
 
    
	
Section 3.2
    	
Taxes
    	
51
    
	
 
    	
 
    	
 
    
	
Section 3.3
    	
Funding   Losses
    	
52
    
	
 
    	
 
    	
 
    
	
Section 3.4
    	
Change   of Lending Office
    	
53
    
	
 
    	
 
    	
 
    
	
Section 3.5
    	
Eurodollar   Rate or Alternate Currency Rate Lending Unlawful; Inability to Determine Rate
    	
53
    
	
 
    	
 
    	
 
    
	
Section 3.6
    	
Replacement   of Lenders
    	
54
    
	
 
    	
 
    	
 
    
	
Section 3.7
    	
Discretion   of Lenders as to Manner of Funding
    	
54
    
				

 

i

 

	
ARTICLE IV.
    	
CONDITIONS   PRECEDENT
    	
55
    
	
 
    	
 
    
	
Section 4.1
    	
Conditions   to Each Credit Event
    	
55
    
	
 
    	
 
    	
 
    
	
Section 4.2
    	
Conditions   to the First Credit Event
    	
55
    
	
 
    	
 
    
	
ARTICLE V.
    	
COVENANTS
    	
57
    
	
 
    	
 
    
	
Section 5.1
    	
Insurance
    	
57
    
	
 
    	
 
    	
 
    
	
Section 5.2
    	
Money   Obligations
    	
57
    
	
 
    	
 
    	
 
    
	
Section 5.3
    	
Financial   Statements and Information
    	
58
    
	
 
    	
 
    	
 
    
	
Section 5.4
    	
Financial   Records
    	
59
    
	
 
    	
 
    	
 
    
	
Section 5.5
    	
Franchises;   Change in Business
    	
59
    
	
 
    	
 
    	
 
    
	
Section 5.6
    	
ERISA   Pension and Benefit Plan Compliance
    	
59
    
	
 
    	
 
    	
 
    
	
Section 5.7
    	
Financial   Covenants
    	
60
    
	
 
    	
 
    	
 
    
	
Section 5.8
    	
Borrowing
    	
61
    
	
 
    	
 
    	
 
    
	
Section 5.9
    	
Liens
    	
63
    
	
 
    	
 
    	
 
    
	
Section 5.10
    	
Regulations   T, U and X
    	
65
    
	
 
    	
 
    	
 
    
	
Section 5.11
    	
Investments,   Loans and Guaranties
    	
65
    
	
 
    	
 
    	
 
    
	
Section 5.12
    	
Merger   and Sale of Assets
    	
66
    
	
 
    	
 
    	
 
    
	
Section 5.13
    	
Acquisitions
    	
67
    
	
 
    	
 
    	
 
    
	
Section 5.14
    	
Notice
    	
68
    
	
 
    	
 
    	
 
    
	
Section 5.15
    	
Restricted   Payments
    	
68
    
	
 
    	
 
    	
 
    
	
Section 5.16
    	
Environmental   Compliance
    	
68
    
	
 
    	
 
    	
 
    
	
Section 5.17
    	
Affiliate   Transactions
    	
69
    
	
 
    	
 
    	
 
    
	
Section 5.18
    	
Use   of Proceeds
    	
69
    
	
 
    	
 
    	
 
    
	
Section 5.19
    	
Corporate   Names
    	
69
    
	
 
    	
 
    	
 
    
	
Section 5.20
    	
Lease   Rentals
    	
70
    
	
 
    	
 
    	
 
    
	
Section 5.21
    	
Subsidiary   Guaranties, Security Documents and Pledge of Stock or Other Ownership   Interest
    	
70
    
	
 
    	
 
    	
 
    
	
Section 5.22
    	
Restrictive   Agreements
    	
71
    
	
 
    	
 
    	
 
    
	
Section 5.23
    	
Other   Covenants and Provisions
    	
72
    
	
 
    	
 
    	
 
    
	
Section 5.24
    	
Pari   Passu Ranking
    	
72
    
	
 
    	
 
    	
 
    
	
Section 5.25
    	
Guaranty   Under Material Indebtedness Agreement
    	
72
    
	
 
    	
 
    	
 
    
	
Section 5.26
    	
Amendment   of Organizational Documents
    	
72
    
	
 
    	
 
    	
 
    
	
Section 5.27
    	
Fiscal   Year of Borrowers
    	
72
    
	
 
    	
 
    	
 
    
	
Section 5.28
    	
Further   Assurances
    	
72
    
				

 

ii

 

	
ARTICLE VI.
    	
REPRESENTATIONS   AND WARRANTIES
    	
72
    
	
 
    	
 
    
	
Section 6.1
    	
Corporate   Existence; Subsidiaries; Foreign Qualification
    	
72
    
	
 
    	
 
    	
 
    
	
Section 6.2
    	
Corporate   Authority
    	
73
    
	
 
    	
 
    	
 
    
	
Section 6.3
    	
Compliance   with Laws and Contracts
    	
73
    
	
 
    	
 
    	
 
    
	
Section 6.4
    	
Litigation   and Administrative Proceedings
    	
74
    
	
 
    	
 
    	
 
    
	
Section 6.5
    	
Title   to Assets
    	
74
    
	
 
    	
 
    	
 
    
	
Section 6.6
    	
Liens   and Security Interests
    	
74
    
	
 
    	
 
    	
 
    
	
Section 6.7
    	
Tax   Returns
    	
75
    
	
 
    	
 
    	
 
    
	
Section 6.8
    	
Environmental   Laws
    	
75
    
	
 
    	
 
    	
 
    
	
Section 6.9
    	
Locations
    	
75
    
	
 
    	
 
    	
 
    
	
Section 6.10
    	
Continued   Business
    	
75
    
	
 
    	
 
    	
 
    
	
Section 6.11
    	
Employee   Benefits Plans
    	
76
    
	
 
    	
 
    	
 
    
	
Section 6.12
    	
Consents   or Approvals
    	
77
    
	
 
    	
 
    	
 
    
	
Section 6.13
    	
Solvency
    	
77
    
	
 
    	
 
    	
 
    
	
Section 6.14
    	
Financial   Statements
    	
77
    
	
 
    	
 
    	
 
    
	
Section 6.15
    	
Regulations
    	
77
    
	
 
    	
 
    	
 
    
	
Section 6.16
    	
Material   Agreements
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.17
    	
Intellectual   Property
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.18
    	
Insurance
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.19
    	
Deposit   and Securities Accounts
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.20
    	
Accurate   and Complete Statements
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.21
    	
Investment   Company; Other Restrictions
    	
78
    
	
 
    	
 
    	
 
    
	
Section 6.22
    	
Defaults
    	
79
    
	
 
    	
 
    
	
ARTICLE VII.
    	
EVENTS   OF DEFAULT
    	
79
    
	
 
    	
 
    
	
Section 7.1
    	
Payments
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.2
    	
Special   Covenants
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.3
    	
Other   Covenants
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.4
    	
Representations   and Warranties
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.5
    	
Cross   Default
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.6
    	
ERISA   Default
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.7
    	
Change   in Control
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.8
    	
Judgments
    	
79
    
	
 
    	
 
    	
 
    
	
Section 7.9
    	
Security
    	
80
    
				

 

iii

 

	
Section 7.10
    	
Validity   of Loan Documents
    	
80
    
	
 
    	
 
    	
 
    
	
Section 7.11
    	
Solvency
    	
80
    
	
 
    	
 
    
	
ARTICLE VIII.
    	
REMEDIES   UPON DEFAULT
    	
81
    
	
 
    	
 
    
	
Section 8.1
    	
Optional   Defaults
    	
81
    
	
 
    	
 
    	
 
    
	
Section 8.2
    	
Automatic   Defaults
    	
81
    
	
 
    	
 
    	
 
    
	
Section 8.3
    	
Letters   of Credit
    	
82
    
	
 
    	
 
    	
 
    
	
Section 8.4
    	
Offsets
    	
82
    
	
 
    	
 
    	
 
    
	
Section 8.5
    	
Equalization   Provisions
    	
82
    
	
 
    	
 
    	
 
    
	
Section 8.6
    	
Other   Remedies
    	
83
    
	
 
    	
 
    	
 
    
	
Section 8.7
    	
Application   of Proceeds
    	
83
    
	
 
    	
 
    
	
ARTICLE IX.
    	
THE   AGENT
    	
85
    
	
 
    	
 
    
	
Section 9.1
    	
Appointment   and Authorization
    	
85
    
	
 
    	
 
    	
 
    
	
Section 9.2
    	
Note   Holders
    	
85
    
	
 
    	
 
    	
 
    
	
Section 9.3
    	
Consultation   With Counsel
    	
85
    
	
 
    	
 
    	
 
    
	
Section 9.4
    	
Documents
    	
86
    
	
 
    	
 
    	
 
    
	
Section 9.5
    	
Agent   and Affiliates
    	
86
    
	
 
    	
 
    	
 
    
	
Section 9.6
    	
Knowledge   or Notice of Default
    	
86
    
	
 
    	
 
    	
 
    
	
Section 9.7
    	
Action   by Agent
    	
86
    
	
 
    	
 
    	
 
    
	
Section 9.8
    	
Release   of Collateral or Guarantor of Payment
    	
87
    
	
 
    	
 
    	
 
    
	
Section 9.9
    	
Delegation   of Duties
    	
87
    
	
 
    	
 
    	
 
    
	
Section 9.10
    	
Indemnification   of Agent
    	
87
    
	
 
    	
 
    	
 
    
	
Section 9.11
    	
Successor   Agent
    	
87
    
	
 
    	
 
    	
 
    
	
Section 9.12
    	
Fronting   Lender
    	
88
    
	
 
    	
 
    	
 
    
	
Section 9.13
    	
Swing   Line Lender
    	
88
    
	
 
    	
 
    	
 
    
	
Section 9.14
    	
Agent   May File Proofs of Claim
    	
88
    
	
 
    	
 
    	
 
    
	
Section 9.15
    	
No   Reliance on Agent’s Customer Identification Program
    	
89
    
	
 
    	
 
    	
 
    
	
Section 9.16
    	
Other   Agents
    	
89
    
	
 
    	
 
    
	
ARTICLE X.
    	
GUARANTY
    	
89
    
	
 
    	
 
    
	
Section 10.1
    	
The   Guaranty
    	
89
    
	
 
    	
 
    	
 
    
	
Section 10.2
    	
Obligations   Unconditional
    	
89
    
	
 
    	
 
    	
 
    
	
Section 10.3
    	
Reinstatement
    	
90
    
	
 
    	
 
    	
 
    
	
Section 10.4
    	
Certain   Additional Waivers
    	
91
    
	
 
    	
 
    	
 
    
	
Section 10.5
    	
Remedies
    	
91
    
				

 

iv

 

	
Section 10.6
    	
Guarantee   of Payment; Continuing Guarantee
    	
91
    
	
 
    	
 
    	
 
    
	
Section 10.7
    	
Payments
    	
91
    
	
 
    	
 
    
	
ARTICLE XI.
    	
MISCELLANEOUS
    	
91
    
	
 
    	
 
    
	
Section 11.1
    	
Lenders’   Independent Investigation
    	
91
    
	
 
    	
 
    	
 
    
	
Section 11.2
    	
No   Waiver; Cumulative Remedies
    	
91
    
	
 
    	
 
    	
 
    
	
Section 11.3
    	
Amendments,   Waivers and Consents
    	
92
    
	
 
    	
 
    	
 
    
	
Section 11.4
    	
Notices
    	
93
    
	
 
    	
 
    	
 
    
	
Section 11.5
    	
Costs,   Expenses and Documentary Taxes
    	
93
    
	
 
    	
 
    	
 
    
	
Section 11.6
    	
Indemnification
    	
94
    
	
 
    	
 
    	
 
    
	
Section 11.7
    	
Obligations   Several; No Fiduciary Obligations
    	
94
    
	
 
    	
 
    	
 
    
	
Section 11.8
    	
Execution   in Counterparts
    	
95
    
	
 
    	
 
    	
 
    
	
Section 11.9
    	
Binding   Effect; Borrowers’ Assignment
    	
95
    
	
 
    	
 
    	
 
    
	
Section 11.10
    	
Lender   Assignments
    	
95
    
	
 
    	
 
    	
 
    
	
Section 11.11
    	
Sale   of Participations
    	
97
    
	
 
    	
 
    	
 
    
	
Section 11.12
    	
Replacement   of Affected Lenders
    	
97
    
	
 
    	
 
    	
 
    
	
Section 11.13
    	
Patriot   Act Notice
    	
98
    
	
 
    	
 
    	
 
    
	
Section 11.14
    	
Severability   of Provisions; Captions; Attachments
    	
98
    
	
 
    	
 
    	
 
    
	
Section 11.15
    	
Investment   Purpose
    	
98
    
	
 
    	
 
    	
 
    
	
Section 11.16
    	
Entire   Agreement
    	
98
    
	
 
    	
 
    	
 
    
	
Section 11.17
    	
Limitations   on Liability of the Fronting Lender
    	
98
    
	
 
    	
 
    	
 
    
	
Section 11.18
    	
General   Limitation of Liability
    	
99
    
	
 
    	
 
    	
 
    
	
Section 11.19
    	
No   Duty
    	
99
    
	
 
    	
 
    	
 
    
	
Section 11.20
    	
Legal   Representation of Parties
    	
99
    
	
 
    	
 
    	
 
    
	
Section 11.21
    	
Judgment   Currency
    	
100
    
	
 
    	
 
    	
 
    
	
Section 11.22
    	
Governing   Law; Submission to Jurisdiction
    	
100
    
	
 
    	
 
    	
 
    
	
Section 11.23
    	
JURY   TRIAL WAIVER
    	
101
    
	
 
    	
 
    	
 
    
	
Section 11.24
    	
Amendment   and Restatement; No Novation
    	
102
    
				

 

v

 

	
Exhibit A
    	
 
    	
Form of   US Borrower Revolving Credit Note
    
	
Exhibit B
    	
 
    	
Form of   Foreign Borrower Revolving Credit Note
    
	
Exhibit C
    	
 
    	
Form of   Swing Line Note
    
	
Exhibit D
    	
 
    	
Form of   Notice of Loan
    
	
Exhibit E
    	
 
    	
Form of   Compliance Certificate
    
	
Exhibit F
    	
 
    	
Form of   Assignment and Acceptance Agreement
    
	
Exhibit G
    	
 
    	
Form of   Additional Foreign Borrower Assumption Agreement
    
	
Exhibit H
    	
 
    	
Form of   Request for Extension
    

 

	
Schedule   1
    	
 
    	
Commitments   of Lenders
    
	
Schedule   2
    	
 
    	
Foreign   Borrowers
    
	
Schedule   2.2
    	
 
    	
Existing   Letters of Credit
    
	
Schedule   3
    	
 
    	
Guarantors   of Payment
    
	
Schedule   5.8
    	
 
    	
Indebtedness
    
	
Schedule   5.9
    	
 
    	
Liens
    
	
Schedule   6.1
    	
 
    	
Corporate   Existence; Subsidiaries; Foreign Qualification
    
	
Schedule   6.4
    	
 
    	
Litigation   and Administrative Proceedings
    
	
Schedule   6.9
    	
 
    	
Locations
    
	
Schedule   6.11
    	
 
    	
Employee   Benefits Plans
    
	
Schedule   6.16
    	
 
    	
Material   Agreements
    
	
Schedule   6.18
    	
 
    	
Insurance
    

 

vi

 

This AMENDED AND RESTATED CREDIT AGREEMENT (as the same may from time to time be amended, restated or otherwise modified, this “Agreement”) is made effective as of the June 3, 2013 among:

 

(a)                                 TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”);

 

(b)                                 each Foreign Borrower, as hereinafter defined, as may hereafter become a party hereto (each such Foreign Borrower, together with US Borrower shall be referred to herein, collectively, as “Borrowers” and, individually, each a “Borrower”);

 

(c)                                  the lenders listed on Schedule 1 hereto and each other Eligible Transferee, as hereinafter defined, that from time to time becomes a party hereto pursuant to Section 2.9(b) or 11.10 hereof (collectively, the “Lenders” and, individually, each a “Lender”); and

 

(d)                                 WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders under this Agreement and the other Loan Documents (“Agent”).

 

WITNESSETH:

 

WHEREAS, US Borrower, the lenders named therein, as lenders, and KeyBank National Association, as agent, entered into that certain Credit Agreement, dated as of October 1, 2010, as amended by a First Amendment thereto dated as of March 27, 2012 (collectively, the “Existing Credit Agreement”);

 

WHEREAS, this Agreement amends and restates in its entirety the Existing Credit Agreement and, upon the effectiveness of this Agreement, the terms and provisions of the Existing Credit Agreement shall be superseded hereby.  All references to “Credit Agreement” contained in the Loan Documents, as defined in the Existing Credit Agreement, delivered in connection with the Existing Credit Agreement, shall be deemed to refer to this Agreement.  Notwithstanding the amendment and restatement of the Existing Credit Agreement by this Agreement, the obligations outstanding (including, but not limited to, the letters of credit issued and outstanding under the Existing Credit Agreement as of the date hereof) shall remain outstanding and constitute continuing Obligations hereunder.  Such outstanding Obligations and the guaranties of payment thereof shall in all respects be continuing, and this Agreement shall not be deemed to evidence or result in a novation or repayment and re-borrowing of such Obligations.  In furtherance of and, without limiting the foregoing, from and after the date hereof and except as expressly specified herein, the terms, conditions, and covenants governing the obligations outstanding under the Existing Credit Agreement shall be solely as set forth in this Agreement, which shall supersede the Existing Credit Agreement in its entirety; and

 

WHEREAS, Borrowers, Agent and the Lenders desire to contract for the establishment of credits in the aggregate principal amounts hereinafter set forth, to be made available to Borrowers upon the terms and subject to the conditions hereinafter set forth.

 

NOW, THEREFORE, it is mutually agreed as follows:

 

1

 

ARTICLE I.  DEFINITIONS

 

Section 1.1                                    Definitions.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of any Person (other than a Company), or any business or division of any Person (other than a Company), (b) the acquisition of in excess of fifty percent (50%) of the outstanding capital stock (or other equity interest) of any Person (other than a Company), or (c) the acquisition of another Person (other than a Company) by a merger, amalgamation or consolidation or any other combination with such Person.

 

“Additional Commitment” means that term as defined in Section 2.9(b) hereof.

 

“Additional Foreign Borrower Assumption Agreement” means each of the Additional Foreign Borrower Assumption Agreements executed by a Foreign Borrower, as applicable, after the Closing Date, substantially in the form of the attached Exhibit G, as the same may from time to time be amended, restated or otherwise modified.

 

“Additional Lender” means an Eligible Transferee that shall become a Lender during the Commitment Increase Period pursuant to Section 2.9(b) hereof.

 

“Additional Lender Assumption Agreement” means an additional lender assumption agreement, in form and substance satisfactory to Agent, wherein an Additional Lender shall become a Lender.

 

“Additional Lender Assumption Effective Date” means that term as defined in Section 2.9(b) hereof.

 

“Administrative Borrower” means US Borrower.

 

“Advantage” means any payment (whether made voluntarily or involuntarily, by offset of any deposit or other indebtedness or otherwise) received by any Lender in respect of the Obligations, if such payment results in that Lender having less than its pro rata share (based upon its Commitment Percentage) of the Obligations then outstanding.

 

“Affected Lender” means a Defaulting Lender, an Insolvent Lender or a Downgraded Lender.

 

“Affiliate” means any Person, directly or indirectly, controlling, controlled by or under common control with a Company and “control” (including the correlative meanings, the terms “controlling”, “controlled by” and “under common control with”) means the power, directly or indirectly, to direct or cause the direction of the management and policies of a Company, whether through the ownership of voting securities, by contract or otherwise.

 

“Agent” means that term as defined in the first paragraph hereof.

 

2

 

“Agreement” means that term as defined in the first paragraph hereof.

 

“Alternate Currency” means (a) Euros, Canadian Dollars, Pounds Sterling, Japanese Yen, Mexican Pesos, New Zealand Dollars and Australian Dollars, in each case as acceptable to Agent, and (b) any other currency, other than Dollars, agreed to by Agent and the Required Lenders in writing, that (i) shall be freely transferable and convertible into Dollars, (ii) is dealt with in the London interbank deposit market, and (iii) for which no central bank or other governmental authorization in the country of issue of such currency is required to give authorization for the use of such currency by any Lender for making Revolving Loans unless such authorization has been obtained and remains in full force and effect.

 

“Alternate Currency Exposure” means, at any time and without duplication, the sum of the Dollar Equivalent of (a) the aggregate principal amount of Alternate Currency Loans outstanding to US Borrower, (b) the aggregate principal amount of Alternate Currency Loans outstanding to the Foreign Borrowers, and (c) the Letter of Credit Exposure that is denominated in one or more Alternate Currencies.

 

“Alternate Currency Loan” means a Revolving Loan described in Section 2.2(a) hereof, that shall be denominated in an Alternate Currency and on which a Borrower shall pay interest at a rate based upon the Derived LIBOR Fixed Rate applicable to such Alternate Currency.

 

“Alternate Currency Maximum Amount” means an amount equal to fifty percent (50%) of the Total Commitment Amount.

 

“Alternate Currency Rate” means, with respect to an Alternate Currency Loan, the rate of interest, determined by Agent in accordance with its usual procedures (which determination shall be conclusive absent manifest error) as of approximately 11:00 A.M. (London time) two Business Days prior to the making of such Alternate Currency Loan, as quoted by Reuters or Bloomberg (or, if for any reason such rate is unavailable from Reuters or Bloomberg, from any other similar company or service that provides rate quotations comparable to those currently provided by Reuters or Bloomberg) as the rate for deposits in such Alternate Currency in immediately available funds; provided that, in the event that such rate quotation is not available for any reason, then the Alternate Currency Rate shall be the rate of interest, determined by Agent in accordance with its usual procedures (which determination shall be conclusive absent manifest error) pertaining to such Alternate Currency Loan that adequately reflects the all-in-cost of funds denominated in such Alternate Currency to Agent.  The Credit Parties acknowledge and agree that the provisions of Article III shall apply mutatis  mutandis to the Alternate Currency Rate and all Alternate Currency Loans bearing interest at a rate based on such rate.  Upon request of Borrowers made with respect to any Alternate Currency Loan, Agent shall, promptly following the making of such Alternate Currency Loan and request, provide to Borrowers a certificate setting forth the basis utilized by Agent in determining the Alternate Currency Rate applicable to such Alternate Currency Loan.  Agent shall incur no liability under or in respect of this Agreement based on a failure to provide such certificate or in connection with the determination of the Alternate Currency Rate applicable to such Alternate Currency Loan.

 

3

 

“Anti-Terrorism Order” means Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), as amended.

 

“Applicable Commitment Fee Rate” means:

 

(a)                                 for the period from the Closing Date through the first Calculation Date following the Closing Date, fifteen (15.00) basis points; and

 

(b)                                 commencing on the first Calculation Date following the Closing Date, the number of basis points set forth in the following matrix, based upon the result of the computation of the Leverage Ratio as set forth in the Compliance Certificate for such fiscal period, as provided below:

 

	
Leverage Ratio
    	
 
    	
Applicable Commitment Fee Rate
    	
 
    
	
Greater than or equal to 3.00 to 1.00
    	
 
    	
27.50 basis points
    	
 
    
	
Greater than or equal to 2.25 to 1.00 but less   than 3.00 to 1.00
    	
 
    	
22.50 basis points
    	
 
    
	
Greater than or equal to 1.50 to 1.00 but less   than 2.25 to 1.00
    	
 
    	
17.50 basis points
    	
 
    
	
Greater than or equal to 1.00 to 1.00 but less   than 1.50 to 1.00
    	
 
    	
15.00 basis points
    	
 
    
	
Less than 1.00 to 1.00
    	
 
    	
12.50 basis points
    	
 
    

 

The Applicable Commitment Fee Rate shall be determined and adjusted quarterly on the date five (5) Business Days after the day on which US Borrower provides an Compliance Certificate pursuant to Section 5.3(c) for the most recently ended fiscal quarter of US Borrower (each such date, a “Calculation Date”)  The above matrix does not modify or waive, in any respect, the requirements of Section 5.7 hereof, the rights of Agent and the Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant to Articles VII and VIII hereof.  Notwithstanding anything herein to the contrary, (i) during any period when US Borrower shall have failed to timely deliver the Consolidated financial statements pursuant to Section 5.3(a) or (b) hereof, or the Compliance Certificate pursuant to Section 5.3(c) hereof, until such time as the appropriate Consolidated financial statements and Compliance Certificate are delivered, the Applicable Commitment Fee Rate shall be the highest rate per annum indicated in the above pricing grid regardless of the Leverage Ratio at such time, and (ii) in the event that any financial information or certification provided to Agent in the Compliance Certificate is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Commitment Fee Rate for any period (an “Applicable Commitment Fee Period”) than the Applicable Commitment Fee Rate applied for such Applicable Commitment Fee Period, then (A) US Borrower shall immediately deliver to Agent a corrected Compliance Certificate for such Applicable Commitment Fee Period, (B) the Applicable Commitment Fee Rate shall be determined based on such corrected Compliance Certificate, and (C) US Borrower shall immediately pay to Agent the accrued additional fees owing as a result of such increased Applicable Commitment Fee Rate for such Applicable Commitment Fee Period.

 

“Applicable Margin” means:

 

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(a)                                 for the period from the Closing Date through the first Calculation Date following the Closing Date, one hundred twelve and five tenths (112.50) basis points for LIBOR Fixed Rate Loans and twelve and five tenths (12.50) basis points for Base Rate Loans; and

 

(b)                                 commencing on the first Calculation Date following the Closing Date, the number of basis points (depending upon whether Loans are LIBOR Fixed Rate Loans or Base Rate Loans) set forth in the following matrix, based upon the result of the computation of the Leverage Ratio as set forth in the Compliance Certificate for such fiscal period, as provided below:

 

	
Leverage Ratio
    	
 
    	
Applicable Basis
   Points for LIBOR
   Fixed Rate Loans
    	
 
    	
Applicable Basis
   Points for
   Base Rate Loans
    	
 
    
	
Greater than or equal to 3.00 to 1.00
    	
 
    	
200.00
    	
 
    	
100.00
    	
 
    
	
Greater than or equal to 2.25 to 1.00 but less   than 3.00 to 1.00
    	
 
    	
162.50
    	
 
    	
62.50
    	
 
    
	
Greater than or equal to 1.50 to 1.00 but less   than 2.25 to 1.00
    	
 
    	
137.50
    	
 
    	
37.50
    	
 
    
	
Greater than or equal to 1.00 to 1.00 but less   than 1.50 to 1.00
    	
 
    	
112.50
    	
 
    	
12.50
    	
 
    
	
Less than 1.00 to 1.00
    	
 
    	
100.00
    	
 
    	
0.00
    	
 
    

 

The Applicable Margin shall be determined and adjusted quarterly on the date five (5) Business Days after the day on which US Borrower provides an Compliance Certificate pursuant to Section 5.3(c) for the most recently ended fiscal quarter of US Borrower (each such date, a “Calculation Date”)  The above matrix does not modify or waive, in any respect, the requirements of Section 5.7 hereof, the rights of Agent and the Lenders to charge the Default Rate, or the rights and remedies of Agent and the Lenders pursuant to Articles VII and VIII hereof.  Notwithstanding anything herein to the contrary, (i) during any period when US Borrower shall have failed to timely deliver the Consolidated financial statements pursuant to Section 5.3(a) or (b) hereof, or the Compliance Certificate pursuant to Section 5.3(c) hereof, until such time as the appropriate Consolidated financial statements and Compliance Certificate are delivered, the Applicable Margin shall be the highest rate per annum indicated in the above pricing grid for Loans of that type, regardless of the Leverage Ratio at such time, and (ii) in the event that any financial information or certification provided to Agent in the Compliance Certificate is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Margin Period”) than the Applicable Margin applied for such Applicable Margin Period, then (A) US Borrower shall immediately deliver to Agent a corrected Compliance Certificate for such Applicable Margin Period, (B) the Applicable Margin shall be determined based on such corrected Compliance Certificate, and (C) US Borrower shall immediately pay to Agent the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Margin Period.

 

“Approved Foreign Jurisdiction” means (a) Australia, Canada, Japan, Mexico, New Zealand, or any European Union country (other than Bulgaria, Cyprus, Estonia, Hungary, Latvia,

 

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Lithuania, Malta, Portugal, Romania, Slovakia, and Slovenia), in each case as acceptable to Agent, and (b) any other jurisdiction approved by Agent and the Required Lenders in writing.

 

“Assignment Agreement” means an Assignment and Acceptance Agreement in the form of the attached Exhibit F.

 

“Authorized Officer” means a Financial Officer or other individual authorized by a Financial Officer in writing (with a copy to Agent) to handle certain administrative matters in connection with this Agreement.

 

“Available Liquidity” means, at any time, the sum, without duplication, of (a) all unencumbered and unrestricted (except as to any Lien of Agent, for the benefit of the Lenders) cash on hand of the Companies, plus (b) all unencumbered and unrestricted (except as to any Lien of Agent, for the benefit of the Lenders) Cash Equivalents of the Companies that have a maturity of not more than one year from the date of determination, plus (c) the Revolving Credit Availability; provided that, for the purposes of calculating Available Liquidity for Section 5.7(d) hereof, to the extent that cash needs to be repatriated to a jurisdiction for the payment of all or any part of the Expected Earn-Out Amount, the costs (including taxes and other related costs) of such repatriation shall be subtracted from Available Liquidity.

 

“Bank Product Agreements” means those certain cash management services and other agreements entered into from time to time between a Company and Agent or a Lender (or an affiliate of a Lender) in connection with any of the Bank Products.

 

“Bank Product Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by a Company to Agent or any Lender (or an affiliate of a Lender) pursuant to or evidenced by the Bank Product Agreements.

 

“Bank Products” means a service or facility extended to a Company by Agent or any Lender (or an affiliate of a Lender) for (a) credit cards and credit card processing services, (b) debit cards, purchase cards and stored value cards, (c) ACH transactions, and (d) cash management, including controlled disbursement, accounts or services.

 

“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now or hereafter in effect, or any successor thereto, as hereafter amended.

 

“Base Rate” means, on any day, a rate per annum equal to the highest of (a) the Prime Rate, (b) one half of one percent (.50%) in excess of the Federal Funds Effective Rate, and (c) one hundred twenty-five (125.00) basis points in excess of the London Interbank Offered Rate for loans in Eurodollars with an Interest Period of one month (or, if such day is not a Business Day, such rate as calculated on the most recent Business Day).  Any change in the Base Rate shall be effective immediately from and after such change in the Base Rate.

 

“Base Rate Loan” means a Revolving Loan described in Section 2.2(a) hereof, that shall be denominated in Dollars and on which Borrowers shall pay interest at a rate based on the Derived Base Rate.

 

“Borrower” means that term as defined in the first paragraph hereof.

 

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“Borrower Investment Policy” means the investment policy of US Borrower in effect as of the Closing Date, together with such modifications as approved from time to time by the chief financial officer of US Borrower.

 

“Borrowers” means that term as defined in the first paragraph hereof.

 

“Business Day” means a day that is not a Saturday, a Sunday or another day of the year on which national banks are authorized or required to close, and, in addition, (a) if the applicable Business Day relates to a Eurodollar Loan, is a day of the year on which dealings in deposits are carried on in the London interbank Eurodollar market, and (b) if the applicable Business Day relates to an Alternate Currency, is a day on which dealings in deposits are carried on in the relevant Alternate Currency.

 

“Capital Distribution” means a payment made, liability incurred or other consideration given by a Company to any Person that is not a Company, (a) for the purchase, acquisition, redemption, repurchase, payment or retirement of any capital stock or other equity interest of such Company, or (b) as a dividend, return of capital or other distribution (other than any stock dividend, stock split or other equity distribution payable only in capital stock or other equity of such Company) in respect of such Company’s capital stock or other equity interest.

 

“Capitalized Lease Obligations” means obligations of the Companies for the payment of rent for any real or personal property under leases or agreements to lease that, in accordance with GAAP, have been or should be capitalized on the books of the lessee and, for purposes hereof, the amount of any such obligation shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Cash Equivalents” means those securities and other investments described in the Borrower Investment Policy.

 

“Change in Control” means (a) the acquisition of, or, if earlier, the shareholder or director approval of the acquisition of, ownership or voting control, directly or indirectly, beneficially (within the meaning of Rules 13d-3 and 13d-5 of the Exchange Act) or of record, on or after the Closing Date, by any Person (other than Kenneth D. Tuchman, his spouse, any of his lineal descendants or any trustees or trusts established for his benefit or the benefit of his spouse or any of his lineal descendants) or group (within the meaning of Sections 13d-3 and 14d of the Exchange Act), of shares representing more than forty percent (40%) of the aggregate ordinary Voting Power represented by the issued and outstanding equity interests of US Borrower; (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors or other governing body of US Borrower by Persons who were neither (i) nominated by the board of directors or other governing body of US Borrower nor (ii) appointed by directors so nominated; (c) if US Borrower shall cease to own, directly or indirectly, seventy-five percent (75%) of the aggregate ordinary Voting Power represented by the issued and outstanding equity interests of each Foreign Borrower; or (d) the occurrence of a change in control, or other term of  similar import used therein, as defined in any Material Indebtedness Agreement.

 

“Closing Date” means the effective date of this Agreement as set forth in the first paragraph of this Agreement.

 

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“Code” means the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated thereunder.

 

“Collateral” means the Collateral, as defined in the Security Documents from time to time.

 

“Commitment” means the obligation hereunder of the Lenders, during the Commitment Period, to make Loans and to participate in Swing Loans and the issuance of Letters of Credit pursuant to the Revolving Credit Commitment, up to the Revolving Amount.

 

“Commitment Increase Period” means the period from the Closing Date to the date that is three months prior to the last day of the Commitment Period, or such later date (prior to the last day of the Commitment Period) as shall be agreed to in writing by Agent.

 

“Commitment Percentage” means, for each Lender, the percentage set forth opposite such Lender’s name under the column headed “Commitment Percentage”, as listed in Schedule 1 hereto (taking into account any assignments pursuant to Section 11.10 hereof).

 

“Commitment Period” means the period from the Closing Date to June 3, 2018, or such earlier date on which the Commitment shall have been terminated pursuant to Article VIII hereof.

 

“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Companies” means all Borrowers and all Subsidiaries of all Borrowers.

 

“Company” means a Borrower or a Subsidiary of a Borrower.

 

“Compliance Certificate” means a Compliance Certificate in the form of the attached Exhibit E.

 

“Consideration” means, in connection with an Acquisition, the aggregate consideration paid or to be paid, including borrowed funds, cash, deferred payments, the issuance of securities or notes, the assumption or incurring of liabilities (direct or contingent), the payment of consulting fees or fees for a covenant not to compete and any other consideration paid or to be paid for such Acquisition, but in all cases excluding earn-outs in respect of such Acquisition, so long as such cash earn-outs (which may be roughly quantified) are not in excess of twenty percent (20%) of the purchase price.

 

“Consolidated” means the resultant consolidation of the financial statements of US Borrower and its Subsidiaries in accordance with GAAP, including principles of consolidation consistent with those applied in preparation of the consolidated financial statements referred to in Section 6.14 hereof.

 

“Consolidated Depreciation and Amortization Charges” means, for any period, the aggregate of all depreciation and amortization charges for fixed assets, leasehold improvements

 

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and general intangibles (specifically including goodwill) of US Borrower for such period, as determined on a Consolidated basis.

 

“Consolidated EBITDA” means, for any period, as determined on a Consolidated basis, Consolidated Net Earnings for such period plus, without duplication, the aggregate amounts deducted in determining such Consolidated Net Earnings in respect of (a) Consolidated Interest Expense, (b) Consolidated Income Tax Expense, (c) Consolidated Depreciation and Amortization Charges (and, in addition, current and future amortization charges relating to the capitalized costs incurred by the Companies in connection with the execution and closing of this Agreement and the other Loan Documents (and future costs directly related to the amendment, from time to time, of the foregoing documents)), (d) severance and other restructuring-related expenses incurred during the fiscal year of US Borrower ending December 31, 2012, and paid in cash during that fiscal year or within nine months thereafter, up to an aggregate amount of Twenty Million Dollars ($20,000,000), (e) (i) non-cash charges or expenses incurred in accordance with GAAP (but excluding any non-cash charges related to receivables impairment), minus (ii) extraordinary or unusual non-cash gains not incurred in the ordinary course of business but that were included in the calculation of Consolidated Net Earnings for such period; provided that, for purposes of calculating the Leverage Ratio, Senior Leverage Ratio and the Interest Coverage Ratio, (1) a pro forma calculation of Consolidated EBITDA shall be made for Significant Positive EBITDA Dispositions for any fiscal year of US Borrower if Significant Positive EBITDA Dispositions are made, during such fiscal year, in excess of the aggregate amount of Twenty Million Dollars ($20,000,000), (2) a pro forma calculation of Consolidated EBITDA shall be made for Significant Positive EBITDA Acquisitions made during such period, and (3) to the extent that any changes to GAAP require the reclassification or recharacterization of Operating Leases as capital leases, changes to Consolidated EBITDA that result from such reclassification or recharacterization shall be excluded from the calculation of Consolidated EBITDA and (f) (i) synergies resulting from Acquisitions (to be achieved within one year of the consummation of such Acquisition and are not anticipated to be incurred on an ongoing basis following the consummation thereof) and (ii) reasonable legal, due diligence and other customary transaction costs and expenses incurred in connection with Acquisitions (such costs and expenses incurred no later than one year from the consummation of such Acquisition) to the extent the synergies, costs and expenses included in this clause (f) (1) are certified by a Financial Officer in form and substance reasonably satisfactory to Agent, (2) are reasonably acceptable to Agent and (3) do not exceed the lesser of (x) ten percent (10%) of the Consideration in connection with such Acquisition and (y) ten percent (10%) of Consolidated EBITDA (determined without reference to this clause (f) but including the EBITDA of the Person or assets to be acquired pursuant to such Acquisition, on a pro forma basis, for the most recent consecutive four quarter period prior to the closing of such Acquisition for which financial statements are available).

 

“Consolidated Funded Indebtedness” means, at any date, solely with respect to Indebtedness and other obligations owing by the Companies to Persons other than the Companies and without duplication, the sum of (a) all Indebtedness for borrowed money, (b) all obligations evidenced by bonds, debentures, notes or similar instruments, or upon which interest payments are customarily made, (c) all guaranties of Indebtedness of the type described in this definition, (d) all obligations created under any conditional sale or other title retention agreements, (e) all Capitalized Lease Obligations, Synthetic Lease and asset securitization

 

9

 

obligations (provided that the Companies may exclude Synthetic Leases of aircraft up to the aggregate amount of Ten Million Dollars ($10,000,000)), (f) all obligations (contingent or otherwise) with respect to letters of credit (other than a letter of credit or similar form of credit enhancement issued as a Performance Guaranty), and (g) all obligations for the deferred purchase price of capital assets as determined on a Consolidated basis.  Notwithstanding anything in this definition to the contrary (i) all deferred payment obligations (that are not based on performance) that are part of the total Consideration for an Acquisition shall be considered to be Consolidated Funded Indebtedness for the purposes of calculating the financial covenants set forth in Section 5.7 hereof, (ii) no performance based contingent obligation that is part of the total Consideration for any Acquisition shall be considered to be Consolidated Funded Indebtedness for the purposes of calculating the financial covenants set forth in Section 5.7 hereof, (iii) to the extent that changes to GAAP require the reclassification or recharacterization of Operating Leases as capital leases, such leases, as so reclassified or recharacterized, shall be excluded from Consolidated Funded Indebtedness, and (iv) up to an aggregate amount of Fifteen Million Dollars ($15,000,000) in economic incentives or grants provided by third parties, which may be recorded as liabilities until certain conditions are met, shall be excluded from Consolidated Funded Indebtedness, so long as the Companies remain in material compliance with the terms of such economic incentives and grants.  In addition, for the avoidance of doubt, the net obligations under any currency swap agreement, interest rate swap, cap, collar or floor agreement or other interest rate management device or any Hedge Agreement shall not be considered Consolidated Funded Indebtedness.

 

“Consolidated Income Tax Expense” means, for any period, all provisions for taxes based on the gross or net income of US Borrower (including, without limitation, any additions to such taxes, and any penalties and interest with respect thereto), as determined on a Consolidated basis.

 

“Consolidated Interest Expense” means, for any period, the interest expense of US Borrower, paid in cash, on Consolidated Funded Indebtedness for such period, as determined on a Consolidated basis.

 

“Consolidated Net Earnings” means, for any period, the net income (loss) of US Borrower for such period, as determined on a Consolidated basis.

 

“Consolidated Net Worth” means, at any date, the stockholders’ equity of US Borrower, determined as of such date on a Consolidated basis.

 

“Consolidated Senior Funded Indebtedness” means, at any date, as determined on a Consolidated basis, the total, without duplication, of (a) Consolidated Funded Indebtedness, minus (b) Subordinated Indebtedness.

 

“Consolidated Total Assets” means, at any time, all of the assets of the Companies, as determined on a Consolidated basis.

 

“Control Agreement” means a Deposit Account Control Agreement or a Securities Account Control Agreement.

 

“Controlled Group” means a Company and each Person required to be aggregated with a Company under Code Section 414(b), (c), (m) or (o).

 

10

 

“Credit Event” means the making by the Lenders of a Loan, the conversion by the Lenders of a Base Rate Loan to a Eurodollar Loan, the continuation by the Lenders of a Eurodollar Loan after the end of the applicable Interest Period, the making by the Swing Line Lender of a Swing Loan, or the issuance (or amendment or renewal) by the Fronting Lender of a Letter of Credit.

 

“Credit Party” means a Borrower and any Subsidiary or other Affiliate that is a Guarantor of Payment.

 

“Customary Setoffs” means, as to any Securities Intermediary or depository institution, as applicable, with respect to any Securities Account or Deposit Account, as applicable, maintained with such Person, setoffs and chargebacks by such Person against such Securities Account or Deposit Account, as applicable, that directly relate to the maintenance and administration thereof, including, without limitation, for the following purposes: (a) administrative and maintenance fees and expenses; (b) items deposited in or credited to the account and returned unpaid or otherwise uncollected or subject to an adjustment entry; (c) for adjustments or corrections of posting or encoding errors; (d) for any ACH credit or similar entries that are subsequently returned thereafter; (e) for items subject to a claim against the depository bank/securities intermediary for breach of transfer, presentment, encoding, retention or other warranty under Federal Reserve Regulations or Operating Circulars, ACH or other clearing house rules, or applicable law (including, without limitation, Articles 3, 4 and 4A of the U.C.C.); and (f) for chargebacks in connection with merchant card transactions.

 

“Default” means an event or condition that constitutes, or with the lapse of any applicable grace period or the giving of notice or both would constitute, an Event of Default, and that has not been waived by the Required Lenders (or, if required hereunder, all of the Lenders) in writing.

 

“Default Rate” means (a) with respect to any Loan or other Obligation for which a rate is specified, a rate per annum equal to two percent (2%) in excess of the rate otherwise applicable thereto, and (b) with respect to any other amount, if no rate is specified or available, a rate per annum equal to two percent (2%) in excess of the Derived Base Rate from time to time in effect.

 

“Defaulting Lender” means any Lender, as reasonably determined by Agent, that (a) has failed (which failure has not been cured) to fund any Loan or any participation interest in Letters of Credit required to be made hereunder in accordance with the terms hereof (unless such Lender shall have notified Agent and Administrative Borrower in writing of its good faith determination that a condition under Section 4.1 hereof to its obligation to fund any Loan shall not have been satisfied); (b) has notified Administrative Borrower or Agent in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit; (c) has failed, within three Business Days after receipt of a written request from Agent or Administrative Borrower to confirm that it will comply with the terms of this Agreement relating to its obligation to fund prospective Loans or participations in Letters of Credit, and such request states that the requesting party has reason to believe that the Lender receiving such request may fail to comply with such obligation, and states such reason (provided that such Lender shall cease to be a

 

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Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by Agent or Administrative Borrower); or (d) has failed to pay to Agent or any other Lender when due an amount owed by such Lender to Agent or any other Lender pursuant to the terms of this Agreement, unless such amount is subject to a good faith dispute or such failure has been cured.  Any Defaulting Lender shall cease to be a Defaulting Lender when Agent determines, in its reasonable discretion, that such Defaulting Lender is no longer a Defaulting Lender based upon the characteristics set forth in this definition.

 

“Deposit Account” means a deposit account, as that term is defined in the U.C.C.

 

“Deposit Account Control Agreement” means each Deposit Account Control Agreement among US Borrower or a Domestic Guarantor of Payment, Agent and a depository institution, dated on or after the Closing Date, to be in form and substance satisfactory to Agent, as the same may from time to time be amended, restated or otherwise modified.

 

“Derived Base Rate” means a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for Base Rate Loans plus the Base Rate.

 

“Derived LIBOR Fixed Rate” means (a) with respect to a Eurodollar Loan, a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for LIBOR Fixed Rate Loans plus the Eurodollar Rate, and (b) with respect to an Alternate Currency Loan, a rate per annum equal to the sum of the Applicable Margin (from time to time in effect) for LIBOR Fixed Rate Loans plus the Alternate Currency Rate applicable to the relevant Alternate Currency.

 

“Disposition” means the lease, transfer or other disposition of assets (whether in one or more than one transaction) by a Company, other than a sale, lease, transfer or other disposition made by a Company pursuant to Section 5.12(b), (c) or (g) hereof or in the ordinary course of business.

 

“Dollar” or “$” means lawful money of the United States of America.

 

“Dollar Equivalent” means (a) with respect to an Alternate Currency Loan or Letter of Credit denominated in an Alternate Currency, the Dollar equivalent of the amount of such Alternate Currency Loan or Letter of Credit denominated in such Alternate Currency, determined by Agent on the basis of its spot rate at approximately 11:00 A.M. (London time) on the date two Business Days before the date of such Alternate Currency Loan or issuance of such Letter of Credit denominated in such Alternate Currency, for the purchase of the relevant Alternate Currency with Dollars for delivery on the date of such Alternate Currency Loan or Letter of Credit, and (b) with respect to any other amount, if such amount is denominated in Dollars, then such amount in Dollars and, otherwise the Dollar equivalent of such amount, determined by Agent on the basis of its spot rate at approximately 11:00 A.M. (London time) on the date for which the Dollar equivalent amount of such amount is being determined, for the purchase of the relevant Alternate Currency with Dollars for delivery on such date; provided that, in calculating the Dollar Equivalent for purposes of determining (i) a Borrower’s obligation to prepay Loans and Letters of Credit pursuant to Section 2.11(a) hereof, or (ii) a Borrower’s ability to request additional Loans or Letters of Credit pursuant to the Commitment, Agent may, in its discretion, on any Business Day selected by Agent (prior to payment in full of the

 

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Obligations), calculate the Dollar Equivalent of each such Loan or Letter of Credit.  (Note that for purposes of repayment of an Alternate Currency Loan at the end of an Interest Period, the amount of the Alternate Currency borrowed (as opposed to the Dollar Equivalent of such amount) is the amount required to be repaid.)  Agent shall notify Administrative Borrower of the Dollar Equivalent of such Alternate Currency Loan or any other amount, at the time that such Dollar Equivalent shall have been determined.

 

“Domestic Guarantor of Payment” means each of the Companies designated a “Domestic Guarantor of Payment” on Schedule 3 hereto, each of which is executing and delivering a Guaranty of Payment, and any other Domestic Subsidiary that shall deliver a Guaranty of Payment to Agent subsequent to the Closing Date; provided that (a) none of Percepta, Global, any Newgen Company, any Peppers Company or iKnowtion LLC shall be required to be a Guarantor of Payment, (b) no joint venture, partnership or limited liability company in which US Borrower (or any other Company) and a non-Affiliate hold an interest shall be required to be a Guarantor of Payment, and (c) no captive insurance company in which US Borrower (or any other Company) holds an interest shall be required to be a Guarantor of Payment.

 

“Domestic Subsidiary” means a Subsidiary that is not a Foreign Subsidiary.

 

“Dormant Subsidiary” means a Company that (a) is not a Credit Party or the direct or indirect equity holder of a Credit Party, (b) has aggregate assets of less than Ten Million Dollars ($10,000,000), and (c) has no direct or indirect Subsidiaries with aggregate assets, for such Company and all such Subsidiaries, of more than Ten Million Dollars ($10,000,000).

 

“Downgraded Lender” means any Lender that has a non-credit enhanced senior unsecured debt rating below investment grade from either Moody’s, Standard & Poor’s or any other nationally recognized statistical rating organization recognized as such by the SEC that has been designated by Agent, in its reasonable discretion, as a Downgraded Lender.  Any Downgraded Lender shall cease to be a Downgraded Lender when Agent determines, in its reasonable discretion, that such Downgraded Lender is no longer a Downgraded Lender based upon the characteristics set forth in this definition.

 

“EBITDA” means, for any period, the net earnings of a Person (without giving effect to extraordinary losses or gains) for such period, plus the aggregate amounts deducted in determining such net earnings in respect of (a) interest expense of such Person, (b) income taxes of such Person and (c) the aggregate of all depreciation and amortization charges of such Person for fixed assets, leasehold improvements and general intangibles (specifically including goodwill).

 

“Eligible Transferee” means a commercial bank, financial institution or other “accredited investor” (as defined in SEC Regulation D) that is not a Borrower, a Subsidiary or an Affiliate, and that may receive interest payments hereunder or in connection herewith free of U.S. withholding taxes.

 

“Environmental Laws” means all provisions of law (including the common law), statutes, ordinances, codes, rules, guidelines, policies, procedures, orders-in-council, regulations, permits, licenses, judgments, writs, injunctions, decrees, orders, awards and standards promulgated by a

 

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Governmental Authority or by any court, agency, instrumentality, regulatory authority or commission of any of the foregoing concerning environmental health or safety and protection of, or regulation of the discharge of substances into, the environment.

 

“Environmental Permits” means all permits, licenses, authorizations, certificates, approvals or registrations required by any Governmental Authority under any Environmental Laws.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated pursuant thereto.

 

“ERISA Event” means (a) the existence of a condition or event with respect to an ERISA Plan that is reasonably likely to result in the imposition of a material excise tax or any other material liability on a Company or of the imposition of a Lien on the assets of a Company; (b) the engagement by a Controlled Group member in a non-exempt “prohibited transaction” (as defined under ERISA Section 406 or Code Section 4975) or a breach of a fiduciary duty under ERISA that is reasonably likely to result in a material liability to a Company; (c) the application by a Controlled Group member for a waiver from the minimum funding requirements of Code Section 412 or ERISA Section 302 or a Controlled Group member is required to provide security under Code Section 401(a)(29) or ERISA Section 307; (d) the occurrence of a Reportable Event with respect to any Pension Plan that is reasonably likely to result in a material liability to a Company; (e) the withdrawal by a Controlled Group member from a Multiemployer Plan in a “complete withdrawal” or a “partial withdrawal” (as such terms are defined in ERISA Sections 4203 and 4205, respectively) which is reasonably likely to result in a material liability to a Company; (f) the involvement of, or occurrence or existence of any event or condition that makes likely the involvement of, a Multiemployer Plan in any reorganization under ERISA Section 4241 which is reasonably likely to result in a material liability to a Company; (g) the failure of an ERISA Plan (and any related trust) that is intended to be qualified under Code Sections 401 and 501 to be so qualified or the failure of any “cash or deferred arrangement” under any such ERISA Plan to meet the requirements of Code Section 401(k); (h) the taking by the PBGC of any steps to terminate a Pension Plan or appoint a trustee to administer a Pension Plan, or the taking by a Controlled Group member of any steps to terminate a Pension Plan in a distress termination under ERISA Section 4041(c); (i) the failure by a Controlled Group member or an ERISA Plan to satisfy any requirements of law applicable to an ERISA Plan which is reasonably likely to result in a material liability to a Company; (j) the commencement, existence or threatening of a claim, action, suit, audit or investigation with respect to an ERISA Plan (other than a routine claim for benefits) which is reasonably likely to result in a material liability to a Company; or (k) any incurrence by or any expectation of the incurrence by a Controlled Group member of a material increase in the liability for post-retirement benefits under any Welfare Plan, other than as required by ERISA Section 601, et.  seq. or Code Section 4980B.

 

“ERISA Plan” means an “employee benefit plan” (within the meaning of ERISA Section 3(3)) that a Controlled Group member at any time sponsors, maintains, contributes to, has liability with respect to or has an obligation to contribute to such plan, and which is not excluded from the coverage of ERISA pursuant to Section 4(b)(4) of ERISA.

 

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“Eurocurrency Liabilities” shall have the meaning assigned to that term in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

 

“Eurodollar” means a Dollar denominated deposit in a bank or branch outside of the United States.

 

“Eurodollar Loan” means a Revolving Loan described in Section 2.2(a) hereof, that shall be denominated in Dollars and on which Borrowers shall pay interest at a rate based upon the Derived LIBOR Fixed Rate applicable to Eurodollars.

 

“Eurodollar Rate” means, with respect to a Eurodollar Loan, for any Interest Period, a rate per annum equal to the quotient obtained by dividing (a) the rate of interest, determined by Agent in accordance with its usual procedures (which determination shall be conclusive absent manifest error) as of approximately 11:00 A.M. (London time) two Business Days prior to the beginning of such Interest Period pertaining to such Eurodollar Loan, as listed on British Bankers Association Interest Rate LIBOR 01 or 02 as provided by Reuters or Bloomberg (or, if for any reason such rate is unavailable from Reuters or Bloomberg, from any other similar company or service that provides rate quotations comparable to those currently provided by Reuters or Bloomberg) as the rate in the London interbank market for Dollar deposits in immediately available funds with a maturity comparable to such Interest Period; provided that, in the event that such rate quotation is not available for any reason, then the Eurodollar Rate shall be the average of the per annum rates at which deposits in immediately available funds in Dollars for the relevant Interest Period and in the amount of the Eurodollar Loan to be disbursed or to remain outstanding during such Interest Period, as the case may be, are offered to Agent (or an affiliate of Agent, in Agent’s discretion) by prime banks in any Eurodollar market reasonably selected by Agent, determined as of 11:00 A.M. (London time) (or as soon thereafter as practicable), two Business Days prior to the beginning of the relevant Interest Period pertaining to such Eurodollar Loan; by (b) 1.00 minus the Reserve Percentage.

 

“Event of Default” means an event or condition that shall constitute an event of default as defined in Article VII hereof.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Excluded Swap Obligation” means, with respect to any Guarantor of Payment, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Guarantor of Payment of, or the grant by such Guarantor of Payment of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor of Payment’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of such Guarantor of Payment or the grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

 

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“Excluded Taxes” means, in the case of Agent and each Lender, taxes imposed on or measured by its overall net income or branch profits and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which Agent or such Lender, as the case may be, is organized or in which its principal office is located, or, in the case of any Lender, in which its applicable lending office is located.

 

“Existing Credit Agreement” means that term as defined in the first paragraph hereof.

 

“Existing Letter of Credit” means that term as defined in Section 2.2(b)(vii) hereof.

 

“Expected Earn-Out Amount” means US Borrower’s best estimate of the aggregate amount that the Companies will be required to pay, during the next twelve (12) months, in connection with performance based contingent obligations that were incurred in connection with one or more Acquisitions.

 

“FB Threshold Date” means the first date on which both of the following conditions are satisfied:

 

(a)                                 the Foreign Subsidiary Exposure exceeds One Hundred Million Dollars ($100,000,000) at any time during any two consecutive fiscal quarters of US Borrower; and

 

(b)                                 the Leverage Ratio is greater than or equal to 3.00 to 1.00 as of the last day of each such fiscal quarter.

 

“Federal Funds Effective Rate” means, for any day, the rate per annum (rounded upward to the nearest one one-hundredth of one percent (1/100 of 1%)) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate” as of the Closing Date.

 

“Fee Letter” means the letter agreement between US Borrower and Wells Fargo Securities, LLC, dated as of April 19, 2013, as the same may from time to time be amended, restated or otherwise modified.

 

“Financial Officer” means any of the following officers: chief executive officer, president, chief financial officer, treasurer, vice president of finance or controller.  Unless otherwise qualified, all references to a Financial Officer in this Agreement shall refer to a Financial Officer of US Borrower.

 

“First FB Addition Date” means the date of the addition of the first Foreign Borrower under this Agreement, pursuant to Section 2.13(a).

 

“First-Tier Material Foreign Subsidiary” means a first-tier Foreign Subsidiary of US Borrower or a Domestic Guarantor of Payment (with assets (consolidated for the foreign jurisdiction) in excess of five percent (5%) of Consolidated Total Assets).

 

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“Foreign Affiliate” means, with respect to a Foreign Borrower, a parent Company, sister Company or Subsidiary of such Foreign Borrower (that is not US Borrower or a Domestic Subsidiary).

 

“Foreign Benefit Plan” means each material plan, fund, program or policy established under the law of a jurisdiction other than the United States (or a state or local government thereof), whether formal or informal, funded or unfunded, insured or uninsured, providing employee benefits, including medical, hospital care, dental, sickness, accident, disability, life insurance, pension, retirement or savings benefits, under which one or more Companies have any liability with respect to any employee or former employee, but excluding any Foreign Pension Plan.

 

“Foreign Borrower” means each of the Foreign Subsidiaries of US Borrower set forth on Schedule 2 hereto, together with any other Foreign Subsidiary of US Borrower that, on or after the Closing Date, shall have satisfied, in the opinion of Agent, the requirements of Section 2.13(a) hereof.

 

“Foreign Borrower Revolving Credit Note” means a Foreign Borrower Revolving Credit Note, substantially in the form of the attached Exhibit B (or as otherwise required by Agent after consultation with foreign counsel to Agent), executed and delivered by a Foreign Borrower pursuant to Section 2.4(b) hereof.

 

“Foreign Guarantor of Payment” means each of the Companies set forth on Schedule 3 hereto that shall have been designated a “Foreign Guarantor of Payment”, that are each executing and delivering a Guaranty of Payment, or any other Foreign Subsidiary that shall execute and deliver a Guaranty of Payment to Agent subsequent to the Closing Date.

 

“Foreign Pension Plan” means a pension plan required to be registered under the law of a jurisdiction other than the United States (or a state or local government thereof), that is maintained or contributed to by one or more Companies for their employees or former employees.

 

“Foreign Subsidiary” means a Subsidiary that is organized under the laws of any jurisdiction other than the United States, any State thereof or the District of Columbia.

 

“Foreign Subsidiary Exposure” means, at any time, the Dollar Equivalent of the sum of (a) the aggregate outstanding principal amount of all Revolving Loans made to all Foreign Borrowers, plus (b) the aggregate amount of all intercompany loans (which, for the avoidance of doubt, shall not include payments by US Borrower or any Domestic Guarantor of Payment for services provided to it by one or more Foreign Subsidiaries in the ordinary course of business and consistent with past practices), guaranties of Indebtedness and letters of credit (other than backing performance of a contract entered into in the ordinary course of business and are not guaranties of indebtedness or the payment of indebtedness) provided by US Borrower or a Domestic Guarantor of Payment, after the Closing Date, to, or for the benefit of, Foreign Subsidiaries.

 

“Fronting Lender” means, (a) as to any Letter of Credit transaction hereunder, Wells Fargo as issuer of the Letter of Credit, or, in the event that Wells Fargo shall be unable to issue

 

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or shall agree that another Lender may issue, a Letter of Credit, such other Lender as shall agree to issue the Letter of Credit in its own name, but in each instance on behalf of the Lenders hereunder, or (b) as to any Existing Letter of Credit, KeyBank National Association or Bank of America, N.A., as applicable.

 

“GAAP” means, subject to the provisions of Section 1.2(b) hereof, generally accepted accounting principles in the United States as then in effect, which shall include the official interpretations thereof by the Financial Accounting Standards Board, applied on a basis consistent with the past accounting practices and procedures of US Borrower.

 

“Global” means Global One Colorado, Inc. and Global One Insurance Company (f/k/a Global One Captive Insurance Company), together with their respective successors and assigns (other than a Credit Party).

 

“Governmental Authority” means any nation or government, any state, province or territory or other political subdivision thereof, any governmental agency, department, authority, instrumentality, regulatory body, court, central bank or other governmental entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization exercising such functions.

 

“Guarantor” means a Person that shall have pledged its credit or property in any manner for the payment or other performance of the indebtedness, contract or other obligation of another and includes (without limitation) any guarantor (whether of payment or of collection), surety, co-maker, endorser or Person that shall have agreed conditionally or otherwise to make any purchase, loan or investment in order thereby to enable another to prevent or correct a default of any kind.

 

“Guarantor of Payment” means a Domestic Guarantor of Payment or Foreign Guarantor of Payment, or any other Person that shall deliver a Guaranty of Payment to Agent subsequent to the Closing Date.

 

“Guaranty of Payment” means each Guaranty of Payment executed and delivered on or after the Closing Date in connection with this Agreement by the Guarantors of Payment, as the same may from time to time be amended, restated or otherwise modified.

 

“Guaranty of Payment Joinder” means each Guaranty of Payment Joinder, executed and delivered by a Domestic Guarantor of Payment for the purpose of adding such Domestic Guarantor of Payment as a party to a previously executed Guaranty of Payment.

 

“Hedge Agreement” means any (a) hedge agreement, interest rate swap, cap, collar or floor agreement, or other interest rate management device entered into by a Company with any Person in connection with any Indebtedness of such Company, or (b) currency swap agreement, forward currency purchase agreement or similar arrangement or agreement designed to protect against fluctuations in currency exchange rates entered into by a Company.

 

“Incremental Revolving Credit Increase” means that term as defined in Section 2.9(b) hereof.

 

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“Incremental Term Loan Commitment” means that term as defined in Section 2.9(b) hereof.

 

“Incremental Term Loan” means that term as defined in Section 2.9(b) hereof.

 

“Indebtedness” means, for any Company (excluding in all cases trade payables and guaranties of performance by a Subsidiary payable in the ordinary course of business by such Company), without duplication, (a) all obligations to repay borrowed money, direct or indirect, incurred, assumed, or guaranteed, (b) all obligations in respect of the deferred purchase price of property or services, (c) all obligations under conditional sales or other title retention agreements, (d) all obligations (contingent or otherwise) under any letter of credit or banker’s acceptance, (e) all net obligations under any currency swap agreement, interest rate swap, cap, collar or floor agreement or other interest rate management device or any Hedge Agreement, (f) all Synthetic Leases, (g) all Capitalized Lease Obligations, (h) all obligations of such Company with respect to asset securitization financing programs that are required to be reported as a liability in accordance with GAAP, (i) all obligations to advance funds to, or to purchase assets, property or services from, any other Person in order to maintain the financial condition of such Person, (j) all indebtedness of the types referred to in subparts (a) through (i) above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company) in which such Company is a general partner or joint venturer, unless such indebtedness is expressly made non-recourse to such Company, (k) any other transaction (including forward sale or purchase agreements) having the commercial effect of a borrowing of money entered into by such Company to finance its operations or capital requirements, and (l) any guaranty of any obligation described in subparts (a) through (k) hereof.

 

“Insolvent Lender” means a Lender that (a) has become or is not Solvent or is the subsidiary of a Person that has become or is not Solvent; or (b) has become the subject of a proceeding under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment, or is a subsidiary of a Person that has become the subject of a proceeding under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment; provided that a Lender shall not be an Insolvent Lender solely by virtue of the ownership or acquisition of an equity interest in such Lender or a parent company thereof by a governmental authority or an instrumentality thereof.  Any Insolvent Lender shall cease to be an Insolvent Lender when Agent determines, in its reasonable discretion, that such Insolvent Lender is no longer an Insolvent Lender based upon the characteristics set forth in this definition.

 

“Interest Adjustment Date” means the last day of each Interest Period.

 

“Interest Coverage Ratio” means, as determined for the most recently completed four fiscal quarters of US Borrower, on a Consolidated basis, the ratio of (a) (i) Consolidated EBITDA minus (ii) Twenty Million Dollars ($20,000,000), to (b) Consolidated Interest Expense.

 

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“Interest Period” means, with respect to a LIBOR Fixed Rate Loan, the period commencing on the date such LIBOR Fixed Rate Loan is made and ending on the last day of such period, as selected by Administrative Borrower pursuant to the provisions hereof, and, thereafter (unless, with respect to a Eurodollar Loan, such LIBOR Fixed Rate Loan is converted to a Base Rate Loan), each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of such period, as selected by Administrative Borrower pursuant to the provisions hereof.  The duration of each Interest Period for a LIBOR Fixed Rate Loan shall be one month, two months, three months or six months, in each case as Administrative Borrower may select upon notice, as set forth in Section 2.5 hereof; provided that (a) if Administrative Borrower shall fail to so select the duration of any Interest Period for a Eurodollar Loan at least three Business Days prior to the Interest Adjustment Date applicable to such Eurodollar Loan, Administrative Borrower shall be deemed to have converted such Eurodollar Loan to a Base Rate Loan at the end of the then current Interest Period; and (b) each Alternate Currency Loan must be repaid on the last day of the Interest Period applicable thereto.

 

“Lender” means that term as defined in the first paragraph hereof and, as the context requires, shall include the Fronting Lender and the Swing Line Lender.

 

“Letter of Credit” means a standby letter of credit that shall be issued by the Fronting Lender for the account of US Borrower or a Domestic Guarantor of Payment, including amendments thereto, if any, and shall have an expiration date no later than the earlier of (a) one year after its date of issuance (provided that such Letter of Credit may provide for the renewal thereof for additional one year periods), or (b) one year after the last day of the Commitment Period, subject to Section 2.2(b)(viii) hereof.

 

“Letter of Credit Commitment” means the commitment of the Fronting Lender, on behalf of the Lenders, to issue Letters of Credit in an aggregate face amount of up to Thirty-Five Million Dollars ($35,000,000).

 

“Letter of Credit Exposure” means, at any time, the Dollar Equivalent of, the sum of (a) the aggregate undrawn amount of all issued and outstanding Letters of Credit, and (b) the aggregate of the draws made on Letters of Credit that have not been reimbursed by Borrowers or converted to a Revolving Loan pursuant to Section 2.2(b)(iv) hereof.

 

“Leverage Ratio” means, as determined on a Consolidated basis, the ratio of (a) Consolidated Funded Indebtedness (as of the end of the most recently completed fiscal quarter of US Borrower) to (b) Consolidated EBITDA (for the most recently completed four fiscal quarters of US Borrower).

 

“LIBOR Fixed Rate Loan” means a Eurodollar Loan or an Alternate Currency Loan.

 

“Lien” means any mortgage, deed of trust, security interest, lien (statutory or other), charge, assignment, hypothecation, encumbrance on, pledge or deposit of, or conditional sale, lease (other than Operating Leases), sale with a right of redemption or other title retention agreement and any capitalized lease with respect to any property (real or personal) or asset.

 

“Loan” means a Revolving Loan or a Swing Loan.

 

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“Loan Documents” means, collectively, this Agreement, each Note, each Guaranty of Payment, each Guaranty of Payment Joinder, all documentation relating to each Letter of Credit, each Security Document, each Additional Foreign Borrower Assumption Agreement and the Fee Letter, as any of the foregoing may from time to time be amended, restated or otherwise modified or replaced, and any other document delivered pursuant thereto.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of US Borrower or any material Foreign Borrower, (b) the business, assets, liabilities (actual or contingent), operations, condition (financial or otherwise) or prospects of the Companies taken as a whole, (c) the material rights and remedies of Agent or the Lenders under any Loan Document, (d) the ability of any Credit Party to perform its obligations under any material Loan Document to which it is a party, or (e) the legality, validity, binding effect or enforceability against any Credit Party of any material Loan Document to which it is a party.

 

“Material Indebtedness Agreement” means any debt instrument, lease (capital, operating or otherwise), guaranty, contract, commitment, agreement or other arrangement evidencing or entered into in connection with any Indebtedness of any Company or the Companies in excess of the amount of Twenty Million Dollars ($20,000,000).

 

“Maximum Rate” means that term as defined in Section 2.3(d)(i) hereof.

 

“Moody’s” means Moody’s Investors Service, Inc., and any successor to such company.

 

“Multiemployer Plan” means a Pension Plan that is subject to the requirements of Subtitle E of Title IV of ERISA.

 

“Newgen Companies” means Newgen Results Corporation, a Delaware corporation, and each of its Subsidiaries.

 

“Non-Consenting Lender” means that term as defined in Section 11.3(c) hereof.

 

“Non-U.S. Lender” means that term as defined in Section 3.2(d) hereof.

 

“Note” means a Revolving Credit Note or the Swing Line Note, or any other promissory note delivered pursuant to this Agreement.

 

“Notice of Loan” means a Notice of Loan in the form of the attached Exhibit D.

 

“Obligations” means, collectively, (a) all Indebtedness and other obligations now owing or hereafter incurred by one or more Borrowers to Agent, the Swing Line Lender, the Fronting Lender, or any Lender (or any affiliate thereof) pursuant to this Agreement and the other Loan Documents, and includes the principal of and interest on all Loans, (b) all obligations of US Borrower or any Credit Party pursuant to Letters of Credit; (c) each extension, renewal, consolidation or refinancing of any of the foregoing, in whole or in part; (d) the commitment and other fees, and any prepayment fees payable pursuant to this Agreement or any other Loan Document; (e) all fees and charges in connection with the Letters of Credit; (f) every other

 

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liability, now or hereafter owing to Agent or any Lender by any Company pursuant to this Agreement or any other Loan Document; and (g) all Related Expenses.

 

“OFAC” means that term as defined in Section 6.3(f) hereof.

 

“Operating Leases” means all real or personal property leases under which any Company is bound or obligated as a lessee or sublessee and which, under GAAP, are not required to be capitalized on a balance sheet of such Company; provided that Operating Leases shall not include any such lease under which any Company is also bound as the lessor or sublessor.

 

“Organizational Documents” means, with respect to any Person (other than an individual), such Person’s Articles (Certificate) of Incorporation, operating agreement or equivalent formation documents, and Regulations (Bylaws), or equivalent governing documents, and any amendments to any of the foregoing.

 

“Other Taxes” means any and all present or future stamp or documentary taxes or any other excise, ad valorem or property taxes, goods and services taxes, harmonized sales taxes and other sales taxes, use taxes, value added taxes, charges or similar taxes or levies arising from any payment made hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

 

“Participant” means that term as defined in Section 11.11 hereof.

 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001, as amended from time to time.

 

“PBGC” means the Pension Benefit Guaranty Corporation, and its successor.

 

“Pension Plan” means an ERISA Plan that is a “pension plan” (within the meaning of ERISA Section 3(2)).

 

“Peppers Company” means Peppers & Rogers Group Company and each of its Subsidiaries.

 

“Percepta” means Percepta, LLC and each of its Subsidiaries.

 

“Performance Guaranty” means a performance guaranty entered into in the ordinary course of business and upon terms typical in the industry of Borrowers; provided that Performance Guaranties shall not include guaranties of Indebtedness.

 

“Person” means any individual, sole proprietorship, partnership, joint venture, unincorporated organization, corporation, limited liability company, unlimited liability company, institution, trust, estate, Governmental Authority or any other entity.

 

“Pledge Agreement” means each of the Pledge Agreements executed and delivered to Agent, for the benefit of the Lenders, by a Borrower or a Guarantor of Payment, as applicable,

 

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with respect to the capital stock or other equity interests owned by such Credit Party, as the same may from time to time be amended, restated or otherwise modified.

 

“Pledged Securities” means, with respect to a Pledge Agreement, the capital stock or other equity interests pledged to Agent, for the benefit of the Lenders, by a Credit Party pursuant to such Pledge Agreement.

 

“Prime Rate” means the interest rate established from time to time by Agent as Agent’s prime rate, whether or not such rate shall be publicly announced; the Prime Rate may not be the lowest interest rate charged by Agent for commercial or other extensions of credit. Each change in the Prime Rate shall be effective immediately from and after such change.

 

“Register” means that term as described in Section 11.10(i) hereof.

 

“Regularly Scheduled Payment Date” means the last day of each March, June, September and December of each year.

 

“Related Expenses” means any and all reasonable costs, liabilities and expenses (including, without limitation, losses, damages, penalties, claims, actions, reasonable attorneys’ fees, reasonable legal expenses, judgments, suits and disbursements) (a) incurred by Agent, or imposed upon or asserted against Agent or any Lender, in any attempt by Agent and the Lenders to (i) obtain, preserve, perfect or enforce any Loan Document or any security interest evidenced by any Loan Document; (ii) obtain payment, performance or observance of any and all of the Obligations; or (iii) maintain, insure, audit, collect, preserve, repossess or dispose of any of the collateral securing the Obligations or any part thereof, including, without limitation, reasonable costs and expenses for appraisals, assessments and audits of any Company or any such collateral; or (b) incidental or related to subpart (a) above, including, without limitation, interest thereupon from the date incurred, imposed or asserted until paid at the Default Rate.

 

“Related Writing” means each Loan Document and any other assignment, mortgage, security agreement, guaranty agreement, subordination agreement, financial statement, audit report or other writing furnished by any Credit Party, or any of its officers, to Agent or the Lenders pursuant to or otherwise in connection with this Agreement.

 

“Reportable Event” means any of the events described in Section 4043 of ERISA except where notice is waived by the PBGC.

 

“Request for Extension” means a notice substantially in the form of the attached Exhibit H.

 

“Required Lenders” means the holders of at least fifty-one percent (51%), based upon each Lender’s Commitment Percentage, of an amount (the “Total Amount”) equal to (a) during the Commitment Period, the Revolving Amount, or (b) after the Commitment Period, the Revolving Credit Exposure; provided that the portion of the Total Amount held or deemed to be held by any Defaulting Lender or Insolvent Lender shall be excluded for purposes of making a determination of Required Lenders.

 

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“Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or determination or policy statement or interpretation of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property.

 

“Reserve Percentage” means for any day that percentage (expressed as a decimal) that is in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, all basic, supplemental, marginal and other reserves and taking into account any transitional adjustments or other scheduled changes in reserve requirements) for a member bank of the Federal Reserve System in New York, New York, in respect of Eurocurrency Liabilities.  The Eurodollar Rate and the Alternate Currency Rate shall be adjusted automatically on and as of the effective date of any change in the Reserve Percentage.

 

“Restricted Payment” means, with respect to any Company, (a) any Capital Distribution, (b) any amount paid by such Company in repayment, redemption, retirement or repurchase, directly or indirectly, of any Subordinated Indebtedness, or (c) any amount paid by such Company in respect of any management, consulting or other similar arrangement with any director, officer or equity holder (other than a Company) of a Company or an Affiliate in excess of the aggregate amount of One Hundred Thousand Dollars ($100,000) in any fiscal year.

 

“Revolving Amount” means, for each Lender, the amount set forth opposite such Lender’s name on Schedule 1 hereto, subject to decreases determined pursuant to Section 2.9(a) hereof, increases pursuant to Section 2.9(b) hereof and assignments of interests pursuant to Section 11.10 hereof; provided that the Revolving Amount for the Swing Line Lender shall exclude the Swing Line Commitment (other than its pro rata share), and the Revolving Amount of the Fronting Lender shall exclude the Letter of Credit Commitment (other than its pro rata share).  The Revolving Amount for all the Lenders on the Closing Date shall be Seven Hundred Million Dollars ($700,000,000).

 

“Revolving Credit Availability” means, at any time, the amount equal to the Revolving Credit Commitment minus the Revolving Credit Exposure.

 

“Revolving Credit Commitment” means the obligation hereunder, during the Commitment Period, of (a) the Lenders (and each Lender) to make Revolving Loans, (b) the Fronting Lender to issue and each Lender to participate in, Letters of Credit pursuant to the Letter of Credit Commitment, and (c) the Swing Line Lender to make, and each Lender to participate in, Swing Loans pursuant to the Swing Line Commitment; up to an aggregate principal amount outstanding at any time equal to the Revolving Amount.

 

“Revolving Credit Exposure” means, at any time, the Dollar Equivalent of the sum of (a) the aggregate principal amount of all Revolving Loans outstanding, (b) the Swing Line Exposure, and (c) the Letter of Credit Exposure.

 

“Revolving Credit Note” means a US Borrower Revolving Credit Note or a Foreign Borrower Revolving Credit Note.

 

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“Revolving Loan” means a loan made to US Borrower or a Foreign Borrower by the Lenders in accordance with Section 2.2(a) hereof.

 

“Sanctioned Entity” means that term as defined in Section 6.3(g) hereof.

 

“Sanctioned Person” means that term as defined in Section 6.3(g) hereof.

 

“SEC” means the United States Securities and Exchange Commission, or any governmental body or agency succeeding to any of its principal functions.

 

“Secured Obligations” means, collectively, (a) the Obligations, (b) all obligations and liabilities of the Companies owing to a Lender (or an entity that is an affiliate of a then existing Lender) under Hedge Agreements (other than under Excluded Swap Obligations), and (c) the Bank Product Obligations owing to a Lender (or an entity that is an affiliate of a then existing Lender) under Bank Product Agreements.

 

“Secured Parties” means, collectively, Agent, the Lenders, the Fronting Lender, any Lender (or an entity that is an affiliate of a then existing Lender) party to a Hedge Agreement with a Company, any Lender (or an entity that is an affiliate of a then existing Lender) party to a Bank Product Agreement with a Company, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.5 hereof, any other holder from time to time of any of any Secured Obligations and, in each case, their respective successors and permitted assigns.

 

“Securities Account” means a securities account, as that term is defined in the U.C.C.

 

“Securities Account Control Agreement” means each Securities Account Control Agreement among US Borrower or a Domestic Guarantor of Payment, Agent and a Securities Intermediary, dated on or after the Closing Date, to be in form and substance satisfactory to Agent, as the same may from time to time be amended, restated or otherwise modified.

 

“Securities Intermediary” means a clearing corporation or a Person, including, without limitation, a bank or broker, that in the ordinary course of its business maintains Securities Accounts for others and is acting in that capacity.

 

“Security Agreement” means each Security Agreement, executed and delivered by a Credit Party in favor of Agent, for the benefit of the Lenders, dated on or after the Closing Date, as the same may from time to time be amended, restated or otherwise modified.

 

“Security Agreement Joinder” means each Security Agreement Joinder, executed and delivered by a Guarantor of Payment for the purpose of adding such Guarantor of Payment as a party to the previously executed Security Agreement.

 

“Security Documents” means each Security Agreement, each Security Agreement Joinder, each Pledge Agreement, each Control Agreement, each U.C.C. Financing Statement or similar filing as to a jurisdiction located outside of the United States of America filed in connection herewith or perfecting any interest created in any of the foregoing documents, and any other document pursuant to which any Lien is granted by a Company or any other Person to

 

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Agent, for the benefit of the Lenders, as security for the Secured Obligations, or any part thereof, and each other agreement executed or provided to Agent in connection with any of the foregoing, as any of the foregoing may from time to time be amended, restated or otherwise modified or replaced.

 

“Senior Leverage Ratio” means, as determined on a Consolidated basis, the ratio of (a) Consolidated Senior Funded Indebtedness (as of the end of the most recently completed fiscal quarter of US Borrower), to (b) Consolidated EBITDA (for the most recently completed four fiscal quarters of US Borrower).

 

“Significant Positive EBITDA Acquisition” means an Acquisition that, as measured for the four fiscal quarters then most recently ended, generated positive EBITDA in excess of Five Million Dollars ($5,000,000) for the Person or assets being acquired.

 

“Significant Positive EBITDA Disposition” means a Disposition that, as measured for the four fiscal quarters then most recently ended, generated positive EBITDA for the Company effecting such Disposition in excess of Five Million Dollars ($5,000,000).

 

“Solvent” means, with respect to any Person, that (a) the fair value of such Person’s assets is in excess of the total amount of such Person’s debts, as determined in accordance with the Bankruptcy Code, (b) the present fair saleable value of such Person’s assets is in excess of the amount that will be required to pay such Person’s debts as such debts  become absolute and matured, (c) such Person is able to realize upon its assets and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as such liabilities mature in the normal course of business, (d) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature, and (e) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which its property would constitute an unreasonably small amount of capital.  As used in this definition, the term “debts” includes any legal liability, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent, as determined in accordance with the Bankruptcy Code.

 

“Standard & Poor’s” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., and any successor to such company.

 

“Subordinated Indebtedness” means Indebtedness that shall have been subordinated (by written terms or written agreement being, in either case, in form and substance satisfactory to Agent and, if the aggregate amount of such Subordinated Indebtedness is in excess of Ten Million Dollars ($10,000,000), the Required Lenders) in favor of the prior payment in full of the Obligations.

 

“Subsidiary” means (a) a corporation more than fifty percent (50%) of the Voting Power of which is owned, directly or indirectly, by such Person or by one or more other subsidiaries of such Person or by such Person and one or more subsidiaries of such Person, (b) a partnership, limited liability company or unlimited liability company of which such Person, one or more other subsidiaries of such Person or such Person and one or more subsidiaries of such Person, directly or indirectly, is a general partner or managing member, as the case may be, or otherwise

 

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has an ownership interest greater than fifty percent (50%) of all of the ownership interests in such partnership, limited liability company or unlimited liability company, or (c) any other Person (other than a corporation, partnership, limited liability company or unlimited liability company) in which such Person, one or more other subsidiaries of such Person or such Person and one or more subsidiaries of such Person, directly or indirectly, has at least a majority interest in the Voting Power or the power to elect or direct the election of a majority of directors or other governing body of such Person.  Unless the context otherwise requires, Subsidiary herein shall be a reference to a Subsidiary of US Borrower.

 

“Supporting Letter of Credit” means a standby letter of credit, in form and substance satisfactory to Agent and the Fronting Lender, issued by an issuer satisfactory to Agent and the Fronting Lender.

 

“Swap Obligation” means, with respect to any Guarantor of Payment, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Sweep Arrangement” means that term as defined in Section 2.2(c)(i)(B) hereof.

 

“Swing Line Commitment” means the commitment of the Swing Line Lender to make Swing Loans to US Borrower up to the aggregate amount at any time outstanding of Twenty-Five Million Dollars ($25,000,000).

 

“Swing Line Exposure” means, at any time, the aggregate principal amount of all Swing Loans outstanding.

 

“Swing Line Lender” means Wells Fargo, as holder of the Swing Line Commitment.

 

“Swing Line Note” means the Swing Line Note, in the form of the attached Exhibit C, executed and delivered by US Borrower pursuant to Section 2.4(c) hereof.

 

“Swing Loan” means a loan that shall be denominated in Dollars made to US Borrower by the Swing Line Lender under the Swing Line Commitment, in accordance with Section 2.2(c) hereof.

 

“Swing Loan Maturity Date” means, with respect to any Swing Loan, the earlier of (a) twenty (20) days after the date such Swing Loan is made, or (b) the last day of the Commitment Period.

 

“Synthetic Lease” means any lease (a) that is accounted for by the lessee as an Operating Lease, and (b) under which the lessee is intended to be the “owner” of the leased property for federal income tax purposes.

 

“Taxes” means any and all present or future taxes of any kind, including but not limited to, levies, imposts, duties, surtaxes, charges, fees, deductions or withholdings now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority (together with any interest, penalties, fines, additions to taxes or similar liabilities with respect thereto) other than Excluded Taxes.

 

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“Trading with the Enemy Act” means that term as defined in Section 6.3(e) hereof.

 

“U.C.C.” means the Uniform Commercial Code, as in effect from time to time in the State of New York.

 

“U.C.C. Financing Statement” means a financing statement filed or to be filed in accordance with the Uniform Commercial Code, as in effect from time to time, in the relevant state or states.

 

“US Borrower” means that term as defined in the first paragraph hereof.

 

“US Borrower Revolving Credit Note” means a US Borrower Revolving Credit Note, in the form of the attached Exhibit A, executed and delivered by US Borrower pursuant to Section 2.4(a) hereof.

 

“Voting Power” means, with respect to any Person, the exclusive ability to control, through the ownership of shares of capital stock, partnership interests, membership interests or otherwise, the election of members of the board of directors or other similar governing body of such Person.  The holding of a designated percentage of Voting Power of a Person means the ownership of shares of capital stock, partnership interests, membership interests or other interests of such Person sufficient to control exclusively the election of that percentage of the members of the board of directors or similar governing body of such Person.

 

“Waterfall” means that term as defined in Section 8.7(b)(ii) hereof.

 

“Welfare Plan” means an ERISA Plan that is a “welfare plan” within the meaning of ERISA Section 3(l).

 

“Wells Fargo” means Wells Fargo Bank, National Association, a national banking association.

 

“Wholly Owned Subsidiary” means any Person, the equity interests of which are one hundred percent (100%) owned (other than, with respect to the ownership of equity interests of Foreign Subsidiaries, such equity interests as are necessary to qualify directors where required by applicable law or to satisfy other requirements of applicable law) are at the time owned by US Borrower, directly, or indirectly through other Persons one hundred percent (100%) of whose equity interests are at the time owned, directly or indirectly, by US Borrower.

 

Section 1.2            Accounting Terms.

 

(a)           Any accounting term not specifically defined in this Article I shall have the meaning ascribed thereto by GAAP.

 

(b)           If any change in the rules, regulations, pronouncements, opinions or other requirements of the Financial Accounting Standards Board (or any successor thereto or agency with similar function) with respect to GAAP, or if US Borrower adopts the International Financial Reporting Standards, and such change or adoption results in a change in the calculation of any component (or components in the aggregate) of the financial covenants set forth in

 

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Section 5.7 hereof or the related financial definitions, at the option of Agent, the Required Lenders or US Borrower, the parties hereto will enter into good faith negotiations to amend such financial covenants and financial definitions in such manner as the parties shall agree, each acting reasonably, in order to reflect fairly such change or adoption so that the criteria for evaluating the financial condition of Borrowers shall be the same in commercial effect after, as well as before, such change or adoption is made (in which case the method and calculating such financial covenants and definitions hereunder shall be determined in the manner so agreed); provided that, until so amended, such calculations shall continue to be computed in accordance with GAAP as in effect prior to such change or adoption.

 

Section 1.3            Terms Generally.  The foregoing definitions shall be applicable to the singular and plural forms of the foregoing defined terms.  Unless otherwise defined in this Article I, terms that are defined in the U.C.C. are used herein as so defined.

 

Section 1.4            Confirmation of Recitals.  Borrowers, Agent and the Lenders hereby confirm the statements set forth in the recitals of this Agreement.

 

ARTICLE II.  AMOUNT AND TERMS OF CREDIT

 

Section 2.1            Amount and Nature of Credit.

 

(a)           Subject to the terms and conditions of this Agreement, the Lenders, during the Commitment Period and to the extent hereinafter provided, shall make Revolving Loans to Borrowers, participate in Swing Loans made by the Swing Line Lender to US Borrower, and participate in Letters of Credit at the request of Administrative Borrower, in such aggregate amount as Borrowers shall request pursuant to the Commitment; provided that in no event shall the aggregate principal amount of all Loans and Letters of Credit outstanding under this Agreement be in excess of the Revolving Amount.

 

(b)           Each Lender, for itself and not one for any other, agrees to make Revolving Loans, participate in Swing Loans, and participate in Letters of Credit, during the Commitment Period, on such basis that, immediately after the completion of any borrowing by Borrowers or the issuance of a Letter of Credit:

 

(i)            the Dollar Equivalent of the aggregate outstanding principal amount of Loans made by such Lender (other than Swing Loans made by the Swing Line Lender), when combined with such Lender’s pro rata share of the Letter of Credit Exposure and the Swing Line Exposure, shall not be in excess of the Revolving Amount for such Lender; and

 

(ii)           the aggregate outstanding principal amount of Loans (other than Swing Loans) made by such Lender shall represent that percentage of the aggregate principal amount then outstanding on all Loans (other than Swing Loans) that shall be such Lender’s Commitment Percentage.  Each borrowing (other than Swing Loans which shall be risk participated on a pro rata basis) from the Lenders shall be made pro rata according to the respective Commitment Percentages of the Lenders.

 

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(c)           The Loans may be made as Revolving Loans as described in Section 2.2(a) hereof and as Swing Loans as described in Section 2.2(c) hereof, and Letters of Credit may be issued in accordance with Section 2.2(b) hereof.

 

Section 2.2            Revolving Credit Commitment.

 

(a)           Revolving Loans.  Subject to the terms and conditions of this Agreement, during the Commitment Period, the Lenders shall make a Revolving Loan or Revolving Loans to US Borrower or a Foreign Borrower in such amount or amounts as Administrative Borrower, through an Authorized Officer, may from time to time request, but not exceeding in aggregate principal amount at any time outstanding hereunder the Revolving Credit Commitment, when such Revolving Loans are combined with the Letter of Credit Exposure and the Swing Line Exposure; provided that Borrowers shall not request any Alternate Currency Loan (and the Lenders shall not be obligated to make an Alternate Currency Loan) if, after giving effect thereto, the Alternate Currency Exposure would exceed the Alternate Currency Maximum Amount).  Borrowers shall have the option, subject to the terms and conditions set forth herein, to borrow Revolving Loans, maturing on the last day of the Commitment Period, by means of any combination of Base Rate Loans, Eurodollar Loans or Alternate Currency Loans.  With respect to each Alternate Currency Loan, US Borrower or the appropriate Foreign Borrower, as applicable, shall receive all of the proceeds of such Alternate Currency Loan in one Alternate Currency and repay such Alternate Currency Loan in the same Alternate Currency.  Subject to the provisions of this Agreement, Borrowers shall be entitled under this Section 2.2(a) to borrow Revolving Loans, repay the same in whole or in part and re-borrow Revolving Loans hereunder at any time and from time to time during the Commitment Period.

 

(b)           Letters of Credit.

 

(i)            Generally.  Subject to the terms and conditions of this Agreement, during the Commitment Period, the Fronting Lender shall, in its own name, on behalf of the Lenders, issue such Letters of Credit for the account of US Borrower or a Domestic Guarantor of Payment, as Administrative Borrower may from time to time request.  Administrative Borrower shall not request any Letter of Credit (and the Fronting Lender shall not be obligated to issue any Letter of Credit) if, after giving effect thereto, (A) the Letter of Credit Exposure would exceed the Letter of Credit Commitment, (B) the Revolving Credit Exposure would exceed the Revolving Credit Commitment, or (C) with respect to a request for a Letter of Credit to be issued in an Alternate Currency, the Alternate Currency Exposure would exceed the Alternate Currency Maximum Amount.  The issuance of each Letter of Credit shall confer upon each Lender the benefits and liabilities of a participation consisting of an undivided pro rata interest in the Letter of Credit to the extent of such Lender’s Commitment Percentage.

 

(ii)           Request for Letter of Credit.  Each request for a Letter of Credit shall be delivered to Agent (and to the Fronting Lender, if the Fronting Lender is a Lender other than Agent) by an Authorized Officer not later than 1:00 P.M. (Eastern time) three Business Days prior to the date of the proposed issuance of the Letter of Credit.  Each such request shall be in a form acceptable to Agent (and the Fronting Lender, if the Fronting Lender is a Lender other than Agent) and shall specify the face amount thereof,

 

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the account party, the beneficiary, the requested date of issuance, amendment, renewal or extension, the expiry date thereof, the Alternate Currency if a Letter of Credit denominated in an Alternate Currency is requested, and the nature of the transaction or obligation to be supported thereby.  Concurrently with each such request, Administrative Borrower, and any Domestic Guarantor of Payment for whose account the Letter of Credit is to be issued, shall execute and deliver to the Fronting Lender an appropriate application and agreement, being in the standard form of the Fronting Lender for such letters of credit, as amended to conform to the provisions of this Agreement if required by Agent.  Agent shall give the Fronting Lender and each Lender notice of each such request for a Letter of Credit.

 

(iii)          Standby Letters of Credit Fees.  With respect to each Letter of Credit and the drafts thereunder, if any, whether issued for the account of US Borrower or any Domestic Guarantor of Payment, US Borrower agrees to (A) pay to Agent, for the pro rata benefit of the Lenders, a non-refundable commission based upon the face amount of such Letter of Credit, which shall be paid quarterly in arrears, on each Regularly Scheduled Payment Date, at a rate per annum equal to the Applicable Margin for LIBOR Fixed Rate Loans (in effect on such Regularly Scheduled Payment Date) multiplied by the undrawn face amount of such Letter of Credit; (B) pay to Agent, for the sole benefit of the Fronting Lender, an additional Letter of Credit fee, which shall be paid on each date that such Letter of Credit shall be issued, amended or renewed at the rate of one-eighth percent (1/8%) of the face amount of such Letter of Credit; and (C) pay to Agent, for the sole benefit of the Fronting Lender, such other issuance, amendment, renewal, negotiation, draw, acceptance, telex, courier, postage and similar transactional fees as are customarily charged by the Fronting Lender in respect of the issuance and administration of similar letters of credit under its fee schedule as in effect from time to time.

 

(iv)          Refunding of Letters of Credit with Revolving Loans.  Whenever a Letter of Credit shall be drawn, US Borrower shall promptly reimburse the Fronting Lender for the amount drawn.  In the event that the amount drawn shall not have been reimbursed by US Borrower on the date of the drawing of such Letter of Credit, at the sole option of Agent (and the Fronting Lender, if the Fronting Lender is a Lender other than Agent), US Borrower shall be deemed to have requested a Revolving Loan, subject to the provisions of Sections 2.2(a) and 2.5 hereof (other than the requirement set forth in Section 2.5(d) hereof), in the amount drawn (or the Dollar Equivalent with respect to a Letter of Credit funded in an Alternative Currency).  Such Revolving Loan shall be evidenced by the Revolving Credit Notes (or, if a Lender has not requested a Revolving Credit Note, by the records of Agent and such Lender).  Each Lender agrees to make a Revolving Loan on the date of such notice, subject to no conditions precedent whatsoever.  Each Lender acknowledges and agrees that its obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section 2.2(b)(iv) shall be absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that its payment to Agent, for the account of the Fronting Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated.  US Borrower irrevocably authorizes

 

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and instructs Agent to apply the proceeds of any borrowing pursuant to this Section 2.2(b)(iv) to reimburse, in full (other than the Fronting Lender’s pro rata share of such borrowing), the Fronting Lender for the amount drawn on such Letter of Credit.  Each such Revolving Loan shall be deemed to be a Base Rate Loan.  Each Lender is hereby authorized to record on its records relating to its Revolving Credit Note (or, if such Lender has not requested a Revolving Credit Note, its records relating to Revolving Loans) such Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit.

 

(v)           Participation in Letters of Credit.  If, for any reason, Agent (and the Fronting Lender if the Fronting Lender is a Lender other than Agent) shall be unable to or, in the opinion of Agent, it shall be impracticable to, convert any Letter of Credit to a Revolving Loan pursuant to the preceding subsection, or if the amount not reimbursed is a Letter of Credit drawn in an Alternate Currency, Agent (and the Fronting Lender if the Fronting Lender is a Lender other than Agent) shall have the right to request that each Lender fund a participation in the amount due (or the Dollar Equivalent with respect to a Letter of Credit in an Alternate Currency) with respect to such Letter of Credit, and Agent shall promptly notify each Lender thereof (by facsimile or telephone, confirmed in writing).  Upon such notice, but without further action, the Fronting Lender hereby agrees to grant to each Lender, and each Lender hereby agrees to acquire from the Fronting Lender, an undivided participation interest in the amount due with respect to such Letter of Credit in an amount equal to such Lender’s Commitment Percentage of the principal amount due with respect to such Letter of Credit.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to Agent, for the account of the Fronting Lender, such Lender’s ratable share of the amount due with respect to such Letter of Credit (determined in accordance with such Lender’s Commitment Percentage).  Each Lender acknowledges and agrees that its obligation to acquire participations in the amount due under any Letter of Credit that is drawn but not reimbursed by Borrowers pursuant to this Section 2.2(b)(v) shall be absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated.  Each Lender shall comply with its obligation under this Section 2.2(b)(v) by wire transfer of immediately available funds (in Dollars, in the Dollar Equivalent for amounts drawn in such Alternate Currency), in the same manner as provided in Section 2.5 hereof with respect to Revolving Loans.  Each Lender is hereby authorized to record on its records such Lender’s pro rata share of the amounts paid and not reimbursed on the Letters of Credit.  In addition, each Lender agrees to risk participate in the Existing Letters of Credit as provided in subsection (vi) below.

 

(vi)          Existing Letters of Credit.  Schedule 2.2 hereto contains a description of all letters of credit outstanding on, and to continue in effect after, the Closing Date. Each such letter of credit issued by a bank that is or becomes a Lender under this Agreement on the Closing Date (each, an “Existing Letter of Credit”) shall constitute a “Letter of Credit” for all purposes of this Agreement, issued, for purposes of subsection (v) above,

 

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on the Closing Date.  US Borrower, Agent and the Lenders hereby agree that, from and after such date, the terms of this Agreement shall apply to the Existing Letters of Credit, superseding any other agreement theretofore applicable to them to the extent inconsistent with the terms hereof.  Notwithstanding anything to the contrary in any reimbursement agreement applicable to the Existing Letters of Credit, the fees payable in connection with each Existing Letter of Credit to be shared with the Lenders shall accrue from the Closing Date at the rate provided in this subsection (vi).

 

(vii)         Auto-Renewal Letters of Credit.  If Administrative Borrower so requests, a Letter of Credit shall have an automatic renewal provision; provided that any Letter of Credit that has an automatic renewal provision must permit Agent (or the Fronting Lender if the Fronting Lender is a Lender other than Agent) to prevent any such renewal by giving prior notice to the beneficiary thereof not later than thirty (30) days prior to the renewal date of such Letter of Credit.  Once any such Letter of Credit that has automatic renewal provisions has been issued, the Revolving Lenders shall be deemed to have authorized (but may not require) Agent (and the Fronting Lender) to permit at any time the renewal of such Letter of Credit to an expiry date not later than one year after the last day of the Commitment Period.

 

(viii)        Letters of Credit Outstanding Beyond the Commitment Period.  If any Letter of Credit is outstanding upon the termination of the Commitment, then, upon such termination, US Borrower shall deposit with Agent, for the benefit of the Fronting Lender, with respect to all outstanding Letters of Credit, either cash or a Supporting Letter of Credit, which, in each case, is (A) in an amount equal to one hundred five percent (105%) of the undrawn amount of the outstanding Letters of Credit, and (B) free and clear of all rights and claims of third parties.  The cash shall be deposited in an escrow account at a financial institution designated by the Fronting Lender.  The Fronting Lender shall be entitled to withdraw (with respect to the cash) or draw (with respect to the Supporting Letter of Credit) amounts necessary to reimburse the Fronting Lender for payments to be made under the Letters of Credit and any fees and expenses associated with such Letters of Credit, or incurred pursuant to the reimbursement agreements with respect to such Letters of Credit.  US Borrower shall also execute such documentation as Agent or the Fronting Lender may reasonably require in connection with the survival of the Letters of Credit beyond the Commitment or this Agreement.  After expiration of all undrawn Letters of Credit, the Supporting Letter of Credit or the remainder of the cash, as the case may be, shall promptly be returned to Administrative Borrower.

 

(ix)          Requests for Letters of Credit When One or More Lenders are Affected Lenders.  If a Letter of Credit is requested at such time that a Lender is an Affected Lender hereunder, then (A) such Letter of Credit shall be issued to the extent that Agent (and the Fronting Lender) shall have entered into satisfactory (to Agent) arrangements (including, without limitation, the posting of cash collateral by the Affected Lender) with US Borrower or such Affected Lender to eliminate or mitigate the reimbursement risk with respect to such Affected Lender, or (B) Agent shall issue a Letter of Credit in an amount that is the amount of the requested Letter of Credit less the Commitment Percentage of such Affected Lender times the amount of the requested Letter of Credit.

 

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(x)           Letters of Credit Issued and Outstanding When One or More Lenders are Affected Lenders.  With respect to any Letters of Credit that have been issued and are outstanding at the time any Lender is an Affected Lender, Agent (and the Fronting Lender) shall have the right to request that US Borrower or such Affected Lender cash collateralize, in form and substance satisfactory to Agent (and the Fronting Lender), such Letters of Credit so as to eliminate or mitigate the reimbursement risk with respect to such Affected Lender.

 

(c)           Swing Loans.

 

(i)            Generally.

 

(A)          Subject to the terms and conditions of this Agreement, during the Commitment Period, the Swing Line Lender shall make a Swing Loan or Swing Loans to US Borrower in such amount or amounts as Administrative Borrower, through an Authorized Officer, may from time to time request; provided that Administrative Borrower shall not request any Swing Loan if, after giving effect thereto, (1) the Revolving Credit Exposure would exceed the Revolving Credit Commitment or (2) the Swing Line Exposure would exceed the Swing Line Commitment.  Each Swing Loan shall be due and payable on the Swing Loan Maturity Date applicable thereto.  Each Swing Loan shall be made in Dollars.  US Borrower may prepay Swing Loans in accordance with Section 2.7 hereof.

 

(B)          Notwithstanding any provision herein to the contrary and to the extent applicable, in the event the Swing Line Lender and US Borrower have agreed in writing (and the parties hereby acknowledge that any such agreement by US Borrower shall be made at its sole discretion), that up to $10,000,000 of the Swing Line Commitment may be used to automatically draw and repay Swing Loans (subject to the limitations set forth herein) pursuant to cash management arrangements between US Borrower and the Swing Line Lender (the “Sweep Arrangement”).  Principal and interest on Swing Loans deemed requested pursuant to the Sweep Arrangement shall be paid pursuant to the terms and conditions agreed to between US Borrower and the Swing Line Lender (without any deduction, setoff or counterclaim whatsoever).  The borrowing and disbursement provisions set forth in Section 2.5 hereof and any other provision hereof with respect to the timing or amount of payments on the Swing Loans (other than the requirement that all Swing Loans be paid no later than the last day of the Commitment Period) shall not be applicable to any portion of the Swing Loans made and prepaid pursuant to the Sweep Arrangement.  Unless sooner paid pursuant to the provisions hereof or the provisions of the Sweep Arrangement, the principal amount of all Swing Loans made pursuant to the Sweep Arrangement shall be paid in full, together with accrued interest thereon, on the last day of the Commitment Period.

 

(ii)           Refunding of Swing Loans.  If the Swing Line Lender so elects, by giving notice to Administrative Borrower and the Lenders, US Borrower agrees that the Swing Line Lender shall have the right, in its sole discretion, to require that any Swing Loan be

 

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refinanced as a Revolving Loan.  Such Revolving Loan shall be a Base Rate Loan unless otherwise requested by and available to US Borrower hereunder.  Upon receipt of such notice by Administrative Borrower and the Lenders, US Borrower shall be deemed, on such day, to have requested a Revolving Loan in the principal amount of the Swing Loan in accordance with Sections 2.2(a) and 2.5 hereof (other than the requirement set forth in Section 2.5(d) hereof).  Such Revolving Loan shall be evidenced by US Borrower Revolving Credit Notes (or, if a Lender has not requested a US Borrower Revolving Credit Note, by the records of Agent and such Lender).  Each Lender agrees to make a Revolving Loan on the date of such notice, subject to no conditions precedent whatsoever.  Each Lender acknowledges and agrees that such Lender’s obligation to make a Revolving Loan pursuant to Section 2.2(a) hereof when required by this Section 2.2(c)(ii) is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or Event of Default, and that its payment to Agent, for the account of the Swing Line Lender, of the proceeds of such Revolving Loan shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated.  US Borrower irrevocably authorizes and instructs Agent to apply the proceeds of any borrowing pursuant to this Section 2.2(c)(ii) to repay in full such Swing Loan.  Each Lender is hereby authorized to record on its records relating to its US Borrower Revolving Credit Note (or, if such Lender has not requested a US Borrower Revolving Credit Note, its records relating to Revolving Loans) such Lender’s pro rata share of the amounts paid to refund such Swing Loan.

 

(iii)          Participation in Swing Loans.  If, for any reason, the Swing Line Lender is unable to or, in the opinion of Agent, it is impracticable to, convert any Swing Loan to a Revolving Loan pursuant to the preceding Section 2.2(c)(ii), then on any day that a Swing Loan is outstanding (whether before or after the maturity thereof), Agent shall have the right to request that each Lender fund a participation in such Swing Loan, and Agent shall promptly notify each Lender thereof (by facsimile or telephone, confirmed in writing).  Upon such notice, but without further action, the Swing Line Lender hereby agrees to grant to each Lender, and each Lender hereby agrees to acquire from the Swing Line Lender, an undivided participation interest in the right to share in the payment of such Swing Loan in an amount equal to such Lender’s Commitment Percentage of the principal amount of such Swing Loan.  In consideration and in furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to Agent, for the benefit of the Swing Line Lender, such Lender’s ratable share of such Swing Loan (determined in accordance with such Lender’s Commitment Percentage).  Each Lender acknowledges and agrees that its obligation to acquire participations in Swing Loans pursuant to this Section 2.2(c)(iii) is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, the occurrence and continuance of a Default or an Event of Default, and that each such payment shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever and whether or not the Revolving Credit Commitment shall have been reduced or terminated.  Each Lender shall comply with its obligation under this Section 2.2(c)(iii) by wire transfer of immediately available

 

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funds, in the same manner as provided in Section 2.5 hereof with respect to Revolving Loans to be made by such Lender.

 

(iv)          Requests for Swing Loan When One or More Lenders are Affected Lenders.  If a Swing Loan is requested at such time that a Lender is an Affected Lender hereunder, then (A) such Swing Loan shall be issued to the extent that Agent shall have entered into satisfactory (to Agent) arrangements (including, without limitation, the posting of cash collateral by the Affected Lender) with US Borrower or such Affected Lender to eliminate or mitigate the reimbursement risk with respect to such Affected Lender, or (B) Agent shall issue a Swing Loan in an amount that is the amount of the requested Swing Loan less the Commitment Percentage of such Affected Lender times the amount of the requested Swing Loan.

 

(v)           Swing Loans Outstanding When One or More Lenders are Affected Lenders.  With respect to any Swing Loans that are outstanding at the time any Lender is an Affected Lender, Agent shall have the right to request that US Borrower or such Affected Lender cash collateralize, in form and substance satisfactory to Agent, such Swing Loans so as to eliminate or mitigate the reimbursement risk with respect to such Affected Lender.

 

Section 2.3            Interest.

 

(a)           Revolving Loans.

 

(i)            Base Rate Loan.  The appropriate Borrower or Borrowers shall pay interest on the unpaid principal amount of a Base Rate Loan outstanding from time to time from the date thereof until paid at the Derived Base Rate from time to time in effect.  Interest on such Base Rate Loan shall be payable, commencing June 30, 2013, and continuing on each Regularly Scheduled Payment Date thereafter and at the maturity thereof.

 

(ii)           LIBOR Fixed Rate Loans.  The appropriate Borrower or Borrowers shall pay interest on the unpaid principal amount of each LIBOR Fixed Rate Loan outstanding from time to time, fixed in advance on the first day of the Interest Period applicable thereto through the last day of the Interest Period applicable thereto (but subject to changes in the Applicable Margin for LIBOR Fixed Rate Loans), at the Derived LIBOR Fixed Rate.  Interest on such LIBOR Fixed Rate Loan shall be payable on each Interest Adjustment Date with respect to an Interest Period (provided that if an Interest Period shall exceed three months, the interest must be paid every three months, commencing three months from the beginning of such Interest Period).

 

(b)           Swing Loans.  US Borrower shall pay interest to Agent, for the sole benefit of the Swing Line Lender (and any Lender that shall have purchased a participation in such Swing Loan), on the unpaid principal amount of each Swing Loan outstanding from time to time from the date thereof until paid at the Derived Base Rate from time to time in effect.  Interest on each Swing Loan shall be payable on the Swing Loan Maturity Date applicable thereto.  Each Swing Loan shall bear interest for a minimum of one day.

 

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(c)           Default Rate.  Anything herein to the contrary notwithstanding, if an Event of Default shall occur, upon the election of Agent or the Required Lenders (i) the principal of each Loan and the unpaid interest thereon shall bear interest, until paid, at the Default Rate, (ii) the fee for the aggregate undrawn amount of all issued and outstanding Letters of Credit shall be increased by two percent (2%) in excess of the rate otherwise applicable thereto, and (iii) in the case of any other amount not paid when due from Borrowers hereunder or under any other Loan Document, such amount shall bear interest at the Default Rate; provided that, (A) during an Event of Default under Section 7.1 or 7.11 hereof, the applicable Default Rate shall apply without any election or action on the part of Agent or any Lender, and (B) if any such Event of Default is waived in writing by the Required Lenders (and no other Event of Default shall exist), any increase in interest rates or fees instituted pursuant to this Section 2.3(c) shall be rescinded as of the date of such waiver.

 

(d)           Limitation on Interest.

 

(i)            Generally.  In no event shall the rate of interest hereunder exceed the maximum rate allowable by law.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”).  If Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Administrative Borrower for distribution to Borrowers, as appropriate.  In determining whether the interest contracted for, charged, or received by Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (A) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (B) exclude voluntary prepayments and the effects thereof, and (C) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations.

 

(ii)           Foreign Jurisdiction Interest.  If any provision of this Agreement or any other Loan Document would obligate any Foreign Borrower to make any payment of interest or other amount payable to (including for the account of) any Lender in an amount, or calculated at a rate, that would be prohibited by law or would result in a receipt by such Lender of interest at a criminal rate then, notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by law or so result in a receipt by such Lender of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as follows:  (A) first, by reducing the amount or rate of interest required to be paid to such Lender under this Article II; and (B) thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to such Lender that would constitute interest for purposes of the applicable statute.  Notwithstanding the foregoing, and after giving effect to all adjustments contemplated thereby, if a Lender shall have received an amount in excess of the maximum amount permitted by such statute, then the Lender shall pay an amount equal to such excess to such Foreign Borrower.  Any amount or rate of interest referred to in this Article II with respect to the foreign extensions of credit shall be determined in accordance with

 

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generally accepted actuarial practices and principles as an effective annual rate of interest over the term that such extensions of credit remain outstanding on the assumption that any charges, fees or expenses that fall within the meaning of “interest” shall, if they relate to a specific period of time, be pro-rated over that period of time and otherwise be pro-rated over the Commitment Period and, in the event of a dispute, a certificate of an actuary appointed by Agent (and reasonably acceptable to US Borrower) shall be conclusive for the purposes of such determination.

 

Section 2.4            Evidence of Indebtedness.

 

(a)           US Borrower Revolving Loans.  Upon the request of a Lender, to evidence the obligation of US Borrower to repay the Revolving Loans made by such Lender and to pay interest thereon, US Borrower shall execute a US Borrower Revolving Credit Note, payable to the order of such Lender in the principal amount equal to its Commitment Percentage of the Revolving Credit Commitment, or, if less, the aggregate unpaid principal amount of Revolving Loans made by such Lender; provided that the failure of a Lender to request a US Borrower Revolving Credit Note shall in no way detract from US Borrower’s obligations to such Lender hereunder.

 

(b)           Foreign Borrower Revolving Loans.  Upon the request of a Lender, to evidence the obligation of each Foreign Borrower to repay the Revolving Loans made by such Lender to such Foreign Borrower and to pay interest thereon, each such Foreign Borrower shall execute a Foreign Borrower Revolving Credit Note, payable to the order of such Lender in the principal amount equal to its Commitment Percentage of the Revolving Credit Commitment, or, if less, the aggregate unpaid principal amount of Revolving Loans made by such Lender to such Foreign Borrower; provided that the failure of a Lender to request a Foreign Borrower Revolving Credit Note shall in no way detract from such Foreign Borrower’s obligations to such Lender hereunder.

 

(c)           Swing Loans.  Upon the request of the Swing Line Lender, to evidence the obligation of US Borrower to repay the Swing Loans and to pay interest thereon, US Borrower shall execute a Swing Line Note, payable to the order of the Swing Line Lender in the principal amount of the Swing Line Commitment, or, if less, the aggregate unpaid principal amount of Swing Loans made by the Swing Line Lender; provided that the failure of the Swing Line Lender to request a Swing Line Note shall in no way detract from US Borrower’s obligations to the Swing Line Lender hereunder.

 

Section 2.5            Notice of Credit Event; Funding of Loans.

 

(a)           Notice of Credit Event.  Administrative Borrower, through an Authorized Officer, shall provide to Agent a Notice of Loan prior to (i) 1:00 P.M. (Eastern time) on the proposed date of borrowing of, or conversion of a Loan to, a Base Rate Loan, (ii) 1:00 P.M. (Eastern time) three Business Days prior to the proposed date of borrowing of, continuation of or conversion of a Loan to, a Eurodollar Loan, (iii) 1:00 P.M. (Eastern time) four Business Days prior to the proposed date of borrowing of an Alternate Currency Loan, and (iv) 3:00 P.M. (Eastern time) on the proposed date of borrowing of a Swing Loan; provided however, that an Authorized Officer of Administrative Borrower may verbally request a Loan, so long as a Notice of Loan is received

 

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by the end of the same Business Day, and, if Agent or any Lender provides funds or initiates funding based upon such verbal request, US Borrower shall bear the risk with respect to any information regarding such funding that is later determined to have been incorrect.  Administrative Borrower shall comply with the notice provisions set forth in Section 2.2(b) hereof with respect to Letters of Credit.

 

(b)           Funding of Loans.  Agent shall notify each Lender of the date, amount, type of currency and Interest Period (if applicable) promptly upon the receipt of a Notice of Loan (other than for a Swing Loan, or a Revolving Loan to be funded as a Swing Loan), and, in any event, by 3:00 P.M. (Eastern time) on the date such Notice of Loan is received.  On the date that the Credit Event set forth in such Notice of Loan is to occur, each such Lender shall provide to Agent, not later than 4:00 P.M. (Eastern time), the amount in Dollars, or, with respect to an Alternate Currency, in the applicable Alternate Currency, in federal or other immediately available funds, required of it.  If Agent shall elect to advance the proceeds of such Loan prior to receiving funds from such Lender, Agent shall have the right, upon prior notice to Administrative Borrower, to debit any account of the appropriate Borrower or otherwise receive such amount from the appropriate Borrower, promptly after demand, in the event that such Lender shall fail to reimburse Agent in accordance with this subsection.  Agent shall also have the right to receive interest from such Lender at the Federal Funds Effective Rate in the event that such Lender shall fail to provide its portion of the Loan on the date requested and Agent shall elect to provide such funds.

 

(c)           Conversion and Continuation of Loans.

 

(i)            At the request of Administrative Borrower to Agent, subject to the notice and other provisions of this Section 2.5, the Lenders shall convert a Base Rate Loan to one or more Eurodollar Loans at any time and shall convert a Eurodollar Loan to a Base Rate Loan on any Interest Adjustment Date applicable thereto.  Swing Loans may be converted by the Swing Line Lender to Revolving Loans in accordance with Section 2.2(c)(ii) hereof.  No Alternate Currency Loan may be converted to a Base Rate Loan or Eurodollar Loan and no Base Rate Loan or Eurodollar Loan may be converted to an Alternate Currency Loan.

 

(ii)           At the request of Administrative Borrower to Agent, subject to the notice and other provisions of this Section 2.5, the Lenders shall continue one or more Eurodollar Loans as of the end of the applicable Interest Period as a new Eurodollar Loan with a new Interest Period.

 

(d)           Minimum Amount for Loans.  Each request for:

 

(i)            a Base Rate Loan shall be in an amount of not less than Five Hundred Thousand Dollars ($500,000), increased by increments of One Hundred Thousand Dollars ($100,000);

 

(ii)           a LIBOR Fixed Rate Loan shall be in an amount (or, with respect to an Alternate Currency Loan, such approximately comparable amount as shall result in an amount rounded to the nearest whole number) of not less than Five Hundred Thousand

 

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Dollars ($500,000), increased by increments of Five Hundred Thousand Dollars ($500,000) (or, with respect to an Alternate Currency Loan, such approximately comparable amount as shall result in an amount rounded to the nearest whole number); and

 

(iii)                               a Swing Loan shall be in an amount of not less than Two Hundred Fifty Thousand Dollars ($250,000).

 

(e)                                  Interest Periods.  Administrative Borrower shall not request that LIBOR Fixed Rate Loans be outstanding for more than ten (10) different Interest Periods at the same time.

 

(f)                                   Advancing of Non Pro-Rata Revolving Loans.  Notwithstanding anything in this Agreement to the contrary, if Borrowers request a Revolving Loan pursuant to Section 2.5(a) hereof (and all conditions precedent set forth in Section 4.1 hereof are met) at a time when one or more Lenders are Defaulting Lenders, Agent shall have the option, in its sole discretion, to require (and, at the request of US Borrower, shall require) the non-Defaulting Lenders to honor such request by making a non pro-rata Revolving Loan to the appropriate Borrower in an amount equal to (i) the amount requested by such Borrower, minus (ii) the portions of such Revolving Loan that should have been made by such Defaulting Lenders.  For purposes of such Revolving Loans, the Lenders that are making such Revolving Loan shall do so in proportion to their Commitment Percentages of the amount requested by such Borrower.  For the avoidance of doubt, in no event shall the aggregate outstanding principal amount of Loans made by a Lender (other than Swing Loans made by the Swing Line Lender), when combined with such Lender’s pro rata share, if any, of the Letter of Credit Exposure and the Swing Line Exposure, be in excess of the Revolving Amount for such Lender.

 

Section 2.6                                    Payment on Loans and Other Obligations.

 

(a)                                 Payments Generally.  Each payment made hereunder by a Credit Party shall be made without any offset, abatement, recoupment, counterclaim, withholding or reduction whatsoever.

 

(b)                                 Payments in Alternate Currency.  With respect to any Alternate Currency Loan, all payments (including prepayments) to any Lender of the principal of or interest on such Alternate Currency Loan shall be made in the same Alternate Currency as the original Loan.  For clarification, the amount outstanding on any Alternate Currency Loan for purposes of repayment on the last day of the applicable Interest Period shall be measured in the Alternate Currency and not by the Dollar Equivalent of such amount.  With respect to any Alternate Currency Letter of Credit, all payments to the Fronting Lender (and to any Lender that shall have funded its participation in such Letter of Credit) shall be made in the Dollar Equivalent (as determined on the date of drawing of such Letter of Credit) of the amount of such Alternate Currency Letter of Credit.  All such payments shall be remitted by the appropriate Borrower to Agent, at the address of Agent for notices referred to in Section 11.4 hereof (or at such other office or account as designated in writing by Agent to Administrative Borrower), for the account of the Lenders (or the Fronting Lender or the Swing Line Lender, as appropriate) not later than 2:00 P.M. (Eastern time) on the due date thereof in same day funds.  Any such payments received by Agent after

 

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2:00 P.M. (Eastern time) shall be deemed to have been made and received on the next Business Day.

 

(c)                                  Payments in Dollars.  With respect to (i) any Loan (other than an Alternate Currency Loan), or (ii) any other payment to Agent and the Lenders that shall not be covered by subsection (b) above, all such payments (including prepayments) to Agent of the principal of or interest on such Loan or other payment, including but not limited to principal, interest, fees or any other amount owed by Borrowers under this Agreement, shall be made in Dollars.  All payments described in this subsection (c) shall be remitted to Agent, at the address of Agent for notices referred to in Section 11.4 hereof for the account of the Lenders (or the Fronting Lender or the Swing Line Lender, as appropriate) not later than 2:00 P.M. (Eastern time) on the due date thereof in immediately available funds.  Other than with respect to payments made by wire transfer that are released by the appropriate Borrower by 2:00 P.M. (Eastern time), any such payments received by Agent (or the Fronting Lender or the Swing Line Lender) after 2:00 P.M. (Eastern time) shall be deemed to have been made and received on the next Business Day.

 

(d)                                 Payments to Lenders.  Upon Agent’s receipt of payments hereunder, Agent shall immediately distribute to each Lender its (except with respect to Swing Loans, which shall be paid to the Swing Line Lender and any Lender that has funded a participation in the Swing Loans, or, with respect to Letters of Credit, certain of which payments shall be paid to the Fronting Lender) ratable shares, if any, of the amount of principal, interest, and commitment and other fees received by Agent for the account of such Lender.  Payments received by Agent in Dollars shall be delivered to the Lenders in Dollars in immediately available funds.  Payments received by Agent in any Alternate Currency shall be delivered to the Lenders in such Alternate Currency in same day funds.  Each Lender shall record any principal, interest or other payment, the principal amounts of Base Rate Loans, LIBOR Fixed Rate Loans, Swing Loans and Letters of Credit, the type of currency for each Loan, all prepayments and the applicable dates, including Interest Periods, with respect to the Loans made, and payments received by such Lender, by such method as such Lender may generally employ; provided that failure to make any such entry shall in no way detract from the obligations of Borrowers under this Agreement or any Note.  The aggregate unpaid amount of Loans, types of Loans, Interest Periods and similar information with respect to the Loans and Letters of Credit set forth on the records of Agent shall be rebuttably presumptive evidence with respect to such information, including the amounts of principal, interest and fees owing to each Lender.

 

(e)                                  Timing of Payments.  Whenever any payment to be made hereunder, including, without limitation, any payment to be made on any Loan, shall be stated to be due on a day that is not a Business Day, such payment shall be made on the next Business Day and such extension of time shall in each case be included in the computation of the interest payable on such Loan; provided that, with respect to a LIBOR Fixed Rate Loan, if the next Business Day shall fall in the succeeding calendar month, such payment shall be made on the preceding Business Day and the relevant Interest Period shall be adjusted accordingly.

 

(f)                                   Affected Lender.  To the extent that Agent receives any payments or other amounts for the account of an Affected Lender, at the discretion of Agent, such Affected Lender shall be deemed to have requested that Agent use such payment or other amount (or any portion thereof, at the discretion of Agent) first, to cash collateralize its unfunded risk participation in

 

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Swing Loans and the Letters of Credit pursuant to Sections 2.2(b)(iv), 2.2(c)(iii), and 2.5(b) hereof, and, with respect to any Defaulting Lender, second, to fulfill its obligations to make Loans.

 

(g)                                  Payment of Non Pro-Rata Revolving Loans.  Notwithstanding anything in this Agreement to the contrary, at the sole discretion of Agent, in order to pay Revolving Loans made to a Borrower that were not advanced pro rata by the Lenders, any payment of any Loan may first be applied to such Revolving Loans of such Borrower that were not advanced pro rata.

 

Section 2.7                                    Prepayment.

 

(a)                                 Right to Prepay.

 

(i)                                     Borrowers shall have the right at any time or from time to time to prepay, on a pro rata basis for all of the Lenders (except with respect to Swing Loans, which shall be paid to the Swing Line Lender and any Lender that has funded a participation in such Swing Loan), all or any part of the principal amount of the Loans then outstanding, as designated by Administrative Borrower. Such payment shall include interest accrued on the amount so prepaid to the date of such prepayment and any amount payable under Article III hereof with respect to the amount being prepaid.  Subject to payment of amounts set forth under Article III hereof, prepayments of Loans shall be without any premium or penalty.

 

(ii)                                  Borrowers shall have the right, at any time or from time to time, to prepay, for the benefit of the Swing Line Lender (and any Lender that has funded a participation in such Swing Loan), all or any part of the principal amount of the Swing Loans then outstanding, as designated by Administrative Borrower, plus interest accrued on the amount so prepaid to the date of such prepayment.

 

(iii)                               Notwithstanding anything in this Section 2.7 or otherwise to the contrary, at the discretion of Agent, in order to prepay Revolving Loans to a Borrower that were not advanced pro rata by all of the Lenders, any prepayment of a Loan shall first be applied to Revolving Loans made to such Borrower by the Lenders during any period in which a Defaulting Lender or Insolvent Lender shall exist.

 

(b)                                 Notice of Prepayment.  Administrative Borrower shall give Agent (i) notice of prepayment of a Base Rate Loan or Swing Loan by no later than 1:00 P.M. (Eastern time) on the Business Day on which such prepayment is to be made and (ii) written notice of prepayment of a LIBOR Fixed Rate Loan by no later than 1:00 P.M. (Eastern time) three Business Days before the Business Day on which such prepayment is to be made.

 

(c)                                  Minimum Amount.  Each prepayment of a LIBOR Fixed Rate Loan shall be in the principal amount of not less than the lesser of One Million Dollars ($1,000,000) or the principal amount of such Loan (or, with respect to an Alternate Currency Loan, the Dollar Equivalent (rounded to a comparable amount) of such amount), or, with respect to a Swing Loan, the principal balance of such Swing Loan, except in the case of a mandatory payment pursuant to Section 2.11(d) or Article III hereof.

 

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Section 2.8                                    Commitment and Other Fees.

 

(a)                                 Commitment Fee.  US Borrower shall pay to Agent, for the ratable account of the Lenders as a consideration for the Revolving Credit Commitment, a commitment fee from the Closing Date to and including the last day of the Commitment Period, payable quarterly, at a rate per annum equal to (i) the Applicable Commitment Fee Rate in effect on the payment date, multiplied by (ii) (A) the average daily Revolving Amount in effect during such quarter, minus (B) the average daily Revolving Credit Exposure (exclusive of the Swing Line Exposure) during such quarter.  The commitment fee shall be payable in arrears, on June 30, 2013 and continuing on each Regularly Scheduled Payment Date thereafter, and on the last day of the Commitment Period.

 

(b)                                 Other Fee.  US Borrower shall pay to Wells Fargo Securities, LLC or its Affiliates, for its or their respective benefit, the fees set forth in the Fee Letter.

 

Section 2.9                                    Modifications to Commitment.

 

(a)                                 Optional Reduction of Revolving Credit Commitment.  Borrowers may at any time and from time to time permanently reduce in whole or ratably in part the Revolving Amount to an amount not less than the then existing Revolving Credit Exposure, by giving Agent not fewer than three Business Days’ written notice of such reduction; provided that any such partial reduction shall be in an aggregate amount, for all of the Lenders, of not less than Five Million Dollars ($5,000,000), increased in increments of One Million Dollars ($1,000,000).  Agent shall promptly notify each Lender of the date of each such reduction and such Lender’s proportionate share thereof.  After each such reduction, the commitment fees payable hereunder shall be calculated upon the Revolving Amount as so reduced.  If Borrowers reduce in whole the Revolving Amount, on the effective date of such reduction (the appropriate Borrowers having prepaid in full the unpaid principal balance, if any, of the Loans, together with all interest (if any) and commitment and other fees accrued and unpaid with respect thereto, and provided that no Letter of Credit Exposure or Swing Line Exposure shall exist), all of the Revolving Credit Notes shall be delivered to Agent marked “Canceled” and Agent shall redeliver such Revolving Credit Notes to Administrative Borrower.  Any partial reduction in the Revolving Amount shall be effective during the remainder of the Commitment Period.

 

(b)                                 Increase in Commitment.  At any time during the Commitment Increase Period, Administrative Borrower may request that Agent and the Lenders (i) increase the Revolving Credit Commitment (any such increase, an “Incremental Revolving Credit Increase”) and/or (ii) provide one or more incremental term loan commitments (any such incremental term loan commitment, an “Incremental Term Loan Commitment”) to make one or more term loan (any such term loan, an “Incremental Term Loan”), in an aggregate principal amount for all such Incremental Revolving Credit Increases and Incremental Term Loans incurred during the term of this Agreement not to exceed Three Hundred Million Dollars ($300,000,000).  Each such request for an Incremental Revolving Credit Increase and/or Incremental Term Loan, as applicable, shall be in an amount of at least Ten Million Dollars ($10,000,000), increased by increments of One Million Dollars ($1,000,000), and may be made by either (x) increasing, for one or more Lenders, with their prior written consent, their respective Revolving Credit Commitments and/or the addition of an Incremental Term Loan Commitment, and/or (y) including one or more

 

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Additional Lenders, each with a new commitment under the Revolving Credit Commitment or with an Incremental Term Loan Commitment, as applicable, as a party to this Agreement (each an “Additional Commitment” and, collectively, the “Additional Commitments”); provided that existing Lenders (other than any “institutional” lender) shall be given the first opportunity to provide Additional Commitments.  Each Incremental Term Loan may be made as a term loan “A” to be made by one or more Lenders or Additional Lenders and/or a term loan “B” to be made by one or more “institutional” lenders on customary terms determined by Agent, US Borrower and such Additional Lenders, Lenders or lenders, as applicable.

 

(c)                                  Lender Assumption.  During the Commitment Increase Period, all of the Lenders agree that Agent, in its sole discretion, may permit one or more Additional Commitments upon satisfaction of the following requirements: (A) each Additional Lender, if any, shall execute an Additional Lender Assumption Agreement, (B) Agent shall provide to Administrative Borrower and each Lender a revised Schedule 1 to this Agreement, including revised Commitment Percentages for each of the Lenders, if appropriate, at least three Business Days prior to the date of the effectiveness of such Additional Commitments (each an “Additional Lender Assumption Effective Date”), and (C) Borrowers shall execute and deliver to Agent and the Lenders such replacement or additional Revolving Credit Notes as shall be required by Agent (and requested by the Lenders).  The Lenders hereby authorize Agent to execute each Additional Lender Assumption Agreement on behalf of the Lenders.  On each Additional Lender Assumption Effective Date, the Lenders shall make adjustments among themselves with respect to the Revolving Loans then outstanding and amounts of principal, interest, commitment fees and other amounts paid or payable with respect thereto as shall be necessary, in the opinion of Agent, in order to reallocate among such Lenders such outstanding amounts, based on the revised Commitment Percentages and to otherwise carry out fully the intent and terms of this Section 2.9(b) (and the appropriate Borrower shall pay to the Lenders any amounts that would be payable pursuant to Section 3.3 hereof if such adjustments among the Lenders would cause a prepayment of one or more Eurodollar Loans).  In connection therewith, it is understood and agreed that the Revolving Amount of any Lender will not be increased (or decreased except pursuant to Section 2.9(a) hereof) without the prior written consent of such Lender.  Administrative Borrower shall not request any Incremental Revolving Credit Increase or Incremental Term Loan pursuant to this Section 2.9(b) if a Default or an Event of Default shall then exist, or, after giving pro forma effect to any such Incremental Revolving Credit Increase or Incremental Term Loan (including a pro forma calculation of the financial covenants set forth in Section 5.7 hereof) would exist.

 

(d)                                 Modifications to Commitments. Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes Agent on its behalf, and without further consent, to enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as Agent reasonably deems appropriate in order to effectuate the terms of Section 2.9(a) hereof (including, without limitation, as applicable, (i) to permit the Incremental Term Loans and the Incremental Revolving Credit Increases to share ratably in the benefits of this Agreement and the other Loan Documents and (ii) to include the Incremental Term Loan Commitments and the Incremental Revolving Credit Increase, as applicable, or outstanding Incremental Term Loans and outstanding Incremental Revolving Credit Increase, as applicable, in any determination of (A) Required Lenders or (B) similar required lender terms applicable thereto).

 

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Section 2.10                             Computation of Interest and Fees.  With the exception of Base Rate Loans, interest on Loans, Letter of Credit fees, Related Expenses and commitment and other fees and charges hereunder shall be computed on the basis of a year having three hundred sixty (360) days and calculated for the actual number of days elapsed.  With respect to Base Rate Loans, interest shall be computed on the basis of a year having three hundred sixty-five (365) days or three hundred sixty-six (366) days, as the case may be, and calculated for the actual number of days elapsed.

 

Section 2.11                             Mandatory Payments.

 

(a)                                 Revolving Credit Exposure.  If, at any time, the Revolving Credit Exposure shall exceed the Revolving Credit Commitment, US Borrower (and the appropriate Foreign Borrowers) shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Revolving Loans sufficient to bring the Revolving Credit Exposure within the Revolving Credit Commitment.

 

(b)                                 Swing Line Exposure.  If, at any time, the Swing Line Exposure shall exceed the Swing Line Commitment, US Borrower shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Swing Loans sufficient to bring the Swing Line Exposure within the Swing Line Commitment.

 

(c)                                  Alternate Currency Exposure.  If, at any time, the Alternate Currency Exposure shall exceed the Alternate Currency Maximum Amount, US Borrower (and the appropriate Foreign Borrowers) shall, as promptly as practicable, but in no event later than the next Business Day, pay an aggregate principal amount of the Alternate Currency Loans sufficient to bring the Alternate Currency Exposure within the Alternate Currency Maximum Amount.

 

(d)                                 Application of Mandatory Payments.  Unless otherwise designated by Borrowers, each prepayment pursuant to Section 2.11(a), (b) or (c) hereof shall be applied in the following order (i) first, on a pro rata basis for the Lenders, to outstanding Base Rate Loans, (ii) second, on a pro rata basis for the Lenders, to outstanding Eurodollar Loans, and (iii) third, on a pro rata basis for the Lenders, to outstanding Alternate Currency Loans; provided that, if the outstanding principal amount of any LIBOR Fixed Rate Loan shall be reduced to an amount less than the minimum amount set forth in Section 2.5(d) hereof as a result of such prepayment, then such LIBOR Fixed Rate Loan shall be converted into a Base Rate Loan on the date of such prepayment.  Any prepayment of a LIBOR Fixed Rate Loan pursuant to this Section 2.11 shall be subject to the prepayment provisions set forth in Article III hereof.

 

Section 2.12                             Liability of Borrowers.

 

(a)                                 Joint and Several Liability.  Each Borrower hereby authorizes Administrative Borrower or any other Borrower to request Loans or Letters of Credit hereunder.  Each Borrower acknowledges and agrees that Agent and the Lenders are entering into this Agreement at the request of each Borrower and with the understanding that US Borrower is and shall remain fully liable, jointly and severally, for payment in full of the Obligations, and each Foreign Borrower is and shall remain fully liable for payment in full of the Obligations of any other Foreign Borrower, as set forth in the Loan Documents.  Each Borrower agrees that it is receiving or will

 

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receive a direct pecuniary benefit for each Loan made or Letter of Credit issued hereunder (including the Obligations of Foreign Borrowers through Article XI hereof).

 

(b)                                 Appointment of Administrative Borrower.  Each Borrower hereby irrevocably appoints Administrative Borrower as the borrowing agent and attorney-in-fact for all Borrowers, which appointment shall remain in full force and effect unless and until Agent shall have received prior written notice signed by each Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower.  Each Borrower hereby irrevocably appoints and authorizes Administrative Borrower to (i) provide Agent with all notices with respect to Loans and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement, (ii) take such action as Administrative Borrower deems appropriate on its behalf to obtain Loans and Letters of Credit, and (iii) exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement.  It is understood that the handling of the Collateral of Borrowers in a combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their request, and that neither Agent nor any Lender shall incur liability to any Borrower as a result hereof.  Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the continued successful performance of the integrated group.

 

(c)                                  Maximum Liability of Each Foreign Borrower and Rights of Contribution.  Anything in this Agreement or any other Loan Document to the contrary notwithstanding, in no event shall the maximum liability of any Foreign Borrower exceed the maximum amount that (after giving effect to the incurring of the obligations hereunder and to any rights to contribution of such Foreign Borrower from other Affiliates of such Foreign Borrower) would not render the rights to payment of Agent and the Lenders hereunder void, voidable or avoidable under any applicable fraudulent transfer law.  Borrowers hereby agree as among themselves that, in connection with the payments made hereunder, each Foreign Borrower shall have a right of contribution from each other Borrower in accordance with applicable law.  Such contribution rights shall be waived until such time as the Secured Obligations (other than (i) contingent obligations which by their terms survive the termination of this Agreement and (ii) obligations and liabilities under Bank Product Agreements or Hedge Agreements as to which arrangements satisfactory to the applicable Lender (or an entity that is an affiliate of such Lender) shall have been made) have been irrevocably paid in full, and no Borrower shall exercise any such contribution rights until the Secured Obligations have been irrevocably paid in full (other than (i) contingent obligations which by their terms survive the termination of this Agreement and (ii) obligations and liabilities under Bank Product Agreements or Hedge Agreements as to which arrangements satisfactory to the applicable Lender (or an entity that is an affiliate of such Lender) shall have been made).

 

(d)                                 Waivers of Each Borrower.  In the event that any obligation of any Borrower under this Agreement is deemed to be an agreement by such Borrower to answer for the debt or default of another Credit Party or as an hypothecation of property as security therefor, each Borrower represents and warrants that (i) no representation has been made to such Borrower as to the creditworthiness of such other Credit Party, and (ii) such Borrower has established adequate means of obtaining from such other Credit Party on a continuing basis, financial or

 

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other information pertaining to such other Credit Party’s financial condition.  Each Borrower expressly waives, except as expressly required under this Agreement, diligence, demand, presentment, protest and notice of every kind and nature whatsoever, consents to the taking by Agent and the Lenders of any additional security of another Credit Party for the obligations secured hereby, or the alteration or release in any manner of any security of another Credit Party now or hereafter held in connection with the Obligations, and consents that Agent, the Lenders and any other Credit Party may deal with each other in connection with such obligations or otherwise, or alter any contracts now or hereafter existing between them, in any manner whatsoever, including without limitation the renewal, extension, acceleration or changes in time for payment of any such obligations or in the terms or conditions of any security held.  Agent and the Lenders are hereby expressly given the right, at their option, to proceed in the enforcement of any of the Obligations independently of any other remedy or security they may at any time hold in connection with such obligations secured and it shall not be necessary for Agent and the Lenders to proceed upon or against or exhaust any other security or remedy before proceeding to enforce their rights against such Borrower.  Each Borrower further subordinates any right of subrogation, reimbursement, exoneration, contribution, indemnification, setoff or other recourse in respect of sums paid to Agent and the Lenders by any other Credit Party until such time as the Commitment has been terminated and the Secured Obligations have been repaid in full (other than (i) contingent obligations which by their terms survive the termination of this Agreement and (ii) obligations and liabilities under Bank Product Agreements or Hedge Agreements as to which arrangements satisfactory to the applicable Lender (or an entity that is an affiliate of such Lender) shall have been made).

 

(e)                                  Liability of Foreign Borrowers and Foreign Guarantors of Payment.  Anything herein to the contrary notwithstanding, no Foreign Borrower or Foreign Guarantor of Payment shall at any time be liable for the Indebtedness of US Borrower under this Agreement (exclusive of Indebtedness of the Foreign Borrowers that is guaranteed by US Borrower under this Agreement).

 

Section 2.13                             Addition of Foreign Borrowers and Foreign Guarantors of Payment.

 

(a)                                 Addition of Foreign Borrower.  At the request of Administrative Borrower (with at least fifteen (15) days prior written notice to Agent and the Lenders) and the approval of Agent, in its reasonable discretion, a Foreign Subsidiary of US Borrower that shall not then be a Foreign Borrower may become a Foreign Borrower hereunder, provided that all of the following requirements shall have been met to the satisfaction of Agent:

 

(i)                                     such Foreign Subsidiary shall be a Wholly-Owned Subsidiary of US Borrower or shall be a Foreign Subsidiary of which US Borrower owns, directly or indirectly, at least eighty percent (80%) of the equity interests and eighty percent (80%) of the equity interests entitled to vote;

 

(ii)                                  such Foreign Subsidiary (A) shall be organized under the laws of an Approved Foreign Jurisdiction, and (B) shall not be organized under the laws of a jurisdiction for which any Lender (that is organized in the United States) has provided notice to Agent that it is illegal for such Lender, or violates the policies of such Lender

 

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(in such Lender’s reasonable interpretation of such policies), to lend into such foreign jurisdiction;

 

(iii)                               US Borrower and each Domestic Guarantor of Payment shall have guaranteed the obligations of such Foreign Subsidiary under this Agreement pursuant to the terms of a Guaranty of Payment;

 

(iv)                              such Foreign Subsidiary shall have executed an Additional Foreign Borrower Assumption Agreement and appropriate Foreign Borrower Revolving Credit Notes (for Lenders requesting Notes);

 

(v)                                 if required pursuant to Section 5.21 hereof, one or more Foreign Affiliates of such Foreign Subsidiary shall become a Foreign Guarantor of Payment, and shall have executed a Guaranty of Payment with respect to the obligations of such Foreign Subsidiary; and

 

(vi)                              such Foreign Subsidiary that shall become a Foreign Borrower shall have provided to Agent such corporate governance and authorization documents and an opinion of counsel and any other documents and items (including, without limitation, such information as any Lender may request pursuant to Section 11.13 hereof) as may be deemed necessary or advisable by Agent (including an amendment to this Agreement), all of the foregoing to be in form and substance reasonably satisfactory to Agent.

 

(b)                                 Addition of Foreign Guarantor of Payment.  At the request of Administrative Borrower (with at least fifteen (15) days prior written notice to Agent and the Lenders) and the approval of Agent, in its reasonable discretion, a Foreign Subsidiary of US Borrower that shall not then be a Foreign Guarantor of Payment may become a Foreign Guarantor of Payment hereunder, provided that all of the following requirements shall have been met to the satisfaction of Agent:

 

(i)                                     Administrative Borrower shall have provided to Agent a written request that such Foreign Subsidiary be designated as a Foreign Guarantor of Payment pursuant to the terms of this Agreement;

 

(ii)                                  such Foreign Subsidiary shall be a Wholly-Owned Subsidiary of US Borrower or shall be a Foreign Subsidiary of which US Borrower owns, directly or indirectly, at least eighty percent (80%) of the equity interests and eighty percent (80%) of the equity interests entitled to vote;

 

(iii)                               such Foreign Subsidiary shall have executed a Guaranty of Payment with respect to the obligations of one or more Foreign Borrowers as may be required by Agent (provided that there shall be no adverse tax consequences or adverse legal impact); and

 

(iv)                              such Foreign Subsidiary that shall become a Foreign Guarantor of Payment shall have provided to Agent such corporate governance and authorization documents and an opinion of counsel and any other documents and items as may be deemed necessary or advisable by Agent (including an amendment to this Agreement), all of the foregoing to be in form and substance reasonably satisfactory to Agent.

 

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(c)                                  Additional Credit Party Bound by Provisions.  Upon satisfaction by Administrative Borrower and any such Foreign Subsidiary of the requirements set forth in subsections (a) and (b) above, as applicable, Agent shall promptly notify Administrative Borrower and the Lenders, whereupon such Foreign Subsidiary shall be designated a “Foreign Borrower” or “Foreign Guarantor of Payment”, as applicable, pursuant to the terms and conditions of this Agreement, and such Foreign Subsidiary shall become bound by all representations, warranties, covenants, provisions and conditions of this Agreement and each other Loan Document applicable to the Foreign Borrowers or Foreign Guarantors of Payment, as the case may be, as if such Foreign Borrower or Foreign Guarantor of Payment had been the original party making such representations, warranties and covenants.

 

(d)                                 Alternative Structures.  Agent, the Lenders and Borrowers agree that, if the addition of a Foreign Borrower or Foreign Guarantor of Payment pursuant to this Section 2.13 would result in a requirement by such Foreign Borrower or Foreign Guarantor of Payment to pay to any Lenders additional amounts pursuant to Section 3.2 hereof, then Agent, the Lenders and Borrowers agree to use reasonable efforts to designate a different lending office or otherwise propose an alternate structure that would avoid the need for, or reduce the amount of, such additional amounts so long as the same would not, in the reasonable judgment of Agent and the Lenders, be otherwise disadvantageous to Agent and the Lenders.

 

(e)                                  Provisions Relating to the Addition of Foreign Borrowers.  To the extent that a Foreign Borrower is added pursuant to this Section 2.13, and the fully executed Foreign Borrower Assumption Agreement with respect to such Foreign Borrower contains additional legal requirements, terms and conditions applicable to extensions of credit to such Foreign Borrower in the applicable jurisdiction of such Foreign Borrower (as determined by Agent in its reasonable discretion), this Agreement shall be automatically amended solely to incorporate such additional legal requirements, terms and provisions.

 

Section 2.14                             Grant of Additional Security Interests from US Borrower and Domestic Guarantors of Payment.  No later than forty-five (45) days (unless such time period is extended by Agent in writing) after the FB Threshold Date, US Borrower and each Domestic Guarantor of Payment shall execute and deliver to Agent such additional or replacement Security Documents (to be prepared by Agent) and take such additional action, as Agent may deem necessary or appropriate in order to create and perfect a Lien in favor of Agent, for the benefit of the Lenders, in all tangible and intangible assets of the Credit Parties or such thereof as Agent may deem necessary or appropriate (specifically excluding (i) US Borrower’s headquarters at 9197 Peoria Street, Englewood, Colorado, (ii) all leasehold interests in real and personal property and (iii) motor vehicles); provided that upon the cessation of the conditions resulting in a FB Threshold Date for four (4) consecutive fiscal quarters following any such FB Threshold Date, Agent, at the request and expense of US Borrower, shall terminate such replacement Security Documents and all applicable financing statements shall be amended to reflect such termination.

 

Section 2.15                             Extension of Commitment.  Contemporaneously with the delivery of the financial statements required pursuant to Section 5.3(b) hereof, US Borrower may deliver a Request for Extension, requesting that the Lenders extend the Commitment Period for an additional year.  Each such extension shall require the unanimous written consent of all of the Lenders and shall be upon such terms and conditions as may be agreed to by Agent, Borrowers

 

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and the Lenders.  US Borrower shall pay any reasonable attorneys’ fees or other reasonable expenses of Agent in connection with the documentation of any such extension, as well as such other fees as may be agreed upon between Borrowers and Agent.

 

ARTICLE III.  ADDITIONAL PROVISIONS RELATING TO
 LIBOR FIXED RATE LOANS; INCREASED CAPITAL; TAXES

 

Section 3.1                                    Requirements of Law.

 

(a)                                 If, after the Closing Date, (i) the adoption of or any change in any Requirement of Law or in the interpretation or application thereof by a Governmental Authority, or (ii) the compliance by any Lender with any request or directive (whether or not having the force of law) from any central bank or other Governmental Authority:

 

(A)                               shall subject any Lender to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit or any LIBOR Fixed Rate Loan made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Taxes and Excluded Taxes which are governed by Section 3.2 hereof);

 

(B)                               shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender that is not otherwise included in the determination of the Eurodollar Rate or the Alternate Currency Rate; or

 

(C)                               shall impose on such Lender any other condition;

 

and the result of any of the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining LIBOR Fixed Rate Loans or issuing or participating in Letters of Credit, or to reduce any amount receivable hereunder in respect thereof, then, in any such case, US Borrower (and any Foreign Borrower to which such Loan was made) shall pay to such Lender, promptly after receipt of a written request therefor, any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable.  If any Lender becomes entitled to claim any additional amounts pursuant to this subsection (a), such Lender shall promptly notify Administrative Borrower (with a copy to Agent) of the event by reason of which it has become so entitled.

 

(b)                                 If any Lender shall have determined that, after the Closing Date, the adoption of or any change in any Requirement of Law regarding capital adequacy or in the interpretation or application thereof by a Governmental Authority or compliance by such Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of its obligations hereunder, or under or in respect of any Letter of Credit, to a level below that which such Lender or such corporation could have achieved but for such adoption, change or compliance (taking into consideration the policies of such Lender or such corporation with

 

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respect to capital adequacy), then from time to time, upon submission by such Lender to Administrative Borrower (with a copy to Agent) of a written request therefor (which shall include the method for calculating such amount), US Borrower (and any Foreign Borrower to which such Loan was made) shall promptly pay or cause to be paid to such Lender such additional amount or amounts as will compensate such Lender or such corporation for such reduction.

 

(c)                                  A certificate as to any additional amounts payable pursuant to this Section 3.1 submitted by any Lender to Administrative Borrower (with a copy to Agent) shall be conclusive absent manifest error.  In determining any such additional amounts, such Lender may use any method of averaging and attribution that it (in its reasonable discretion) shall deem applicable.  The obligations of Borrowers pursuant to this Section 3.1 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.  Administrative Borrower shall not be required to compensate a Lender pursuant to this Section 3.1 for any increased costs or reductions to the extent such Lender notifies Administrative Borrower thereof more than ninety (90) days after such Lender becomes aware of such right to additional compensation (except that, if the circumstances giving rise to such increased costs or reductions are retroactive, then the ninety (90) day period referred to above shall be extended to include the period of retroactive effect thereof).

 

(d)                                 Notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case in respect of this clause (ii) pursuant to Basel III, shall, in each case, be deemed to be a change in Requirement of Law under subsection (a) above and/or a change in law, rule or regulation (or any provision thereof) regarding capital adequacy under subsection (b) above, as applicable, regardless of the date enacted, adopted or issued.

 

Section 3.2                                    Taxes.

 

(a)                                 All payments made by any Credit Party under any Loan Document shall be made free and clear of, and without deduction or withholding for or on account of any Taxes or Other Taxes.  If any Taxes or Other Taxes are required to be deducted or withheld from any amounts payable to Agent or any Lender hereunder, the amounts so payable to Agent or such Lender shall be increased to the extent necessary to yield to Agent or such Lender (after deducting, withholding and payment of all Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in the Loan Documents.

 

(b)                                 Whenever any Taxes or Other Taxes are required to be withheld and paid by a Credit Party, such Credit Party shall timely withhold and pay such taxes to the relevant Governmental Authorities.  As promptly as possible thereafter, Administrative Borrower shall send to Agent for its own account or for the account of the relevant Lender, as the case may be, a certified copy of an original official receipt received by such Credit Party showing payment thereof or other evidence of payment reasonably acceptable to Agent or such Lender.  If such Credit Party shall fail to pay any Taxes or Other Taxes when due to the appropriate

 

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Governmental Authority or fails to remit to Agent the required receipts or other required documentary evidence, US Borrower and such Credit Party shall indemnify Agent and the appropriate Lenders on demand for any incremental Taxes or Other Taxes paid or payable by Agent or such Lender as a result of any such failure.

 

(c)                                  If any Lender shall be so indemnified by a Credit Party, such Lender shall use reasonable efforts to obtain the benefits of any refund, deduction or credit for any taxes or other amounts with respect to the amount paid by such Credit Party and shall reimburse such Credit Party to the extent, but only to the extent, that such Lender shall receive a refund with respect to the amount paid by such Credit Party or an effective net reduction in taxes or other governmental charges (including any taxes imposed on or measured by the total net income of such Lender) of the United States or any state or subdivision or any other Governmental Authority thereof by virtue of any such deduction or credit, after first giving effect to all other deductions and credits otherwise available to such Lender.  If, at the time any audit of such Lender’s income tax return is completed, such Lender determines, based on such audit, that it shall not have been entitled to the full amount of any refund reimbursed to such Credit Party as aforesaid or that its net income taxes shall not have been reduced by a credit or deduction for the full amount reimbursed to such Credit Party as aforesaid, such Credit Party, upon request of such Lender, shall promptly pay to such Lender the amount so refunded to which such Lender shall not have been so entitled, or the amount by which the net income taxes of such Lender shall not have been so reduced, as the case may be.

 

(d)                                 Each Lender that is not (i) a citizen or resident of the United States of America, (ii) a corporation, partnership or other entity created or organized in or under the laws of the United States of America (or any jurisdiction thereof), or (iii) an estate or trust that is subject to federal income taxation regardless of the source of its income (any such Person, a “Non-U.S. Lender”) shall deliver to Administrative Borrower and Agent two copies of either U.S. Internal Revenue Service Form W-8BEN, Form W-8IMY or Form W-8ECI, 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 statement with respect to such interest and two copies of a Form W-8BEN, or any subsequent versions thereof or successors thereto, properly completed and duly executed by such Non-U.S. Lender claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by Credit Parties 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 such other Loan Document.  In addition, each Non-U.S. Lender shall deliver such forms or appropriate replacements promptly upon the obsolescence or invalidity of any form previously delivered by such Non-U.S. Lender.  Each Non-U.S. Lender shall promptly notify Administrative Borrower at any time it determines that such Lender is no longer in a position to provide any previously delivered certificate to Administrative Borrower (or any other form of certification adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any other provision of this subsection (e), a Non-U.S. Lender shall not be required to deliver any form pursuant to this subsection (e) that such Non-U.S. Lender is not legally able to deliver.

 

(e)                                  A Lender that is entitled to an exemption from or reduction of non-U.S. withholding tax under the law of the jurisdiction in which a Foreign Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under any Loan Document

 

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shall use reasonable efforts to deliver to Administrative Borrower (with a copy to Agent), at the time or times prescribed by applicable law or reasonably requested by Administrative Borrower, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate; provided, that such Lender is legally entitled to complete, execute and deliver such documentation and in such Lender’s judgment such completion, execution or submission would not materially prejudice the legal position of such Lender.

 

(f)                                   The agreements in this Section 3.2 shall survive the termination of the Loan Documents and the payment of the Loans and all other amounts payable hereunder.

 

Section 3.3                                    Funding Losses.  US Borrower (and the appropriate Foreign Borrower) agrees to indemnify each Lender, promptly after receipt of a written request therefor, and to hold each Lender harmless from, any loss or expense that such Lender may sustain or incur as a consequence of (a) default by a Borrower in making a borrowing of, conversion into or continuation of LIBOR Fixed Rate Loans after such Borrower has given a notice (including a written or verbal notice that is subsequently revoked) requesting the same in accordance with the provisions of this Agreement, (b) default by a Borrower in making any prepayment of or conversion from LIBOR Fixed Rate Loans after such Borrower has given a notice (including a written or verbal notice that is subsequently revoked) thereof in accordance with the provisions of this Agreement, (c) the making of a prepayment of a LIBOR Fixed Rate Loan on a day that is not the last day of an Interest Period applicable thereto, (d) any conversion of a Eurodollar Loan to a Base Rate Loan on a day that is not the last day of an Interest Period applicable thereto, or (e) any compulsory assignment of such Lender’s interests, rights and obligations under this Agreement pursuant to Section 11.3(c) hereof.  Such indemnification shall be in an amount equal to the excess, if any, of (i) the amount of interest that would have accrued on the amounts so prepaid, or not so borrowed, converted or continued, for the period from the date of such prepayment or of such failure to borrow, convert or continue to the last day of such Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that would have commenced on the date of such failure) in each case at the applicable rate of interest for such Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount of interest (as reasonably determined by such Lender) that would have accrued to such Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the appropriate London interbank market, along with any administration fee charged by such Lender.  A certificate as to any amounts payable pursuant to this Section 3.3 submitted to Administrative Borrower (with a copy to Agent) by any Lender shall be conclusive absent manifest error.  The obligations of Borrowers pursuant to this Section 3.3 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

Section 3.4                                    Change of Lending Office.  Each Lender agrees that, upon the occurrence of any event giving rise to the operation of Section 3.1 or 3.2(a) hereof with respect to such Lender, it will, if requested by Administrative Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate another lending office (or an affiliate of such Lender, if practical for such Lender) for any Loans affected by such event with the object of avoiding the consequences of such event; provided, that such designation is made on terms that, in the sole judgment of such Lender, cause such Lender and its lending office(s) to suffer no

 

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economic, legal or regulatory disadvantage; and provided, further, that nothing in this Section 3.4 shall affect or postpone any of the obligations of any Borrower or the rights of any Lender pursuant to Section 3.1 or 3.2(a) hereof.

 

Section 3.5                                    Eurodollar Rate or Alternate Currency Rate Lending Unlawful; Inability to Determine Rate.

 

(a)                                 If any Lender shall determine (which determination shall, upon notice thereof to Administrative Borrower and Agent, be conclusive and binding on Borrowers) that, after the Closing Date, (i) the introduction of or any change in or in the interpretation of any law makes it unlawful, or (ii) any Governmental Authority asserts that it is unlawful, for such Lender to make or continue any Loan as, or to convert (if permitted pursuant to this Agreement) any Loan into, a LIBOR Fixed Rate Loan, the obligations of such Lender to make, continue or convert any such LIBOR Fixed Rate Loan shall, upon such determination, be suspended until such Lender shall notify Agent that the circumstances causing such suspension no longer exist, and all outstanding LIBOR Fixed Rate Loans payable to such Lender shall automatically convert (if conversion is permitted under this Agreement) into a Base Rate Loan, or be repaid (if no conversion is permitted) at the end of the then current Interest Periods with respect thereto or sooner, if required by law or such assertion.

 

(b)                                 If Agent or the Required Lenders determine that for any reason adequate and reasonable means do not exist for determining the Eurodollar Rate or Alternate Currency Rate for any requested Interest Period with respect to a proposed LIBOR Fixed Rate Loan, or that the Eurodollar Rate or Alternate Currency Rate for any requested Interest Period with respect to a proposed LIBOR Fixed Rate Loan does not adequately and fairly reflect the cost to the Lenders of funding such Loan, Agent will promptly so notify Administrative Borrower and each Lender.  Thereafter, the obligation of the Lenders to make or maintain such LIBOR Fixed Rate Loan shall be suspended until Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, Administrative Borrower may revoke any pending request for a borrowing of, conversion to or continuation of such LIBOR Fixed Rate Loan or, failing that, will be deemed to have converted such request into a request for a borrowing of a Base Rate Loan in the amount specified therein.

 

Section 3.6                                    Replacement of Lenders.  Administrative Borrower shall be permitted to replace any Lender that requests reimbursement for amounts owing pursuant to Section 3.1 or 3.2(a) hereof, or asserts its inability to make a LIBOR Fixed Rate Loan pursuant to Section 3.5 hereof; provided that (a) such replacement does not conflict with any Requirement of Law, (b) no Default or Event of Default shall have occurred and be continuing at the time of such replacement, (c) prior to any such replacement, such Lender shall have taken no action under Section 3.4 hereof so as to eliminate the continued need for payment of amounts owing pursuant to Section 3.1 or 3.2(a) hereof or, if it has taken any action, such request has still been made, (d) the replacement financial institution shall purchase, at par, all Loans and other amounts owing to such replaced Lender on or prior to the date of replacement and assume all commitments and obligations of such replaced Lender, (e) the appropriate Borrowers shall be liable to such replaced Lender under Section 3.3 hereof if any LIBOR Fixed Rate Loan owing to such replaced Lender shall be purchased other than on the last day of the Interest Period relating thereto, (f) the replacement Lender, if not already a Lender, shall be satisfactory to Agent, (g) the

 

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replaced Lender shall be obligated to make such replacement in accordance with the provisions of Section 12.10 hereof (provided that Borrowers (or the succeeding Lender, if such Lender is willing) shall be obligated to pay the assignment fee referred to therein), and (h) until such time as such replacement shall be consummated, the appropriate Borrowers shall pay all additional amounts (if any) required pursuant to Section 3.1 or 3.2(a) hereof, as the case may be.

 

Section 3.7                                    Discretion of Lenders as to Manner of Funding.  Notwithstanding any provision of this Agreement to the contrary, each Lender shall be entitled to fund and maintain its funding of all or any part of such Lender’s Loans in any manner such Lender deems to be appropriate; it being understood, however, that for the purposes of this Agreement all determinations hereunder shall be made as if such Lender had actually funded and maintained each Eurodollar Loan or Alternate Currency Loan during the applicable Interest Period for such Loan through the purchase of deposits having a maturity corresponding to such Interest Period and bearing an interest rate equal to the Eurodollar Rate or Alternate Currency Rate, as applicable, for such Interest Period.  In addition, each Lender may, at its option, fund its portion of a Loan requested by a Foreign Borrower to Agent by causing any foreign or domestic branch or affiliate of such Lender to provide such funding; provided that any exercise of such option shall not affect the obligation of such Foreign Borrower to repay such Loan in accordance with the terms of this Agreement, and such Lender and its affiliate or branch shall cooperate and communicate with Agent in order to coordinate such arrangement.

 

ARTICLE IV.  CONDITIONS PRECEDENT

 

Section 4.1                                    Conditions to Each Credit Event.  The obligation of the Lenders, the Fronting Lender and the Swing Line Lender to participate in any Credit Event shall be conditioned, in the case of each Credit Event, upon the following:

 

(a)                                 all conditions precedent as listed in Section 4.2 hereof required to be satisfied prior to the first Credit Event shall have been satisfied prior to or as of the first Credit Event;

 

(b)                                 Administrative Borrower shall have submitted a Notice of Loan (or with respect to a Letter of Credit, complied with the provisions of Section 2.2(b)(ii) hereof) and otherwise complied with Section 2.5 hereof;

 

(c)                                  no Default or Event of Default shall then exist or immediately after such Credit Event would exist;

 

(d)                                 no condition or event shall have occurred that Agent or the Required Lenders determine has or is reasonably likely to have a Material Adverse Effect;

 

(e)                                  each of the representations and warranties contained in Article VI hereof shall be true in all material respects as if made on and as of the date of such Credit Event, except to the extent that any thereof expressly relate to an earlier date; and

 

(f)                                   with respect to each request by Borrowers for an Alternate Currency Loan or for a Letter of Credit to be issued in an Alternate Currency, there shall not have occurred any change in any national or international financial, political or economic conditions or currency exchange rates or exchange controls that, in the reasonable opinion of Agent and the Required Lenders

 

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(and the Fronting Lender, with respect to any Letter of Credit to be issued in an Alternate Currency) would make it impracticable for such Loan or Letter of Credit to be denominated in the relevant Alternate Currency.

 

Each request by Administrative Borrower or any other Borrower for a Credit Event shall be deemed to be a representation and warranty by Borrowers as of the date of such request as to the satisfaction of the conditions precedent specified in subsections (c), (d), (e) and (f) above.

 

Section 4.2                                    Conditions to the First Credit Event.  US Borrower shall cause the following conditions to be satisfied on or prior to the Closing Date.  The obligation of the Lenders, the Fronting Lender and the Swing Line Lender to participate in the first Credit Event is subject to US Borrower satisfying each of the following conditions prior to or concurrently with such Credit Event:

 

(a)                                 Notes as Requested.  US Borrower shall have executed and delivered to (i) each Lender requesting a US Borrower Revolving Credit Note such Lender’s US Borrower Revolving Credit Note, and (ii) the Swing Line Lender the Swing Line Note, if requested by the Swing Line Lender.

 

(b)                                 Guaranties of Payment.  Each Domestic Guarantor of Payment shall have executed and delivered to Agent, for the benefit of the Lenders, a Guaranty of Payment, in form and substance satisfactory to Agent and the Lenders.

 

(c)                                  Security Agreements.  US Borrower and each Domestic Guarantor of Payment shall have executed and delivered to Agent, for the benefit of the Lenders, a Security Agreement and such other documents or instruments, as may be reasonably required by Agent to create or perfect the Liens of Agent, for the benefit of the Lenders, in the assets of such Credit Party, all to be in form and substance reasonably satisfactory to Agent and the Lenders.

 

(d)                                 Pledge Agreements.  US Borrower and each Domestic Subsidiary that has a Foreign Subsidiary shall have (i) executed and delivered to Agent, for the benefit of the Lenders, a Pledge Agreement, in form and substance satisfactory to Agent, with respect to (A) sixty-five percent (65%) of the voting shares of capital stock or other voting equity interests of each First-Tier Material Foreign Subsidiary, and (B) one hundred percent (100%) of all non-voting shares of capital stock or other non-voting equity interests of each First-Tier Material Foreign Subsidiary, (ii) executed and delivered to Agent, for the benefit of the Lenders, appropriate transfer powers for each of the Pledged Securities with respect thereto, and (iii) delivered to Agent, for the benefit of the Lenders, such Pledged Securities (to the extent such Pledged Securities are certificated).

 

(e)                                  Lien Searches.  With respect to the property owned or leased by each Credit Party, and any other property securing the Obligations, US Borrower shall have caused to be delivered to Agent (i) the results of Uniform Commercial Code lien searches, satisfactory to Agent and the Lenders, (ii) the results of federal and state tax lien and judicial lien searches, satisfactory to Agent and the Lenders, and (iii) Uniform Commercial Code termination statements reflecting termination of all U.C.C. Financing Statements previously filed by any Person and not expressly permitted pursuant to Section 5.9 hereof.

 

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(f)                                   Officer’s Certificate, Resolutions, Organizational Documents.  US Borrower shall have delivered to Agent an officer’s certificate (or comparable domestic or foreign documents) certifying the names of the officers of each Credit Party authorized to sign the Loan Documents, together with the true signatures of such officers and certified copies of (i) the resolutions of the board of directors (or comparable domestic or foreign documents) of such Credit Party evidencing approval of the execution and delivery of the Loan Documents and the execution of other Related Writings to which such Credit Party is a party, and (ii) the Organizational Documents of such Credit Party.

 

(g)                                  Good Standing and Full Force and Effect Certificates.  US Borrower shall have delivered to Agent a good standing certificate or full force and effect certificate (or comparable document, if neither certificate is available in the applicable jurisdiction), as the case may be, for each Credit Party, issued on or about the Closing Date by the Secretary of State or comparable entity in the state or states where such Credit Party is incorporated or formed.

 

(h)                                 Legal Opinion.  US Borrower shall have delivered to Agent an opinion of counsel for US Borrower and each Domestic Guarantor of Payment, in form and substance reasonably satisfactory to Agent and the Lenders.

 

(i)                                     Borrower Investment Policy.  US Borrower shall have delivered to Agent a copy of the Borrower Investment Policy.

 

(j)                                    Fee Letter and Other Fees.  US Borrower shall have (i) executed and delivered to Agent, the Fee Letter and paid to Wells Fargo Securities, LLC or its Affiliates, for their respective account, the fees stated therein and (ii) paid all reasonable legal fees and expenses of Agent in connection with the preparation and negotiation of the Loan Documents (which legal fees and expenses of Agent shall be consistent with those set forth in the Fee Letter and include all fees, charges and disbursements of counsel to Agent to the extent invoiced in reasonable detail at least one (1) Business Day prior to the Closing Date).

 

(k)                                 Closing Certificate.  US Borrower shall have delivered to Agent and the Lenders an officer’s certificate certifying that, as of the Closing Date, (i) all conditions precedent set forth in this Article IV have been satisfied, (ii) no Default or Event of Default exists nor immediately after the first Credit Event will exist, and (iii) each of the representations and warranties contained in Article VI hereof are true and correct as of the Closing Date.

 

(l)                                     Letter of Direction.  US Borrower shall have delivered to Agent a letter of direction authorizing Agent, on behalf of the Lenders, to disburse the proceeds of the Loans, which letter of direction includes the authorization to transfer funds under this Agreement and the wire instructions that set forth the locations to which such funds shall be sent.

 

(m)                             Miscellaneous.  US Borrower shall have provided to Agent and the Lenders such other items and shall have satisfied such other conditions as may be reasonably required by Agent or the Lenders.

 

ARTICLE V.  COVENANTS

 

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Section 5.1                                    Insurance.  Each Company shall (a) maintain insurance to such extent and against such hazards and liabilities as is commonly maintained by Persons similarly situated; and (b) within ten (10) days of Agent’s written request, furnish to Agent such information about such Company’s insurance as Agent may from time to time reasonably request, which information shall be prepared in form and detail reasonably satisfactory to Agent and certified by a Financial Officer.

 

Section 5.2                                    Money Obligations.  Each Company shall pay in full (a) prior in each case to the date when material penalties would attach, all material taxes, assessments and governmental charges and levies (except only those so long as and to the extent that the same shall be contested in good faith by appropriate and timely proceedings and for which adequate provisions have been established in accordance with GAAP) for which it may be or become liable or to which any or all of its properties may be or become subject; (b) in the case of US Borrower and the Domestic Guarantors of Payment, all of its material wage obligations to its employees in compliance with the Fair Labor Standards Act (29 U.S.C. §§ 206-207) or any comparable provisions, and, in the case of the Foreign Subsidiaries, those obligations under foreign laws with respect to employee source deductions, obligations and employer obligations to its employees; and (c) all of its other material obligations calling for the payment of money (except only those so long as and to the extent that the same shall be contested in good faith and for which adequate provisions have been established in accordance with GAAP) before such payment becomes overdue.

 

Section 5.3                                    Financial Statements and Information.

 

(a)                                 Quarterly Financials.  Administrative Borrower shall deliver to Agent, within forty-five (45) days after the end of each of the first three quarterly periods of each fiscal year of US Borrower, balance sheets of the Companies as of the end of such period and statements of income (loss), stockholders’ equity and cash flow for the quarter and fiscal year to date periods, all prepared on a Consolidated basis, in form and detail satisfactory to Agent and certified by a Financial Officer of US Borrower.

 

(b)                                 Annual Audit Report.  Administrative Borrower shall deliver to Agent, within ninety (90) days after the end of each fiscal year of US Borrower, an annual audit report of the Companies for that year prepared on a Consolidated basis, in form and detail satisfactory to Agent and certified by an unqualified opinion of an independent public accountant satisfactory to Agent, which report shall include balance sheets and statements of income (loss), stockholders’ equity and cash-flow for that period.

 

(c)                                  Compliance Certificate.  Administrative Borrower shall deliver to Agent concurrently with the delivery of the financial statements set forth in Sections 5.3(a) and (b) hereof, a Compliance Certificate.

 

(d)                                 Expected Earn-Out Amount.  Administrative Borrower shall deliver to Agent, concurrently with the delivery of each Compliance Certificate, a calculation of the Expected Earn-Out Amount for the next twelve (12) month period.

 

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(e)                                  Pro-Forma Projections.  Administrative Borrower shall deliver to Agent, within ninety (90) days after the end of each fiscal year of US Borrower, annual pro-forma projections of the Companies for the then current fiscal year, to be in form and detail acceptable to Agent.

 

(f)                                   Shareholder and SEC Documents.  Administrative Borrower shall deliver to Agent, as soon as available, copies of all notices, reports, definitive proxy or other statements and other documents sent by US Borrower to its shareholders, to the holders of any of its debentures or bonds or the trustee of any indenture securing the same or pursuant to which they are issued, or sent by US Borrower (in final form) to any securities exchange or over the counter authority or system, or to the SEC or any similar federal agency having regulatory jurisdiction over the issuance of US Borrower’s securities.

 

(g)                                  Changes in Accounting Principles.  If, as a result of any change in accounting principles and policies (or the application thereof) from those used in the preparation of the historical financial statements, the Consolidated financial statements of US Borrower and its Subsidiaries delivered pursuant to Section 5.3(a) or 5.3(b) will differ in any material respect from the Consolidated financial statements that would have been delivered pursuant to such sections had no such change in accounting principles and policies been made, then, together with the first delivery of such financial statements after such change, Administrative Borrower shall deliver to Agent one or more statements of reconciliation for all such prior financial statements in form and substance satisfactory to Agent.

 

(h)                                 Financial Information of the Companies.  Administrative Borrower shall deliver to Agent, within fifteen (15) Business Days of the written request of Agent, or as soon thereafter as is reasonably practicable, such other information about the financial condition, properties and operations of any Company as Agent may from time to time reasonably request, which information shall be submitted in form and detail satisfactory to Agent and certified by a Financial Officer of the Company or Companies in question.

 

Section 5.4                                    Financial Records.  Each Company shall at all times maintain true and complete records and books of account, including, without limiting the generality of the foregoing, appropriate provisions for possible losses and liabilities, all in accordance with GAAP, and at all reasonable times (during normal business hours and upon reasonable notice to such Company) permit Agent, or any representative of Agent, to examine such Company’s books and records and to make excerpts therefrom and transcripts thereof.

 

Section 5.5                                    Franchises; Change in Business.

 

(a)                                 Each Company (other than a Dormant Subsidiary) shall preserve and maintain at all times its existence, and its rights and franchises necessary for its business, except as otherwise permitted pursuant to Section 5.12 hereof.

 

(b)                                 No Company shall engage in any business if, as a result thereof, the general nature of the business of the Companies taken as a whole would be substantially changed from the general nature of the business the Companies are engaged in on the Closing Date.

 

Section 5.6                                    ERISA Pension and Benefit Plan Compliance.

 

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(a)                                 Generally.  No Company shall incur any material accumulated funding deficiency within the meaning of ERISA, or any material liability to the PBGC, established thereunder in connection with any ERISA Plan.  US Borrower shall furnish to Agent and the Lenders (i) as soon as possible and in any event within thirty (30) days after any Company knows or has reason to know that any Reportable Event with respect to any ERISA Plan has occurred, a statement of a Financial Officer of such Company, setting forth details as to such Reportable Event and the action that such Company proposes to take with respect thereto, together with a copy of the notice of such Reportable Event given to the PBGC if a copy of such notice is available to such Company, and (ii) promptly after receipt thereof a copy of any notice such Company, or any member of the Controlled Group may receive from the PBGC or the Internal Revenue Service with respect to any ERISA Plan administered by such Company; provided that this latter clause shall not apply to notices of general application promulgated by the PBGC or the Internal Revenue Service.  US Borrower shall promptly notify Agent of any material taxes assessed, proposed to be assessed or that US Borrower has reason to believe is reasonably likely to be assessed against a Company by the Internal Revenue Service with respect to any ERISA Plan.  As used in this Section 5.6(a), “material” means the measure of a matter of significance that shall be determined as being an amount equal to five percent (5%) of Consolidated Net Worth.  As soon as practicable, and in any event within twenty (20) days, after any Company shall become aware that an ERISA Event shall have occurred, such Company shall provide Agent with notice of such ERISA Event with a certificate by a Financial Officer of such Company setting forth the details of the event and the action such Company or another Controlled Group member proposes to take with respect thereto.  US Borrower shall, at the request of Agent, deliver or cause to be delivered to Agent true and correct copies of any documents relating to the ERISA Plan of any Company.

 

(b)                                 Foreign Pension Plans and Benefit Plans.

 

(i)                                     For each existing, or hereafter adopted, Foreign Pension Plan and Foreign Benefit Plan, Administrative Borrower and any appropriate Foreign Subsidiary shall in a timely fashion comply with and perform in all material respects all of its obligations under and in respect of such Foreign Pension Plan or Foreign Benefit Plan, including under any funding agreements and all applicable laws (including any fiduciary, funding, investment and administration obligations).

 

(ii)                                  All employer or employee payments, contributions or premiums required to be remitted, paid to or in respect of each Foreign Pension Plan or Foreign Benefit Plan shall be paid or remitted by Administrative Borrower and any appropriate Foreign Subsidiary in a timely fashion in accordance with the terms thereof, any funding agreements and all applicable laws.

 

(iii)                               Administrative Borrower and any appropriate Foreign Subsidiary shall deliver to Agent (A) if requested by Agent, copies of each annual and other return, report or valuation with respect to each Foreign Pension Plan as filed with any applicable Governmental Authority; (B) promptly after receipt thereof, a copy of any material direction, order, notice, ruling or opinion that Administrative Borrower and any appropriate Foreign Subsidiary may receive from any applicable Governmental Authority with respect to any Foreign Pension Plan; and (C) notification within thirty (30) days of

 

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any increases having a cost to the Companies in excess of Two Hundred Fifty Thousand Dollars ($250,000) per annum in the aggregate, in the benefits of any existing Foreign Pension Plan or Foreign Benefit Plan, or the establishment of any new Foreign Pension Plan or Foreign Benefit Plan, or the commencement of contributions to any such plan to which the Companies were not previously contributing.

 

Section 5.7                                    Financial Covenants.

 

(a)                                 Leverage Ratio.  US Borrower shall not suffer or permit at any time the Leverage Ratio to exceed 3.50 to 1.00, subject to modification as set forth below.

 

(b)                                 Senior Leverage Ratio.  US Borrower shall not suffer or permit at any time the Senior Leverage Ratio to exceed 3.00 to 1.00, subject to modification as set forth below.

 

(c)                                  Interest Coverage Ratio.  US Borrower shall not suffer or permit at any time the Interest Coverage Ratio to be less than 2.50 to 1.00.

 

(d)                                 Available Liquidity for Expected Earn-Out Amount.  US Borrower shall not suffer or permit at any time the Available Liquidity to be less than the Expected Earn-Out Amount as of the last day of the most recently completed fiscal quarter.

 

Notwithstanding the foregoing, upon the consummation of any Acquisition with Consideration in excess of Seventy-Five Million Dollars ($75,000,000) and upon written request of US Borrower, the required levels for the Leverage Ratio and the Senior Leverage Ratio shall be increased commencing with the date of such Acquisition and continuing thereafter for the next three full fiscal quarters of US Borrower in accordance with the following schedule:

 

	
Period
    	
 
    	
Leverage Ratio
    	
 
    	
Senior Leverage Ratio
    	
 
    
	
Acquisition date through and including the first and   second full fiscal quarters ending after the Acquisition date
    	
 
    	
4.00 to 1.00
    	
 
    	
3.50 to 1.00
    	
 
    
	
Third full fiscal quarter ending after the   Acquisition date
    	
 
    	
3.75 to 1.00
    	
 
    	
3.25 to 1.00
    	
 
    
	
Fourth full fiscal quarter ending after the   Acquisition date and thereafter
    	
 
    	
3.50 to 1.00
    	
 
    	
3.00 to 1.00
    	
 
    

 

Each such modification set forth above shall be subject to (i) the approval of Agent (which such approval shall not be unreasonably withheld, conditioned or delayed) and (ii) US Borrower providing a plan in form and substance reasonably satisfactory to Agent as to the steps taken, or to be taken, to reduce the Leverage Ratio and Senior Leverage Ratio over the applicable three fiscal quarter period.  US Borrower may only request two modifications to the Leverage Ratio and Senior Leverage Ratio during the term of this Agreement.

 

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Section 5.8                                    Borrowing.  No Company shall create, incur or have outstanding any Indebtedness of any kind; provided that this Section 5.8 shall not apply to the following:

 

(a)                                 the Loans, the Letters of Credit and any other Indebtedness under this Agreement;

 

(b)                                 any loans granted to, or Capitalized Lease Obligations entered into by any Company for the purchase or lease of fixed assets (and refinancings of such loans or Capitalized Lease Obligations), which loans and Capitalized Lease Obligations shall only be secured by the fixed assets being purchased or leased;

 

(c)                                  the Indebtedness existing on the Closing Date, in addition to the other Indebtedness permitted to be incurred pursuant to this Section 5.8, as set forth in Schedule 5.8 hereto (and any extension, renewal or refinancing thereof but only to the extent that the principal amount thereof does not increase after the Closing Date);

 

(d)                                 Indebtedness incurred by Foreign Subsidiaries (in addition to the Indebtedness permitted pursuant to subparts (a) and (h) hereof) in an aggregate amount not to exceed, for all such Indebtedness of all Foreign Subsidiaries, the greater of (i) seven and one-half percent (7.5%) of Consolidated Total Assets, or (ii) Twenty-Five Million Dollars ($25,000,000) at any time outstanding;

 

(e)                                  any loans from a Company to a Company permitted under Section 5.11 hereof;

 

(f)                                   Indebtedness under any Hedge Agreement, so long as such Hedge Agreement shall have been entered into in the ordinary course of business and not for speculative purposes;

 

(g)                                  Indebtedness of a Foreign Subsidiary under an accounts receivable facility, in an aggregate amount for all such facilities of all Foreign Subsidiaries not to exceed Twenty Million Dollars ($20,000,000), so long as no portion of the Indebtedness or any other obligation (contingent or otherwise) under such facility is guaranteed by any Credit Party and no Credit Party provides, either directly or indirectly, any credit support of any kind in connection with such facility;

 

(h)                                 Subordinated Indebtedness, so long as (i) the Companies are in compliance (and in pro forma compliance after giving effect to such Subordinated Indebtedness) with the provisions of Article V hereof, (ii) the documentation with respect to such Subordinated Indebtedness is in form and substance reasonably acceptable to Agent (and, if the aggregate amount of such Subordinated Indebtedness is in excess of Ten Million Dollars ($10,000,000), the Required Lenders), as determined by Agent and, if applicable, the Required Lenders, prior to the incurrence of such Subordinated Indebtedness, (iii) the maturity date (and earliest possible put date) of such Subordinated Indebtedness is at least thirty (30) days after the last day of the Commitment Period (as such Commitment Period may be extended pursuant to Section 2.15 hereof), and (iv) prior to the incurrence of such Subordinated Indebtedness, if the aggregate amount of all Subordinated Indebtedness of the Foreign Subsidiaries exceeds (or will exceed, after the incurrence of such Subordinated Indebtedness) Ten Million Dollars ($10,000,000), each Foreign Subsidiary that is directly or indirectly liable for such Subordinated Indebtedness shall either become a Foreign Borrower or Foreign Guarantor, as appropriate, in the discretion of Agent, in consultation with US Borrower;

 

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(i)                                     loans to Percepta and its Subsidiaries in an aggregate amount at any time outstanding not to exceed the greater of (i) twenty percent (20%) of the net revenues of Percepta and its Subsidiaries for the most recently completed four fiscal quarters, and (ii) Twenty Million Dollars ($20,000,000);

 

(j)                                    loans to a joint venture (in which one or more Companies own an equity interest) in an aggregate amount at any time outstanding not to exceed the greater of (i) twenty percent (20%) of the net revenues of such joint venture for the most recently completed four fiscal quarters, and (ii) the total, for all such joint ventures, of Twenty Million Dollars ($20,000,000);

 

(k)                                 Indebtedness of a Company that was initially indebtedness of a target entity that has been acquired by the Companies pursuant to Section 5.13 hereof and that becomes Indebtedness of a Company through a merger of the target into a Company, so long as (i) such Indebtedness was not incurred in anticipation of such Acquisition, or (ii) if any such Indebtedness was incurred by a target entity (or entities) in anticipation of an Acquisition, the aggregate amount of all such Indebtedness for all Companies (with respect to all such Acquisitions) outstanding at any time (that in each case is outstanding beyond thirty (30) days after the relevant Indebtedness was acquired by the Companies) shall not exceed Twenty Million Dollars ($20,000,000);

 

(l)                                     Indebtedness of a Company incurred pursuant to Synthetic Leases;

 

(m)                             Indebtedness of a Company that is owing to any governmental entity, including, without limitation, industrial revenue bonds and grants issued by any governmental entity to such Company;

 

(n)                                 Indebtedness not otherwise described in or subject to subparts (a) through (m) hereof in an aggregate principal amount not to exceed the greater of (i) five percent (5%) of Consolidated total assets of US Borrower, or (ii) Five Million Dollars ($5,000,000) at any time outstanding; and

 

(o)                                 other unsecured Indebtedness, in addition to the Indebtedness listed above, so long as (i) no Default or Event of Default shall then exist or immediately thereafter shall begin to exist, (ii) the maturity date (and earliest possible put date) of such Indebtedness is at least thirty (30) days after the last day of the Commitment Period, (iii) the Companies are in compliance (and in pro forma compliance after giving effect to such Indebtedness) with the provisions of Section 5.7 hereof, and (iv) if the amount of such Indebtedness is equal to or greater than Twenty Million Dollars ($20,000,000), such Indebtedness is created pursuant to documentation in form and substance reasonably satisfactory to Agent.

 

Section 5.9                                    Liens.  No Company shall create, assume or suffer to exist (or enter into a contract that creates a consensual Lien upon the happening of a contingency or otherwise) any Lien upon any of its property or assets, whether now owned or hereafter acquired; provided that this Section 5.9 shall not apply to the following:

 

(a)                                 Liens for taxes not yet due or that are being actively contested in good faith by appropriate proceedings and for which adequate reserves shall have been established in accordance with GAAP;

 

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(b)                                 other statutory Liens, including, without limitation, statutory Liens of landlords, carriers, warehousers, utilities, mechanics, repairmen, workers and materialmen, incidental to the conduct of its business or the ownership of its property and assets that (i) were not incurred in connection with the borrowing of money or the obtaining of advances or credit, and (ii) do not in the aggregate materially detract from the value of its property or assets or materially impair the use thereof in the operation of its business;

 

(c)                                  Liens on property or assets of a Subsidiary to secure obligations of such Subsidiary to a Credit Party;

 

(d)                                 any Lien granted to Agent, for the benefit of the Lenders;

 

(e)                                  the Liens existing on the Closing Date as set forth in Schedule 5.9 hereto and replacements, extensions, renewals, refundings or refinancings thereof, but only to the extent that the amount of debt secured thereby, and the amount and description of property subject to such Liens, shall not be increased;

 

(f)                                   purchase money Liens on fixed assets securing the loans and Capitalized Lease Obligations pursuant to Section 5.8(b) hereof; provided that such Lien is limited to the purchase price and only attaches to the property being acquired;

 

(g)                                  easements or other minor defects or irregularities in title of real property not interfering in any material respect with the use of such property in the business of any Company;

 

(h)                                 any Lien on fixed assets owned by a Company as a result of an Acquisition permitted pursuant to Section 5.13 hereof, so long as (i) such Lien was not created at the time of or in contemplation of such Acquisition, and (ii) such Lien is released within one hundred eighty (180) days after such Acquisition (unless (A) Borrowers shall have obtained the prior written consent of Agent, or (B) such Lien would otherwise be permitted pursuant to Section 5.9(f) or (i) hereof);

 

(i)                                     any Lien on fixed assets owned by a Company (in addition to the Liens permitted pursuant to subparts (f) and (h) hereof) to secure Indebtedness permitted pursuant to Section 5.8 hereof, in an aggregate amount, for all of the Companies, not to exceed Twenty-Five Million Dollars ($25,000,000) at any time outstanding;

 

(j)                                    any Lien on assets of Percepta and its Subsidiaries securing Indebtedness described in Section 5.8(i) hereof in an aggregate principal amount, for Percepta and all of its Subsidiaries, not to exceed Five Million Dollars ($5,000,000) at any time outstanding;

 

(k)                                 any U.C.C. Financing Statement filed to provide notice of (i) an Operating Lease entered into in the ordinary course of business, or (ii) a Synthetic Lease permitted under Section 5.8(l) hereof; and

 

(l)                                     any Liens (on assets that do not constitute Collateral), not otherwise described in or subject to subparts (a) through (j) hereof, securing Indebtedness (other than Indebtedness for borrowed money) in an aggregate principal amount for all such Indebtedness and all such Liens not to exceed Two Million Dollars ($2,000,000) at any time outstanding.

 

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No Company shall enter into any contract or agreement (other than a contract or agreement entered into in connection with (A) the purchase or lease of fixed assets that prohibits Liens on such fixed assets, or (B) the incurrence of Indebtedness permitted pursuant to Section 5.8(h) hereof that prohibits Liens on the assets of Percepta) that would prohibit Agent or the Lenders from acquiring a security interest, mortgage or other Lien on, or a collateral assignment of, any of the property or assets of such Company.

 

Section 5.10                             Regulations T, U and X.  No Company shall take any action that would result in any non-compliance of the Loans or Letters of Credit with Regulations T, U or X, or any other applicable regulation, of the Board of Governors of the Federal Reserve System.

 

Section 5.11                             Investments, Loans and Guaranties.  No Company shall (a) create, acquire or hold any Subsidiary, (b) make or hold any investment in any stocks, bonds or securities of any kind, (c) be or become a party to any joint venture or other partnership, (d) make or keep outstanding any advance or loan to any Person, or (e) be or become a Guarantor of any kind (other than a Guarantor of Payment under the Loan Documents); provided that this Section 5.11 shall not apply to the following:

 

(i)                                     investments made in accordance with the Borrower Investment Policy;

 

(ii)                                  the holding of each of the Subsidiaries listed on Schedule 6.1 hereto, and the creation, acquisition and holding of, and any investment in, any new Subsidiary after the Closing Date so long as such new Subsidiary shall have been created, acquired or held, and investments made, in accordance with the terms and conditions of this Agreement;

 

(iii)                               any investment in, loan to or guaranty of the Indebtedness of, US Borrower or a Domestic Guarantor of Payment from or by a Company;

 

(iv)                              any investment in, loan to or guaranty of the Indebtedness of, a Foreign Borrower or a Foreign Guarantor of Payment from or by a Foreign Borrower or a Foreign Guarantor of Payment;

 

(v)                                 any investment in, loan to or guaranty of the Indebtedness of, a Foreign Subsidiary so long as the Companies are in compliance (and in pro forma compliance after giving effect to such loan, investment or guaranty) with the provisions of Section 5.7 hereof;

 

(vi)                              any investment in, loan to or guaranty of the Indebtedness of, a joint venture of a Company, so long as the Companies are in compliance (and in pro forma compliance after giving effect to such investment) with the provisions of Section 5.7 hereof;

 

(vii)                           any advance or loan to an officer or employee of a Company, so long as all such advances and loans from all Companies (specifically excluding any advance or loan assumed through an Acquisition) aggregate not more than the principal sum of Five Million Dollars ($5,000,000) at any time outstanding;

 

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(viii)                        the holding of any stock that has been acquired pursuant to an Acquisition permitted under Section 5.13 hereof; or

 

(ix)                              other investments of, loans from or guaranties by, the Companies in an aggregate amount not to exceed, for all Companies, the greater of (A) five percent (5%) of Consolidated total assets of US Borrower, or (B) Five Million Dollars ($5,000,000); provided that client-related performance guaranties shall not be included in the calculation of the foregoing amounts.

 

Section 5.12                             Merger and Sale of Assets.  No Company shall merge, amalgamate or consolidate with any other Person, or sell, lease or transfer or otherwise dispose of any assets to any Person other than in the ordinary course of business, except that, if no Default or Event of Default shall then exist or immediately thereafter shall begin to exist:

 

(a)                                 any Domestic Subsidiary may merge with (i) US Borrower (provided that US Borrower shall be the continuing or surviving Person) or (ii) any one or more Domestic Guarantors of Payment (provided that a Domestic Guarantor of Payment shall be the continuing or surviving Person);

 

(b)                                 any Domestic Subsidiary may sell, lease, transfer or otherwise dispose of any of its assets to (i) US Borrower or (ii) any Domestic Guarantor of Payment;

 

(c)                                  any Domestic Subsidiary (other than a Credit Party) may merge with or sell, lease, transfer or otherwise dispose of any of its assets to any other Domestic Subsidiary;

 

(d)                                 any Foreign Subsidiary may merge or amalgamate with (i) US Borrower, provided that US Borrower shall be the continuing or surviving Person, (ii) any one or more Domestic Guarantors of Payment, provided that a Domestic Guarantor of Payment shall be the continuing or surviving Person, and (iii) any other Foreign Subsidiary, provided that, if such merger or amalgamation includes a Credit Party, a Credit Party shall be the continuing or surviving Person or the surviving Person shall become a Credit Party and assume the obligations of the Credit Party;

 

(e)                                  any Foreign Subsidiary (other than a Credit Party) may sell, lease, transfer or otherwise dispose of any assets that are not equity interests in Credit Parties;

 

(f)                                   the Companies may sell all of the equity interests in a Foreign Borrower or Foreign Guarantor of Payment, or dissolve or liquidate a Foreign Borrower or Foreign Guarantor of Payment, so long as (i) all Loans made to or for the benefit of such Foreign Borrower or Foreign Guarantor, and proceeds received by such Foreign Borrower or Foreign Guarantor of Payment from Loans, are repaid in full prior to the effectiveness of such sale, dissolution or liquidation, and (ii) upon the effectiveness of such sale, dissolution or liquidation, such Foreign Borrower or Foreign Guarantor of Payment ceases to be a Foreign Borrower or Foreign Guarantor of Payment, as applicable, under this Agreement pursuant to documentation satisfactory to Agent;

 

(g)                                  Borrower may sell its corporate headquarters located at 9197 South Peoria Street, Englewood, Colorado 80112-5833;

 

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(h)                                 a Company may sell, lease, transfer or otherwise dispose of any assets that are obsolete or no longer useful in such Company’s business;

 

(i)                                     any Company may sell, lease, transfer or otherwise dispose of any assets to any other Company, so long as such disposition is for fair market value (as determined by an independent third-party valuation firm or appraiser of national reputation if the anticipated fair market value of such asset or assets exceeds Fifteen Million Dollars ($15,000,000));

 

(j)                                    any Company may sell, lease, transfer or otherwise dispose of any assets to any Person that is not a Company, so long as (i) such disposition is on an arm’s length basis and is for fair market value (as determined by an independent third-party valuation firm or appraiser of national reputation if the anticipated fair market value of such asset or assets exceeds Fifteen Million Dollars ($15,000,000)); and (ii) the aggregate amount of all such dispositions pursuant to this Section 5.12(j), for all of the Companies, does not exceed an amount equal to ten percent (10%) of Consolidated Total Assets during the Commitment Period;

 

(k)                                 with respect to a merger, amalgamation or consolidation, Acquisitions may be effected in accordance with the provisions of Section 5.13 hereof; and

 

(l)                                     US Borrower may dissolve or liquidate the Newgen Companies.

 

Section 5.13                             Acquisitions.  No Company shall effect an Acquisition; provided, however, that a Company may effect an Acquisition so long as:

 

(a)                                 in the case of a merger, amalgamation or other combination including a Borrower (other than US Borrower), such Borrower shall be the surviving entity and, if such merger, amalgamation or other combination includes US Borrower, US Borrower shall be the surviving entity;

 

(b)                                 in the case of a merger, amalgamation or other combination including a Credit Party (other than a Borrower), a Credit Party shall be the surviving entity;

 

(c)                                  the business to be acquired shall be similar or complimentary to the lines of business of the Companies;

 

(d)                                 the Companies shall be in full compliance with the Loan Documents both prior to and after giving pro forma effect to such Acquisition;

 

(e)                                  no Default or Event of Default shall exist prior to or after giving pro forma effect to such Acquisition, thereafter shall begin to exist;

 

(f)                                   such Acquisition is not actively opposed by the board of directors (or similar governing body) of the selling Persons or by a majority of the Persons whose equity interests are to be acquired;

 

(g)                                  the purchase price for any Acquisition by a Foreign Subsidiary that is not a Credit Party, or of a Foreign Subsidiary by a Domestic Subsidiary that is not a Credit Party, shall be solely from (i) the cash-flow of one or more Foreign Subsidiaries, (ii) the proceeds of the Loans

 

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made to one or more Foreign Borrowers, or (iii) Subordinated Indebtedness incurred in accordance with and subject to Section 5.8(h) hereof;

 

(h)                                 the purchase price for any Acquisition by a Foreign Borrower or a Foreign Guarantor of Payment shall be from (i) the cash-flow of one or more Foreign Subsidiaries, (ii) the proceeds of the Loans made to one or more Foreign Borrowers, or (iii) Subordinated Indebtedness incurred in accordance with and subject to Section 5.8(h) hereof;

 

(i)                                     with respect to any Acquisition the Consideration for which is in excess of Fifty Million Dollars ($50,000,000), US Borrower shall have provided to Agent and the Lenders, at least ten (10) Business Days following such Acquisition, historical financial statements of the target entity and a pro forma financial statement of the Companies accompanied by a certificate of a Financial Officer of US Borrower showing pro forma compliance with Section 5.7 hereof, both before and after the proposed Acquisition; provided that, for the purpose of complying with the notice and disclosure requirements set forth in this subsection (i), the amount of Consideration for an Acquisition shall be deemed to be US Borrower’s best estimate of the total Consideration to be paid for such Acquisition in accordance with SEC disclosure and calculation requirements; and

 

(j)                                    US Borrower shall have Available Liquidity of no less than Twenty-Five Million Dollars ($25,000,000) after giving effect to such Acquisition.

 

Section 5.14                             Notice.  Each Borrower shall cause a Financial Officer of such Borrower to promptly notify Agent and the Lenders, in writing whenever:

 

(a)                                 a Default or Event of Default has occurred hereunder or any representation or warranty made in Article VI hereof or elsewhere in this Agreement or in any Related Writing shall for any reason cease in any material respect to be true and complete;

 

(b)                                 a Borrower learns of a litigation or proceeding against such Borrower before a court, administrative agency or arbitrator that, if successful, might have a Material Adverse Effect; and

 

(c)                                  a Borrower learns that there has occurred any event, condition or thing that is reasonably likely to have a Material Adverse Effect.

 

Section 5.15                             Restricted Payments.  No Company shall make or commit itself to make any Restricted Payment at any time; provided that, so long as no Default or Event of Default has occurred and is continuing or, after giving pro forma effect to such Restricted Payment, would result therefrom, any Company may make Restricted Payments (other than for the repayment, redemption, retirement, repurchase or early defeasance of Subordinated Indebtedness in excess of the aggregate amount, for all such repayments, redemptions, retirements, repurchases or early defeasances, of Ten Million Dollars ($10,000,000)); provided further that during any period in which US Borrower has requested, and Agent has approved, that the applicable Leverage Ratio and Senior Leverage Ratio levels be modified pursuant to the terms of Section 5.7 hereof, no Company shall make or commit itself to make any Restricted Payment except (i) upon five (5) Business Day’s prior written notice to Agent, to the extent approved by Agent (which approval shall not be unreasonably withheld) and (ii) any Company which is a non-Wholly Owned

 

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Subsidiary shall be permitted to pay Capital Distributions to the holders of its equity interests, which such payment shall be distributed ratably to such holders, solely to the extent required to be paid pursuant to the Organizational Documents thereof.

 

Section 5.16                             Environmental Compliance.  Each Company shall comply in all material respects with any and all Environmental Laws and Environmental Permits including, without limitation, all Environmental Laws in jurisdictions in which such Company owns or operates a facility or site, arranges for disposal or treatment of hazardous substances, solid waste or other wastes, accepts for transport any hazardous substances, solid waste or other wastes or holds any interest in real property or otherwise.  US Borrower shall furnish to Agent and the Lenders, promptly after receipt thereof, a copy of any notice such Company may receive from any Governmental Authority or private Person, or otherwise, that any material litigation or proceeding pertaining to any environmental, health or safety matter has been filed or is threatened against such Company, any real property in which such Company holds any interest or any past or present operation of such Company.  No Company shall allow the material release or disposal of hazardous waste, solid waste or other wastes on, under or to any real property in which any Company holds any ownership interest or performs any of its operations, in violation of any Environmental Law.  As used in this Section 5.16, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity action, administrative action, investigation or inquiry whether brought by any Governmental Authority or private Person, or otherwise.  US Borrower (and any Foreign Borrower, as applicable) shall defend, indemnify and hold Agent and the Lenders harmless against all costs, expenses, claims, damages, penalties and liabilities of every kind or nature whatsoever (including attorneys’ fees) arising out of or resulting from the noncompliance of any Company with any Environmental Law.  Such indemnification shall survive any termination of this Agreement.

 

Section 5.17                             Affiliate Transactions.  No Company shall, directly or indirectly, enter into or permit to exist any transaction (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate (other than a Company that is a Credit Party) on terms that shall be less favorable to such Company than those that might be obtained at the time in a transaction with a Person that is not an Affiliate; provided that the foregoing shall not prohibit the payment of customary and reasonable directors’ fees to directors who are not employees of a Company or an Affiliate.

 

Section 5.18                             Use of Proceeds.  Borrowers’ use of the proceeds of the Loans shall be for working capital and other general corporate purposes of the Companies (including for capital expenditures and Acquisitions and Capital Distributions permitted hereunder), for the refinancing of existing Indebtedness (including the Existing Credit Agreement) and to pay fees, commissions and expenses in connection with this Agreement and the transactions contemplated hereunder.

 

Section 5.19                             Corporate Names.  No Credit Party shall change its corporate name, unless, in each case, such Credit Party shall provide Agent with at least thirty (30) days prior written notice thereof.  Administrative Borrower shall also provide Agent with at least thirty (30) days prior written notification of (a) any change in the location of the office where any Credit Party’s records pertaining to the Collateral are kept; and (b) any change in any Credit Party’s chief executive office.  In the event of any of the foregoing or as a result of any change of

 

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applicable law with respect to the taking of security interests, or if determined by Agent to be necessary, Agent is hereby authorized to file new Uniform Commercial Code financing statements describing the Collateral and otherwise in form and substance sufficient for recordation wherever necessary or appropriate, as determined in Agent’s reasonable discretion, to perfect or continue perfected the security interest of Agent, for the benefit of the Lenders, in the Collateral, based upon such new places of business or names or such change in applicable law, and US Borrower shall pay all filing and recording fees and taxes in connection with the filing or recordation of such financing statements and shall promptly reimburse Agent therefor if Agent pays the same.  Such amounts shall be Related Expenses hereunder.

 

Section 5.20                             Lease Rentals.  The Companies may enter into Operating Leases in the ordinary course of business.

 

Section 5.21                             Subsidiary Guaranties, Security Documents and Pledge of Stock or Other Ownership Interest.

 

(a)                                 Domestic Subsidiary Guaranties and Security Documents.  Each Domestic Subsidiary (that is not a Dormant Subsidiary) created, acquired or held subsequent to the Closing Date, shall promptly execute and deliver to Agent, for the benefit of the Lenders, a Guaranty of Payment (or a Guaranty of Payment Joinder) of all of the Obligations and a Security Agreement (or a Security Agreement Joinder), such agreements to be prepared by Agent and in form and substance acceptable to Agent, along with any such other supporting documentation, Security Documents, corporate governance and authorization documents, and an opinion of counsel as may be deemed necessary or advisable by Agent.

 

(b)                                 Foreign Subsidiary Guaranties.

 

(i)                                     Each Foreign Affiliate of a Foreign Borrower shall, at the discretion of Agent, after consultation with Administrative Borrower, promptly execute and deliver to Agent, for the benefit of the Lenders, a Guaranty of Payment of all of the Obligations of the Foreign Borrowers (to the extent not prohibited by law) if either (A) such Foreign Affiliate directly benefits from the Loans made to such Foreign Borrower (for example, if it receives the proceeds of the Loans made to such Foreign Borrower), or (B) such Foreign Affiliate is logically a part of a transaction or series of transactions related to the Loans made to such Foreign Borrower (for example, if such Foreign Affiliate is a parent entity of such Foreign Borrower or if the proceeds of such Loans are routed through such Foreign Affiliate (through intercompany loans or otherwise) to the ultimate intended beneficiary thereof).  Each such Guaranty of Payment shall be prepared by Agent and in form and substance acceptable to Agent.  In connection therewith, such Foreign Affiliate shall also deliver to Agent such other supporting documentation, corporate governance and authorization documents, and an opinion of counsel as may be deemed necessary or advisable by Agent.  In exercising such discretion, Agent shall take into consideration, after consultation with Administrative Borrower, (1) the costs and benefits of obtaining a Guaranty of Payment from such Foreign Subsidiary, and (2) any recommendations received from Administrative Borrower regarding which Foreign Affiliates should be required to execute a Guaranty of Payment based on the flow of funds and intended use of the proceeds of the Loans made to a Foreign Borrower.

 

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(ii)                                  Anything in this subsection (b) to the contrary notwithstanding, Agent may forego the requirement that a Foreign Subsidiary execute a Guaranty of Payment if Agent determines, in its reasonable judgment, after consultation with Administrative Borrower, that the execution and delivery of such Guaranty of Payment under the laws of such foreign jurisdiction (A) is impractical or cost prohibitive in light of the benefits, or (B) will have material adverse tax consequences.

 

(c)                                  Pledge of Stock or Other Ownership Interest.  With respect to the creation or acquisition of a First-Tier Material Foreign Subsidiary, or any Foreign Subsidiary otherwise becomes a First-Tier Material Foreign Subsidiary, US Borrower or the appropriate Domestic Guarantor of Payment shall, unless such pledge would cause it to incur, directly or indirectly, an unreasonable amount of economic, legal, tax or regulatory harm, as determined by Agent after consultation with US Borrower, (i) execute a Pledge Agreement and, in connection therewith, pledge to Agent (A) sixty-five percent (65%) of the voting shares of capital stock or other voting equity interests of such First-Tier Material Foreign Subsidiary, and (B) one hundred percent (100%) of all non-voting shares of capital stock or other non-voting equity interests of such First-Tier Material Foreign Subsidiary, and (ii) deliver to Agent all of the share certificates, if certificated, or other evidence of equity representing such pledged ownership interests.  In the event any voting shares of capital stock or other voting equity interests of any First-Tier Material Foreign Subsidiary have been pledged to Agent pursuant to this clause (c) and such First-Tier Material Foreign Subsidiary, for any reason permitted by this Agreement, ceases to be a First-Tier Material Foreign Subsidiary, at the request and expense of US Borrower, Agent shall terminate such Pledge Agreement and shall deliver to US Borrower any share certificates, if such First-Tier Material Foreign Subsidiary is certificated, or other evidence of equity representing such pledged ownership interests.

 

(d)                                 Perfection or Registration of Interest in Foreign Shares.  With respect to any foreign shares pledged to Agent, for the benefit of the Lenders, on or after the Closing Date, Agent shall at all times, in the discretion of Agent, have the right to perfect, at US Borrower’s cost, payable upon request therefor (including, without limitation, any foreign counsel, or foreign notary, filing, registration or similar, fees, costs or expenses), its security interest in such shares in the respective foreign jurisdiction; provided that, prior to the First FB Addition Date, Agent shall not perfect its security interests in any shares of a first-tier Foreign Subsidiary that is not a First-Tier Material Foreign Subsidiary.  Such perfection may include the requirement that the applicable Company promptly execute and deliver to Agent a separate pledge document (prepared by Agent and in form and substance satisfactory to Agent), covering such equity interests, that conforms to the requirements of the applicable foreign jurisdiction, together with an opinion of local counsel as to the perfection of the security interest provided for therein, and all other documentation necessary or desirable to effect the foregoing and to permit Agent to exercise any of its rights and remedies in respect thereof.  In exercising such discretion, Agent shall take into consideration, after consultation with Administrative Borrower, the costs and benefits of perfecting its security interest in such equity interests in the applicable foreign jurisdiction.  In the event any foreign shares are pledged and perfected pursuant to this clause (d), US Borrower may, from time to time, request that the Required Lenders, in their sole discretion, terminate and release, at the expense of US Borrower, such pledge and the security interest perfected thereby.

 

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(e)                                  Dormant Subsidiary Status.  With respect to a Subsidiary that has been classified as a Dormant Subsidiary, at such time that such Subsidiary no longer meets the requirements of a Dormant Subsidiary, Administrative Borrower shall provide to Agent prompt written notice thereof, and shall provide, with respect to such Subsidiary, all of the documents required by this Section 5.21.

 

Section 5.22                             Restrictive Agreements.  Except as set forth in this Agreement, Borrowers shall not, and shall not permit any of their 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 Subsidiary to (a) make, directly or indirectly, any Capital Distribution to any Borrower, (b) make, directly or indirectly, loans or advances or capital contributions to any Borrower or (c) transfer, directly or indirectly, any of the properties or assets of such Subsidiary to any Borrower; except for such encumbrances or restrictions existing under or by reason of (i) applicable law, (ii) customary non-assignment provisions in leases or other agreements entered in the ordinary course of business and consistent with past practices, or (iii) customary restrictions in security agreements or mortgages securing Indebtedness, or capital leases, of a Company to the extent such restrictions shall only restrict the transfer of the property subject to such security agreement, mortgage or lease.

 

Section 5.23                             Other Covenants and Provisions.  In the event that any Company shall enter into, or shall have entered into, any Material Indebtedness Agreement, wherein the covenants and defaults contained therein shall be more restrictive than the covenants and defaults set forth herein, then the Companies shall immediately be bound hereunder (without further action) by such more restrictive covenants and defaults with the same force and effect as if such covenants defaults were written herein.  In addition to the foregoing, Borrowers shall provide prompt written notice to Agent of the creation or existence of any Material Indebtedness Agreement that has such more restrictive provisions, and shall, within fifteen (15) days thereafter (if requested by Agent), execute and deliver to Agent an amendment to this Agreement that incorporates such more restrictive provisions, with such amendment to be in form and substance satisfactory to Agent.

 

Section 5.24                             Pari Passu Ranking.  The Obligations shall, and Borrowers shall take all necessary action to ensure that the Obligations shall, at all times, rank at least pari passu in right of payment with all other senior Indebtedness of each Borrower.

 

Section 5.25                             Guaranty Under Material Indebtedness Agreement.  No Company shall be or become a primary obligor or Guarantor of the Indebtedness incurred pursuant to any Material Indebtedness Agreement unless such Company shall also be a Guarantor of Payment under this Agreement prior to or concurrently therewith.

 

Section 5.26                             Amendment of Organizational Documents.  Without the prior written consent of Agent, no Credit Party shall (a) amend its Organizational Documents in any manner adverse to the Lenders, or (b) amend its Organizational Documents to change its name or state, province or other jurisdiction of organization.

 

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Section 5.27                             Fiscal Year of Borrowers.  No Borrower shall change the date of its fiscal year end without the prior written consent of Agent and the Required Lenders.  As of the Closing Date, the fiscal year end of each Borrower is December 31 of each year.

 

Section 5.28                             Further Assurances.  Borrowers shall, and shall cause each other Credit Party to, promptly upon request by Agent, or the Required Lenders through Agent, (a) correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments related to the Collateral as Agent, or the Required Lenders through Agent, may reasonably require from time to time in order to carry out more effectively the purposes of the Loan Documents.

 

ARTICLE VI.  REPRESENTATIONS AND WARRANTIES

 

Section 6.1                                    Corporate Existence; Subsidiaries; Foreign Qualification.  Each Company is duly organized, validly existing and in good standing (or comparable concept in the applicable jurisdiction) under the laws of its state or jurisdiction of incorporation or organization, and is duly qualified and authorized to do business and is in good standing (or comparable concept in the applicable jurisdiction) as a foreign entity in the jurisdictions set forth opposite its name on Schedule 6.1 hereto, which are all of the states or jurisdictions where the character of its property or its business activities makes such qualification necessary, except where a failure to so qualify would not reasonably be expected to have a Material Adverse Effect.  Each Foreign Subsidiary is validly existing under the laws of its jurisdiction of organization.  Schedule 6.1 hereto sets forth, as of the Closing Date, each Subsidiary of a Borrower (and whether such Subsidiary is a Dormant Subsidiary), its state (or jurisdiction) of formation, its relationship to a Borrower, including the percentage of each class of stock or other equity interest owned by a Company, the location of its chief executive office and its principal place of business.  Except as set forth on Schedule 6.1 hereto, each Borrower, directly or indirectly, owns all of the equity interests of each of its Subsidiaries (excluding directors’ qualifying shares and, in the case of Foreign Subsidiaries, other nominal amounts of shares held by a Person other than a Company).

 

Section 6.2                                    Corporate Authority.  Each Credit Party has the right and power and is duly authorized and empowered to enter into, execute and deliver the Loan Documents to which it is a party and to perform and observe the provisions of the Loan Documents.  The Loan Documents to which each Credit Party is a party have been duly authorized and approved by such Credit Party’s board of directors or other governing body, as applicable, and are the valid and binding obligations of such Credit Party, enforceable against such Credit Party in accordance with their respective terms.  The execution, delivery and performance of the Loan Documents do not conflict with, result in a breach in any of the provisions of, constitute a default under, or result in the creation of a Lien (other than Liens permitted under Section 5.9 hereof) upon any assets or property of any Company under the provisions of, such Company’s Organizational Documents or any material agreement to which such Company is a party.

 

Section 6.3                                    Compliance with Laws and Contracts.

 

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(a)                                 Each Company holds permits, certificates, licenses, orders, registrations, franchises, authorizations, and other approvals from any Governmental Authority reasonably necessary for the conduct of its business and is in compliance with all applicable laws relating thereto, except where the failure to do so would not have a Material Adverse Effect.

 

(b)                                 Each Company is in compliance with all federal, state, local, or foreign applicable statutes, rules, regulations, and orders including, without limitation, those relating to environmental protection, occupational safety and health, and equal employment practices, except where the failure to be in compliance would not have a Material Adverse Effect.

 

(c)                                  No Company is in violation of or in default under any agreement to which it is a party or by which its assets are subject or bound, except with respect to any violation or default that could not reasonably be expected to result in a Material Adverse Effect.

 

(d)                                 Each Company is in material compliance with all applicable Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations.

 

(e)                                  No Company or Affiliate of a Company is an “enemy” or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America (50 U.S.C. App. §§ 1 et seq.) (as amended, the “Trading with the Enemy Act”).  No Company or Affiliate of a Company is in violation of (i) the Trading with the Enemy Act, (ii) any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto, or (iii) the Patriot Act.  No Credit Party or Affiliate of a Credit Party (A) is a blocked person described in Section 1 of the Anti-Terrorism Order, or (B) to the best of its knowledge, engages in any dealings or transactions, or is otherwise associated, with any such blocked person.

 

(f)                                   None of the Companies or their respective Affiliates is in violation of, and shall not violate, any of the country or list based economic and trade sanctions administered and enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) that are described or referenced at http://www.ustreas.gov/offices/enforcement/ofac/, or as otherwise published from time to time.

 

(g)                                  None of the Companies or their respective Affiliates (i) is a Sanctioned Person or a Sanctioned Entity, as each term is hereinafter defined, (ii) has a more than ten percent of its assets located in Sanctioned Entities, or (iii) derives more than ten percent of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities.  No proceeds of any Loan will be used, nor have any been used to fund, any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. For purposes hereof, “Sanctioned Entity” means (A) a country or a government of a country, (B) an agency of the government of a country, (C) an organization directly or indirectly controlled by a country or its government, or (D) a person or entity resident in, or determined to be resident in, a country, that is subject to a country sanctions program administered and enforced by OFAC; and “Sanctioned Person” means a person named on the list of Specially Designated Nationals maintained by OFAC.

 

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Section 6.4                                    Litigation and Administrative Proceedings.  Except as disclosed on Schedule 6.4 hereto, there are (a) no lawsuits, actions, investigations, examinations or other proceedings pending or threatened against any Company, or in respect of which any Company may have any liability, in any court or before or by any Governmental Authority, arbitration board, or other tribunal, (b) no orders, writs, injunctions, judgments, or decrees of any court or Governmental Authority to which any Company is a party or by which the property or assets of any Company are bound, and (c) no grievances, disputes, or controversies outstanding with any union or other organization of the employees of any Company, or threats of work stoppage, strike, or pending demands for collective bargaining, in each case other than those that could not reasonably be expected to result in a Material Adverse Effect.

 

Section 6.5                                    Title to Assets.  Each Company has good title to and ownership of all property it purports to own, which property is free and clear of all Liens, except those permitted under Section 5.9 hereof.

 

Section 6.6                                    Liens and Security Interests.  On and after the Closing Date, except for Liens permitted pursuant to Section 5.9 hereof, (a) there is and will be no U.C.C. Financing Statement or similar notice of Lien outstanding covering any personal property of any Company; (b) there is and will be no mortgage outstanding covering any real property of any Company; and (c) no real or personal property of any Company is subject to any Lien of any kind.  Agent, for the benefit of the Lenders, upon the filing of the U.C.C. Financing Statements and taking such other actions necessary to perfect its Lien against Collateral of the corresponding type as authorized hereunder will have a valid and enforceable first consensual Lien on the Collateral.  No Company has entered into any contract or agreement (other than a contract or agreement entered into in connection with the purchase or lease of fixed assets that prohibits Liens on such fixed assets) that exists on or after the Closing Date that would prohibit Agent or the Lenders from acquiring a Lien on, or a collateral assignment of, any of the property or assets of any Company.

 

Section 6.7                                    Tax Returns.  All federal, state, provincial and all material local tax returns and other reports required by law to be filed in respect of the income, business, properties and employees of each Company have been filed and all taxes, assessments, fees and other governmental charges that are due and payable have been paid, except as otherwise permitted herein and with respect to foreign tax returns, except as may be filed beyond the due date without material penalties.  The provision for taxes on the books of each Company is adequate for all years not closed by applicable statutes and for the current fiscal year.

 

Section 6.8                                    Environmental Laws.  Each Company is in material compliance with all Environmental Laws, including, without limitation, all Environmental Laws in all jurisdictions in which any Company owns or operates, or has owned or operated, a facility or site, arranges or has arranged for disposal or treatment of hazardous substances, solid waste or other wastes, accepts or has accepted for transport any hazardous substances, solid waste or other wastes or holds or has held any interest in real property or otherwise.  No material litigation or proceeding arising under, relating to or in connection with any Environmental Law  or Environmental Permit is pending or, to the best knowledge of each Company, threatened, against any Company, any real property in which any Company holds or has held an interest or any past or present operation of any Company.  No material release, threatened release or disposal of hazardous

 

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waste, solid waste or other wastes is occurring, or has occurred (other than those that are currently being remediated in accordance with Environmental Laws), on, under or to any real property in which any Company holds any interest or performs any of its operations, in violation of any Environmental Law.  As used in this Section 6.8, “litigation or proceeding” means any demand, claim, notice, suit, suit in equity, action, administrative action, investigation or inquiry whether brought by any Governmental Authority or private Person, or otherwise.

 

Section 6.9                                    Locations.  The Companies have places of business or maintain their accounts receivable at the locations set forth on Schedule 6.9 hereto.  Each Company’s chief executive office is set forth on Schedule 6.9 hereto.  Schedule 6.9 further specifies whether each location, as of the Closing Date, that is owned by the Companies.

 

Section 6.10                             Continued Business.  Except as described in US Borrower’s 10-K, 10-Q or other public filings with the SEC, there exists no actual, pending, or, to each Borrower’s knowledge, any threatened termination, cancellation or limitation of, or any modification or change in the business relationship of any Company and any customer or supplier, or any group of customers or suppliers, which termination, cancellation or limitation would have a Material Adverse Effect, and there exists no present condition or state of facts or circumstances that would have a Material Adverse Effect or prevent a Company from conducting such business or the transactions contemplated by this Agreement in substantially the same manner in which it was previously conducted.

 

Section 6.11                             Employee Benefits Plans.

 

(a)                                 US Employee Benefit Plans.  Schedule 6.11 hereto identifies each ERISA Plan as of the Closing Date.  No ERISA Event has occurred or is reasonably expected to occur with respect to an ERISA Plan.  No Controlled Group member has failed to make a required material installment or other required material payment under Section 412(a) of the Code on or before the due date or within a reasonable time after such due date.  No Controlled Group member has failed to make contributions to an ERISA Plan that is a Multiemployer Plan in accordance with the applicable governing documents which is reasonably likely to result in a material liability to the Controlled Group member.  No ERISA Plan (other than a Multiemployer Plan) has any accumulated funding deficiency (as defined in Section 412(a) of the Code).  None of the Companies have adopted or plans to adopt any amendments that could reasonably result in a material increase in the cost of providing benefits under the ERISA Plan.  With respect to each ERISA Plan (other than a Multiemployer Plan) that is intended to be qualified under Code Section 401(a), (i) the ERISA Plan and any associated trust operationally comply (or as soon as reasonably practicable are corrected to comply) with the applicable requirements of Code Section 401(a); (ii) the ERISA Plan and any associated trust have been amended to comply with all such requirements as currently in effect, other than those requirements for which a retroactive amendment can be made within the “remedial amendment period” available under Code Section 401(b) (as extended under Treasury Regulations and other Treasury pronouncements upon which taxpayers may rely); (iii) the ERISA Plan and any associated trust have received a favorable determination letter from the Internal Revenue Service stating that the ERISA Plan qualifies under Code Section 401(a), that the associated trust qualifies under Code Section 501(a) and, if applicable, that any cash or deferred arrangement under the ERISA Plan qualifies under Code Section 401(k), unless the ERISA Plan was first adopted at a time for which the above-described

 

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“remedial amendment period” has not yet expired; (iv) the ERISA Plan currently satisfies the requirements of Code Section 410(b), subject to any retroactive amendment that may be made within the above-described “remedial amendment period”; and (v) no contribution made to the ERISA Plan is subject to an excise tax under Code Section 4972.  With respect to any Pension Plan, the “accumulated benefit obligation” of Controlled Group members with respect to the Pension Plan (as determined in accordance with Statement of Accounting Standards No. 87, “Employers’ Accounting for Pensions”) does not exceed the fair market value of Pension Plan assets by an amount that would have a Material Adverse Effect.

 

(b)                                 Foreign Pension Plan and Benefit Plans.  As of the Closing Date, Schedule 6.11 hereto lists all Foreign Benefit Plans and Foreign Pension Plans currently maintained or contributed to by US Borrower and any appropriate Foreign Subsidiaries.  The Foreign Pension Plans are duly registered under all applicable laws which require registration.  US Borrower and any appropriate Foreign Subsidiaries have complied with and performed all of its obligations under and in respect of the Foreign Pension Plans and Foreign Benefit Plans under the terms thereof, any funding agreements and all applicable laws (including any fiduciary, funding, investment and administration obligations) except to the extent as would not reasonably be expected to have a Material Adverse Effect.  All employer and employee payments, contributions or premiums to be remitted, paid to or in respect of each Foreign Pension Plan or Foreign Benefit Plan have been paid in a timely fashion in accordance with the terms thereof, any funding agreement and all applicable laws except to the extent the failure to do so would not reasonably be expected to have a Material Adverse Effect.  There are no outstanding actions or suits concerning the assets of the Foreign Pension Plans or the Foreign Benefit Plans.  Each of the Foreign Pension Plans is fully funded on an ongoing basis as required by all laws applicable to such Foreign Pension Plans (using actuarial methods and assumptions as of the date of the valuations last filed with the applicable Governmental Authorities and that are consistent with generally accepted actuarial principles).

 

Section 6.12                             Consents or Approvals.  No consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority or any other Person is required to be obtained or completed by any Company in connection with the execution, delivery or performance of any of the Loan Documents that has not already been obtained or completed.

 

Section 6.13                             Solvency.

 

(a)                                 US Borrower.  US Borrower has received consideration that is the reasonably equivalent value of the obligations and liabilities that US Borrower has incurred to Agent and the Lenders.  US Borrower is not insolvent as defined in any applicable state, federal or relevant foreign statute, nor will US Borrower be rendered insolvent by the execution and delivery of the Loan Documents to Agent and the Lenders.  US Borrower is not engaged or about to engage in any business or transaction for which the assets retained by it are or will be an unreasonably small amount of capital, taking into consideration the obligations to Agent and the Lenders incurred hereunder.  US Borrower does not intend to, nor does it believe that it will, incur debts beyond its ability to pay such debts as they mature.

 

(b)                                 Foreign Borrowers.  Each Foreign Borrower has received consideration that is the reasonable equivalent value of the obligations and liabilities that such Foreign Borrower has

 

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incurred to Agent and the Lenders.  The property of each Foreign Borrower is (i) sufficient, if disposed of at a fairly conducted sale under legal process, to enable payment of all its obligations due and accruing due, and (ii) at a fair valuation, greater than the total amount of liabilities, including contingent liabilities, of such Foreign Borrower.  No Foreign Borrower has ceased paying its current obligations in the ordinary course of business as they generally become due.  No Foreign Borrower is for any reason (and will not by reason of the execution and delivery of the Loan Documents) unable to meet its obligations as they generally become due.

 

Section 6.14                             Financial Statements.  The Consolidated financial statements of US Borrower for the fiscal year ended December 31, 2012, and the unaudited Consolidated financial statements of US Borrower for the fiscal quarter ended March 31, 2013, furnished to Agent and the Lenders, are true and complete in all material respects, to the best knowledge of the Companies,  have been prepared in accordance with GAAP, except for the absence of footnotes and subject to year-end adjustments consistent with past practice, and fairly present the financial condition of the Companies as of the dates of such financial statements and the results of their operations for the periods then ending.  Since the dates of such statements, there has been no material adverse change in any Company’s financial condition, properties or business or any change in any Company’s accounting procedures.

 

Section 6.15                             Regulations.  No Company is engaged principally or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any “margin stock” (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System of the United States of America).  Neither the granting of any Loan (or any conversion thereof) or Letter of Credit nor the use of the proceeds of any Loan or Letter of Credit will violate, or be inconsistent with, the provisions of Regulation T, U or X or any other Regulation of such Board of Governors.

 

Section 6.16                             Material Agreements.  Except as disclosed on Schedule 6.16 hereto, as of the Closing Date, no Company is a party to any (a) debt instrument (excluding the Loan Documents); (b) lease (capital, operating or otherwise), whether as lessee or lessor thereunder; (c) contract, commitment, agreement, or other arrangement involving the purchase or sale of any inventory by it, or the license of any right to or by it; (d) contract, commitment, agreement, or other arrangement with any of its “Affiliates” (as such term is defined in the Exchange Act) other than a Company; (e) management or employment contract or contract for personal services with any of its Affiliates that is not otherwise terminable at will or on less than ninety (90) days’ notice without liability; (f) collective bargaining agreement; or (g) other contract, agreement, understanding, or arrangement with a third party; that, as to subsections (a) through (g), requires the future payment of an amount in excess of Thirty Million Dollars ($30,000,000) during any twelve-month period.

 

Section 6.17                             Intellectual Property.  Each Company owns, or has the right to use, all of the material patents, patent applications, industrial designs, designs, trademarks, service marks, copyrights and licenses, and rights with respect to the foregoing, necessary for the conduct of its business without any known conflict with the rights of others.

 

Section 6.18                             Insurance.  Each Company maintains with financially sound and reputable insurers insurance with coverage and limits as required by law and as is customary with Persons

 

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engaged in the same businesses as the Companies.  Schedule 6.18 hereto sets forth all insurance carried by the Companies on the Closing Date, setting forth in detail the amount and type of such insurance.

 

Section 6.19                             Deposit and Securities Accounts.  US Borrower has provided to Agent a list of all banks, other financial institutions and Securities Intermediaries at which US Borrower and any Domestic Guarantor of Payment maintain Deposit Accounts or Securities Accounts as of the Closing Date, which list correctly identifies the name, address and telephone number of each such financial institution or Securities Intermediary, the name in which the account is held, a description of the purpose of the account, and the complete account number therefor.

 

Section 6.20                             Accurate and Complete Statements.  Neither the Loan Documents nor any written statement made by any Company in connection with any of the Loan Documents contains, to the best knowledge of such Company, any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein or in the Loan Documents not misleading.  After due inquiry by US Borrower, there is no known fact that any Company has not disclosed to Agent and the Lenders that has or is more than likely to have a Material Adverse Effect.

 

Section 6.21                             Investment Company; Other Restrictions.  No Company is (a) an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or (b) subject to any foreign, federal, state or local statute or regulation limiting its ability to incur Indebtedness.

 

Section 6.22                             Defaults.  No Default or Event of Default exists hereunder, nor will any begin to exist immediately after the execution and delivery hereof.

 

ARTICLE VII.  EVENTS OF DEFAULT

 

Any of the following specified events shall constitute an Event of Default (each an “Event of Default”) hereunder:

 

Section 7.1                                    Payments.  If (a) the interest on any Loan, any commitment or other fee, or any other Obligation not listed in subpart (b) hereof, shall not be paid in full when due and payable or within five Business Days thereafter, or (b) the principal of any Loan or any obligation under any Letter of Credit shall not be paid in full when due and payable.

 

Section 7.2                                    Special Covenants.  If any Company shall fail or omit to perform and observe Section 5.7, 5.8, 5.9, 5.11, 5.12, 5.13 or 5.15 or 5.23 hereof.

 

Section 7.3                                    Other Covenants.  If any Company shall fail or omit to perform and observe any agreement or other provision (other than those referred to in Section 7.1 or 7.2 hereof) contained or referred to in this Agreement or any Loan Document that is on such Company’s part to be complied with, and that Default shall not have been fully corrected within thirty (30) days after the earlier of (a) any Financial Officer of such Company becomes aware of the occurrence thereof, or (b) the giving of written notice thereof to Administrative Borrower by Agent or the Required Lenders that the specified Default is to be remedied.

 

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Section 7.4                                    Representations and Warranties.  If any representation, warranty or statement made in or pursuant to this Agreement or any Related Writing or any other material information furnished by any Company to Agent or the Lenders, or any thereof, shall be false or erroneous in any material respect.

 

Section 7.5                                    Cross Default.  If any Company shall default in the payment of principal or interest due and owing under any Material Indebtedness Agreement beyond any period of grace provided with respect thereto or in the performance or observance of any other provision, term or condition contained in any Material Indebtedness Agreement under which such obligation is created, if the effect of such default is to allow the acceleration of the maturity of such Indebtedness or to permit the holder thereof to cause such Indebtedness to become due prior to its stated maturity.

 

Section 7.6                                    ERISA Default.  The occurrence of one or more ERISA Events that (a) the Required Lenders determine could have a Material Adverse Effect, or (b) results in a Lien on any of the assets of any Company.

 

Section 7.7                                    Change in Control.  If any Change in Control shall occur.

 

Section 7.8                                    Judgments.  There is entered against any Company:

 

(a)                                 a final judgment or order for the payment of money by a court of competent jurisdiction, that remains unpaid or unstayed and undischarged for a period (during which execution shall not be effectively stayed) of sixty (60) days after the date on which the right to appeal has expired; provided that such occurrence shall constitute an Event of Default only if the aggregate of all such judgments for all such Companies shall exceed Ten Million Dollars ($10,000,000) (less any amount that will be covered by the proceeds of insurance and is not subject to dispute by the insurance provider); or

 

(b)                                 any one or more non-monetary final judgments that are not covered by insurance, or, if covered by insurance, for which the insurance company has not agreed to or acknowledged coverage, and that, in either case, the Required Lenders reasonably determine have, or could be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (i) enforcement proceedings are commenced by the prevailing party or any creditor upon such judgment or order, or (ii) there is a period of three consecutive Business Days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect.

 

Section 7.9                                    Security.  If any Lien granted in this Agreement or any other Loan Document in favor of Agent, for the benefit of the Lenders, shall be determined to be (a) void, voidable or invalid, or is subordinated or not otherwise given the priority contemplated by this Agreement with respect to any material amount of Collateral and Borrowers have (or the appropriate Credit Party has) failed to promptly execute appropriate documents to correct such matters, or (b) unperfected as to any material amount of Collateral (as determined by Agent, in its reasonable discretion) and Borrowers have (or the appropriate Credit Party has) failed to promptly execute appropriate documents to correct such matters.

 

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Section 7.10                             Validity of Loan Documents.  If (a) any material provision, in the reasonable opinion of Agent, of any Loan Document shall at any time cease to be valid, binding and enforceable against any Credit Party; (b) the validity, binding effect or enforceability of any Loan Document against any Credit Party shall be contested by any Credit Party; (c) any Credit Party shall deny that it has any or further liability or obligation under any Loan Document; or (d) any Loan Document shall be terminated, invalidated or set aside, or be declared ineffective or inoperative or in any way cease to give or provide to Agent and the Lenders the benefits purported to be created thereby.

 

Section 7.11                             Solvency.  If any Credit Party shall (a) except as permitted pursuant to Section 5.12 hereof, discontinue business; (b) generally not pay its debts as such debts become due; (c) make a general assignment for the benefit of creditors; (d) apply for or consent to the appointment of an interim receiver, a receiver, a receiver and manager, an administrator, sequestrator, monitor, a custodian, a trustee, an interim trustee, liquidator, agent or other similar official of all or a substantial part of its assets or of such Credit Party; (e) be adjudicated a debtor or insolvent or have entered against it an order for relief under the Bankruptcy Code, or under any other bankruptcy insolvency, liquidation, winding-up, corporate or similar statute or law, foreign, federal, state or provincial, in any applicable jurisdiction, now or hereafter existing, as any of the foregoing may be amended from time to time, or other applicable statute for jurisdictions outside of the United States, as the case may be; (f) file a voluntary petition under the Bankruptcy Code or seek relief under any bankruptcy or insolvency or analogous law in any jurisdiction outside of the United States, or file a proposal or notice of intention to file such petition; (g) have an involuntary proceeding under the Bankruptcy Code filed against it and the same shall not be controverted within ten (10) days, or shall continue undismissed for a period of sixty (60) days from commencement of such proceeding or case; (h) file a petition, an answer, an application or a proposal seeking reorganization or an arrangement with creditors or seeking to take advantage of any other law (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors, or admit (by answer, by default or otherwise) the material allegations of a petition filed against it in any bankruptcy, reorganization, insolvency or other proceeding (whether federal, provincial or state, or, if applicable, other jurisdiction) relating to relief of debtors; (i) suffer or permit to continue unstayed and in effect for sixty (60) consecutive days any judgment, decree or order entered by a court of competent jurisdiction, that approves a petition or an application or a proposal seeking its reorganization or appoints an interim receiver, a receiver and manager, an administrator, custodian, trustee, interim trustee or liquidator of all or a substantial part of its assets, or of such Credit Party; (j) have an administrative receiver appointed over the whole or substantially the whole of its assets, or of such Credit Party; (k) have assets, the value of which is less than its liabilities (taking into account prospective and contingent liabilities, and rights of contribution from other Persons); or (l) have a moratorium declared in respect of any of its Indebtedness, or any analogous procedure or step is taken in any jurisdiction.

 

ARTICLE VIII.  REMEDIES UPON DEFAULT

 

Notwithstanding any contrary provision or inference herein or elsewhere:

 

Section 8.1                                    Optional Defaults.  If any Event of Default referred to in Section 7.1, 7.2, 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9 or 7.10 hereof shall occur, Agent may, with the consent of the

 

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Required Lenders, and shall, at the written request of the Required Lenders, give written notice to Borrowers to:

 

(a)                                 terminate the Commitment, if not previously terminated, and, immediately upon such election, the obligations of the Lenders, and each thereof, to make any further Loan, and the obligation of the Fronting Lender to issue any Letter of Credit, immediately shall be terminated; and/or

 

(b)                                 accelerate the maturity of all of the Obligations (if the Obligations are not already due and payable), whereupon all of the Obligations shall become and thereafter be immediately due and payable in full without any presentment or demand and without any further or other notice of any kind, all of which are hereby waived by each Borrower.

 

Section 8.2                                    Automatic Defaults.  If any Event of Default referred to in Section 7.11 hereof shall occur:

 

(a)                                 all of the Commitment shall automatically and immediately terminate, if not previously terminated, and no Lender thereafter shall be under any obligation to grant any further Loan, nor shall the Fronting Lender be obligated to issue any Letter of Credit; and

 

(b)                                 the principal of and interest then outstanding on all of the Loans, and all of the other Obligations, shall thereupon become and thereafter be immediately due and payable in full (if the Obligations are not already due and payable), all without any presentment, demand or notice of any kind, which are hereby waived by each Borrower.

 

Section 8.3                                    Letters of Credit.  If the maturity of the Obligations shall be accelerated pursuant to Section 8.1 or 8.2 hereof, Borrowers shall immediately deposit with Agent, as security for the obligations of Borrowers and any Guarantor of Payment to reimburse Agent and the Lenders for any then outstanding Letters of Credit, cash equal to the aggregate undrawn balance of any then outstanding Letters of Credit.  Agent and the Lenders are hereby authorized, at their option, to deduct any and all such amounts from any deposit balances then owing by any Lender (or any affiliate of such Lender) to or for the credit or account of US Borrower or any Domestic Guarantor of Payment, as security for the obligations of the appropriate Borrower and any Guarantor of Payment to reimburse Agent and the Lenders for any then outstanding Letters of Credit.

 

Section 8.4                                    Offsets.

 

(a)                                 If there shall occur or exist any Event of Default referred to in Section 7.11 hereof or if the maturity of the Obligations is accelerated pursuant to Section 8.1 or 8.2 hereof, each Lender shall have the right at any time to set off against, and to appropriate and apply toward the payment of, any and all of the Obligations then owing by US Borrower or a Domestic Guarantor of Payment to such Lender, or any Foreign Borrower or Foreign Guarantor of Payment with respect to Obligations of a Foreign Borrower (including, without limitation, any participation purchased or to be purchased pursuant to Section 2.2(b), 2.2(c) or 8.5 hereof), whether or not the same shall then have matured, any and all deposit (general or special) balances and all other indebtedness then held or owing by such Lender (including, without limitation, by branches and agencies or any affiliate of such Lender, wherever located) to or for the credit or account of US

 

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Borrower or a Domestic Guarantor of Payment, or any Foreign Borrower or Foreign Guarantor of Payment with respect to such deposit balances and indebtedness of a Foreign Borrower or Foreign Guarantor of Payment, all without notice to or demand upon any Borrower or any other Person, all such notices and demands being hereby expressly waived by each Borrower.

 

(b)                                 Notwithstanding anything in this Agreement to the contrary, if a Lender acts as a Securities Intermediary or a depository institution for a Credit Party, and the applicable Securities Accounts or Deposit Accounts of such Credit Party with such Lender (or an affiliate of a Lender) are not subject to a Control Agreement, then such Lender agrees that such accounts are subject to the Lien of Agent (to the extent granted pursuant to the Security Documents) and it will not set off against or appropriate toward the payment of, any Indebtedness owing to such Lender that does not constitute Obligations (other than Customary Setoffs with respect to such Deposit Accounts or Securities Accounts).

 

Section 8.5                                    Equalization Provisions.  Each Lender agrees with the other Lenders that if it, at any time, shall obtain any Advantage over the other Lenders or any thereof in respect of the Obligations (except as to Swing Loans and Letters of Credit prior to Agent’s giving of notice to participate and except under Article III hereof), it shall purchase from the other Lenders, for cash and at par, such additional participation in the Obligations as shall be necessary to nullify the Advantage.  If any such Advantage resulting in the purchase of an additional participation as aforesaid shall be recovered in whole or in part from the Lender receiving the Advantage, each such purchase shall be rescinded, and the purchase price restored (but without interest unless the Lender receiving the Advantage is required to pay interest on the Advantage to the Person recovering the Advantage from such Lender) ratably to the extent of the recovery.  Each Lender further agrees with the other Lenders that:

 

(a)                                 if it at any time shall receive any payment for or on behalf of any Borrower on any Indebtedness owing by any Borrower (or through any Guarantor of Payment) pursuant to this Agreement (whether by voluntary payment, by realization upon security, by reason of offset of any deposit or other indebtedness, by counterclaim or cross-action, by the enforcement of any right under any Loan Document, or otherwise); or

 

(b)                                 if any Lender (or affiliate of a Lender) (i) maintains Deposit Accounts or Securities Account of any Borrower or any Domestic Subsidiary, and (ii) exercises a right of offset or takes other action against such Deposit Accounts or Securities Accounts;

 

then such Lender will apply all such payments (other than Customary Setoffs with respect to the Deposit Accounts or Securities Accounts referenced in subpart (b) above) first to any and all Obligations owing by Borrowers to that Lender (including, without limitation, any participation purchased or to be purchased pursuant to this Section 8.5 or any other section of this Agreement), and to the extent not prohibited by law, to the remainder of the Obligations (and the Secured Obligations in accordance with Section 8.6 hereof).  Each Credit Party agrees that any Lender so purchasing a participation from the other Lenders or any thereof pursuant to this Section 8.5, or exercising rights under this provision, may exercise all of its rights of payment (including the right of set-off) with respect to such participation or otherwise as fully as if such Lender were a direct creditor of such Credit Party in the amount of such participation.

 

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Section 8.6                                    Other Remedies.  The remedies in this Article VIII are in addition to, not in limitation of, any other right, power, privilege, or remedy, either in law, in equity, or otherwise, to which the Lenders may be entitled.  Agent shall exercise the rights under this Article VIII and all other collection efforts on behalf of the Lenders and no Lender shall act independently with respect thereto, except as otherwise specifically set forth in this Agreement.

 

Section 8.7                                    Application of Proceeds.

 

(a)                                 Payments Prior to Exercise of Remedies.  Prior to the exercise by Agent, on behalf of the Lenders, of remedies under this Agreement or the other Loan Documents, all monies received by Agent in connection with the Revolving Credit Commitment shall be applied, unless otherwise required by the terms of the other Loan Documents or by applicable law, to the Loans and Letters of Credit, as appropriate; provided that Agent shall have the right at all times to apply any payment received from US Borrower first to the payment of all obligations (to the extent not paid by Borrowers) incurred by Agent pursuant to Section 11.5 hereof and to the payment of Related Expenses.

 

(b)                                 Payments Subsequent to Exercise of Remedies.  After the exercise by Agent or the Required Lenders of remedies under this Agreement or the other Loan Documents, all monies received by Agent shall be applied, unless otherwise required by the terms of the other Loan Documents or by applicable law, as follows:

 

(i)                                     with respect to:

 

(A)                               payments from assets of Companies organized in the United States (or a state thereof), (1) first, to the Obligations (and Secured Obligations if such payments are from proceeds of Collateral) of US Borrower, and (2) second, to the Obligations (and Secured Obligations if such payments are from proceeds of Collateral) of any other Borrowers, in each case applied in accordance with the Waterfall;

 

(B)                               payments from assets of Companies that are not organized in the United States (or a state thereof), to the Obligations (and Secured Obligations if such payments are from proceeds of Collateral) of the Foreign Borrowers, applied in accordance with the Waterfall; and

 

(C)                               any other payments, in accordance with the Waterfall; and

 

(ii)                                  in accordance with the following priority (the “Waterfall”):

 

(A)                               first, to the extent incurred in connection with obligations payable by a specific Borrower, to the payment of all obligations (to the extent not paid by Borrowers) incurred by Agent pursuant to Section 11.5 hereof and to the payment of Related Expenses;

 

(B)                               second, to the extent incurred in connection with the obligations payable by a specific Borrower, to the payment pro rata of (1) interest then accrued and payable on the outstanding Loans, (2) any fees then accrued and

 

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payable to Agent, and (3) any fees then accrued and payable to the Fronting Lender or the holders of the Letter of Credit Commitment in respect of the Letter of Credit Exposure;

 

(C)                               third, for payment of (1) principal outstanding on the Loans and the Letter of Credit Exposure, on a pro rata basis to the Lenders, based upon each such Lender’s Commitment Percentage, provided that the amounts payable in respect of the Letter of Credit Exposure shall be held and applied by Agent as security for the reimbursement obligations in respect thereof, and, if any Letter of Credit shall expire without being drawn, then the amount with respect to such Letter of Credit shall be distributed to the Lenders, on a pro rata basis in accordance with this subsection (C), (2) the Indebtedness under any Hedge Agreement with a Lender (or an entity that is an affiliate of a then existing Lender), such amount to be based upon the net termination obligation of Borrowers under such Hedge Agreement, and (3) the Bank Product Obligations owing to a Lender (or an entity that is an affiliate of a then existing Lender) under Bank Product Agreements; with such payment to be pro rata among (1), (2) and (3) of this subsection (C); and

 

(D)                               finally, any remaining surplus after all of the Secured Obligations have been paid in full, to Administrative Borrower for distribution to the appropriate Borrowers, or to whomsoever shall be lawfully entitled thereto.

 

ARTICLE IX.  THE AGENT

 

The Lenders authorize Wells Fargo and Wells Fargo hereby agrees to act as agent for the Lenders in respect of this Agreement upon the terms and conditions set forth elsewhere in this Agreement, and upon the following terms and conditions:

 

Section 9.1                                    Appointment and Authorization.  Effective on the Closing Date, KeyBank National Association hereby resigns as administrative agent under the Existing Credit Agreement and the other Loan Documents (as defined in the Existing Credit Agreement), and each Lender hereby irrevocably appoints Wells Fargo as Agent hereunder and authorizes Agent to take such action as agent on its behalf and to exercise such powers hereunder as are delegated to Agent by the terms hereof, together with such powers as are reasonably incidental thereto, including, without limitation, to execute Additional Foreign Borrower Assumption Agreements on behalf of the Lenders, and to execute various Security Documents pertaining to the Foreign Borrower and Foreign Guarantors of Payment on behalf of the Lenders.  Neither Agent nor any of its affiliates, directors, officers, attorneys or employees shall (a) be liable for any action taken or omitted to be taken by it or them hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct (as determined by a court of competent jurisdiction), or be responsible in any manner to any of the Lenders for the effectiveness, enforceability, genuineness, validity or due execution of this Agreement or any other Loan Documents, (b) be under any obligation to any Lender to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions hereof or thereof on the part of Borrowers or any other Company, or the financial condition of Borrowers or any other Company, or (c) be liable to any of the Companies for consequential damages resulting from any breach of contract, tort or

 

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other wrong in connection with the negotiation, documentation, administration or collection of the Loans or Letters of Credit or any of the Loan Documents.  Notwithstanding any provision to the contrary contained in this Agreement or in any other Loan Document, Agent shall not have any duty or responsibility except those expressly set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent.  Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with reference to Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

 

Section 9.2                                    Note Holders.  Agent may treat the payee of any Note as the holder thereof (or, if there is no Note, the holder of the interest as reflected on the books and records of Agent) until written notice of transfer shall have been filed with Agent, signed by such payee and in form satisfactory to Agent.

 

Section 9.3                                    Consultation With Counsel.  Agent may consult with legal counsel selected by Agent and shall not be liable for any action taken or suffered in good faith by Agent in accordance with the opinion of such counsel.

 

Section 9.4                                    Documents.  Agent shall not be under any duty to examine into or pass upon the validity, effectiveness, genuineness or value of any Loan Document or any other Related Writing furnished pursuant hereto or in connection herewith or the value of any collateral obtained hereunder, and Agent shall be entitled to assume that the same are valid, effective and genuine and what they purport to be.

 

Section 9.5                                    Agent and Affiliates.  Wells Fargo and its affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Companies and Affiliates as though Wells Fargo were not Agent hereunder and without notice to or consent of any Lender.  Each Lender acknowledges that, pursuant to such activities, Wells Fargo or its affiliates may receive information regarding any Company or any Affiliate (including information that may be subject to confidentiality obligations in favor of such Company or such Affiliate) and acknowledge that Agent shall be under no obligation to provide such information to other Lenders.  With respect to Loans and Letters of Credit (if any), Wells Fargo and its affiliates shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though Wells Fargo were not Agent, and the terms “Lender” and “Lenders” include Wells Fargo and its affiliates, to the extent applicable, in their individual capacities.

 

Section 9.6                                    Knowledge or Notice of Default.  Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless Agent has received written notice from a Lender or Administrative Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that Agent receives such a notice, Agent shall give notice thereof to the Lenders.

 

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Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, all Lenders); provided that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable, in its discretion, for the protection of the interests of the Lenders.

 

Section 9.7                                    Action by Agent.  Subject to the other terms and conditions hereof, so long as Agent shall be entitled, pursuant to Section 9.6 hereof, to assume that no Default or Event of Default shall have occurred and be continuing, Agent shall be entitled to use its discretion with respect to exercising or refraining from exercising any rights that may be vested in it by, or with respect to taking or refraining from taking any action or actions that it may be able to take under or in respect of, this Agreement.  Agent shall incur no liability under or in respect of this Agreement by acting upon any notice, certificate, warranty or other paper or instrument believed by it to be genuine or authentic or to be signed by the proper party or parties, or with respect to anything that it may do or refrain from doing in the reasonable exercise of its judgment, or that may seem to it to be necessary or desirable in the premises.  Without limiting the foregoing, no Lender shall have any right of action whatsoever against Agent as a result of Agent’s acting or refraining from acting hereunder in accordance with the instructions of the Required Lenders.

 

Section 9.8                                    Release of Collateral or Guarantor of Payment.  In the event of a merger, sale of assets or other transaction permitted pursuant to Section 5.12 hereof or otherwise permitted pursuant to this Agreement, and so long as there is no Default or Event of Default existing, Agent, at the request and expense of US Borrower, is hereby authorized by the Lenders to (a) release such Collateral from this Agreement or any other Loan Document, (b) release a Guarantor of Payment or Foreign Borrower in connection with such permitted transfer or event, and (c) duly assign, transfer and deliver to the affected Person (without recourse and without any representation or warranty) such Collateral as is then (or has been) so transferred or released and as may be in possession of Agent and has not theretofore been released pursuant to this Agreement.

 

Section 9.9                                    Delegation of Duties.  Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties.  Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct, as determined by a court of competent jurisdiction.

 

Section 9.10                             Indemnification of Agent.  The Lenders agree to indemnify Agent (to the extent not reimbursed by Borrowers) ratably, according to their respective Commitment Percentages, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees and expenses) or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or asserted against Agent in its capacity as agent in any way relating to or arising out of this Agreement or any Loan Document or any action taken or omitted by Agent with respect to this Agreement or any Loan Document; provided that no Lender shall be liable for any portion of such liabilities,

 

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obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees and expenses) or disbursements resulting from Agent’s gross negligence or willful misconduct as determined by a court of competent jurisdiction, or from any action taken or omitted by Agent in any capacity other than as agent under this Agreement or any other Loan Document.  No action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 9.10.  The undertaking in this Section 9.10 shall survive repayment of the Loans, cancellation of the Notes, if any, expiration or termination of the Letters of Credit, termination of the Commitment, any foreclosure under, or modification, release or discharge of, any or all of the Loan Documents, termination of this Agreement and the resignation or replacement of Agent.

 

Section 9.11                             Successor Agent.  Agent may resign as agent hereunder by giving not fewer than thirty (30) days prior written notice to Administrative Borrower and the Lenders.  If Agent shall resign under this Agreement, then either (a) the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders (with the consent of Administrative Borrower so long as an Event of Default does not exist and which consent shall not be unreasonably withheld), or (b) if a successor agent shall not be so appointed and approved within the thirty (30) day period following Agent’s notice to the Lenders of its resignation, then Agent shall appoint a successor agent that shall serve as agent until such time as the Required Lenders appoint a successor agent.  If no successor agent has accepted appointment as Agent by the date that is thirty (30) days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided for above.  Upon its appointment, such successor agent shall succeed to the rights, powers and duties as agent, and the term “Agent” means such successor effective upon its appointment, and the former agent’s rights, powers and duties as agent shall be terminated without any other or further act or deed on the part of such former agent or any of the parties to this Agreement.  After any retiring Agent’s resignation as Agent, the provisions of this Article IX shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan Documents.

 

Section 9.12                             Fronting Lender.  The Fronting Lender shall act on behalf of the Lenders with respect to any Letters of Credit issued by the Fronting Lender and the documents associated therewith.  The Fronting Lender shall have all of the benefits and immunities (a) provided to Agent in this Article IX with respect to any acts taken or omissions suffered by the Fronting Lender in connection with the Letters of Credit and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Agent”, as used in this Article IX, included the Fronting Lender with respect to such acts or omissions, and (b) as additionally provided in this Agreement with respect to the Fronting Lender.

 

Section 9.13                             Swing Line Lender.  The Swing Line Lender shall act on behalf of the Lenders with respect to any Swing Loans.  The Swing Line Lender shall have all of the benefits and immunities (a) provided to Agent in this Article IX with respect to any acts taken or omissions suffered by the Swing Line Lender in connection with the Swing Loans as fully as if the term “Agent”, as used in this Article IX, included the Swing Line Lender with respect to such acts or omissions, and (b) as additionally provided in this Agreement with respect to the Swing Line Lender.

 

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Section 9.14                             Agent May File Proofs of Claim.  In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, (a) Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand on any Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise, to (i) file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and Agent and their respective agents and counsel and all other amounts due the Lenders and Agent) allowed in such judicial proceedings, and (ii) collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and (b) any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to the Lenders, to pay to Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Agent and its agents and counsel, and any other amounts due Agent.  Nothing contained herein shall be deemed to authorize Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize Agent to vote in respect of the claim of any Lender in any such proceeding.

 

Section 9.15                             No Reliance on Agent’s Customer Identification Program.  Each Lender acknowledges and agrees that neither such Lender, nor any of its affiliates, participants or assignees, may rely on Agent to carry out such Lender’s or its affiliate’s, participant’s or assignee’s customer identification program, or other obligations required or imposed under or pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other anti-terrorism law, including any programs involving any of the following items relating to or in connection with Borrowers, their respective Affiliates or agents, the Loan Documents or the transactions hereunder:  (a) any identity verification procedures, (b) any record keeping, (c) any comparisons with government lists, (d) any customer notices or (e) any other procedures required under the CIP Regulations or such other laws.

 

Section 9.16                             Other Agents.  Agent shall have the continuing right from time to time to designate one or more Lenders (or its or their affiliates) as “syndication agent”, “co-syndication agent”, “documentation agent”, “co-documentation agent”, “book runner”, “lead arranger”, “arrangers” or other designations for purposes hereof, but (a) any such designation shall have no substantive effect, and (b) any such Lender and its affiliates shall have no additional powers, duties, responsibilities or liabilities as a result thereof.

 

ARTICLE X.  GUARANTY

 

Section 10.1                             The Guaranty.  US Borrower hereby guarantees to Agent, for the benefit of the Secured Parties, as a primary obligor and not as a surety, the prompt payment of the Secured Obligations owing by each other Borrower in full when due (whether at stated maturity,

 

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as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) strictly in accordance with the terms thereof.  US Borrower hereby further agrees that, if any of the Secured Obligations are not paid in full when due (whether at stated maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise), US Borrower will promptly pay the same, without any demand or notice whatsoever, and that, in the case of any extension of time of payment or renewal of any of the Secured Obligations, the same will be promptly paid in full when due (whether at extended maturity, as a mandatory prepayment, by acceleration, as a mandatory cash collateralization or otherwise) in accordance with the terms of such extension or renewal.

 

Section 10.2                             Obligations Unconditional.  The obligations of US Borrower under Section 10.1 hereof are absolute and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of any of the Loan Documents, or any other agreement or instrument referred to therein, or any substitution, release, impairment or exchange of any other guarantee of or security for any of the Secured Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it being the intent of this Section 10.2 that the obligations of US Borrower hereunder, as a Guarantor, shall be absolute and unconditional under any and all circumstances.  US Borrower agrees that it shall have no right of subrogation, indemnity, reimbursement or contribution against any other Borrower or any other Guarantor of Payment for amounts paid under this Article X until such time as the Secured Obligations have been irrevocably paid in full (other than (i) contingent obligations which by their terms survive the termination of this Agreement and (ii) obligations and liabilities under Bank Product Agreements or Hedge Agreements as to which arrangements satisfactory to the applicable Lender (or an entity that is an affiliate of such Lender) shall have been made).  Without limiting the generality of the foregoing, it is agreed that, to the fullest extent permitted by law, the occurrence of any one or more of the following shall not alter or impair the liability of US Borrower as a Guarantor hereunder, which shall remain absolute and unconditional as described above:

 

(a)                                 at any time or from time to time, without notice to any Guarantor, the time for any performance of or compliance with any of the Secured Obligations shall be extended, or such performance or compliance shall be waived;

 

(b)                                 any of the acts mentioned in any of the provisions of any of the Loan Documents or any other agreement or instrument referred to in the Loan Documents shall be done or omitted;

 

(c)                                  the maturity of any of the Secured Obligations shall be accelerated, or any of the Secured Obligations shall be modified, supplemented or amended in any respect, or any right under any of the Loan Documents, or any other agreement or instrument referred to in the Loan Documents shall be waived or any other guarantee of any of the Secured Obligations or any security therefor shall be released, impaired or exchanged in whole or in part or otherwise dealt with;

 

(d)                                 any Lien granted to, or in favor of, Agent, for the benefit of the Lenders, as security for any of the Secured Obligations shall fail to attach or be perfected; or

 

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(e)                                  any of the Secured Obligations shall be determined to be void or voidable (including, without limitation, for the benefit of any creditor of any Guarantor) or shall be subordinated to the claims of any Person (including, without limitation, any creditor of any Guarantor).

 

With respect to its obligations hereunder, US Borrower hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever, and any requirement that Agent or any Lender exhaust any right, power or remedy or proceed against any Person under any of the Loan Documents or any other agreement or instrument referred to in the Loan Documents, or against any other Person under any other guarantee of, or security for, any of the Secured Obligations.

 

Section 10.3                             Reinstatement.  The obligations of US Borrower under this Article X shall be automatically reinstated if and to the extent that, for any reason, any payment by or on behalf of any Person in respect of the Secured Obligations is rescinded or must be otherwise restored by any holder of any of the Secured Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and US Borrower agrees that it will indemnify Agent and each Lender on demand for all reasonable costs and expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by Agent or such Lender in connection with such rescission or restoration, including any such reasonable costs and expenses incurred in defending against any claim alleging that such payment constituted a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

 

Section 10.4                             Certain Additional Waivers.  US Borrower agrees that US Borrower shall have no right of recourse to security for the Secured Obligations, except through the exercise of rights of subrogation pursuant to Section 10.2 hereof and through the exercise of rights of contribution pursuant to Section 11.6 hereof.

 

Section 10.5                             Remedies.  US Borrower agrees that, to the fullest extent permitted by law, as between US Borrower, on the one hand, and Agent, on behalf of the Lenders, on the other hand, the Obligations may be declared to be forthwith due and payable as provided in Section 8.1 or 8.2 hereof (and shall be deemed to have become automatically due and payable in the circumstances provided in such Sections 8.1 and 8.2) for purposes of Section 10.1 hereof, notwithstanding any stay, injunction or other prohibition preventing such declaration (or preventing the Obligations from becoming automatically due and payable) as against any other Person and that, in the event of such declaration (or the Obligations being deemed to have become automatically due and payable), the Obligations (whether or not due and payable by any other Person) shall forthwith become due and payable by US Borrower for purposes of Section 10.1 hereof.

 

Section 10.6                             Guarantee of Payment; Continuing Guarantee.  The guarantee in this Article X is a guaranty of payment and not of collection, is a continuing guarantee, and shall apply to all Secured Obligations owing by each other Borrower, whenever arising.

 

Section 10.7                             Payments.  All payments by US Borrower under this Article X shall be made in Dollars, and free and clear of any Taxes.

 

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ARTICLE XI.  MISCELLANEOUS

 

Section 11.1                             Lenders’ Independent Investigation.  Each Lender, by its signature to this Agreement, acknowledges and agrees that Agent has made no representation or warranty, express or implied, with respect to the creditworthiness, financial condition, or any other condition of any Company or with respect to the statements contained in any information memorandum furnished in connection herewith or in any other oral or written communication between Agent and such Lender.  Each Lender represents that it has made and shall continue to make its own independent investigation of the creditworthiness, financial condition and affairs of the Companies in connection with the extension of credit hereunder, and agrees that Agent has no duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information with respect thereto (other than such notices as may be expressly required to be given by Agent to the Lenders hereunder), whether coming into its possession before the first Credit Event hereunder or at any time or times thereafter.  Each Lender further represents that it has reviewed each of the Loan Documents.

 

Section 11.2                             No Waiver; Cumulative Remedies.  No omission or course of dealing on the part of Agent, any Lender or the holder of any Note (or, if there is no Note, the holder of the interest as reflected on the books and records of Agent) in exercising any right, power or remedy hereunder or under any of the Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy hereunder or under any of the Loan Documents.  The remedies herein provided are cumulative and in addition to any other rights, powers or privileges held under any of the Loan Documents or by operation of law, by contract or otherwise.

 

Section 11.3                             Amendments, Waivers and Consents.

 

(a)                                 General Rule.  No amendment, modification, termination, or waiver of any provision of any Loan Document nor consent to any variance therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

(b)                                 Exceptions to the General Rule.  Notwithstanding the provisions of subsection (a) of this Section 11.3:

 

(i)                                     Unanimous Consent Requirements.  Unanimous consent of the Lenders shall be required with respect to (A) any increase in the Commitment hereunder (except as specified in Section 2.9(b) hereof, provided that no Lender’s Commitment shall be increased without such Lender’s consent), (B) the extension of maturity of the Loans, the payment date of interest or scheduled principal hereunder, or the payment date of commitment fees payable hereunder, (C) any reduction in the stated rate of interest on the Loans (provided that the institution of the Default Rate or post default interest and a subsequent removal of the Default Rate or post default interest shall not constitute a decrease in interest rate pursuant to this Section 11.3), or in any amount of interest or scheduled principal due on any Loan, or any reduction in the stated rate of commitment fees payable hereunder or any change in the manner of pro rata application of any

 

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payments made by Borrowers to the Lenders hereunder, (D) any change in any percentage voting requirement, voting rights, or the Required Lenders definition in this Agreement, (E) the release of US Borrower or any Domestic Guarantor of Payment or any material amount of Collateral securing the Secured Obligations, except in connection with a transaction specifically permitted hereunder, or (F) any amendment to this Section 11.3 or Section 8.5 or 8.7 hereof.

 

(ii)                                  Provisions Relating to Special Rights and Duties.  No provision of this Agreement affecting Agent in its capacity as such shall be amended, modified or waived without the consent of Agent.  No provision of this Agreement relating to the rights or duties of the Fronting Lender in its capacity as such shall be amended, modified or waived without the consent of the Fronting Lender. No provision of this Agreement relating to the rights or duties of the Swing Line Lender in its capacity as such shall be amended, modified or waived without the consent of the Swing Line Lender.

 

(iii)                               Incremental Term Loans.  The Loan Documents may be amended by Agent and US Borrower only to effect Incremental Term Loans and Incremental Term Loan Commitments pursuant Section 2.9(a) hereof; provided that no amendment or modification shall result in any increase in the amount of any Lender’s Commitment or any increase in any Lender’s Commitment Percentage, in each case, without the written consent of such affected Lender.

 

(c)                                  Replacement of Non-Consenting Lender.  If, in connection with any proposed amendment, waiver or consent hereunder, (i) the consent of all Lenders is required, but only the consent of Required Lenders is obtained, or (ii) the consent of Required Lenders is required, but the consent of the Required Lenders is not obtained (any Lender withholding consent as described in subparts (i) and (ii) hereof being referred to as a “Non-Consenting Lender”), then, so long as Agent is not the Non-Consenting Lender, Agent may, at the sole expense of Borrowers, upon notice to such Non-Consenting Lender and Administrative Borrower, require such Non-Consenting Lender to assign and delegate, without recourse (in accordance with the restrictions contained in Section 11.10 hereof) all of its interests, rights and obligations under this Agreement to an Eligible Transferee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that such Non-Consenting Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from such Eligible Transferee (to the extent of such outstanding principal and accrued interest and fees) or Borrowers (in the case of all other amounts, including any breakage compensation under Article III hereof).

 

(d)                                 Generally.  Notice of amendments, waivers or consents ratified by the Lenders hereunder shall be forwarded by Agent to all of the Lenders.  Each Lender or other holder of a Note (or if there is no Note, the holder of the interest as reflected on the books and records of Agent) (or interest in any Loan or Letter of Credit) shall be bound by any amendment, waiver or consent obtained as authorized by this Section 11.3, regardless of its failure to agree thereto.

 

Section 11.4                             Notices.  All notices, requests, demands and other communications provided for hereunder shall be in writing and, if to a Borrower, mailed or delivered to it,

 

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addressed to it at the address specified on the signature pages of this Agreement (together with a courtesy copy thereof to US Borrower’s general counsel, mailed or delivered to TeleTech Holdings, Inc., 9197 South Peoria Street, Englewood, Colorado 80112-5833, Attention: General Counsel) or at such other address as shall be designated by US Borrower in a written notice to each of the other parties), if to a Lender, mailed or delivered to it, addressed to the address of such Lender specified on the signature pages of this Agreement, or, as to each party, at such other address as shall be designated by such party in a written notice to each of the other parties.  All notices, statements, requests, demands and other communications provided for hereunder shall be deemed to be given or made when hand delivered, delivered by overnight courier or five Business Days after being deposited in the mails with postage prepaid by registered or certified mail, addressed as aforesaid, or sent by facsimile with telephonic confirmation of receipt (if received during a Business Day, otherwise the following Business Day).  All notices hereunder shall not be effective until received.  For purposes of Article II hereof, Agent shall be entitled to rely on telephonic instructions from any person that Agent in good faith believes is an Authorized Officer and US Borrower shall hold Agent and each Lender harmless from any loss, cost or expense resulting from any such reliance.

 

Section 11.5                             Costs, Expenses and Documentary Taxes.  US Borrower agrees to pay on demand all reasonable costs and expenses of Agent and all Related Expenses, including but not limited to (a) syndication, administration, travel and out-of-pocket expenses, including but not limited to reasonable attorneys’ fees and expenses, of Agent in connection with the preparation, negotiation and closing of the Loan Documents and the administration of the Loan Documents, and the collection and disbursement of all funds hereunder and the other instruments and documents to be delivered hereunder, (b) extraordinary expenses of Agent in connection with the administration of the Loan Documents and the other instruments and documents to be delivered hereunder, and (c) the reasonable fees and out-of-pocket expenses of special counsel for Agent, with respect to the foregoing, and of local counsel, if any, who may be retained by said special counsel with respect thereto.  US Borrower, and any appropriate Foreign Borrower, also agrees to pay on demand all reasonable costs and expenses (including Related Expenses) of Agent and the Lenders, including reasonable attorneys’ fees and expenses, in connection with the restructuring or enforcement of the Obligations, this Agreement or any Related Writing.  In addition, US Borrower and any appropriate Foreign Borrower shall pay any and all stamp, transfer, documentary and other taxes, assessments, charges and fees payable or determined to be payable in connection with the execution and delivery of the Loan Documents, and the other instruments and documents to be delivered hereunder, and agree to hold Agent and each Lender harmless from and against any and all liabilities with respect to or resulting from any delay in paying or failure to pay such taxes or fees, other than those liabilities resulting from the gross negligence or willful misconduct of Agent, or, with respect to amounts owing to a Lender, such Lender, in each case as determined by a court of competent jurisdiction.  All obligations provided for in this Section 11.5 shall survive any termination of this Agreement.

 

Section 11.6                             Indemnification.  US Borrower, and each Foreign Borrower to the extent relating to the Loans and other credit extensions to such Foreign Borrower, agrees to defend, indemnify and hold harmless Agent and the Lenders (and their respective affiliates, officers, directors, attorneys, agents and  employees) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including attorneys’ fees) or disbursements of any kind or nature whatsoever that may be imposed on, incurred by or

 

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asserted against Agent or any Lender in connection with any investigative, administrative or judicial proceeding (whether or not such Lender or Agent shall be designated a party thereto) or any other claim by any Person relating to or arising out of any Loan Document or any actual or proposed use of proceeds of the Loans or any of the Obligations, or any activities of any Company or its Affiliates; provided that no Lender nor Agent shall have the right to be indemnified under this Section 11.6 for its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction.  All obligations provided for in this Section 11.6 shall survive any termination of this Agreement.

 

Section 11.7                             Obligations Several; No Fiduciary Obligations.  The obligations of the Lenders hereunder are several and not joint.  Nothing contained in this Agreement and no action taken by Agent or the Lenders pursuant hereto shall be deemed to constitute Agent or the Lenders a partnership, association, joint venture or other entity.  No default by any Lender hereunder shall excuse the other Lenders from any obligation under this Agreement; but no Lender shall have or acquire any additional obligation of any kind by reason of such default.  The relationship between Borrowers and the Lenders with respect to the Loan Documents and the Related Writings is and shall be solely that of debtors and creditors, respectively, and neither Agent nor any Lender shall have any fiduciary obligation toward any Credit Party with respect to any such documents or the transactions contemplated thereby.

 

Section 11.8                             Execution in Counterparts.  This Agreement may be executed in any number of counterparts, and by different parties hereto in separate counterparts and by facsimile signature, each of which counterparts when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

 

Section 11.9                             Binding Effect; Borrowers’ Assignment.  This Agreement shall become effective when it shall have been executed by each Borrower, Agent and each Lender and thereafter shall be binding upon and inure to the benefit of each Borrower, Agent and each of the Lenders and their respective successors and permitted assigns, except that no Borrower shall have the right to assign its rights hereunder or any interest herein without the prior written consent of Agent and all of the Lenders.

 

Section 11.10                      Lender Assignments.

 

(a)                                 Assignments of Commitments.  Each Lender shall have the right at any time or times to assign to an Eligible Transferee (other than to a Lender that shall not be in compliance with this Agreement), without recourse, all or a percentage of all of the following:  (i) such Lender’s Commitment, (ii) all Loans made by that Lender, (iii) such Lender’s Notes, and (iv) such Lender’s interest in any Letter of Credit or Swing Loan, and any participation purchased pursuant to Section 2.2(b) or 2.2(c) or Section 8.5 hereof.

 

(b)                                 Prior Consent.  No assignment may be consummated pursuant to this Section 11.10 without the prior written consent of Administrative Borrower and Agent (other than an assignment by any Lender to any affiliate of such Lender which affiliate is an Eligible Transferee and either wholly-owned by a Lender or is wholly-owned by a Person that wholly owns, either directly or indirectly, such Lender, or to another Lender), which consent of Administrative Borrower and Agent shall not be unreasonably withheld; provided that the

 

95

 

consent of Administrative Borrower shall not be required if, at the time of the proposed assignment, any Default or Event of Default shall then exist.  Anything herein to the contrary notwithstanding, any Lender may at any time make a collateral assignment of all or any portion of its rights under the Loan Documents to a Federal Reserve Bank, and no such assignment shall release such assigning Lender from its obligations hereunder.

 

(c)                                  Minimum Amount.  Each such assignment shall be in a minimum amount of the lesser of Five Million Dollars ($5,000,000) of the assignor’s Commitment and interest herein, or the entire amount of the assignor’s Commitment and interest herein.

 

(d)                                 Assignment Fee.  Unless the assignment shall be to an affiliate of the assignor or the assignment shall be due to merger of the assignor or for regulatory purposes, either the assignor or the assignee shall remit to Agent, for its own account, an administrative fee of Three Thousand Five Hundred Dollars ($3,500).

 

(e)                                  Assignment Agreement.  Unless the assignment shall be due to merger of the assignor or a collateral assignment for regulatory purposes, the assignor shall (i) cause the assignee to execute and deliver to Administrative Borrower and Agent an Assignment Agreement, and (ii) execute and deliver, or cause the assignee to execute and deliver, as the case may be, to Agent such additional amendments, assurances and other writings as Agent may reasonably require.

 

(f)                                   Non-U.S. Assignee.  If the assignment is to be made to an assignee that is organized under the laws of any jurisdiction other than the United States or any state thereof, the assignor Lender shall cause such assignee, at least five Business Days prior to the effective date of such assignment, (i) to represent to the assignor Lender (for the benefit of the assignor Lender, Agent and Borrowers) that under applicable law and treaties no taxes will be required to be withheld by Agent, Borrowers or the assignor with respect to any payments to be made to such assignee in respect of the Loans hereunder, (ii) to furnish to the assignor Lender (and, in the case of any assignee registered in the Register (as defined below), Agent and Borrowers) either U.S. Internal Revenue Service Form W-8ECI, Form W-8IMY or U.S. Internal Revenue Service Form W-8BEN, as applicable (wherein such assignee claims entitlement to complete exemption from U.S. federal withholding tax on all payments hereunder), and (iii) to agree (for the benefit of the assignor, Agent and Borrowers) to provide to the assignor Lender (and, in the case of any assignee registered in the Register, to Agent and Borrowers) a new Form W-8ECI or Form W-8BEN, as applicable, upon the expiration or obsolescence of any previously delivered form and comparable statements in accordance with applicable U.S. laws and regulations and amendments duly executed and completed by such assignee, and to comply from time to time with all applicable U.S. laws and regulations with regard to such withholding tax exemption.

 

(g)                                  Deliveries by Borrowers.  Upon satisfaction of all applicable requirements specified in subsections (a) through (f) above, Borrowers shall execute and deliver (i) to Agent, the assignor and the assignee, any consent or release (of all or a portion of the obligations of the assignor) required to be delivered by Borrowers in connection with the Assignment Agreement, and (ii) to the assignee, if requested, and the assignor, if applicable, an appropriate Note or Notes.  After delivery of the new Note or Notes, the assignor’s Note or Notes, if any, being replaced shall be returned to Administrative Borrower marked “replaced”.

 

96

 

(h)                                 Effect of Assignment.  Upon satisfaction of all applicable requirements set forth in subsections (a) through (g) above, and any other condition contained in this Section 11.10, (i) the assignee shall become and thereafter be deemed to be a “Lender” for the purposes of this Agreement, (ii) the assignor shall be released from its obligations hereunder to the extent that its interest has been assigned, (iii) in the event that the assignor’s entire interest has been assigned, the assignor shall cease to be and thereafter shall no longer be deemed to be a “Lender” and (iv) the signature pages hereto and Schedule 1 hereto shall be automatically amended, without further action, to reflect the result of any such assignment.

 

(i)                                     Agent to Maintain Register.  Agent shall maintain at the address for notices referred to in Section 11.4 hereof a copy of each Assignment Agreement delivered to it and a register (the “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 from time to time.  The entries in the Register shall be conclusive, in the absence of manifest error, and Borrowers, Agent and the Lenders may treat each Person whose name is recorded in the Register as the owner of the Loan recorded therein for all purposes of this Agreement.  The Register shall be available for inspection by Borrowers or any Lender at any reasonable time and from time to time upon reasonable prior notice.

 

Section 11.11                      Sale of Participations.  Any Lender may, in the ordinary course of its commercial banking business and in accordance with applicable law, at any time sell participations to one or more Eligible Transferees (each a “Participant”) in all or a portion of its rights or obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion of the Commitment and the Loans and participations owing to it and the Note, if any, held by it); provided that:

 

(a)                                 any such Lender’s obligations under this Agreement and the other Loan Documents shall remain unchanged;

 

(b)                                 such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations;

 

(c)                                  the parties hereto shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and each of the other Loan Documents;

 

(d)                                 such Participant shall be bound by the provisions of Section 8.5 hereof, and the Lender selling such participation shall obtain from such Participant a written confirmation of its agreement to be so bound; and

 

(e)                                  no Participant (unless such Participant is itself a Lender) shall be entitled to require such Lender to take or refrain from taking action under this Agreement or under any other Loan Document, except that such Lender may agree with such Participant that such Lender will not, without such Participant’s consent, take action of the type described as follows:

 

(i)                                     increase the portion of the participation amount of any Participant over the amount thereof then in effect, or extend the Commitment Period, without the written consent of each Participant affected thereby; or

 

97

 

(ii)                                  reduce the principal amount of or extend the time for any payment of principal of any Loan, or reduce the rate of interest or extend the time for payment of interest on any Loan, or reduce the commitment fee, without the written consent of each Participant affected thereby.

 

Borrowers agree that any Lender that sells participations pursuant to this Section 11.11 shall still be entitled to the benefits of Article III hereof, notwithstanding any such transfer; provided that the obligations of Borrowers shall not increase as a result of such transfer and Borrowers shall have no obligation to any Participant.

 

Section 11.12                      Replacement of Affected Lenders.  Each Lender agrees that, during the time in which any Lender is an Affected Lender, Agent shall have the right (and Agent shall, if requested by Administrative Borrower), at the sole expense of Borrowers, upon notice to such Affected Lender and Administrative Borrower, to require that such Affected Lender assign and delegate, without recourse (in accordance with the restrictions contained in Section 11.12 hereof), all of its interests, rights and obligations under this Agreement to an Eligible Transferee, approved by Administrative Borrower (unless an Event of Default shall exist) and Agent, that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that such Affected Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder (recognizing that any Affected Lender may have given up its rights under this Agreement to receive payment of fees and other amounts pursuant to Section  2.6(f) and (g) hereof), from such Eligible Transferee (to the extent of such outstanding principal and accrued interest and fees) or Administrative Borrower (in the case of all other amounts, including any breakage compensation under Article III hereof).

 

Section 11.13                      Patriot Act Notice.  Each Lender and Agent (for itself and not on behalf of any other party) hereby notifies the Credit Parties that, pursuant to the requirements of the Patriot Act, such Lender and Agent are required to obtain, verify and record information that identifies the Credit Parties, which information includes the name and address of each of the Credit Parties and other information that will allow such Lender or Agent, as applicable, to identify the Credit Parties in accordance with the Patriot Act.  Each Borrower shall provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by Agent or a Lender in order to assist Agent or such Lender in maintaining compliance with the Patriot Act.

 

Section 11.14                      Severability of Provisions; Captions; Attachments.  Any provision of this Agreement that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.  The several captions to sections and subsections herein are inserted for convenience only and shall be ignored in interpreting the provisions of this Agreement.  Each schedule or exhibit attached to this Agreement shall be incorporated herein and shall be deemed to be a part hereof.

 

Section 11.15                      Investment Purpose.  Each of the Lenders represents and warrants to Borrowers that it is entering into this Agreement with the present intention of acquiring any Note

 

98

 

issued pursuant hereto (or, if there is no Note, the interest as reflected on the books and records of Agent) for investment purposes only and not for the purpose of distribution or resale, it being understood, however, that each Lender shall at all times retain full control over the disposition of its assets.

 

Section 11.16                      Entire Agreement.  This Agreement, any Note and any other Loan Document or other agreement, document or instrument attached hereto or executed on or as of the Closing Date integrate all of the terms and conditions mentioned herein or incidental hereto and supersede all oral representations and negotiations and prior writings with respect to the subject matter hereof.

 

Section 11.17                      Limitations on Liability of the Fronting Lender.  Borrowers assume all risks of the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its use of such Letters of Credit.  Neither the Fronting Lender nor any of its officers or directors shall be liable or responsible for (a) the use that may be made of any Letter of Credit or any acts or omissions of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency or genuineness of documents, or of any endorsement thereon, even if such documents should prove to be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment by the Fronting Lender against presentation of documents that do not comply with the terms of a Letter of Credit, including failure of any documents to bear any reference or adequate reference to such Letter of Credit; or (d) any other circumstances whatsoever in making or failing to make payment under any Letter of Credit, except that the account party on such Letter of Credit shall have a claim against the Fronting Lender, and the Fronting Lender shall be liable to such account party, to the extent of any direct, but not consequential, damages suffered by such account party that such account party proves were caused by (i) the Fronting Lender’s willful misconduct or gross negligence (as determined by a court of competent jurisdiction) in determining whether documents presented under a Letter of Credit comply with the terms of such Letter of Credit, or (ii) the Fronting Lender’s willful failure to make lawful payment under any Letter of Credit after the presentation to it of documentation strictly complying with the terms and conditions of such Letter of Credit.  In furtherance and not in limitation of the foregoing, the Fronting Lender may accept documents that appear on their face to be in order, without responsibility for further investigation.

 

Section 11.18                      General Limitation of Liability.  No claim may be made by any Credit Party, any Lender, Agent, the Fronting Lender or any other Person against Agent, the Fronting Lender, or any other Lender or the affiliates, directors, officers, employees, attorneys or agents of any of them for any damages other than actual compensatory damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any of the other Loan Documents, or any act, omission or event occurring in connection therewith; and Borrowers, each Lender, Agent and the Fronting Lender hereby, to the fullest extent permitted under applicable law, waive, release and agree not to sue or counterclaim upon any such claim for any special, consequential or punitive damages, whether or not accrued and whether or not known or suspected to exist in their favor.

 

Section 11.19                      No Duty.  All attorneys, accountants, appraisers, consultants and other professional persons (including the firms or other entities on behalf of which any such Person may act) retained by Agent or any Lender with respect to the transactions contemplated by the

 

99

 

Loan Documents shall have the right to act exclusively in the interest of Agent or such Lender, as the case may be, and shall have no duty of disclosure, duty of loyalty, duty of care, or other duty or obligation of any type or nature whatsoever to Borrowers, any other Companies, or to any other Person, with respect to any matters within the scope of such representation or related to their activities in connection with such representation.  Each Borrower agrees, on behalf of itself and its Subsidiaries, not to assert any claim or counterclaim against any such persons with regard to such matters, all such claims and counterclaims, now existing or hereafter arising, whether known or unknown, foreseen or unforeseeable, being hereby waived, released and forever discharged.

 

Section 11.20       Legal Representation of Parties.  The Loan Documents were negotiated by the parties with the benefit of legal representation and any rule of construction or interpretation otherwise requiring this Agreement or any other Loan Document to be construed or interpreted against any party shall not apply to any construction or interpretation hereof or thereof.

 

Section 11.21       Judgment Currency.

 

(a)           This in an international transaction in which the obligations of the Credit Parties under this Agreement to make payment to or for account of Agent or the Lenders in a specified currency (“Original Currency”) shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any other currency (“Judgment Currency”) except to the extent that such tender or recovery results in the effective receipt by Agent or such Lender of the full amount in Original Currency payable to Agent or such Lender under this Agreement.

 

(b)           If Agent, on behalf of the Lenders, or any other holder of the Obligations (the “Applicable Creditor”), obtains a judgment or judgments against any Credit Party in respect of any sum adjudged to be due to Agent or the Lenders hereunder or under the Notes (the “Judgment Amount”) in a Judgment Currency other than the Original Currency, the obligations of such Credit Party in connection with such judgment shall be discharged only to the extent that (i) on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, such Applicable Creditor, in accordance with the normal banking procedures in the relevant jurisdiction, can purchase the Original Currency with the Judgment Currency, and (ii) if the amount of Original Currency so purchased is less than the amount of Original Currency that could have been purchased with the Judgment Amount on the date or dates the Judgment Currency was originally due and owing to Agent or the Lenders hereunder (the “Loss”), such Credit Party or US Borrower, as a separate obligation and notwithstanding any such judgment, indemnifies Agent or such Lender, as the case may be, against such Loss.  US Borrower hereby agrees to such indemnification.  For purposes of determining the equivalent in one currency of another currency as provided in this Section 11.21, such amount shall include any premium and costs payable in connection with the conversion into or from any currency.  The obligations of the Credit Parties contained in this Section 11.21 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.

 

100

 

Section 11.22       Governing Law; Submission to Jurisdiction.

 

(a)           Governing Law.  This Agreement, each of the Notes and any Related Writing (except as otherwise set forth in any Loan Document executed by a Foreign Subsidiary) shall be governed by and construed in accordance with the laws of the State of New York and the respective rights and obligations of Borrowers, Agent, and the Lenders shall be governed by New York law, without regard to principles of conflicts of laws.

 

(b)           Submission to Jurisdiction.  Each Borrower hereby irrevocably submits to the non-exclusive jurisdiction of the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, over any action or proceeding arising out of or relating to this Agreement, the Obligations or any Related Writing (except as otherwise set forth in any Loan Document executed by a Foreign Subsidiary), and each Borrower hereby irrevocably agrees that all claims in respect of such action or proceeding may be heard and determined in such New York state or federal court.  Each Borrower, on behalf of itself and its Subsidiaries, hereby irrevocably waives, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue in any action or proceeding in any such court as well as any right it may now or hereafter have to remove such action or proceeding, once commenced, to another court on the grounds of FORUM NON CONVENIENS or otherwise.  Each Borrower agrees that a final, non-appealable 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.

 

Section 11.23       JURY TRIAL WAIVER.  TO THE EXTENT PERMITTED BY LAW, EACH BORROWER, AGENT AND EACH LENDER WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

101

 

Section 11.24       Amendment and Restatement; No Novation.  This Agreement constitutes an amendment and restatement of the Existing Credit Agreement, effective from and after the Closing Date.  The execution and delivery of this Agreement shall not constitute a novation of any indebtedness or other obligations owing to the lenders or the administrative agent under the Existing Credit Agreement based on facts or events occurring or existing prior to the execution and delivery of this Agreement.  On the Closing Date, the credit facilities described in the Existing Credit Agreement, shall be amended, supplemented, modified and restated in their entirety by the facilities described herein, and all loans and other obligations of Borrowers outstanding as of such date under the Existing Credit Agreement, shall be deemed to be loans and obligations outstanding under the corresponding facilities described herein, without any further action by any Person, except that Agent shall make such transfers of funds as are necessary in order that the outstanding balance of such loans, together with any Loans funded on the Closing Date, reflect the respective Revolving Credit Commitment of the Lenders hereunder.

 

[Signature pages to follow]

 

102

 

IN WITNESS WHEREOF, the parties have executed and delivered this Credit Agreement as of the date first set forth above.

 

 

	
Address:   
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
9197   South Peoria Street
    	
By:
    	
/s/   Regina M. Paolillo 
    
	
Englewood,   Colorado 80112-5833
    	
Name:
    	
Regina   M. Paolillo 
    
	
Attn:   Vice President - Treasurer
    	
Title:
    	
CFO,   CAO & Secretary
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:  
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Agent and as a Lender 
    
	
MAC   D1109-019 
    	
 
    
	
1525   West W.T. Harris Blvd.
    	
By:
    	
/s/   Catherine Jones 
    
	
Charlotte,   NC 28262
    	
Name:
    	
Catherine   Jones 
    
	
Attention   of: Syndication Agency Services
    	
Title:
    	
Senior   Vice President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:  
    	
KeyBank   National Association, as Lender 
    
	
 
    	
 
    
	
Mailcode:   OH-01-27-0627
    	
By:
    	
/s/   David A. Wild 
    
	
127   Public Square 
    	
Name:
    	
David   A. Wild 
    
	
Cleveland,   OH 44114
    	
Title:
    	
Senior   Vice President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
Bank   of America N.A., as Lender 
    
	
 
    	
 
    
	
370   17th Street Ste 3590
    	
By:
    	
/s/   Michael T. Letsch
    
	
Denver,   CO 80202
    	
Name:
    	
Michael   T. Letsch 
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
HSBC   Bank USA, N.A., as Lender 
    
	
 
    	
 
    
	
660   S. Figueroa St.
    	
By:
    	
/s/   Hans Y. Lin 
    
	
Suite 800   
    	
Name:
    	
Hans   Y. Lin 
    
	
Los   Angeles, CA 90017
    	
Title:
    	
Senior   Vice President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
Compass   Bank, as a Lender 
    
	
 
    	
 
    
	
999   18th Street 
    	
By:
    	
/s/   Joseph W. Nimmons 
    
	
Suite 2800
    	
Name:
    	
Joseph   W. Nimmons 
    
	
Denver,   CO 80202
    	
Title:
    	
Senior   Vice President
    
	
Attn:   Joe Nimmons
    	
 
    	
 
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
Bank   of the West, as Lender 
    
	
 
    	
 
    
	
600   17th Street
    	
By:
    	
/s/   Terry A. Switz, Jr. 
    
	
Suite 1500
    	
Name:
    	
Terry   A. Switz, Jr. 
    
	
Denver,   CO 80202
    	
Title:
    	
Vice   President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
JPMorgan   Chase Bank, N.A., as Lender 
    
	
 
    	
 
    
	
2200   Ross Ave, 3rd Floor
    	
By:
    	
/s/   Gregory T. Martin 
    
	
Dallas,   TX 75201
    	
Name:
    	
Gregory   T. Martin 
    
	
 
    	
Title:
    	
Vice   President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
The   Northern Trust Company, as Lender 
    
	
 
    	
 
    
	
The   Northern Trust Company
    	
By:
    	
/s/   Molly Drennan 
    
	
50   South LaSalle Street 
    	
Name:
    	
Molly   Drennan 
    
	
Chicago, Illinois   60603
    	
Title:
    	
Vice   President
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:   
    	
U.S.   Bank National Association, as Lender 
    
	
 
    	
 
    
	
U.S.   Bank 
    	
By:
    	
/s/   Marty McDonald 
    
	
950   17th St., 3rd Floor 
    	
Name:
    	
Marty   McDonald 
    
	
Denver,   CO 80202
    	
Title:
    	
AVP
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

	
Address:  
    	
Citibank,   N.A., as Lender  
    
	
 
    	
 
    
	
388   Greenwich Street, 37th Floor
    	
By:
    	
/s/   James M. Walsh
    
	
New   York, NY 10013
    	
Name:
    	
James   M. Walsh 
    
	
 
    	
Title:
    	
Vice   President and Managing Director
    

 

TeleTech Holdings, Inc.

Amended and Restated Credit Agreement

Signature Page

 

 

EXHIBIT A

 

FORM OF
 US BORROWER REVOLVING CREDIT NOTE

 

	
$
    	
 
    	
[            ],   20[    ]
    

 

FOR VALUE RECEIVED, the undersigned, TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”), promises to pay to                    (“Lender”), at the place and times provided in the Credit Agreement referred to below, the principal sum of [                          ] MILLION AND 00/100 DOLLARS or the aggregate unpaid principal amount of all Revolving Loans, made by Lender to US Borrower pursuant to Section 2.2(a) of the Credit Agreement, whichever is less (or, in the event of currency fluctuations on Alternate Currency Loans, such greater amount as may be outstanding), in lawful money of the United States of America; provided that Revolving Loans that are Alternate Currency Loans shall be payable in the applicable Alternate Currency at the place or places designated in the Credit Agreement.  US Borrower also agrees to pay any additional amount that is required to be paid pursuant to Section 11.21 of the Credit Agreement.

 

As used herein, “Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of June 3, 2013, among US Borrower, the Foreign Borrowers, the Lenders party thereto and Wells Fargo Bank, National Association, a national banking association, as administrative agent for the Lenders (“Agent”) (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”).  Each capitalized term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

 

US Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan from time to time outstanding, from the date of such Revolving Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.3(a) of the Credit Agreement.  Such interest shall be payable on each date provided for in such Section 2.3(a); provided that interest on any principal portion that is not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base Rate Loans and LIBOR Fixed Rate Loans, interest owing thereon, and payments of principal and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided that failure to make any such entry shall in no way detract from the obligations of US Borrower under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments of principal of and interest on this Note shall be made in immediately available funds.

 

This Note is one of the US Borrower Revolving Credit Notes referred to in the Credit Agreement and is entitled to the benefits thereof. Reference is made to the Credit Agreement for a description of the right of the undersigned to anticipate payments hereof, the right of the holder

 

A-1

 

hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, US Borrower expressly waives presentment, demand, protest and notice of any kind.  This Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

 

US BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG US BORROWER, THE FOREIGN BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

A-2

 

	
 
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

A-3

 

EXHIBIT B

 

FORM OF
 FOREIGN BORROWER REVOLVING CREDIT NOTE

 

	
$[                        ]
    	
 
    	
[            ],   20[    ]
    

 

FOR VALUE RECEIVED, the undersigned, [                                ] (“Foreign Borrower”), promises to pay to (“Lender”), at the place and times provided in the Credit Agreement referred to below, the principal sum of [                          ] MILLION AND 00/100 DOLLARS or the aggregate unpaid principal amount of all Revolving Loans made by Lender to Foreign Borrower pursuant to Section 2.2(a) of the Credit Agreement, whichever is less (or, in the event of currency fluctuations on Alternate Currency Loans, such greater amount as may be outstanding), in lawful money of the United States of America; provided that Revolving Loans that are Alternate Currency Loans, as defined in the Credit Agreement, shall be payable in the applicable Alternate Currency at the place or places designated in the Credit Agreement.  Foreign Borrower also agrees to pay any additional amount that is required to be paid pursuant to Section 11.21 of the Credit Agreement.

 

As used herein, “Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of June 3, 2013, among US Borrower, the Foreign Borrowers, the Lenders party thereto and Wells Fargo Bank, National Association, a national banking association, as administrative agent for the Lenders (“Agent”) (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”).  Each capitalized term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

 

Foreign Borrower also promises to pay interest on the unpaid principal amount of each Revolving Loan from time to time outstanding, from the date of such Revolving Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.3(a) of the Credit Agreement.  Such interest shall be payable on each date provided for in such Section 2.3(a); provided that interest on any principal portion that is not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base Rate Loans and LIBOR Fixed Rate Loans, interest owing thereon, and payments of principal and interest of any thereof, shall be shown on the records of Lender by such method as Lender may generally employ; provided that failure to make any such entry shall in no way detract from the obligations of Foreign Borrowers under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, pursuant to the terms of the Credit Agreement, until paid, at a rate per annum equal to the Default Rate. All payments of principal of and interest on this Note shall be made in immediately available funds.

 

This Note is one of the Foreign Borrower Revolving Credit Notes referred to in the Credit Agreement and is entitled to the benefits thereof.  Reference is made to the Credit Agreement for a description of the right of the undersigned to anticipate payments hereof, the

 

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right of the holder hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, Foreign Borrower expressly waives presentment, demand, protest and notice of any kind.  This Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

 

FOREIGN BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG US BORROWER, FOREIGN BORROWERS, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

B-2

 

	
 
    	
[FOREIGN   BORROWER]
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

B-3

 

EXHIBIT C

 

FORM OF
 SWING LINE NOTE

 

	
$25,000,000.00
    	
June 3, 2013
    

 

FOR VALUE RECEIVED, the undersigned, TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”), promises to pay to WELLS FARGO BANK, NATIONAL ASSOCIATION (“Swing Line Lender”) at the place and times provided in the Credit Agreement referred to below, the principal sum of the principal sum of TWENTY-FIVE MILLION AND 00/100 DOLLARS or the aggregate unpaid principal amount of all Swing Loans made by Swing Line Lender to US Borrower pursuant to Section 2.2(c) of the Credit Agreement, whichever is less, in lawful money of the United States of America.

 

As used herein, “Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of June 3, 2013, among US Borrower, the Foreign Borrowers, the Lenders party thereto and Wells Fargo Bank, National Association, a national banking association, as administrative agent for the Lenders (“Agent”) (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”).  Each capitalized term used herein that is defined in the Credit Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Credit Agreement.

 

US Borrower also promises to pay interest on the unpaid principal amount of each Swing Loan from time to time outstanding, from the date of such Swing Loan until the payment in full thereof, at the rates per annum that shall be determined in accordance with the provisions of Section 2.3(b) of the Credit Agreement.  Such interest shall be payable on each date provided for in such Section 2.3(b); provided that interest on any principal portion that is not paid when due shall be payable on demand.

 

The principal sum hereof from time to time and the payments of principal and interest thereon, shall be shown on the records of Swing Line Lender by such method as Swing Line Lender may generally employ; provided that failure to make any such entry shall in no way detract from the obligation of US Borrower under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by reason of lapse of time or by operation of any provision for acceleration of maturity contained in the Credit Agreement, the principal hereof and the unpaid interest thereon shall bear interest, until paid, at a rate per annum equal to the Default Rate.  All payments of principal of and interest on this Note shall be made in immediately available funds.

 

This Note is the Swing Line Note referred to in the Credit Agreement and is entitled to the benefits thereof.  Reference is made to the Credit Agreement for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to declare this Note due prior to its stated maturity, and other terms and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, US Borrower expressly waives presentment, demand, protest and notice of any kind.  This Note shall be governed by and

 

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construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

 

US BORROWER, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG US BORROWER, AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS NOTE OR ANY OTHER NOTE OR INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

 

C-2

 

	
 
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

C-3

 

EXHIBIT D

 

FORM OF
 NOTICE OF LOAN

 

	
, 20         
    

 

Wells Fargo Bank, National Association,

as Administrative Agent

MAC D 1109-019

1525 West W.T. Harris Blvd.

Charlotte, North Carolina 28262

Attention:  Syndication Agency Services

 

Ladies and Gentlemen:

 

The undersigned, TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”), refers to that certain Amended and Restated Credit Agreement, dated as of June 3, 2010 (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among US Borrower, the Foreign Borrowers, the Lenders party thereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders (“Agent”), and hereby gives you notice, pursuant to Section 2.5 of the Credit Agreement that Borrowers hereby request a Loan (the “Proposed Loan”), and in connection therewith sets forth below the information relating to the Proposed Loan as required by Section 2.5 of the Credit Agreement:

 

(a)                                 The Borrower requesting the Proposed Loan is                                                   .

 

(b)                                 The Business Day of the Proposed Loan is                     , 20    .

 

(c)                                  The amount of the Proposed Loan is $                              .

 

(d)                                 The Proposed Loan is to be a Base Rate Loan          / Eurodollar Loan       /

Alternate Currency Loan          / Swing Loan          .  (Check one.)

 

(e)                                  If the Proposed Loan is a LIBOR Fixed Rate Loan, the Interest Period requested is one month       , two months       , three months       , six months       . (Check one.)

 

(f)                                   If the Proposed Loan is an Alternate Currency Loan, the Alternate Currency requested is                       .

 

The undersigned hereby certifies on behalf of Borrowers that the following statements are true on the date hereof, and will be true on the date of the Proposed Loan:

 

D-1

 

(i)                                     the representations and warranties contained in each Loan Document are correct, before and after giving effect to the Proposed Loan and the application of the proceeds therefrom, as though made on and as of such date;

 

(ii)                                  no event has occurred and is continuing, or would result from such Proposed Loan, or the application of proceeds therefrom, that constitutes a Default or Event of Default; and

 

(iii)                               the conditions set forth in Section 2.5 and Article IV of the Credit Agreement have been satisfied.

 

D-2

 

	
 
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

D-3

 

EXHIBIT E

 

FORM OF
 COMPLIANCE CERTIFICATE

 

	
 
    	
For   Fiscal Quarter ended                                                   
    

 

 

THE UNDERSIGNED HEREBY CERTIFIES THAT:

 

(1)                                 I am the duly elected Chief Financial Officer or Treasurer of TeleTech Holdings, Inc., a Delaware corporation (“US Borrower”);

 

(2)                                 I am familiar with the terms of that certain Amended and Restated Credit Agreement, dated as of June 3, 2013, among US Borrower, the Foreign Borrowers, the Lenders party thereto and Wells Fargo Bank, National Association, a national banking association, as administrative agent for the Lenders (“Agent”) (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), and the terms of the other Loan Documents, and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of US Borrower and its Subsidiaries during the accounting period covered by the attached financial statements;

 

(3)                                 The review described in paragraph (2) above did not disclose, and I have no knowledge of, the existence of any condition or event that constitutes or constituted a Default or Event of Default, at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate;

 

(4)                                 The representations and warranties made by each Company contained in each Loan Document are true and correct as though made on and as of the date hereof; and

 

(5)                                 Set forth on Attachment I hereto are calculations of the financial covenants set forth in Section 5.7 of the Credit Agreement, which calculations show compliance with the terms thereof.

 

IN WITNESS WHEREOF, I have signed this certificate the        day of                   , 20      .

 

	
 
    	
TELETECH   HOLDINGS, INC.   
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

E-1

 

EXHIBIT F

 

FORM OF
 ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

This Assignment and Acceptance Agreement (this “Assignment Agreement”) between                                              (the “Assignor”) and                                              (the “Assignee”) is dated as of                 , 20   .  The parties hereto agree as follows:

 

1.                                      Preliminary Statement.  Assignor is a party to that certain Amended and Restated Credit Agreement, dated as of June 3, 2013 (as the same may from time to time be amended, restated, or otherwise modified, the “Credit Agreement”), among TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”), the Foreign Borrowers, the Lenders party thereto (together with their respective successors and assigns, collectively, the “Lenders” and, individually, each a “Lender”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders (“Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings attributed to them in the Credit Agreement.

 

2.                                      Assignment and Assumption.  Assignor hereby sells and assigns to Assignee, and Assignee hereby purchases and assumes from Assignor, an interest in and to Assignor’s rights and obligations under the Credit Agreement, effective as of the Assignment Effective Date (as hereinafter defined), equal to the percentage interest specified on Annex 1 hereto (hereinafter, the “Assigned Percentage”) of Assignor’s right, title and interest in and to (a) the Commitment, (b) any Loan made by Assignor that is outstanding on the Assignment Effective Date, (c) Assignor’s interest in any Letter of Credit outstanding on the Assignment Effective Date, (d) any Note delivered to Assignor pursuant to the Credit Agreement, and (e) the Credit Agreement and the other Related Writings.  After giving effect to such sale and assignment and on and after the Assignment Effective Date, Assignee shall be deemed to have a “Commitment Percentage” under the Credit Agreement equal to the Commitment Percentage set forth in subpart II.A on Annex 1 hereto and an Assigned Amount as set forth on subpart I.B of Annex 1 hereto (hereinafter, the “Assigned Amount”).

 

3.                                      Assignment Effective Date.  The Assignment Effective Date (the “Assignment Effective Date”) shall be [                         ,         ] (or such other date agreed to by Agent).  On or prior to the Assignment Effective Date, Assignor shall satisfy the following conditions:

 

(a)                                 receipt by Agent of  this Assignment Agreement, including Annex 1 hereto, properly executed by Assignor and Assignee and accepted and consented to by Agent and, if necessary pursuant to the provisions of Section 11.10(b) of the Credit Agreement, by Administrative Borrower;

 

(b)                                 receipt by Agent from Assignor of a fee of Three Thousand Five Hundred Dollars ($3,500), if required by Section 11.10 of the Credit Agreement;

 

(c)                                  receipt by Agent from Assignee of an administrative questionnaire, or other similar document, which shall include (i) the address for notices under the Credit Agreement,

 

F-1

 

(ii) the address of its Lending Office, (iii) wire transfer instructions for delivery of funds by Agent, and (iv) such other information as Agent shall request; and

 

(d)                                 receipt by Agent from Assignor or Assignee of any other information required pursuant to Section 11.10 of the Credit Agreement or otherwise necessary to complete the transaction contemplated hereby.

 

4.                                      Payment Obligations.  In consideration for the sale and assignment of Loans hereunder, Assignee shall pay to Assignor, on the Assignment Effective Date, the amount agreed to by Assignee and Assignor.  Any interest, fees and other payments accrued prior to the Assignment Effective Date with respect to the Assigned Amount shall be for the account of Assignor.  Any interest, fees and other payments accrued on and after the Assignment Effective Date with respect to the Assigned Amount shall be for the account of Assignee.  Each of Assignor and Assignee agrees that it will hold in trust for the other party any interest, fees or other amounts which it may receive to which the other party is entitled pursuant to the preceding sentence and to pay the other party any such amounts which it may receive promptly upon receipt thereof.

 

5.                                      Credit Determination; Limitations on Assignor’s Liability.  Assignee represents and warrants to Assignor, Borrowers, Agent and the Lenders (a) that it is capable of making and has made and shall continue to make its own credit determinations and analysis based upon such information as Assignee deemed sufficient to enter into the transaction contemplated hereby and not based on any statements or representations by Assignor, (b) Assignee confirms that it meets the requirements to be an assignee as set forth in Section 11.10 of the Credit Agreement; (c) Assignee confirms that it is able to fund the Loans and the Letters of Credit as required by the Credit Agreement; (d) Assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement and the Related Writings are required to be performed by it as a Lender thereunder; and (e) Assignee represents that it has reviewed each of the Loan Documents.  It is understood and agreed that the assignment and assumption hereunder are made without recourse to Assignor and that Assignor makes no representation or warranty of any kind to Assignee and shall not be responsible for (i) the due execution, legality, validity, enforceability, genuineness, sufficiency or collectability of the Credit Agreement or any Related Writings, (ii) any representation, warranty or statement made in or in connection with the Credit Agreement or any of the Related Writings, (iii) the financial condition or creditworthiness of any Borrower or any Guarantor of Payment, (iv) the performance of or compliance with any of the terms or provisions of the Credit Agreement or any of the Related Writings, (v) the inspection of any of the property, books or records of Borrowers, or (vi) the validity, enforceability, perfection, priority, condition, value or sufficiency of any collateral securing or purporting to secure the Loans or Letters of Credit.  Neither Assignor nor any of its officers, directors, employees, agents or attorneys shall be liable for any mistake, error of judgment, or action taken or omitted to be taken in connection with the Loans, the Letters of Credit, the Credit Agreement or the Related Writings, except for its or their own gross negligence or willful misconduct (as determined by a court of competent jurisdiction).  Assignee appoints Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement as are delegated to Agent by the terms thereof.

 

F-2

 

6.                                      Indemnity.  Assignee agrees to indemnify and hold Assignor harmless against any and all losses, cost and expenses (including, without limitation, attorneys’ fees) and liabilities incurred by Assignor in connection with or arising in any manner from Assignee’s performance or non-performance of obligations assumed under this Assignment Agreement.

 

7.                                      Subsequent Assignments.  After the Assignment Effective Date, Assignee shall have the right, pursuant to Section 11.10 of the Credit Agreement to assign the rights which are assigned to Assignee hereunder, provided that (a) any such subsequent assignment does not violate any of the terms and conditions of the Credit Agreement, any of the Related Writings, or any law, rule, regulation, order, writ, judgment, injunction or decree and that any consent required under the terms of the Credit Agreement or any of the Related Writings has been obtained, (b) the assignee under such assignment from Assignee shall agree to assume all of Assignee’s obligations hereunder in a manner satisfactory to Assignor, and (c) Assignee is not thereby released from any of its obligations to Assignor hereunder.

 

8.                                      Reductions of Aggregate Amount of Commitments.  If any reduction in the Total Commitment Amount occurs between the date of this Assignment Agreement and the Assignment Effective Date, the percentage of the Total Commitment Amount assigned to Assignee shall remain the percentage specified in Section 1 hereof and the dollar amount of the Commitment of Assignee shall be recalculated based on the reduced Total Commitment Amount.

 

9.                                      Acceptance of Agent; Notice by Assignor.  This Assignment Agreement is conditioned upon the acceptance and consent of Agent and, if necessary pursuant to Section 11.10 of the Credit Agreement, upon the acceptance and consent of Administrative Borrower; provided that the execution of this Assignment Agreement by Agent and, if necessary, by Administrative Borrower is evidence of such acceptance and consent.

 

10.                               Entire Agreement.  This Assignment Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings between the parties hereto relating to the subject matter hereof.

 

11.                               Governing Law.  This Assignment Agreement shall be governed by the laws of the State of New York, without regard to principles of conflicts of laws.

 

12.                               Notices.  Notices shall be given under this Assignment Agreement in the manner set forth in the Credit Agreement.  For the purpose hereof, the addresses of the parties hereto (until notice of a change is delivered) shall be the address set forth under each party’s name on the signature pages hereof.

 

13.                               Counterparts.  This Assignment Agreement may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile signature, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

 

14.                               JURY TRIAL WAIVER.  EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR

 

F-3

 

OTHERWISE, AMONG AGENT, ANY OF THE LENDERS, AND ANY OF THE BORROWERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG EACH OF THEM IN CONNECTION WITH THIS INSTRUMENT OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION THEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

[Remainder of page intentionally left blank.]

 

F-4

 

IN WITNESS WHEREOF, the parties hereto have executed this Assignment Agreement by their duly authorized officers as of the date first above written.

 

 

	
Address:
    	
 
    	
 
    	
ASSIGNOR:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Attn:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
Address:   
    	
 
    	
 
    	
ASSIGNEE:   
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
Attn:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
Accepted and Consented to this 
    	
Accepted   and Consented to this 
    
	
       day of               ,   20    :
    	
       day of               ,   20    :
    
	
 
    	
 
    
	
WELLS   FARGO BANK, NATIONAL ASSOCIATION, as Agent
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
									

 

F-5

 

ANNEX 1

TO

ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

On and after the Assignment Effective Date, after giving effect to all other assignments being made by Assignor on the Assignment Effective Date, the Commitment of Assignee, and, if this is less than an assignment of all of Assignor’s interest, Assignor, shall be as follows:

 

	
I.        INTEREST   BEING ASSIGNED TO ASSIGNEE
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Commitment Percentage of Revolving Credit   Commitment 
    	
 
    	
 
    	
%
    
	
Assigned Amount
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
II.        ASSIGNEE’S   COMMITMENT (as of the Assignment Effective Date)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Commitment Percentage of Revolving Credit Commitment   
    	
 
    	
 
    	
%
    
	
Assignee’s Revolving Credit Commitment amount
    	
 
    	
$
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
III.        ASSIGNOR’S   COMMITMENT (as of the Assignment Effective Date)
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Commitment Percentage of Revolving Credit   Commitment 
    	
 
    	
 
    	
%
    
	
Assignor’s remaining Revolving Credit Commitment   amount
    	
 
    	
$
    	
 
    	
 
    

 

F-6

 

EXHIBIT G

 

FORM OF
 ADDITIONAL FOREIGN BORROWER ASSUMPTION AGREEMENT

 

This ADDITIONAL FOREIGN BORROWER ASSUMPTION AGREEMENT (“Agreement”) is made effective as of                         , 20    , by and among                                 , a                    (the “Obligor”), TELETECH HOLDINGS, INC., a Delaware corporation (“US Borrower”), each Foreign Borrower under the Credit Agreement referred to below (each such Foreign Borrower, together with US Borrower shall be referred to herein, collectively, as “Borrowers” and, individually, each a “Borrower”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent under the Credit Agreement (“Agent”), on behalf of and for the benefit of the Lenders:

 

WHEREAS, Borrowers, the Lenders party thereto and Agent, are parties to that certain Amended and Restated Credit Agreement, dated as of June 3, 2010 (as the same may from time to time be further amended, restated or otherwise modified, the “Credit Agreement”, each capitalized term not defined herein being used herein as therein defined) wherein Agent and the Lenders have agreed to make Loans to Borrowers, and the Fronting Lender has agreed to issue Letters of Credit to US Borrower on behalf of the Lenders, all upon certain terms and conditions;

 

WHEREAS, pursuant to and in accordance with Section 2.13(a) of the Credit Agreement, US Borrower has requested that, effective on                           , 20       (the “FB Assumption Effective Date”), the Obligor shall be designated as a “Foreign Borrower” under the Credit Agreement; and

 

WHEREAS, Agent and the Lenders are willing to permit the Obligor to become a “Foreign Borrower” under the Credit Agreement and the Lenders are willing to make Loans to the Obligor pursuant to the Commitment, upon certain terms and conditions as set forth in the Credit Agreement and in this Agreement, one of which is that the Obligor shall assume all of the Foreign Borrower Obligations, as hereinafter defined, and this Agreement is being executed and delivered in consideration of each financial accommodation, if any, granted to the Obligor by Agent and the Lenders and for other valuable consideration;

 

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Obligor hereby agrees as follows:

 

1.             Assumption.  On and after the FB Assumption Effective Date, the Obligor irrevocably and unconditionally assumes and shall be liable for all of the obligations of a Foreign Borrower under the Credit Agreement and the Related Writings (the “Foreign Borrower Obligations”) as fully as if such Obligor had been an original party to the Credit Agreement, including, but not limited to (a) all Loans made to or for the benefit of the Obligor; (b) all other indebtedness and other obligations now owing or hereafter incurred by the Obligor, as a Foreign Borrower, to Agent and the Lenders pursuant to the Credit Agreement and the other Loan Documents executed in connection therewith; and (c) each renewal, extension, consolidation or refinancing of any of the foregoing, in whole or in part.  For the avoidance of doubt, the Obligor

 

G-1

 

does not assume and shall not be liable for any Obligations of US Borrower under the Credit Agreement (exclusive of Indebtedness of the Foreign Borrowers that is guaranteed by US Borrower under the Credit Agreement).

 

2.             Obligor Party to the Credit Agreement.  On and after the FB Assumption Effective Date, the Obligor shall (a) be designated a “Foreign Borrower” pursuant to the terms and conditions of the Credit Agreement and this Agreement, and (b) become bound by all representations, warranties, covenants, provisions and conditions of the Credit Agreement and each other Loan Document applicable to the Foreign Borrowers as if the Obligor had been the original party making such representations, warranties and covenants.

 

3.             Additional Terms and Conditions.  [ADDITIONAL TERMS AND CONDITIONS APPLICABLE TO EXTENSIONS OF CREDIT TO OBLIGOR IN THE APPLICABLE JURISDICTION OF OBLIGOR WILL BE ADDED, AS APPROPRIATE, AS DETERMINED BY AGENT IN ITS REASONABLE DISCRETION.]

 

4.             Representations and Warranties of the Obligor.  The Obligor represents and warrants to Agent and each Lender that:

 

(a)           the Obligor is an entity duly organized or formed or incorporated, validly existing and in good standing (or comparable concept in the applicable jurisdiction) or in full force and effect under the laws of its jurisdiction of organization or formation, as the case may be, and is duly qualified or authorized to do business in each jurisdiction in which the Obligor is doing business, to the extent the failure to be so qualified or authorized would have a Material Adverse Effect;

 

(b)           the Obligor has full power, authority and legal right to execute and deliver this Agreement, and to perform and observe the provisions hereof and of the Credit Agreement and the Notes (if any) executed by the Obligor, and the officers acting on behalf of the Obligor have been duly authorized to execute and deliver this Agreement;

 

(c)           this Agreement, the Credit Agreement, the Notes (if any) and any other Loan Document executed by the Obligor are each valid and binding upon the Obligor and enforceable against the Obligor in accordance with their respective terms; and

 

(d)           each of the representations and warranties set forth in Article VI of the Credit Agreement applicable to a Foreign Borrower are true and complete in all material respects with respect to the Obligor as a Foreign Borrower under the Credit Agreement, except to the extent that any thereof expressly relate to an earlier date.

 

5.             Representations and Warranties of Borrowers and the Obligor.  Borrowers and the Obligor represent and warrant to Agent and each Lender that:

 

(a)           no Default or Event of Default exists under the Credit Agreement, nor will any occur immediately after the execution and delivery of this Agreement or by the performance or observance of any provision hereof; and

 

G-2

 

(b)           neither the execution and delivery of this Agreement, nor the performance and observance of the provisions hereof, by the Obligor will conflict with, or constitute a violation or default under, any provision of any applicable law or of any material contract (including, without limitation, the Obligor’s organizational, constituting or governing documents) or of any other material writing binding upon the Obligor in any manner.

 

6.             Obligations of Borrowers and Each Guarantor Not Affected.  Anything herein to the contrary notwithstanding, Borrowers and each Guarantor of Payment shall remain bound by the terms and conditions of all of the Loan Documents to which such Borrower or Guarantor of Payment is a party regardless of the assumption of the Obligations by the Obligor hereunder or the enforceability thereof or of any of the Loan Documents.

 

7.             Administrative Borrower as Process Agent.  Obligor hereby irrevocably authorizes and appoints Administrative Borrower (or such other person, being resident in the State of Ohio, as Obligor may by notice in writing to Agent substitute) to accept service of all legal process arising out of, or connected with, the Credit Agreement or any other Loan Document to which Obligor is a party and service on Administrative Borrower (or such substitute) shall be deemed to be service on Obligor.

 

8.             Conditions Precedent.  Concurrently with the execution of this Agreement, US Borrower and the Obligor, as appropriate, shall:

 

(a)           satisfy each of the conditions set forth in Section 2.13 of the Credit Agreement;

 

(b)           pay all reasonable legal fees and expenses of Agent incurred in connection with this Agreement;

 

(c)           cause each other Borrower and Guarantor of Payment to consent and agree to and acknowledge the terms of this Agreement; and

 

(d)           provide such other items as may be reasonably required by Agent or the Lenders in connection with this Agreement, including but not limited to the Security Documents applicable to the Obligor.

 

9.             Binding Nature of Agreement.  All provisions of the Credit Agreement shall remain in full force and effect and be unaffected hereby.  This Agreement is a Related Writing as defined in the Credit Agreement.  This Agreement shall bind and benefit Borrowers, the Obligor, and Agent and the Lenders, and their respective successors and assigns.

 

10.          Counterparts.  This Agreement may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile signature, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

 

11.          New York Law to Govern.  The rights and obligations of all parties hereto shall be governed by the laws of the State of New York, without regard to principles of conflicts of laws.

 

G-3

 

12.          JURY TRIAL WAIVER.  EACH OF THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, AMONG AGENT, THE LENDERS, OBLIGOR AND BORROWERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG EACH OF THEM IN CONNECTION WITH THIS INSTRUMENT OR ANY NOTE OR OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED OR DELIVERED IN CONNECTION THEREWITH OR THE TRANSACTIONS RELATED HERETO.

 

[Remainder of page intentionally left blank.]

 

G-4

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers as of the date first above written.

 

 

	
 
    	
OBLIGOR:
    
	
 
    	
 
    
	
 
    	
[                                                            ]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[OTHER   BORROWERS]
    
	
 
    	
 
    
	
 
    	
AGENT:
    
	
 
    	
 
    
	
 
    	
WELL   FARGO BANK, NATIONAL ASSOCIATION, as Agent on behalf of and for the benefit   of the Lenders
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

G-5

 

GUARANTOR ACKNOWLEDGMENT

 

Each of the undersigned consents and agrees to and acknowledges the terms of the foregoing the Foreign Borrower Assumption Agreement, dated as of [                    , 20    ].  Each of the undersigned specifically agrees to the waivers set forth in such agreement, including, but not limited to, the jury trial waiver.  Each of the undersigned further agrees that the obligations of each of the undersigned pursuant to the Guaranty of Payment and any other Loan Document to which any of the undersigned is a party shall remain in full force and effect and be unaffected hereby.

 

	
[                                        ]
    	
[                                          ]
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
[                                        ]
    	
[                                        ]
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
[                                        ]
    	
[                                        ]
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

G-6

 

EXHIBIT H

 

FORM OF
 REQUEST FOR EXTENSION

 

	
 
    	
                                  ,   20   
    

 

 

Wells Fargo Bank, National Association,

as Administrative Agent

MAC D 1109-019

1525 West W.T. Harris Blvd.

Charlotte, North Carolina 28262

Attention:  Syndication Agency Services

 

Ladies and Gentlemen:

 

The undersigned, TeleTech Holdings, Inc. (“US Borrower”), refers to that certain Amended and Restated Credit Agreement, dated as of June 3, 2013 (as the same may from time to time be amended, restated or otherwise modified, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among US Borrower, the Foreign Borrowers, the Lenders party thereto and Wells Fargo Bank, National Association, a national banking association, as administrative agent for the Lenders (“Agent”), and hereby gives you notice, pursuant to Section 2.15 of the Credit Agreement that the undersigned hereby requests an extension as set forth below (the “Extension”) under the Credit Agreement, and in connection with the Extension sets forth below the information relating to the Extension as required by Section 2.15 of the Credit Agreement.

 

The undersigned hereby requests Agent and the Lenders to extend the Commitment Period from                                        , 20     to                                            , 20    .

 

The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Extension: (a) the representations and warranties contained in each Loan Document are correct, before and after giving effect to the Extension and the application of the proceeds therefrom, as though made on and as of such date; (b) no event has occurred and is continuing, or would result from such Extension, or the application of proceeds therefrom, which constitutes a Default or an Event of Default; and (c) the conditions set forth in Section 2.15 and Article IV of the Credit Agreement have been satisfied.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
TELETECH   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

H-1

 

SCHEDULE 1

 

COMMITMENTS OF LENDERS

 

	
LENDERS
    	
 
    	
COMMITMENT
   PERCENTAGE
    	
 
    	
REVOLVING
   AMOUNT
    	
 
    
	
Wells Fargo Bank,   National Association
    	
 
    	
14.285714286
    	
%
    	
$
    	
100,000,000
    	
 
    
	
KeyBank National   Association
    	
 
    	
14.285714286
    	
%
    	
$
    	
100,000,000
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
14.285714286
    	
%
    	
$
    	
100,000,000
    	
 
    
	
HSBC Bank USA,   National Association 
    	
 
    	
14.285714286
    	
%
    	
$
    	
100,000,000
    	
 
    
	
Compass Bank
    	
 
    	
14.285714286
    	
%
    	
$
    	
100,000,000
    	
 
    
	
Bank of the West
    	
 
    	
7.857142857
    	
%
    	
$
    	
55,000,000
    	
 
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
5.714285714
    	
%
    	
$
    	
40,000,000
    	
 
    
	
The Northern Trust   Company
    	
 
    	
5.714285714
    	
%
    	
$
    	
40,000,000
    	
 
    
	
U.S. Bank National   Association
    	
 
    	
5.714285714
    	
%
    	
$
    	
40,000,000
    	
 
    
	
Citibank, N.A.
    	
 
    	
3.571428571
    	
%
    	
$
    	
25,000,000
    	
 
    
	
Total
    	
 
    	
100.000000000
    	
%
    	
$
    	
700,000,000
    	
 
    

 

 

SCHEDULE 2

 

FOREIGN BORROWERS

 

None

 

 

 

SCHEDULE 2.2

 

EXISTING LETTERS OF CREDIT

 

	
Amount USD
    	
 
    	
Bank
    	
 
    	
Maturity
    	
 
    	
L/C No.
    	
 
    	
Beneficiary
    	
 
    
	
US LOC’s
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
$
    	
211,898
    	
 
    	
Bank of America, N.A.
    	
 
    	
10/31/2013
    	
 
    	
7405878
    	
 
    	
Liberty Mutual Insurance
    	
 
    
	
3,300,000
    	
 
    	
KeyBank
    	
 
    	
10/13/2013
    	
 
    	
S309677
    	
 
    	
Old Republic Insurance Company
    	
 
    
	
240,000
    	
 
    	
Bank of America, N.A.
    	
 
    	
8/1/2013
    	
 
    	
7410023
    	
 
    	
Royal Indemnity Company
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
INT’L LOC’s
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
NONE
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
$
    	
3,751,898
    	
 
    	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

 

SCHEDULE 3

 

GUARANTORS OF PAYMENT

 

Domestic Guarantors of Payment

 

TeleTech Services Corporation, a Colorado corporation

TeleTech International Holdings, Inc., a Delaware corporation

Revana, Inc., a Delaware corporation

TeleTech South America Holdings, LLC, a Delaware limited liability company

Technology Solutions Group, Inc., an Illinois corporation

eLoyalty LLC, a Colorado limited liability company

TeleTech Government Solutions, LLC,  a Colorado limited liability company

 

Foreign Guarantors of Payment

 

None

 

 

SCHEDULE 5.8

 

INDEBTEDNESS

 

	
 
    	
 
    	
$ in millions
    	
 
    
	
Installment Purchase Agreements (a)
    	
 
    	
13.5
    	
 
    
	
Grant (b)
    	
 
    	
0.4
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
TOTAL
    	
 
    	
$
    	
13.9
    	
 
    
					

 

Note (a) Owed to Avaya, Cisco Systems, eLoyalty, by TeleTech Holdings, Inc.

Note (b) Secretaría de Economía (Mexico) “ProSof” program grant obligation of TeleTech México, S.A. de C.V.

 

 

 

SCHEDULE 5.9

 

	
CREDIT PARTY
    	
 
    	
Secured Party
    	
 
    	
Jurisdiction
    	
 
    	
File Date
    	
 
    	
File Type
    	
 
    	
File/Case/Book/Page #
    	
 
    	
Collateral
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TELETECH HOLDINGS, INC.
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
10/19/2007
   2/25/2008
   1/14/2009
   10/17/12
    	
 
    	
UCC
   AMDT
   AMDT
   CONT
    	
 
    	
73956066
   80668424
   90140118
   24001154
    	
 
    	
Equipment
    
	
 
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
9/12/2008
   1/14/2009
    	
 
    	
UCC
   AMDT
    	
 
    	
83106117
   90134467
    	
 
    	
Equipment
    
	
 
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
12/9/2008
    	
 
    	
UCC
    	
 
    	
84080071
    	
 
    	
Equipment
    
	
 
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
1/14/2009

7/6/10
    	
 
    	
UCC
   AMDT
    	
 
    	
90134442
   02348575
    	
 
    	
Equipment
    
	
 
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
1/14/2009
   7/6/10
    	
 
    	
UCC
   AMDT
    	
 
    	
90134475
   02348609
    	
 
    	
Equipment
    
	
 
    	
 
    	
CISCO   SYSTEMS CAPITAL CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
4/24/2009
   7/6/2010
    	
 
    	
UCC
   AMDT
    	
 
    	
91300729
   02348567
    	
 
    	
Equipment
    
	
 
    	
 
    	
EMC   CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
6/11/2009
    	
 
    	
UCC
    	
 
    	
91868964
    	
 
    	
Equipment
    
	
 
    	
 
    	
EMC   CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
6/11/2009
    	
 
    	
UCC
    	
 
    	
91869160
    	
 
    	
Equipment
    
	
 
    	
 
    	
EMC   CORPORATION
    	
 
    	
DE   - SOS
    	
 
    	
6/11/2009
    	
 
    	
UCC
    	
 
    	
91869319
    	
 
    	
Equipment
    
	
 
    	
 
    	
AT&T   CAPITAL SERVICES, INC.
    	
 
    	
DE   - SOS
    	
 
    	
9/21/2009
    	
 
    	
UCC
    	
 
    	
93010177
    	
 
    	
Leased   telecommunications and data equipment
    
	
 
    	
 
    	
AT&T   CAPITAL SERVICES, INC.
    	
 
    	
DE   - SOS
    	
 
    	
9/21/2009
    	
 
    	
UCC
    	
 
    	
93010185
    	
 
    	
Leased   telecommunications and data equipment
    
	
 
    	
 
    	
CIT   FINANCE LLC
    	
 
    	
DE   - SOS
    	
 
    	
5/18/2012
    	
 
    	
UCC
    	
 
    	
21935412
    	
 
    	
Equipment   sold to debtor by secured party pursuant to Lease No. x786762-00010
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TELETECH SERVICES CORPORATION
    	
 
    	
CHASE   EQUIPMENT LEASING INC.
    	
 
    	
CO-SOS
    	
 
    	
4/13/2005
   2/9/2010
    	
 
    	
UCC
   CONT
    	
 
    	
20052039796
   2010F011888
    	
 
    	
Leased   Equipment - Cessna Aircraft
    
	
 
    	
 
    	
CIT   FINANCE LLC
    	
 
    	
CO-SOS
    	
 
    	
6/22/2012
    	
 
    	
UCC
    	
 
    	
2012024048
    	
 
    	
Equipment   sold to debtor by secured party pursuant to Lease No. X78676200010
    

 

 

SCHEDULE 6.1

 

CORPORATE EXISTENCE / SUBSIDIARIES / FOREIGN QUALIFICATION

 

	
Company
    	
 
    	
Ownership
    	
 
    	
State/Country of
   Incorporation
    	
 
    	
Foreign
   Registrations
    
	
ACTIVE DOMESTIC CORPORATIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Carabunga.com, Inc.

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
Newgen   Results Corporation (100%)
    	
 
    	
Delaware
    	
 
    	
DE

CA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Revana, Inc.

 

f/k/a Direct Alliance Corporation

 

Chief Executive Office:

8123 S. Hardy,

Tempe, AZ 85284
    	
 
    	
TeleTech Holdings, Inc. (100%)
    	
 
    	
Delaware   (incorp. 4/30/12)

 

(Previously   was an Arizona corporation)
    	
 
    	
AZ

CO

FL

GA

TX
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
eLoyalty, LLC

 

f/k/a Magellan Acquisition Sub, LLC

(name changed 5/31/11)

 

Chief Executive Office:

9197 S. Peoria St.

Englewood, CO 80112
    	
 
    	
TeleTech Services Corporation (100%) [Sole Member]
    	
 
    	
Colorado
    	
 
    	
CO

WA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global One Insurance Company

 

(f/k/a Global One Captive Insurance Company)

[Name change effective 10/3/05]

 

Chief Executive Office:

2325 E. Camelback Rd., #600

Phoenix, AZ 85016

(effective 12/6/10)
    	
 
    	
Global One Colorado, Inc. (100%)
    	
 
    	
Arizona
    	
 
    	
AZ
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Global One Colorado, Inc.

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood, CO 80112
    	
 
    	
TeleTech Holdings, Inc. (100%)
    	
 
    	
Colorado
    	
 
    	
CO
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guidon   Performance Solutions, Inc.

 

f/k/a   Northpoint Management Partners, LLC

(Name   changed on 10/31/2012)

 

Chief   Executive Address:

4320   E. Presidio St., Suite B-101

Mesa,   AZ 85215-1164
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Arizona
    	
 
    	
AZ

CO

 

d/b/a   Synovation Health Collaborative

 

d/b/a   Northpoint Management Partners
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
iKnowtion,   LLC

 

Chief   Executive Office:

25   Burlington Mall Road, Suite 409

Burlington,   MA 01803
    	
 
    	
TeleTech   Holdings, Inc. (80%)

 

Poximo   LLC (20%)
    	
 
    	
Massachusetts
    	
 
    	
MA
    

 

 

	
InCulture,   LLC

(f/k/aTeleTech   InCulture, LLC)

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Colorado
    	
 
    	
CO
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Marketplace Agent, Inc.

 

Chief Executive Office:

8123 S. Hardy,

Tempe, AZ 85284
    	
 
    	
Direct Alliance Corporation (100%)
    	
 
    	
Arizona
    	
 
    	
AZ

CA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Newgen Results Corporation

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112

 
    	
 
    	
TeleTech Holdings, Inc. (100%)
    	
 
    	
Delaware
    	
 
    	
Active:

 

Arkansas

AZ

CA

DE

IL

IN

KS

LA

MD

MA

MI

MO
   MT

NH

NJ

NM

NY

OH

PA

RI

TN

TX

UT

VA

WA

WI
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
OnDemand,   LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Colorado
    	
 
    	
CO
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Holding, Inc.

(f/k/a   Ford Tel I)

 

Chief   Executive Office:

New Address effective 3/17/08:

290 Town Center Drive, Suite 610

Dearborn,   MI 48126
    	
 
    	
Percepta,   LLC (100%)
    	
 
    	
Delaware
    	
 
    	
DE

MI
    

 

2

 

	
Percepta, LLC

(f/k/a Ford Tel II, LLC)

 

Chief   Executive Office:

New Address effective 3/17/08:

290 Town Center Drive, Suite 610

Dearborn, MI 48126
    	
 
    	
55%   TeleTech Holdings, Inc.

45%   Ford Motor Company
    	
 
    	
Delaware
    	
 
    	
CO

DE

FL

MI

NJ
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Technology   Solutions Group Inc.

 

Chief   Executive Office:

2575   White Oak Circle

Aurora, IL   60502

 

d/b/a   TSG Missouri, Inc.

d/b/a   TSG Pittsburg, Inc.

d/b/a   TSG Technology Solutions, Group, Inc.

d/b/a   Technology Solutions Group of Wisconsin, Inc
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Illinois
    	
 
    	
CO

IA

IL

IN

MO

NE

PA

TX

WI
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Automotive, LLC

 

Chief   Executive Office:

9197   S. Peoria Street

Englewood,   CO 80112
    	
 
    	
TeleTech   Holdings, Inc.  (100%) [Sole   Member]
    	
 
    	
Colorado
    	
 
    	
CO
    

 

3

 

	
TeleTech@Home, Inc.

 

Chief   Executive Office:

9197   S. Peoria Street

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)
    	
 
    	
Colorado
    	
 
    	
AL

AR

AZ

CA

CO

CT

DE

D.C.

FL

GA

Hawaii

Iowa

ID

IN

IL

KS

KY

LA

MA

MD

ME

MI

MN

MO

MS

MT

NC

ND

NE

NH

NM

NV

NY

OH

OK

Oregon

PA

RI

SC

SD

TN

TX

UT

VA

VT

WA

WI

WV

WY

*generally operates internationally under   already formed TT entities 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Customer Care Management (California), LLC

 

(f/k/a   TeleTech Customer Care Management (California), Inc.) (f/k/a TeleTech   Telecommunications, Inc.)

 

Converted to an LLC 12/31/04

 

Chief   Executive Office:

9197   S. Peoria Street

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
California
    	
 
    	
CA
    

 

4

 

	
TeleTech   Customer Care Management (Colorado), LLC

 

(f/k/a   TeleTech Customer Care Management (Colorado), Inc. (f/k/a TeleTech   Teleservices, Inc.)

 

Converted to an LLC 12/31/04

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Colorado
    	
 
    	
AZ*

CA

CO

FL

MT

NJ

VA

WA

 

*d/b/a   TeleTech Teleservices, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Customer Care Management (West Virginia), Inc.

 

Chief   Executive Office:

100   W. TeleTech Drive

Moundsville,   WV 26041
    	
 
    	
TeleTech   Services Corp. (100%)
    	
 
    	
West   Virginia
    	
 
    	
WV

WA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech Customer Care Management (New York), Inc.

 

f/k/a TeleTech Facilities Management (Postal Customer Support), Inc.

(Name change 11/17/08)

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood, CO 80112
    	
 
    	
TeleTech   Services Corp. (100%) 
    	
 
    	
Delaware

 
    	
 
    	
CA*

CO*

DE

PA*

*name   not changed w/SOS per Tax.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Financial Services Management, LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Delaware
    	
 
    	
CT (d/b/a TFS Management,   LLC)

 

DE

PA

OH
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Government Solutions, LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Colorado
    	
 
    	
AL

AZ

CA

CO

CT

FL

GA

IA

MD

NY

PA

SC

VA

D.C.

WV
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Holdings, Inc.

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
Publicly   held
    	
 
    	
Delaware
    	
 
    	
AZ

CA

CO

DE

NJ

TX
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   International Holdings, Inc.

 

Chief   Executive Office:

9197   S. Peoria Street

Englewood,   CO 80112
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Delaware
    	
 
    	
DE
    

 

5

 

	
TeleTech   Loan Services, LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation (100%)

[Sole   Member]
    	
 
    	
Colorado
    	
 
    	
All   50 states
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Services Corporation

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Colorado
    	
 
    	
AL

AZ

CA

CO

CT

FL

GA

IA

IL

KS

KY

Mass.

MD

MI

MO

MT*

NC

ND

NJ

NV

NY

PA

SC

TX

VA

WA

WV

 

*a/k/a   TeleTech Services Montana
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   South America Holdings, LLC

 

(Formerly   known as TeleTech South America Holdings, Inc.)

 

Converted   to an LLC effective 2/1/2011.

 

Chief   Executive Office:

9197   S. Peoria Street

Englewood,   CO 80112
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Delaware
    	
 
    	
DE
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Stockton, LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Customer Care Management (CO), LLC (100%) [Sole Member]
    	
 
    	
Colorado
    	
 
    	
CO

CA
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Technology Enabled Solutions, Inc.

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Delaware
    	
 
    	
DE
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Transition Services, LLC

 

Chief   Executive Office:

9197   S. Peoria St.

Englewood,   CO 80112
    	
 
    	
TeleTech   Services Corporation
    	
 
    	
Colorado
    	
 
    	
CO

FL

NV
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1To1   Marketing, LLC

 

Chief   Executive Office:

1111   Summer St., 5th Fl.

Stamford,   CT 06905
    	
 
    	
TeleTech   Holdings, Inc. (80%)

Peppers &   Rogers Cooperatief U.A. (20%)

 
    	
 
    	
Delaware
    	
 
    	
CT

DE

CA

VA
    

 

6

 

 

	
ACTIVE ASIA/PACIFIC REGION CORPORATIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Finsource   Inc.

 

Chief   Executive Office:

Building   F

SM   Central Business Park

1000   Bay Boulevard, Bay City

Pasay   City, Metro Manila, 

Philippines

1300
    	
 
    	
TeleTech   Customer Care Management Philippines, Inc. (100%)
    	
 
    	
Philippines
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Philippines, Inc.

 

Chief   Executive Office:

Building   F

SM   Central Business Park

1000   Bay Boulevard, Bay City

Pasay   City, Metro Manila, 

Philippines

1300
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Philippines
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Enterprise Management Consulting (Shanghai) Co., Ltd.

 

Chief   Executive Address:

No. 99   Fucheng Road, Fl. 11

Rm.   1138

Pudong   District

Shanghai,   China 200120
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
China
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Services (Thailand) Co., Ltd.

 

Chief   Executive Office (Registered Address):

540   Mercury Tower, 22nd Fl.

540   Ploenchit Road

Lumpini   Subdistrict

Pathumwan   District

Bangkok   Metropolis 10330

Thailand
    	
 
    	
Percepta   Holding, Inc. (.98%)

Percepta,   LLC (.1%)

TeleTech   Holdings, Inc. (.1%)
    	
 
    	
Thailand
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sevtoy   Pty. Limited

[a/k/a   Percepta Australia]

 

Chief   Executive Office:

Level   9, 420 St. Kilda Rd.

Melbourne,   Victoria 3004
    	
 
    	
Percepta   Holding, Inc. (100%) (ownership transferred in 11/4/10)

 

(formerly   owned by Percepta, LLC)
    	
 
    	
New   South Wales, AU

 

(Proprietary   Company)
    	
 
    	
N/A
    

 

7

 

	
TeleTech   Asia Limited

 

(relative   to TeleTech (Hong Kong) Ltd.)

 

Chief   Executive Office (Registered Address):

c/o   Modern Century Consultants Ltd.

Unit   604, 6/F., Bonham Trade Centre

50   Bonham Strand

Sheung   Wan, Hong Kong
    	
 
    	
TeleTech   Europe B.V. (99.99%)

 

TeleTech   International Pty Limited Corp. (.01%)
    	
 
    	
Hong   Kong
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Customer Care Management Philippines, Inc.

 

Chief   Executive Office:

Building   F

SM   Central Business Park

1000   Bay Boulevard, Bay City

Pasay   City, Metro Manila, 

Philippines

1300

 
    	
 
    	
TeleTech   Offshore Investments B.V. – Philippine Branch (100%)

 

(Changed   ownership from TT Offshore Investments B.V. to Branch on 12/9/10.)
    	
 
    	
Mandaluyong City, Metro Manila, Philippines
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Offshore Investments B.V. – Philippine Branch    (LEGAL NAME)

 

d/b/a   TeleTech Customer Care Management – Philippine Branch

 

(PHP   Branch of TeleTech Offshore Investments B.V.)

 

Chief   Executive Office:

Building   F

SM   Central Business Park

1000   Bay Boulevard, Bay City

Pasay   City, Metro Manila, 

Philippines

1300

 

Branch   Address:

3rd   Fl., 4th Fl. Building H
   UP Ayala Technohub
   Commonwealth Ave.

Quezon   City

Philippines
    	
 
    	
TeleTech   Offshore Investments B.V. (100%)

 

(Entity   is a branch of TT Offshore operating in PHP.    TT Offshore Investments B.V. is owned 100% by TeleTech Europe B.V.)
    	
 
    	
PHP   Branch governed by TT Offshore (Dutch) company laws.  (This is not a separate entity but an   extension of TT Offshore doing business in the Philippines.)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Philippines ROHQ

 

Chief   Executive Office:

Building   F

SM   Central Business Park

1000   Bay Boulevard, Bay City

Pasay   City, Metro Manila, Philippines

1300
    	
 
    	
TeleTech   Offshore Investments B.V. (100%)

 

(Entity   is a branch of TT Offshore operating in PHP.    TT Offshore Investments B.V. is owned 100% by TeleTech Europe B.V.)
    	
 
    	
PHP   Branch governed by TT Offshore (Dutch) company laws.  (This is not a separate entity but an   extension of TT Offshore doing business in the Philippines.)
    	
 
    	
N/A
    

 

8

 

	
TeleTech   Customer Management Pte Ltd

 

(f/k/a   Bracton Enterprises Pte Ltd)

 

Chief   Executive Office (Registered Address):

8   Marina Boulevard #05-02

Marina   Bay Financial Centre Tower 1

Singapore   018981
    	
 
    	
TeleTech   International Pty Ltd. (100%)
    	
 
    	
Singapore

 

Private   Company
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Financial Solutions Pty Ltd

 

Chief   Executive Office:

154   Pacific Hwy

St   Leonards, NSW 2065

Australia
    	
 
    	
TeleTech   International Pty Ltd (100%)
    	
 
    	
Australia
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   (Hong Kong) Limited

 

(f/k/a   iccare Limited) (f/k/a Pacific Lifestyle Telemarketing Limited)

 

Chief   Executive Office (Registered Address)

1401   Hutchison House

10   Harcourt Road

Hong   Kong
    	
 
    	
TeleTech   Europe B.V. (99.99%)

 

TeleTech   International Pty Ltd (.01%)
    	
 
    	
Hong   Kong
    	
 
    	
Registered   w/State of CA as of 3/27/08 for Koh litigation
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   International Pty Ltd

 

(f/k/a   Access 24 Service Corporation Pty Ltd)

 

Chief   Executive Office:

154   Pacific Hwy

St   Leonards, NSW 2065

Australia
    	
 
    	
TeleTech   Offshore Investments B.V. (100%)
    	
 
    	
Australia

 

(Proprietary   Company)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech Korea, Ltd.

 

(a/k/a TeleTech Korea, Inc.)

(a/k/a TeleTech Korea Yuhan Hoesa)

 

Chief Executive Office:

Gyoungam Building, 18th Floor, 157-27 Samsung-dong,

Gangnam-ku, Seoul, Korea
    	
 
    	
TeleTech   Europe B.V. (100%)
    	
 
    	
Korea
    	
 
    	
Registered   w/State of CA as of 4/24/08 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   New Zealand

 

(f/k/a   TeleTech Limited); (f/k/a Access 24 (Service Corporation) Limited; (f/k/a   Boardroom Investments Limited)

 

Chief   Executive Office:

111   Carleton Gore Road

Level   1

New   Market, Auckland, New Zealand
    	
 
    	
TeleTech   International Pty Ltd (100%)
    	
 
    	
New   Zealand

 

(Unlimited   Liability Company)
    	
 
    	
N/A
    

 

9

 

	
TT   Interaction Management Sdn. Bhd.

 

Chief   Executive Office (Registered Address)

Level   21-Suite 21.01

The   Gardens South Tower

Mid   Valley City

Lingkaran   Syed Putra

59200   Kuala Lumpur
    	
 
    	
TeleTech   Customer Care Management Pte Ltd (100%)
    	
 
    	
Malaysia

 

(Private   Company, Limited by Shares)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TTEC   Malaysia Sdn. Bhd.

 

(f/k/a Global Era Gains Sdn. Bhd.)

 

Chief   Executive Office (Registered Address)

Level   21-Suite 21.01

The   Gardens South Tower

Mid   Valley City

Lingkaran   Syed Putra

59200   Kuala Lumpur 
    	
 
    	
TT   Interaction Management Sdn. Bhd. (100%)
    	
 
    	
Malaysia

 

(Private   Company, Limited by Shares)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ACTIVE CANADIAN REGION CORPORATIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
eLoyalty Canada Limited

 

(f/k/a eLoyalty Canada Inc.)

 

Chief   Executive Office (Registered Address)

c/o Boyne Clarke LLP

99Wyse Road, Ste. 600

Metropolitan Place Dartmouth Main

Halifax Regional Municipality NS

Dartmouth, NS B2Y 3Z5

Canada 
    	
 
    	
eLoyalty,   LLC
    	
 
    	
Nova   Scotia
    	
 
    	
Ontario   (8.9.12)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta, ULC

 

(f/k/a   CRC Canada ULC)

(f/k/a   3038713)

 

Chief   Executive Office (Registered Address)

c/o Boyne Clarke LLP, 99 Wyse Road, Suite 600,   Dartmouth, Nova Scotia  B3A 4S5

Canada (effective 3/28/13)
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Nova   Scotia
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Canada Inc.

 

(f/k/a   EDM Electronic Direct Marketing, Limited)

 

Chief   Executive Office (Registered Address)

2   Queen Street East, #1500

Toronto,   Ontario

Canada   M5C 3G5

(effective   11/30/2010)
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Ontario,   Canada
    	
 
    	
Alberta

British   Columbia

Manitoba

Newfoundland

Nova   Scotia

Ontario

Quebec

Saskatchewan
    

 

10

 

	
PEPPERS & ROGERS GROUP ENTITIES
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1to1   Marketing and Consulting Pte. Ltd.

 

Chief   Executive Office (Registered Address)

7   Temasek Blvd., Unit #44-01

Suntec   Tower One

Singapore   038987

 

Physical   Address:

96   Robinson Road, #12-02

Singapore   
    	
 
    	
Peppers &   Rogers Group S.a.r.l.
    	
 
    	
Singapore

Limited   Private Company (Limited by Shares)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1to1   Marketing S.á.r.l.

 

Chief   Executive Office (Registered Address)

9, rue Gabriel Lippmann

Parc d’Activites Syrdall 2

L-5365  Munsbach

Grand   Duchy of Luxembourg

R.C.S. Luxembourg : B 156.007
    	
 
    	
Peppers &   Rogers Group B.V. (100%)
    	
 
    	
Limited   Liability Co. organized under the law of Grand Duchy of Luxembourg
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Marketing   1to1/Peppers and Rogers Group Limited

 

Chief   Executive Office (Registered Address)

41   Chalton St.

London,   NW1 1JD

United   Kingdom
    	
 
    	
1to1   Marketing, LLC
    	
 
    	
United   Kingdom

(Private   Limited Liability Company Incorporated in England and Wales)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers &   Rogers Group B.V.

 

Chief   Executive Office (Registered Address)

Herikerbergweg   238, Luna Arena

1101   CM Amsterdam

The   Netherlands
    	
 
    	
Peppers &   Rogers Group Cooperatief U.A. (20% Member)

 

TeleTech   Europe B.V. (80% Member)
    	
 
    	
Netherlands

(Private   limited liability company)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers   and Rogers Group S.á r.l.

 

Chief   Executive Office (Registered Address):

No. 29,   Ground Floor

9,   rue Gabriel Lippmann

Parc   d’Activite Syrdall 2

L-5365  Munsbach

R.C.S.   Luxembourg
    	
 
    	
Peppers &   Rogers Group B.V. (100%)
    	
 
    	
Luxembourg   Limited Liability Company organized under the Grand Duchy of Luxembourg
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers &   Rogers Group SPRL

 

Chief   Executive Office:

Manhattan   Center

1210   Brussels

Avenue   du Boulevard 21, 11th Floor

1210   Brussells, Belgium

P:   32-2-210-6171
    	
 
    	
Peppers   and Rogers Group S.á r.l.

 (100%)
    	
 
    	
SPRL   incorporated in Belgium
    	
 
    	
N/A
    

 

11

 

	
Peppers   and Rogers Group Pazarlama Hizmetleri Ticaret A.S.

 

Chief   Executive Office:

Buyukdere   Caddesi Meydan Sok. 

No:   5, Spring Giz Plaza Kat:12, 

D:44,   Maslak 34398

Istanbul,   Turkey

P:   90-212-272-3780
    	
 
    	
Peppers   and Rogers Group S.á r.l.

 (100%)
    	
 
    	
Turkey
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers   and Rogers Group (Middle East) FZ-LLC

 

Chief   Executive Office:

TECOM   Zone

Al   Thuraya Tower 2, Office 1503

P.O. Box 502264

Dubai Media City

Dubai,   United Arab Emirates

P:   971-4-391-1353
    	
 
    	
Peppers &   Rogers Group B.V. (100%)
    	
 
    	
Dubai,   UAE

 

(Free   Zone Limited Liability Co.)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers   and Rogers Group Middle East FZ LLC (Lebanon Branch)

 

Chief   Executive Office:

Regus   Business Center

Azarieh   Building, Block 03

5th Floor

Solidere   616, P.O. Box 11-503

Beirut,   Lebanon
    	
 
    	
Peppers &   Rogers Group (Middle East) FZ-LLC (100%)

 

[Peppers &   Rogers Group B.V. is the owner of Peppers & Rogers Group (Middle   East) FZ-LLC]
    	
 
    	
 
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers &   Rogers Group GmbH  i.L.

 

Chief   Executive Office:

Kirchnerstrasse   6-8

60311   Frankfurt am Main

Frankfurt,   Germany

P:   49-69-29-72-388-0
    	
 
    	
Peppers &   Rogers Group, SPRL (100%)
    	
 
    	
GmbH   incorporated in Frankfurt, Germany
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers &   Rogers Group Pty Limited ACN 138 980 346

 

Chief   Executive Office (Registered Address)

Level   1

171-175   William Street

Darlinghurst,   NSW 2010
    	
 
    	
Peppers &   Rogers Group, SPRL (20%)

 

Connxion   Networks Limited Hong

Kong   Compay No. 1380907 (55%)

 

W&A   Kingston Holdings Pty Limited CAN 066 457 976 ATF (25%)
    	
 
    	
Proprietary   Limited Company incorporated in New South Wales, Australia
    	
 
    	
N/A
    

 

12

 

	
Peppers   and Rogers Group Asia Pacific Limited

 

Chief   Executive Office (Registered Address):

Unit   1901 19/F

The   Centrium

60   Wyndham Street Central

Hong   Kong
    	
 
    	
Peppers &   Rogers Group, SPRL (20%)

 

Connxion   Networks Limited Hong Kong Compay No. 1380907 (55%)

 

W&A   Kingston Holdings Pty Limited CAN 066 457 976 ATF (25%)
    	
 
    	
Limited   Company incorporated in Hong Kong
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers &   Rogers Group (Gulf) WLL

 

Chief   Executive Office:

Al   Sour Tower

12th Floor, Right Half

Al   Sour Street

Salhiya,   Kuwait

P:   965-22915400
    	
 
    	
 
    	
 
    	
State   of Kuwait
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Peppers   and Rogers Group (Proprietary) Ltd.

 

(f/k/a   Dialstrat Trading 72 (Proprietary) Limited

 

Chief   Executive Office:

Regus   Office Centre

23   Wellington Road

Parktown,   Johannesburg

South   Africa

P:   27-11-486-9436
    	
 
    	
Peppers &   Rogers Group, B.V. (100%)
    	
 
    	
Proprietary   Limited Liability Co. incorporated in South Africa
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ACTIVE EUROPEAN REGION CORPORATIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
eLoyalty   International Limited

 

(f/k/a   eLoyalty Ireland Limited; f/k/a Potemkin Limited

 

Chief   Executive Office (Registered Address):

70   Sir John Rogerson’s Quay

Dublin   2, Ireland
    	
 
    	
TeleTech   Europe B.V. (100%)
    	
 
    	
Ireland

 

(Private   Limited Company)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Belgique-België BVBA

 

Chief   Executive Office:

Steenweg   op Merchtem 54

1780   WEMMEL

Belgium
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Belgium
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Deutschland GmbH

 

Chief   Executive Office:

Josef-Lammerting   Allee 24-34

50933   Köhn-Braunsfeld, Germany
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Germany
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   France SARL

 

Chief   Executive Office :

1-3, rue d’Enghien

75010 PARIS

France
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
France
    	
 
    	
N/A
    

 

13

 

	
Percepta Italia S.R.L.

 

Chief   Executive Address:

Via   Mirabello 119

350380   Torreglia

Italy
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Italy
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   Spain S.L.

 

Chief   Executive Address:

Calle   Vallehermoso 82

28015   Madrid

Spain
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
Spain
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   UK Limited

 

Chief   Executive Office:

20   Buchanan Street

Glasgow,   Scotland UK  G1 3LH
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
UK   (England and Wales)

 

(Private   Ltd Co.)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   UK Limited

 

(f/k/a   Heliotrack Limited)

 

Chief   Executive Office (Registered Address):

6 Braid Court

Lawford Road

Chiswick, London W4 3HS
    	
 
    	
TeleTech   Services Corporation (100%)

 

(transferred   ownership from THI on 12/29/06)
    	
 
    	
UK

 

(Private   Limited Company)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Customer Care Management (Ireland) Limited

 

Chief   Executive Office (Registered Address):

c/o   Pearse Trust

7th Floor, Hume House

Ballsbridge,   Dublin 4, Ireland
    	
 
    	
TeleTech   Europe B.V. (100%)
    	
 
    	
Ireland
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Customer Services Spain, S.L.

 

(f/k/a Difusió i Promocions Catalanes S.L.)

 

Chief   Executive Office (Registered Address):

Gran Via de les Corts   Catalanes

Number 583

Barcelona, Spain
    	
 
    	
TeleTech   Holdings, Inc. (100%)
    	
 
    	
Spain
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Europe B.V.

 

Chief   Executive Office:

Herikerbergweg   238, Luna Arena

1101   CM Amsterdam Zuidoost

The   Netherlands (new 9.2012)
    	
 
    	
TT   International C.V. (100%)
    	
 
    	
Amsterdam,   The Netherlands

 

(Private   Limited Liability Company)
    	
 
    	
N/A
    

 

14

 

	
TeleTech   Global Services Spain, S.L.

(f/k/a   Bancroft Investments S.L.)

 

Chief   Executive Office (Registered Address):

Gran Via de les Corts   Catalanes

Number 583

Barcelona, Spain

 

This is the Costa Rica Branch:

Building B1, Zona Franca del Este San Gabriel   de Calle Blancos

San José, Costa Rica
    	
 
    	
The   Costa Rica Branch is governed by TeleTech Global Services Spain, S.L.

 

[The   sole stockholder of TeleTech Global Services Spain, S.L. is TeleTech Customer   Services Spain, S.L.

(100%)]
    	
 
    	
Spain
    	
 
    	
Doing   business in Costa Rica through Costa Rica Branch
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   International Holdings B.V.

 

f/k/a   Emmis Netherlands B.V.

 

Chief   Executive Office (Registered Address):

Herikerbergweg   238, Luna Arena

1101   CM Amsterdam

The   Netherlands  (new 9.2012)
    	
 
    	
TeleTech   Europe B.V.
    	
 
    	
Netherlands

 

(Private   Limited Liability Company)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Offshore Investments B.V.

 

[Philippines   Branch name=TeleTech Customer Care Philippines]

 

Chief   Executive Office (Registered Address):

Herikerbergweg   238, Luna Arena

1101   CM Amsterdam

The   Netherlands  (new 9.2012)
    	
 
    	
TeleTech   Europe B.V. (100%)
    	
 
    	
Amsterdam,   The Netherlands

 

Private   Limited Liability Company
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Spain At Home Services, SL.

*Current   name–changed in 6/09

 

(f/k/a   Kirkwood Spain S.L.)

 

Chief   Executive Office (Registered Address):

Gran Via de les Corts   Catalanes

Number 583

Barcelona, Spain
    	
 
    	
TeleTech   Customer Services Spain, S.L. (100%)
    	
 
    	
Spain
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TT   International C.V.

 

Chief   Executive Office (Registered Address):

Herikerbergweg   238, Luna Arena

1101   CM Amsterdam

The   Netherlands  (new 9.2012)
    	
 
    	
TeleTech   Holdings, Inc. (99.119%) (Limited Partner)

 

TeleTech   South America  Holdings, LLC (.88%)

(Limited   Partner)

 

TeleTech   International Holdings, Inc. (Managing Partner -.001%)
    	
 
    	
Amsterdam,   The Netherlands

 

(Limited   Partnership)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ACTIVE LATIN AMERICA REGION CORPORATIONS
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Comlink S.A.

 

Chief Executive Office:

175 Chacabuco St., 3rd Fl.

Buenos Aires, Argentina C1069AAC
    	
 
    	
50%   TeleTech South America Holdings, LLC

 

50%   - TeleTech Services Corp.* (pursuant to merger of   TeleTech Customer Care Management, Inc.)
    	
 
    	
Argentina
    	
 
    	
N/A
    

 

15

 

	
Percepta   Customer Loyalty Mexico

 

Chief   Executive Address:

Loreto, 100 Penitasq OTRA

No Especificada en el Catalogo,

Leon,   Guanajuato 37180
    	
 
    	
Percepta   Holding, Inc. (99.9%)

Percepta,   LLC (0.1%)
    	
 
    	
Mexico
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Percepta   (South Africa) (Proprietary) Limited

 

(f/k/a   Percepta South Africa)

 

Chief   Executive Office:

Simon   Vermooten Road, POB 411

Silverton,   Pretoria

South   Africa

(This   is a Ford location.)
    	
 
    	
Percepta   Holding, Inc. (100%)
    	
 
    	
South   Africa

(Private   Co.)
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Servicios y Administraciones del Bajio, S. de   R.L. de C.V.

 

Chief Executive Office:

Plaza de la Republica No. 43

Colonia Tabacalera

Codigo Postal 06030

Delegacion Cuauhtemoc

Mexico, D.F.
    	
 
    	
TeleTech   South America Holdings, LLC. (99.7%)

TeleTech   Customer Care Mgmt (CO), LLC (0.3%)
    	
 
    	
Mexico
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Servicios SSI Integrales, S. De R.L. De C.V.

 

Chief Executive Office:

Plaza de la Republica No. 43

Colonia Tabacalera

Codigo Postal 06030

Delegacion Cuauhtemoc

Mexico, D.F.
    	
 
    	
TeleTech   South America Holdings, LLC (99.7%)

TeleTech   Customer Care Management (CO), LLC (0.3%)
    	
 
    	
Mexico
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Argentina S.A.

 

Chief   Executive Office:

Carlos   Pellegrini 587, 6th Floor

Ciudad   Autonoma

Buenos   Aires, Argentina
    	
 
    	
TeleTech   Europe B.V. (98%)

 

TeleTech   Offshore Investments B.V. (2%)
    	
 
    	
Argentina
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech Brasil Servicos   Ltda.

 

(f/k/a Teletech Brasil   Servicios De Informatica Ltda.); (f/k/a Outsource Informatica Ltda.) – name changed 8/19/98

 

Chief Executive Office:

Av. Maria Coelho Aguiar,   215

Bloco A – 7 andar

São Paulo 05805-000

Brazil 
    	
 
    	
TeleTech Europe B.V. (99.9%)

 

TeleTech Offshore Investments B.V. (0.1%)
    	
 
    	
Brazil
    	
 
    	
N/A
    

 

16

 

	
TeleTech   Customer Care Management Costa Rica, S.A.

 

(S.A.   = Sociedad Anonima = Anonymous Corporation)

 

Chief   Executive Office:

De Durman Esquivelen

Calle Blancos 150M Norte

Edificio C

Zona Franca del Este

San José, Costa Rica
    	
 
    	
TeleTech   Europe B.V. (100%)

 
    	
 
    	
Costa   Rica
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech Customer Care Management (Ghana)   Limited

 

Chief Executive Office:

4th Floor, Ghana Multimedia Bldg.

Lut Street off High Street

Victoria Borg

Accra, Ghana
    	
 
    	
TeleTech   Europe B.V. (100%)
    	
 
    	
Ghana
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech Mexico, S.A. de C.V.

 

(f/k/a Telemercadeo Integral S.A. de   C.V.)  [Name changed effective   9/1/99.]

 

Chief Executive Office:

Plaza de la Republica No. 43

Colonia Tabacalera

Codigo Postal 06030

Delegacion Cuauhtemoc

Mexico, D.F.
    	
 
    	
TeleTech   Services Corp (99.99%)

TeleTech   Customer Care Management (CA), LLC (.01%)
    	
 
    	
Mexico
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
TeleTech   Venezuela, C.A.

 

(f/k/a   Inversiones Blower 2003, C.A.)

 

Chief   Executive Office (Registered Address):

Av. Francisco de Miranda con cruce

Av. Libertador

Torre KPMG

Caracas, Venezuela

 
    	
 
    	
TeleTech   Customer Care Management (CO), LLC (100%)
    	
 
    	
Venezuela
    	
 
    	
N/A
    

 

17

 

SCHEDULE 6.4

 

Litigation and Administrative Proceedings

 

None.

 

 

 

Schedule 6.9

Locations

 

	
Location
    	
 
    	
Address
    	
 
    	
Note
    
	
Austin, TX (eLoyalty)
    	
 
    	
River Place Corporate Park
    6500 River Place Blvd. - Building II
   Third Floor - Suite 301
   Austin, TX 78730
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Burlington, MA (iKnowtion)
    	
 
    	
25   Mall Road
   Suite 409
   Burlington, MA 01803
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dearborn, MI (Percepta)
    	
 
    	
Fairlane Plaza North
    290 Town Center Drive
   Suite 610
   Dearborn, MI 48126
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dearborn, MI (Percepta)
    	
 
    	
Fairlane Office Centre
    4 Parklane Blvd.
   Suite 480
   Dearborn, MI 48126
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Englewood, CO
    	
 
    	
TeleTech   - Corporate Office
   9197 South Peoria Street
   Englewood, CO 80112-5833
    	
 
    	
Owned
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ennis, TX
    	
 
    	
2000   Highway 287 Bypass
   Ennis, TX 75119
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Greeley, CO
    	
 
    	
2400   West 29th Street
   Suite 100
   Greeley, CO 80631
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Hopkinsville, KY
    	
 
    	
Bradford Square Mall
   4000 Fort Campbell Blvd.
   Suite D-3
   Hopkinsville, KY 42240
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Kalispell, MT
    	
 
    	
Gateway West Mall
   1203 Highway 2 West
   Kalispell, MT 59901
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lorain, OH
    	
 
    	
1230   Park Avenue
   Amherst, OH 44001
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Melbourne, FL (Percepta)
    	
 
    	
Florida Business Centre
   1320 South Babcock Street
   Melbourne, FL 32901
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Mesa, AZ (Guidon)
    	
 
    	
Hewson Dover Business Center
    4320 East Presidio Street
   Suite 101
   Mesa, AZ 85215
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Morgantown, WV
    	
 
    	
5000   Greenbag Road
   Morgantown, WV 26501
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Moundsville, WV
    	
 
    	
100   West TeleTech Drive
   Moundsville, WV 26041
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
New York, NY (Manhattan Apt.)
    	
 
    	
Cityspire Condominiums
   150 West 56th Street
   Unit 5605
   New York, NY 10019
    	
 
    	
Leased
    

 

1

 

	
New York, NY (eLoyalty)
    	
 
    	
Jay Suites
    1441 Broadway
   5th Floor - Suite 5007
   New York, NY 10018
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
North Hollywood, CA
    	
 
    	
12215   Victory Blvd.
   North Hollywood, CA 91606
    	
 
    	
Sub-leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Paducah, KY
    	
 
    	
Commerce Center
   401 Kentucky Avenue
   Paducah, KY 42003
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Paducah, KY
    	
 
    	
Commerce Park
   McCraken Blvd.
   Paducah, KY 42003
    
   (Note: Landlord is in the process of building a building for TTEC)
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Phoenix, AZ
    	
 
    	
Bell 28 - Building B
   16610 North 28th Avenue
   Suite B-100 & B-108
   Phoenix, AZ 85053
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Phoenix, AZ (Revana)
    	
 
    	
Black Canyon Highway
    16404 North Black Canyon Highway
   Suite 100
   Phoenix, AZ 85053
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Phoenix, AZ
    	
 
    	
Black Canyon Highway
    16404 North Black Canyon Highway
   Suite 240
   Phoenix, AZ 85053
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Phoenix, AZ (Co-Location)
    	
 
    	
Global Crossing Telecommunications
    801 South 16th Street
   Phoenix, AZ 85034
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Springfield, MO
    	
 
    	
1720   East Primrose Street
   Springfield, MO 65804
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stockton, CA (Vacant Land Parcel)
    	
 
    	
6011   West Lane
   Stockton, CA 95210
    	
 
    	
Owned
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tempe, AZ (Revana)
    	
 
    	
Hardy Building 
   8123 South Hardy Road
   Tempe, Arizona 85284
   and
   Carver Building 
   910 West Carver Road
   Tempe, Arizona 85284
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Uniontown, PA
    	
 
    	
1648   Mall Run Road
   Uniontown, PA 15401
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Vernon Hills, IL (eLoyalty)
    	
 
    	
Hawthorn Business Park
   Three Hawthorn Parkway
   Suite 180
   Vernon Hills, IL 60061
    	
 
    	
Leased
    

 

2

 

	
CANADA
    	
 
    	
CANADA
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Halifax, Nova Scotia
    	
 
    	
115   Chain Lake Drive
   Halifax, Nova Scotia
   B3S 1B3
    	
 
    	
Sub-leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Orillia, Ontario
    	
 
    	
2   Hunter Valley Road
   Orillia, Ontario
   L3V 6H2
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
MEXICO
    	
 
    	
MEXICO
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Guadalajara
    	
 
    	
Parque   Industrial Tecnologico II
   Anillo Periferico Sur No. 7980
   Col. Santa Maria Tequepexpan
   45600 Tlaquepaque, Guadalajara
   Jalisco Edificio 1 Int A
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Leon, Mexico
    	
 
    	
Calle   Loreto N 100
   Colonia Peñitas
   Esquina Alud
   Código Postal 37180
   León, Guanajuato
   México
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Puebla, Mexico
    	
 
    	
Prolongacion   II
   Sur No. 10569
   Ex Hacienda Mayorazgo
   Código Postal 72450
   Puebla
   México
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Republica, Mexico
    	
 
    	
Plaza   de la Republica No. 43
   Colonia Tabacalera
   Ground, 1st, 2nd & 3rd Floors
   Código Postal 06030
   Delegacion Cuauhtémoc
   México, D.F.
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
COSTA RICA
    	
 
    	
COSTA RICA
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Costa Rica
    	
 
    	
De   Durman Esquivelen
   Calle Blancos 150M Norte
   Edificio C
   Zona Franca del Este
   San Jose ́, Costa Rica
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
AUSTRALIA
    	
 
    	
AUSTRALIA
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
420 St Kilda Road
   (Percepta/TeleTech)
    	
 
    	
420   St Kilda Road
   Level 9
   Melbourne, AUS 3004
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Parramatta
    	
 
    	
30   Cowper Street
   Level 1, Suite 103
   Parramatta, NSW 2150
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sydney, Australia
    	
 
    	
154   Pacific Highway
   Levels 2 & 7 
   St. Leonards, NSW 2065
   Australia
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ultimo, NSW (Co-Location)
    	
 
    	
400   Harris Street
   Ultimo, NSW 2007
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
NEW ZEALAND
    	
 
    	
NEW ZEALAND
    	
 
    	
 
    

 

3

 

	
Mount Eden, New Zealand
    	
 
    	
Eden Business Center
   Part Eden 3
   16 Normanby Road
   Levels 3 & 4
   Mount Eden
   Auckland City, New Zealand
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
New Market, New Zealand (Co-Location)
    	
 
    	
162   Grafton Road
   Ground Floor 
   New Market, New Zealand
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
EUROPE
    	
 
    	
EUROPE
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Belfast
   Northern Ireland
    	
 
    	
Northgate   Industrial Estate
   81-85 Duncairn Gardens
   Belfast, Ireland BT15 2GQ
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dublin (eLoyalty)
    	
 
    	
Vantage Central Apartments
   Central Park
   Building 6
   Apartment 915
   Leopardstown, Dublin
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Glasgow (Percepta)
    	
 
    	
20   Buchanan Street
   5th Floor
   Glasgow, Scotland
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
London (Co-Location)
    	
 
    	
Cage   Floor 3
   East India Docklands House
   East India Docklands Road
   London, England E14 9YY
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Manchester, UK
    	
 
    	
Arndale Centre
   Market Street
   15th, 16th & 19th Floors
   Arndale House
   Manchester, UK M4 3AQ
    	
 
    	
Assigned
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
PHILIPPINES
    	
 
    	
PHILIPPINES
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ayala Life (Makati City)
    	
 
    	
Ayala Life - FGU Center
   Ground and Mezzanine Level
   Tower One & Exchange Plaza
   Ayala Triangle, Ayala Avenue
   Makati City 1226
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Bacolod
    	
 
    	
Robinson’s Metro
   Level 2 & Portion of Level 1
   Araneta Street
   Singcang
   Bacolod City
   Negros Occidental 6100
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cainta
    	
 
    	
Robinson’s Place
   Portion of Level 1, Level 2 & Level 3
   Ortigas Avenue Extension
   Barangay Sto. Domingo
   Cainta, Rizal 1900
   Philippines
    	
 
    	
Leased
    

 

4

 

	
Cebu 
    	
 
    	
eBloc2 Tower @Cebu IT Park
   Geonzon Street
   Ground, 8th, 9th, 10th, 11th & 12th Floors
   Apas, Cebu City 6000
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cebu 
    	
 
    	
Golden ABC Building
    Building 7
   880 A.S. Fortuna Street
   Ground Floor, Canteen & 2nd Floor
   Mandaue City, Cebu 6014
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Cybergate
    	
 
    	
Robinson’s Cybergate Center
   Tower III - Robinson’s Pioneer Complex
    2nd, 11th, 19th & 22nd Floors
   EDSA cor. Pioneer Street
   Mandaluyong City 1550
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dumaguete
    	
 
    	
Dumaguete
   South Road
   National Highway
   Barangay Calindagan
   Dumaguete City
   Negros Oriental 6200
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ecoplaza
    	
 
    	
Ecoplaza
   2305 Don Chino Roces Extension
   5th & 10th Floors
   Makati City 1231
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Iloilo
    	
 
    	
SM City Iloilo
   3rd Level
   Benigno Aguino Avenue
   (Diversion Road)
   Barangay Mandurriao
   Iloilo City 5000
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lipa City
    	
 
    	
Robinson’s Place - Lipa City
   National Highway
   Portions of Level 1, 2 & 3
   Lipa City 4217
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Manila
    	
 
    	
Roxas Site
    SM Central Business Park
   Bldg. F., 1000 Bay Blvd.
   Bay City, Pasay City
   Metro Manila 1300
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Novaliches 
    	
 
    	
Robinson’s Place - Novaliches
   Level 2 & Portion of Level 1
   1199 Qurino Highway
   Barangay Pasong Putik
   Novaliches, Quezon City 1123
   Philippines
    	
 
    	
Leased
    

 

5

 

	
Pampanga 
    	
 
    	
SM City Pampanga
    Ground Floor
   Building 4
    Barangay San Jose
   Olongapo - Gapan Road
   City of San Fernando
   Pampanga 2000
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Santa Rosa
    	
 
    	
Robinson’s Place - Santa Rosa
   Old National Highway
   Level 2
   Baranggay Tagapo
   Santa Rose, Laguna 4026
   Philippines 
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TwoE-com
    	
 
    	
TwoE-Com Center
   Mall of Asia Complex
   along Palm Coast Avenue
   Tower A 
   6th Floor
   Makati City 1226
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
UP - AyalaLand Techno Hub
    	
 
    	
UP - AyalaLand Techno Hub
   Building H
   3rd & 4th Floors
   Commonwealth Avenue
   Diliman
   Quezon City 1101
   Philippines 
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Makati (Co-Location)
    	
 
    	
Globe Data Center
   2275 Chino Roces Extension
   Makati City 1231
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pasig (Co-Location)
    	
 
    	
PLDT Vitro
   Danny Floro Street
   3rd Floor Vitro
   corner CP Garcia St. Brgy. Ugong
   Philippines
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
ARGENTINA
    	
 
    	
ARGENTINA
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Alsina - Buenos Aires
    	
 
    	
Alsina 1659/1663/1665
   between Solis and Virrey Ceballos Streets, First Floor, Second Floor, First   Basement & Second Basement
   City of Buenos Aires
   Argentina
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pellegrini - Buenos Aires
    	
 
    	
Carlos Pellegrini 587
   Sixth Floor
   City of Buenos Aires
   Argentina
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
BRAZIL
    	
 
    	
BRAZIL
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Osasco
    	
 
    	
Shopping Uniao de Osasco
   Avenida dos Autonomistas
   No. 1400 & Ancora V
   Vila Yara
   Osasco 
   Brazil
    	
 
    	
Leased
    

 

6

 

	
Sao Paulo, Brazil
    	
 
    	
Centro Empresarial de Sao Paulo Building
   CENESP
   Edificio Bloco “A”
   215 Maria Coelho de Aguiar Street
   Block “A” - 2nd Floor
   Sao Paulo 
   Brazil CEP 05805-000
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sao Paulo, Brazil
    	
 
    	
Centro Empresarial de Sao Paulo Building
   CENESP
   Edificio Bloco “A”
   215 Maria Coelho de Aguiar Street
   Block “A” - 7th Floor (#07-A)
   Sao Paulo 
   Brazil CEP 05805-000
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sao Paulo, Brazil
    	
 
    	
Centro Empresarial de Sao Paulo Building
   CENESP
   Edificio Bloco “A”
   215 Maria Coelho de Aguiar Street
   Block “B” - 8th Floor (#08A)
   Sao Paulo 
   Brazil CEP 05805-000
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SPAIN
    	
 
    	
SPAIN
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Barcelona
    	
 
    	
Regus Business Center
   Gran Via de les Corts
   Catalanes 583
   Barcelona, Spain 08011
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Madrid
    	
 
    	
Normadat, S.A.
   Calle Fuerteventura 13
   San Sebastian de los Reyes
   Madrid, Spain
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SOUTH AFRICA
    	
 
    	
SOUTH AFRICA
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ghana
    	
 
    	
Ghana House
   Ghana Muiltimedia Centre
   5th Floor
   High Street
   G.P.O., Private Mail Bag
   Accra Central
   Ghana
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
PRG
    	
 
    	
PRG
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Stamford, CT
    	
 
    	
1111   Summer Street
   5th Floor
   Stamford, CT 06905
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Brussels
    	
 
    	
Manhattan Center Office Tower
   1210 Brussels
   Avenue du Boulevard 21
   11th Floor
   Brussels, Belgium
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Dubai
    	
 
    	
Tecom Zone
   Dubai Media City
   Al Thuraya Tower 2
   Offices 1503A & 1502
   P.O. Box 502264
   Dubai, United Arab Emirates
    	
 
    	
Leased
    

 

7

 

	
Germany
    	
 
    	
Peppers &   Rogers Group GmbH or
   Krieger
   Kirchnerstrrasse 6-8
   60311 Frankfurt am Main
   Germany
    	
 
    	
Registered Address
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Kuwait
    	
 
    	
Sour Tower
   12th Floor
   Al Sour Road, Salhiya
   Kuwait City, Kuwait
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Lebanon
    	
 
    	
Azarieh Building 
   Block 3
   6th Floor, Suite 633
   P.O. Box 11-503
   Beirut, Lebanon
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Johannesburg
    	
 
    	
Johannesburg Parktown
   Regus Office Centre
   23 Wellington Road
   Parktown, Johannesburg
   South Africa 2193
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Singapore
    	
 
    	
SIF Building
   96 Robinson Road
   12th Floor
   #12-92
   Singapore 068899
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Turkey
    	
 
    	
Buyukdere   Caddesi Ozsezen Is
   Merkezi
   No. 122 C Blok
   7th Floor
   Esentepe, Istanbul 34394
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
TSG
    	
 
    	
TSG
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Aurora, IL
    	
 
    	
2575   White Oak Circle
   Aurora, IL 60504
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rockford, IL
    	
 
    	
East Wind Mall Business Complex
   129 South Phelps 
   Space 211
   Rockford, IL 61108
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Omaha, NE
    	
 
    	
10040   Regency Circle
   Suite 340
   Omaha, NE 68114
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Pittsburg, PA
    	
 
    	
8085   Saltsburg Road
   First Floor
   Pittsburg, PA 15239
    	
 
    	
Leased
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Brookfield, WI
    	
 
    	
240   Regency Court
   Entry Level
   Brookfield, WI 53045
    	
 
    	
Leased
    

 

8

 

 

SCHEDULE 6.11

 

EMPLOYEE BENEFIT PLANS

 

	
US Benefits
    	
 
    	
Carrier
    	
 
    	
Comments
    
	
Medical
    	
 
    	
UnitedHealthcare   Choice Plus Balanced Plan
   Health Basic’s Plan (limited plan)
    	
 
    	
All   Sites – full time regular
   All Sites – full time regular
    
	
Medical
    	
 
    	
PT Health Reimbursement Arrangement   (HRA)
    	
 
    	
All Sites with PT Reg Employees
    
	
Dental
    	
 
    	
Delta   Dental of Colorado PPO
    	
 
    	
All   Sites
    
	
Vision
    	
 
    	
Vision   Service Plan - VSP
    	
 
    	
All Sites – 100% EE paid
    
	
Accident Plan
    	
 
    	
AIG
    	
 
    	
All Sites – 100% EE paid
    
	
Basic   Life & AD&D
    	
 
    	
MetLife
    	
 
    	
Term   Insurance – 100% Employer Paid
    
	
Long   Term Disability
    	
 
    	
MetLife
    	
 
    	
100%   Employer paid, for G&A only
    
	
Supplemental   Life & AD&D
    	
 
    	
MetLife
    	
 
    	
Optional   term insurance for employee, spouse and children 100% paid by employee
    
	
FSA
    	
 
    	
Both   Health and Dep. Care FSA plans Bank of America
    	
 
    	
100%   paid by employee
    
	
Short   Term Disability
    	
 
    	
MetLife
    	
 
    	
Corp   only 100% paid by Employer
   All sites except Corp 100% paid by employee
    
	
401(k)
    	
 
    	
TeleTech   401(k) Profit Sharing Plan
    	
 
    	
Merrill   Lynch is vendor
    
	
ESOP
    	
 
    	
Amended   and Restated TeleTech Holdings, Inc. 1999 Stock Option and Incentive Plan
    	
 
    	
No   longer active plan
    
	
Deferred   Comp
    	
 
    	
TeleTech   Deferred Compensation Plan
    	
 
    	
TBG   Mullin is vendor
    
	
125   Plan
    	
 
    	
TeleTech   Employee Cafeteria Plan
    	
 
    	
 
    
	
Employee   Assistance Plan and FMLA
    	
 
    	
ComPsych
    	
 
    	
 
    
	
Commuter   Plan
    	
 
    	
TeleTech   Administers
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Canada   Benefits
    	
 
    	
Carrier
    	
 
    	
Comments
    
	
Health   Care
    	
 
    	
Manulife   Canadian Healthcare Plan
    	
 
    	
Medical   & Dental
    
	
Basic   AD&D
    	
 
    	
Manulife
    	
 
    	
 
    
	
Basic   Life, Optional Life and LTD
    	
 
    	
Sun   Life
    	
 
    	
 
    
	
Employee   Assistance Plan
    	
 
    	
Warren Shepell
    	
 
    	
 
    
	
FMLA
    	
 
    	
ComPsych
    	
 
    	
 
    
	
Registered   Retirement Savings Plan — RRSP
    	
 
    	
Manulife
    	
 
    	
Employee   contributions
    
	
Deferred Profit Sharing Plan -   DPSP
    	
 
    	
Manulife
    	
 
    	
Employer   match
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
US and   Canada
   Benefits
    	
 
    	
Carrier
    	
 
    	
Comments
    
	
Business   Travel Accident
    	
 
    	
CIGNA
    	
 
    	
 
    

 

 

SCHEDULE 6.16

 

MATERIAL AGREEMENTS

 

NONE

 

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

SCHEDULE 6.18

 

INSURANCE

 

	
CASUALTY
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Business   Automobile

Policy Term:                                                       10/01/12   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Workers’   Compensation & Employer’s Liability 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy Term:                                                       10/01/12   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

1

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Workers’   Compensation & Employer’s Liability 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy Term:                                                       2/01/13   – 2/01/14
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Commercial   General Liability

Policy Term:                                                       10/01/12   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

2

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Lead   Umbrella Liability in Excess of Domestic and International General Liability,   Auto Liability and Employers Liability

Policy Term:                                                       10/01/12   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Excess   Umbrella Liability in Excess of Travelers Lead Umbrella

Policy Term:                                                       10/01/12   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

3

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
PROPERTY
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Global   “All Risk” Property

Policy Term:                                                       03/31/13   – 03/31/14
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

4

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Philippines   — “All Risk” Property

Policy Term:                                                       03/31/13   – 03/31/14
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

5

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:
    	
International   Casuality Package Policy
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Term:
    	
10/01/12—   10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

6

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:
    	
Defense   Base Act
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Term:
    	
10/01/2012—   10/01/2013
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

7

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
FINPRO
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:
    	
Primary   Directors & Officers
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Term:
    	
8/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:
    	
Excess   Directors & Officers
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Term:
    	
08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:
    	
Excess   Directors & Officers
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Policy   Term:
    	
08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

8

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Excess   Directors & Officers

08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Excess   Directors & Officers — Side A DIC

08/01/12   — 8/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Primary   Errors & Omissions

08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Excess   Errors & Omissions

08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

9

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:

Policy   Term:
    	
Employment   Practices Liability

08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Fiduciary   Liability

08/01/12   — 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:

Policy   Term:
    	
Primary   Commercial Crime

08/01/12   — 08/01/13 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

10

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Excess   Commercial Crime
   Policy Term:                                                       08/01/12   – 08/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Kidnap   & Ransom
   Policy Term:                                                       10/01/10   – 10/01/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Directors   & Officers Liability – Brazil 
   Policy Term:                                                       02/23/13   – 02/23/14
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

11

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Errors   & Omissions – Brazil 
   Policy Term:                                                       11/30/12   – 11/30/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Crime – Brazil 
   Policy Term:                                                       11/30/12 – 11/30/13
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Professional   Indemnity – Australia 
   Policy Term:                                                       01/01/13   – 01/01/14
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

12

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
MULTI-LINE / OTHER
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Primary   Deductible Reimbursement Coverage 

Policy Term:                                                       October   1, 2012 to October 1, 2013
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Employed   Lawyers Coverage (Claims-Made)

Policy Term:                                                       October   1, 2012 to October 1, 2013
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Coverage:                                                                       Marine   Cargo 

Policy Term:                                                       October   1, 2005 until cancelled
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

13

 

	
SCHEDULE   OF INSURANCE
    	
TELETECH HOLDINGS, INC.
    

 

	
Coverage:                                                                       Pollution   Liability 

Policy Term:                                                       March   31, 2013 to March 31, 2014
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

MARSH

 

14Exhibit 10.1

 

EXECUTION VERSION

 

SECOND AMENDMENT

 

SECOND AMENDMENT, dated as of June 3, 2013 (this “Amendment”), to the Credit Agreement, dated as of October 9, 2007, as amended by the First Amendment dated as of March 2, 2011, among GUITAR CENTER, INC., a Delaware corporation (the “Borrower”), the facility guarantors party thereto (the “Facility Guarantors”), the lenders party thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent, and the other agents party thereto (as may be further amended, restated, supplemented or otherwise modified from time to time, the “Term Credit Agreement”).

 

W  I  T  N  E  S  S  E  T  H :

 

WHEREAS, the Borrower, the Facility Guarantors, the Lenders and the Administrative Agent are parties to the Term Credit Agreement; and

 

WHEREAS, subject to the terms and conditions of this Amendment, the parties hereto wish to amend the Term Credit Agreement as herein provided;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

SECTION 1.                            Defined Terms.  Unless otherwise defined herein, terms defined in the Term Credit Agreement and used herein shall have the meanings given to them in the Term Credit Agreement (as defined after giving effect to this Amendment).

 

SECTION 2.                            Amendments to Section 1.01.  Section 1.01 of the Term Credit Agreement is hereby amended as follows:

 

(a) by adding the following defined terms in proper alphabetical order:

 

“Second Amendment” means the Second Amendment, dated as of June 3, 2013, to this Agreement, by and among the Borrower, the Facility Guarantors, the Lenders party thereto and the Administrative Agent.

 

“Second Amendment Effective Date” has the meaning assigned to such term in the Second Amendment, which date is June 3, 2013.

 

(b) by replacing the following defined terms in their entirety with the following:

 

“ABL Borrowings Amount” means, as of any date (the “Reference Date”), an amount equal to (a) the sum of the aggregate amount of all Loans (as such term is defined under the ABL Agreement) outstanding for the period of four consecutive Fiscal Quarters most recently ended on or prior to the Reference Date divided by (b) four.  For purposes of this definition and the calculation of the Consolidated Secured Net Leverage Ratio at any time after the Second Amendment Effective Date, it is agreed that (i) for the Fiscal Quarters ended September 30, 2012, December 31, 2012 and March 31, 2013, the amount of Loans (as such term is defined under the ABL Agreement) outstanding as of the end of each such Fiscal Quarter shall be deemed to equal $100,000,000 and (ii) for the Fiscal Quarters ended June 30, 2013 and September 30, 2013, the amount of Loans (as such term is defined under the ABL Agreement) outstanding as of the end of each such Fiscal Quarter shall be deemed to equal the greater of (x) $100,000,000 and (y) the actual amount of Loans (as such term is defined under the ABL Agreement) outstanding as of the end of such Fiscal Quarter.

 

 

“Applicable Margin” means a percentage per annum equal to, in the case of any (a) Non-Extended Term Loan that is a Prime Rate Loan, 2.50%, (b) Non-Extended Term Loan that is a LIBO Loan, 3.50%, (c) Extended Term Loan that is a Prime Rate Loan, 5.00% and (d) Extended Term Loan that is a LIBO Loan, 6.00%.

 

“Repricing Transaction” means (a) any prepayment of the Extended Term Loans using proceeds from a substantially concurrent incurrence by the Borrower of term loans, revolving loans or high yield bonds, in each case, for which the interest rate payable thereon on the date of such prepayment is lower than the LIBO Rate on the date of such prepayment plus the Applicable Margin with respect to the Extended Term Loans on the date of such prepayment or (b) any repricing of the Extended Term Loans pursuant to an amendment hereto resulting in the interest rate payable thereon on the date of such amendment being lower than the LIBO Rate on the date of such amendment plus the Applicable Margin with respect to the Extended Term Loans on the date of such amendment.

 

SECTION 3.                            Amendment to Section 2.16(c).  Section 2.16(c) of the Term Credit Agreement is hereby replaced in its entirety with the following:

 

(c)  Any prepayment or repricing of the Extended Term Loans effected on or prior to the first anniversary of the Second Amendment Effective Date as a result of a Repricing Transaction shall be accompanied by a fee equal to 1.00% of the principal amount of the Extended Term Loans so prepaid or repriced, unless such fee is waived by the applicable Extended Term Loan Lender.  If in connection with a Repricing Transaction on or prior to such first anniversary of the Second Amendment Effective Date any Lender is replaced as a result of its being a Minority Lender in respect of such Repricing Transaction pursuant to Section 9.02(c), such Lender shall be entitled to the fee provided under this Section 2.16(c).

 

SECTION 4.                            Amendment to Section 6.11(a).  Section 6.11(a) of the Term Credit Agreement is hereby replaced in its entirety with the following:

 

(a) Consolidated Secured Net Leverage Ratio.  Holdings shall not permit the Consolidated Secured Net Leverage Ratio on the last day of any Fiscal Quarter during any period set forth below to be greater than the ratio set forth opposite such period below:

 

	
Period
    	
 
    	
Ratio
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
October 1, 2008 through March 31, 2009 
    	
 
    	
4.80x
    	
 
    
	
April 1, 2009 through September 30, 2009   
    	
 
    	
4.50x
    	
 
    
	
October 1, 2009 through March 31, 2010 
    	
 
    	
3.90x
    	
 
    
	
April 1, 2010 through March 31, 2013 
    	
 
    	
3.50x 
    	
 
    
	
April 1, 2013 through September 30, 2013
    	
 
    	
4.35x
    	
 
    
	
October 1, 2013 through December 31,   2014 
    	
 
    	
4.00x
    	
 
    
	
January 1, 2015 through June 30, 2015 
    	
 
    	
3.75x
    	
 
    
	
Thereafter 
    	
 
    	
3.00x
    	
 
    

 

Notwithstanding the foregoing or anything to the contrary contained in this Agreement or any of the other Loan Documents, this covenant shall not be tested as a maintenance covenant for the Fiscal Quarter ended June 30, 2013, but such covenant level shall be used with respect to determining compliance with this SECTION 6.11(a) as required by any other provision of this Agreement.

 

2

 

SECTION 5.                            Conditions to Effectiveness.  This Amendment shall become effective on and as of the date hereof (the “Second Amendment Effective Date”) upon the satisfaction (or waiver by the Required Lenders) of the following conditions:

 

(a)                                 the Administrative Agent shall have received this Amendment, executed and delivered by a duly authorized officer of (a) the Borrower, (b) the Facility Guarantors and (c) the Required Lenders;

 

(b)                                 the Administrative Agent shall have received evidence that all fees and expenses required to be paid pursuant to Sections 7 and 8 hereof have been paid in full; and

 

(c)                                  the Required Lenders under, and as defined in, the ABL Agreement shall have consented to the terms of this Amendment.

 

SECTION 6.                            Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and each Lender that (immediately before and after giving effect to this Amendment):

 

(a)  Each Loan Party has the power and authority to execute, deliver and perform its obligations under this Amendment.  Each Loan Party has taken all necessary corporate or other action to authorize the execution, delivery and performance of its obligations under this Amendment.  This Amendment has been duly executed and delivered on behalf of each Loan Party.  This Amendment constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

(b)  The execution, delivery and performance of this Amendment will not violate any Applicable Law, or conflict with any material indenture, agreement or other instrument to which the Borrower is a party, except to the extent that such violation or conflict would not reasonably be expected to result in a Material Adverse Effect, and will not result in the creation or imposition of any Lien upon any asset of the Borrower pursuant to any such agreement (other than any Permitted Encumbrances and Liens created under the Loan Documents).

 

(c)          Each of the representations and warranties made by any Loan Party in the Loan Documents as amended by this Amendment is true and correct in all material respects on and as of the Second Amendment Effective Date, as if made on and as of such date (except that any representation or warranty which by its terms is made as of an earlier date shall be true and correct in all material respects as of such earlier date).

 

(d)         As of the Second Amendment Effective Date, there does not exist any Default or Event of Default.

 

SECTION 7.                            Payment of Expenses.  The Borrower agrees to pay or reimburse the Arranger and the Administrative Agent for all Credit Party Expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby.

 

SECTION 8.                            Consent Fee.  The Borrower agrees to pay to the Administrative Agent

 

3

 

for the account of each Lender that has executed and delivered a counterpart of this Amendment by the Second Amendment Effective Date, a consent fee in an amount equal to 0.25% of such Lender’s Term Loans.

 

SECTION 9.                            No Other Amendment or Waivers; Confirmation.  Except as expressly provided hereby, all of the terms and provisions of the Term Credit Agreement and the other Loan Documents are and shall remain in full force and effect.  The amendments contained herein shall not be construed as an amendment of any other provision of the Term Credit Agreement or the other Loan Documents or for any purpose except as expressly set forth herein or a consent to any further or future action on the part of the Borrower that would require the waiver or consent of the Administrative Agent or the Lenders.

 

SECTION 10.                     GOVERNING LAW; WAIVER OF JURY TRIAL; MISCELLANEOUS.

 

(a)                             THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

(b)                                 On and after the Second Amendment Effective Date, each reference in the Term Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import referring to the Term Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof”, or words of like import referring to the Term Credit Agreement shall mean and be a reference to the Term Credit Agreement as amended by this Amendment.

 

(c)                                  This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this Amendment signed by all the parties shall be lodged with the Borrower and the Administrative Agent.  This Amendment may be delivered by facsimile or electronic transmission of the relevant signature pages hereof.

 

(d)                                 The Administrative Agent shall give notice to the Borrower and each of the Lenders promptly upon the occurrence of the “Second Amendment Effective Date.”

 

(e)                                  The execution and delivery of this Amendment by any Lender shall be binding upon each of its successors and permitted assigns (including permitted assignees of its Loans in whole or in part prior to effectiveness hereof).

 

SECTION 11.                     Severability.  If any provision of this Amendment shall be determined to be illegal or invalid as to one or more of the parties hereto, then such provision shall remain in effect with respect to all parties, if any, as to whom such provision is neither illegal nor invalid, and in any event all other provisions hereof shall remain effective and binding on the parties hereto.

 

SECTION 12.                     Headings.  Section headings used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

 

[Signature Pages Follow]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.

 

	
 
    	
 
    
	
 
    	
GUITAR   CENTER, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Tim Martin
    
	
 
    	
 
    	
Tim   Martin, EVP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE   ENTITIES LISTED ON SCHEDULE I HERETO, 
   as Facility Guarantors
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Tim Martin
    
	
 
    	
 
    	
Tim   Martin, EVP (VP, Guitar Center Holdings, Inc.)
    

 

 

Acknowledged and Agreed:

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Collateral Agent, and as Lender

 

 

	
By:   
    	
/s/   Sarah L. Freedman
    	
 
    
	
 
    	
Name:   
    	
Sarah   L. Freedman
    	
 
    
	
 
    	
Title:   
    	
Executive   Director
    	
 
    

 

 

	
 
    	
Name   of Lender:
    	
[Signatures   intentionally omitted]
    

 

SECOND AMENDMENT SIGNATURE PAGE

 

 

Schedule I

 

Facility Guarantors

 

Guitar Center Holdings, Inc.

Guitar Center Stores, Inc.

Guitar Center Gift Card Company, LLC

Musician’s Friend, Inc.

Harmony Central Group, LLC

GTRC Services, Inc.

Music 123, Inc.

Woodwind & Brasswind, Inc.

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