Document:

Exhibit 10.1

 

CREDIT AGREEMENT

 

Dated as of May 30, 2003

 

among

 

WATSON PHARMACEUTICALS, INC.,

as Borrower,

 

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

 

WACHOVIA BANK, NATIONAL ASSOCIATION

as Administrative Agent,

 

BANK OF AMERICA, N.A. and CIBC WORLD MARKETS CORP.

as Co-Syndication Agents,

 

and

 

LEHMAN COMMERCIAL PAPER, INC. and MORGAN STANLEY BANK

as Co-Documentation Agents

 

 

$300,000,000 Senior Revolving Credit Facility

 

 

WACHOVIA SECURITIES, INC.

Lead Arranger and Sole Book-Runner

 

CIBC WORLD MARKETS CORP.

Co-Lead Arranger

 

 

TABLE OF CONTENTS

 

	

  ARTICLE I

  
	

   

  	

   

  
	

  DEFINITIONS

  
	

   

  
	

  1.01

  	

  Certain Defined Terms

  
	

  1.02

  	

  Computation of Time Periods

  
	

  1.03

  	

  Accounting

  Terms

  
	

  1.04

  	

  Calculation of

  Financial Covenants

  
	

  1.05

  	

  Other Terms

  
	

   

  	

   

  
	

  ARTICLE II

  
	

   

  	

   

  
	

  AMOUNTS AND TERMS OF LOANS

  
	

   

  	

   

  
	

  2.01

  	

  Revolving Loan Facility

  
	

  2.02

  	

  Swing Loans

  
	

  2.03

  	

  Letters

  of Credit

  
	

  2.04

  	

  Promise to Pay;

  Evidence of Debt

  
	

  2.05

  	

  Use of Proceeds of Loans

  
	

  2.06

  	

  Authorized

  Officers, Employees and Administrative Agents

  
	

   

  	

   

  
	

  ARTICLE III

  
	

   

  	

   

  
	

  PAYMENTS AND PREPAYMENTS

  
	

   

  	

   

  
	

  3.01

  	

  Voluntary

  Prepayments; Reductions in Revolving Loan Commitments

  
	

  3.02

  	

  Mandatory Prepayments

  
	

  3.03

  	

  Payments

  
	

  3.04

  	

  Taxes

  
	

  3.05

  	

  Increased

  Capital

  
	

  3.06

  	

  Mitigation;

  Replacement of Lenders

  
	

   

  	

   

  
	

  ARTICLE IV

  
	

   

  	

   

  
	

  INTEREST

  AND FEES

  
	

   

  	

   

  
	

  4.01

  	

  Interest

  on the Loans and other Obligations

  
	

  4.02

  	

  Special

  Provisions Governing Eurodollar Rate Loans

  
	

  4.03

  	

  Fees

  
			

 

i

 

	

  ARTICLE V

  
	

   

  	

   

  
	

  CONDITIONS

  TO LOANS

  
	

   

  	

   

  
	

  5.01

  	

  Conditions

  Precedent to Initial Loans

  
	

  5.02

  	

  Conditions Precedent

  to All Loans

  
	

   

  	

   

  
	

  ARTICLE VI

  
	

   

  	

   

  
	

  REPRESENTATIONS AND

  WARRANTIES

  
	

   

  	

   

  
	

  6.01

  	

  Representations

  and Warranties of the Borrower

  
	

   

  	

   

  
	

  ARTICLE VII

  
	

   

  	

   

  
	

  REPORTING

  COVENANTS

  
	

   

  	

   

  
	

  7.01

  	

  Financial Statements

  
	

  7.02

  	

  Management

  Reports

  
	

  7.03

  	

  Other Financial Information

  
	

  7.04

  	

  Defaults and Other Events

  
	

  7.05

  	

  Lawsuits

  
	

  7.06

  	

  ERISA

  Notices

  
	

  7.07

  	

  Environmental Notices

  
	

  7.08

  	

  FDA Notices

  
	

  7.09

  	

  Labor

  Matters

  
	

  7.10

  	

  Other

  Information

  
	

   

  	

   

  
	

  ARTICLE VIII

  
	

   

  	

   

  
	

  AFFIRMATIVE COVENANTS

  
	

   

  	

   

  
	

  8.01

  	

  Existence,

  etc.

  
	

  8.02

  	

  Powers; Conduct of Business

  
	

  8.03

  	

  Compliance with Laws, etc.

  
	

  8.04

  	

  Payment of Taxes and Claims

  
	

  8.05

  	

  Insurance

  
	

  8.06

  	

  Inspection

  of Property; Books and Records; Discussions

  
	

  8.07

  	

  ERISA

  Compliance

  
	

  8.08

  	

  Maintenance of Property

  
	

  8.09

  	

  Maintenance of

  Licenses, Permits, etc.

  
	

  8.10

  	

  Loan Party

  
	

   

  	

   

  
	

  ARTICLE IX

  
	

   

  	

   

  
	

  NEGATIVE

  COVENANTS

  
	

   

  	

   

  
	

  9.01

  	

  Indebtedness

  

 

ii

 

	

  9.02

  	

  Sales

  of Assets

  
	

  9.03

  	

  Liens

  
	

  9.04

  	

  Investments

  
	

  9.05

  	

  Accommodation Obligations

  
	

  9.06

  	

  Restricted Payments

  
	

  9.07

  	

  Change in Nature of

  Business

  
	

  9.08

  	

  Transactions with

  Affiliates

  
	

  9.09

  	

  Restriction on

  Fundamental Changes

  
	

  9.10

  	

  Sales and Leasebacks

  
	

  9.11

  	

  Margin

  Regulations

  
	

  9.12

  	

  ERISA

  
	

  9.13

  	

  Capital Expenditures

  
	

  9.14

  	

  Amendment of Governing

  Documents

  
	

  9.15

  	

  Environmental Liabilities

  
	

   

  	

   

  
	

  ARTICLE X

  
	

   

  	

   

  
	

  FINANCIAL

  COVENANTS

  
	

   

  	

   

  
	

  10.01

  	

  Minimum

  Net Worth

  
	

  10.02

  	

  Minimum Interest

  Coverage Ratio

  
	

  10.03

  	

  Maximum Leverage Ratio

  
	

   

  	

   

  
	

  ARTICLE XI

  
	

   

  	

   

  
	

  EVENTS OF

  DEFAULT; RIGHTS AND REMEDIES

  
	

   

  	

   

  
	

  11.01

  	

  Events

  of Default

  
	

  11.02

  	

  Rights

  and Remedies

  
	

   

  	

   

  
	

  ARTICLE XII

  
	

   

  	

   

  
	

  THE ADMINISTRATIVE AGENT

  
	

   

  	

   

  
	

  12.01

  	

  Appointment

  
	

  12.02

  	

  Nature

  of Duties

  
	

  12.03

  	

  Rights, Exculpation, etc.

  
	

  12.04

  	

  Reliance

  
	

  12.05

  	

  Indemnification

  
	

  12.06

  	

  The

  Administrative Agent Individually

  
	

  12.07

  	

  Successor

  Administrative Agents

  
	

  12.08

  	

  Relations Among Lenders

  
	

  12.09

  	

  Concerning the Loan

  Documents

  
	

  12.10

  	

  Other

  Agents

  

 

iii

 

	

  ARTICLE XIII

  
	

   

  	

   

  
	

  MISCELLANEOUS

  
	

   

  	

   

  
	

  13.01

  	

  Assignments and

  Participations

  
	

  13.02

  	

  Relations Among Lenders

  
	

  13.03

  	

  Replacement of Lender

  
	

  13.04

  	

  Expenses

  
	

  13.05

  	

  Indemnity

  
	

  13.06

  	

  Change in Accounting

  Principles

  
	

  13.07

  	

  Setoff

  
	

  13.08

  	

  Ratable

  Sharing

  
	

  13.09

  	

  Amendments and Waivers

  
	

  13.10

  	

  Notices

  
	

  13.11

  	

  Survival of

  Warranties and Agreements

  
	

  13.12

  	

  Failure

  or Indulgence Not Waiver; Remedies Cumulative

  
	

  13.13

  	

  Marshalling; Payments

  Set Aside

  
	

  13.14

  	

  Independence of Covenants

  
	

  13.15

  	

  Severability

  
	

  13.16

  	

  Headings

  
	

  13.17

  	

  Governing

  Law

  
	

  13.18

  	

  Limitation of Liability

  
	

  13.19

  	

  Successors and Assigns

  
	

  13.20

  	

  Certain Consents and

  Waivers

  
	

  13.21

  	

  Counterparts;

  Effectiveness; Inconsistencies

  
	

  13.22

  	

  Entire

  Agreement

  
	

  13.23

  	

  Confidentiality

  

 

iv

 

	

  EXHIBITS

  
	

   

  
	

  Exhibit A

  	

  —

  	

  Form of

  Assignment and Acceptance

  
	

  Exhibit B-1

  	

  —

  	

  Form of

  Revolving Loan Note

  
	

  Exhibit B-2

  	

  —

  	

  Form of

  Swing Loan Note

  
	

  Exhibit C

  	

  —

  	

  Form of

  Notice of Borrowing

  
	

  Exhibit D

  	

  —

  	

  Form of

  Notice of Continuation/Conversion

  
	

  Exhibit E

  	

  —

  	

  List of

  Closing Documents

  
	

  Exhibit F

  	

  —

  	

  Form of

  Officer’s Certificate

  
	

  Exhibit G

  	

  —

  	

  Form of

  Compliance Certificate

  
	

   

  	

   

  	

   

  
	

  Annex I

  	

  —

  	

  Commitments

  
	

  Annex II

  	

  —

  	

  Lender Information for Notices

  

 

v

 

CREDIT AGREEMENT

 

This CREDIT

AGREEMENT dated as of May 30, 2003 (as amended, supplemented or modified from

time to time, this “Agreement”) is entered into among WATSON

PHARMACEUTICALS, INC., a Nevada Corporation (the “Borrower”), the

financial institutions from time to time party hereto, whether by execution of

this Agreement or an Assignment and Acceptance (the “Lenders”), WACHOVIA

BANK, NATIONAL ASSOCIATION (“Wachovia”), in its capacity as

administrative agent for the Lenders (in such capacity, the “Administrative

Agent”), BANK OF AMERICA, N.A. and CIBC WORLD MARKETS CORP., each in its

capacity as co-syndication agent for the Lenders (together, in such capacity,

the “Syndication Agents,” and each, a “Syndication Agent”), and LEHMAN

COMMERCIAL PAPER, INC. and MORGAN STANLEY BANK, each in its capacity as

co-documentation agent for the Lenders (together, in such capacity, the “Documentation

Agents,” and each, a “Documentation Agent”).

 

ARTICLE I

 

DEFINITIONS

 

1.01         Certain Defined Terms.  The following terms used in this Agreement

shall have the following meanings, applicable both to the singular and the

plural forms of the terms defined:

 

“Accommodation

Obligation” means any Contractual Obligation, contingent or otherwise, of

any Person with respect to any Indebtedness of another, if the primary purpose

or intent thereof by the Person incurring the Accommodation Obligation is to

provide assurance to the obligee of such Indebtedness of another Person that

such Indebtedness will be paid or discharged, or that the holders thereof will

be protected (in whole or in part) against loss in respect thereof including,

without limitation, direct and indirect guarantees, endorsements (except for

collection or deposit in the ordinary course of business), notes co-made or

discounted, recourse agreements, take-or-pay agreements, keep-well agreements,

agreements to purchase or repurchase such Indebtedness or to provide any

security therefor or to provide funds for the payment or discharge thereof, agreements

to maintain solvency, assets, level of income, or other financial condition,

and agreements to make payment other than for value received.

 

“Account

Designation Letter” means a letter from the Borrower to the Administrative

Agent, duly completed and signed by the Borrower’s Chief Financial Officer and

in form and substance reasonably satisfactory to the Administrative Agent,

listing any one or more accounts to which the Borrower may from time to time

request the Administrative Agent to forward the proceeds of any Loans made

hereunder.

 

“Acknowledgment

of New Loan Party” means an instrument in the form attached as

Exhibit A to the Contribution Agreement.

 

“Administrative

Agent” has the meaning ascribed to such term in the preamble hereto.

 

“Administrative

Agent’s Account” means the Administrative Agent’s account, account number

5000000033519 (re: Watson Pharmaceuticals), maintained at the office of

Wachovia,

 

 

301 South College Street,

Charlotte, North Carolina, or such other account as the Administrative Agent

may from time to time specify in writing to the Borrower and the Lenders.

 

“Affiliate”

means, as applied to any specified Person, any other Person that directly or

indirectly controls, is controlled by, or is under common control with, such specified

Person.  For purposes of this

definition, “control” (including, with correlative meanings, the terms

“controlling”, “controlled by” and “under common control with”), as applied to

any specified Person, means the possession, directly or indirectly, of the

power to vote ten percent (10%) or more of the Securities having voting power

for the election of directors of such specified Person or otherwise to direct

or cause the direction of the management and policies of such specified Person,

whether through the ownership of voting Securities or by contract or otherwise.

 

“Agents”

means, collectively, the Administrative Agent, the Syndication Agents, the

Documentation Agents and the Arranger.

 

“Agreement”

has the meaning ascribed to such term in the preamble hereto.

 

“Applicable

Base Rate Margin” means, as of any date, a percentage per annum determined

by reference to the Debt Rating in effect on such date as set forth below:

 

	

  Tier

  	

   

  	

  Debt Rating

  	

   

  	

  Applicable Base

  Rate Margin

  	

   

  
	

  I

  	

   

  	

  Moody’s < Baa3 AND

  S&P < BBB-

  	

   

  	

  0.75

  	

  %

  
	

  II

  	

   

  	

  Moody’s > Baa3 OR

  S&P > BBB- (but not both)

  	

   

  	

  0.50

  	

  %

  
	

  III

  	

   

  	

  Moody’s > Baa3 AND

  S&P > BBB-

  	

   

  	

  0.25

  	

  %

  

 

“Applicable

Eurodollar Rate Margin” means, as of any date, a percentage per annum

determined by reference to the Debt Rating in effect on such date as set forth

below: 

 

	

  Tier

  	

   

  	

  Debt

  Rating

  	

   

  	

  Applicable

  Eurodollar Rate Margin

  	

   

  
	

  I

  	

   

  	

  Moody’s <

  Baa3 AND

  S&P < BBB-

  	

   

  	

  1.75

  	

  %

  
	

  II

  	

   

  	

  Moody’s >

  Baa3 OR

  S&P > BBB- (but not both)

  	

   

  	

  1.50

  	

  %

  
	

  III

  	

   

  	

  Moody’s >

  Baa3 AND

  S&P > BBB-

  	

   

  	

  1.25

  	

  %

  

 

“Applicable

Lending Office” means, with respect to a particular Lender, its Eurodollar

Lending Office in respect of provisions relating to Eurodollar Rate Loans and

its Domestic Lending Office in respect of provisions relating to Base Rate

Loans.

 

2

 

“Approved Fund”

means, with respect to any Lender, any fund that regularly invests in bank

loans, has sufficient cash to support a Revolving Loan Commitment and is

managed by such Lender.

 

“Arranger”

means Wachovia Securities, Inc.

 

“Assignment and

Acceptance” means an Assignment and Acceptance substantially in the form of

Exhibit A attached hereto and made a part hereof delivered to the

Administrative Agent in connection with an assignment of a Lender’s interest

under this Agreement in accordance with the provisions of Section 13.01.

 

“Attributable

Debt” means with respect to a Sale and Leaseback Transaction, at the time

of determination, the present value (discounted at the rate of interest

implicit in such transaction, determined in accordance with GAAP) of the

obligation of the lessee for net rental payments during the remaining term of

the lease included in such Sale and Leaseback Transaction (including any period

for which such lease has been extended or may, at the option of the lessor, be

extended).

 

“Availability”

means, at any particular time, the amount by which the Maximum Revolving Credit

Amount at such time exceeds the Revolving Credit Obligations at such time.

 

“Base Rate”

means, on any date, a fluctuating interest rate per annum equal to the higher

of:

 

(a)           the rate of interest then most

recently established by Wachovia in Charlotte, North Carolina as its prime

commercial lending rate for Dollars loaned in the United States in effect on

such date; and

 

(b)           the Federal Funds Rate in effect on

such date plus 1/2 of 1%.

 

The Base Rate

is not necessarily intended to be the lowest rate of interest determined by

Wachovia in connection with extensions of credit.

 

“Base Rate

Loans” means all Loans which bear interest at a rate determined by

reference to the Base Rate as provided in Section 4.01(a).

 

“Bankruptcy

Code” means Title 11 of the United States Code (11 U.S.C. §§ 101 et

seq.), as amended from time to time, and any successor statute.

 

“Benefit Plan”

means a defined benefit plan as defined in Section 3(35) of ERISA (other than a

Multiemployer Plan) which is subject to Title IV of ERISA or Section 412 of the

Code in respect of which any Loan Party or any ERISA Affiliate is, or within

the immediately preceding six (6) years was, an “employer” as defined in

Section 3(5) of ERISA.

 

“Board of

Directors” means the board of directors or equivalent governing body of a

Person (or the general partner of such Person, as the case may be), or any

committee thereof duly authorized to act on behalf of such board of directors

or equivalent governing body.

 

3

 

“Borrower”

has the meaning ascribed to such term in the preamble hereto.

 

“Borrowing”

means a borrowing consisting of Loans of the same Type made on the same day by

the Lenders.

 

“Business”

means those businesses in which the Borrower and its Subsidiaries are engaged

on the Closing Date and businesses reasonably ancillary or related thereto.

 

“Business Day”

means a day, in the applicable local time, which is not a Saturday or Sunday or

a legal holiday and on which banks are not required or permitted by law or

other governmental action to close in any of (i) New York, New York,

(ii) Charlotte, North Carolina, (iii) in the case of Eurodollar Rate

Loans, London, England and (iv) in the case of Letter of Credit

transactions for the Issuing Bank, the place where its office for issuance and

administration of the pertinent Letter of Credit is located.

 

“Capital

Expenditures” means, for any period being measured hereunder, the aggregate

of all expenditures (whether paid in cash or other assets or accrued as a

liability (but without duplication)) during such period that, in conformity

with GAAP, are required to be included in or reflected by a Loan Party’s fixed

asset account as reflected in its balance sheet; provided, however,

that Capital Expenditures shall include, whether or not such a designation

would be in conformity with GAAP, (A) that portion of Capital Leases which

is capitalized on the balance sheet of such Loan Party and incurred in such

period and (B) expenditures for Equipment which is purchased

simultaneously with the trade-in of existing Equipment owned by such Loan Party

to the extent that the gross purchase price of the purchased Equipment exceeds

the fair value of the Equipment being traded in at such time.

 

“Capital Lease”

means, as applied to any Person, any lease of any property (whether real,

personal or mixed) by that Person as lessee which, in conformity with GAAP, is

accounted for as a capital lease on the balance sheet of that Person.

 

“Capital Stock”

means, with respect to any Person, any capital stock of such Person, regardless

of class or designation, and all warrants, options, purchase rights, conversion

or exchange rights, voting rights, calls or claims of any character with

respect thereto.

 

“Cash Capital

Expenditures” means, for any period, that portion of Capital Expenditures

which is paid in cash.

 

“Cash

Equivalents” shall mean (i) marketable direct obligations issued or

unconditionally guaranteed by the United States Government or issued by an

agency thereof and backed by the full faith and credit of the United States, in

each case maturing within one (1) year after the date of acquisition thereof;

(ii) marketable direct obligations issued by any state of the United

States of America or any political subdivision of any such state or any public

instrumentality thereof maturing within ninety (90) days after the date of

acquisition thereof and, at the time of acquisition, having one of the two

highest ratings obtainable from either S&P or Moody’s (or, if at any time

neither S&P nor Moody’s shall be rating such obligations, then from other

nationally recognized rating services) and not listed in Credit Watch published

by S&P; (iii) commercial paper, other than commercial paper issued by

the Borrower or any of its Affiliates, maturing no more than ninety (90) days

after the date of creation thereof and, at the time of acquisition,

 

4

 

having a rating of at least A-1

or P-1 from either S&P or Moody’s (or, if at any time neither S&P nor

Moody’s shall be rating such obligations, then the highest rating from other

nationally recognized rating services) (iv) domestic and eurodollar

certificates of deposit or time deposits or bankers’ acceptances maturing

within ninety (90) days after the date of acquisition thereof issued by any

commercial bank organized under the laws of the United States of America or any

state thereof or the District of Columbia or European Economic Community or

Canada having combined capital and surplus of not less than $250,000,000;

(v) bankers’ acceptances maturing no more than ninety (90) days after the

date of creation thereof and, at the time of acquisition, having a rating of at

least A-1 or P-1 from either S&P or Moody’s (or, if at any time neither

S&P nor Moody’s shall be rating such obligation, then the highest rating

from other nationally recognized rating services); (vi) corporate

securities maturing no more than one (1) year after the date of acquisition

thereof and, at the time of acquisition, having one of the two highest ratings

obtainable from either S&P of Moody’s (or, if at any time neither S&P

nor Moody’s shall be rating such obligations, then one of the two highest

ratings from other nationally recognized rating services);

(vii) repurchase agreements with respect to United States government

securities, with contract periods not to exceed thirty (30) days; and

(viii) money market mutual funds that invest primarily in the instruments

set forth in the foregoing clauses of this definition.

 

“CERCLA”

means the Comprehensive Environmental Response, Compensation and Liability Act

of 1980, 42 U.S.C. §§ 9601 et seq., any amendments thereto, any successor

statutes, and any regulations promulgated thereunder.

 

“Change of

Control” means the occurrence of one or more of the following events:

 

(a)           the consummation of any transaction

(including, without limitation, any merger or consolidation) the result of

which is that any “person” (as such term is used in Sections 13(d) and 14(d) of

the Securities Exchange Act) is or becomes the beneficial owner (as defined in

Rules 13d-3 and 13d-5 under the Securities Exchange Act), directly or

indirectly, of more than 40% of the total voting power of the Equity Interests

of the Borrower;

 

(b)           any sale, lease, exchange or other

transfer (in one transaction or a series of related transactions) of all, or

substantially all, the assets of the Borrower and its Subsidiaries taken as a

whole to any “person” or group of “persons” for purposes of Section 13(d) of

the Securities Exchange Act (other than to any Wholly Owned Subsidiary of the

Borrower); or

 

(c)           the adoption of a plan of liquidation

of the Borrower.

 

“Chief

Financial Officer” means the chief financial officer, chief accounting

officer, vice president – corporate controller or vice president of finance of

the Borrower.

 

“Claim”

means any claim or demand, by any Person, of whatsoever kind or nature for any

alleged Liabilities and Costs, whether based in contract, tort, implied or

express warranty, strict liability, criminal or civil statute, Permit,

ordinance or regulation, common law or otherwise.

 

“Closing Date”

means the date on which all of the conditions precedent in Section 5.01

(and, in the event any Loans are made on such date, Section 5.02)

have been satisfied or waived pursuant to Section 13.09.

 

5

 

“Code”

means the Internal Revenue Code of 1986, as amended from time to time, and any

successor statute and any regulations or guidelines promulgated thereunder.

 

“Commercial

Letter of Credit” means any documentary letter of credit issued by an

Issuing Bank pursuant to Section 2.03 for the account of the

Borrower, which is drawable upon presentation of documents evidencing the sale

or shipment of goods purchased by the Borrower or any of its Subsidiaries in

the ordinary course of their business.

 

“Commission”

means the Securities and Exchange Commission and any Person succeeding to the

functions thereof.

 

“Compliance

Certificate” has the meaning ascribed to such term in Section 7.01(c).

 

“Contaminant”

means any waste, pollutant (as that term is defined in 42 U.S.C. 9601(33) or in

33 U.S.C. 1362(13)), hazardous substance (as that term is defined in 42 U.S.C.

9601(14)), hazardous chemical (as that term is defined by 29 CFR Section

1910.1200(c)), toxic substance, hazardous waste (as that term is defined in 42

U.S.C. 6901), radioactive material, special waste, petroleum, including crude

oil or any petroleum-derived substance, waste, or breakdown or decomposition

product thereof, or any constituent of any such substance or waste, including,

but not limited to polychlorinated biphenyls, and asbestos.

 

“Contractual

Obligation” means, as applied to any Person, any provision of any

Securities issued by that Person or any indenture, mortgage, deed of trust,

security agreement, pledge agreement, guaranty, contract, undertaking,

agreement or instrument to which that Person is a party or by which it or any

of its properties is bound, or to which it or any of its properties is subject.

 

“Contribution

Agreement” means the Contribution Agreement, substantially in the form of

the Contribution Agreement referred to in the List of Closing Documents, among

the Borrower and the Guarantors, as such agreement may be further amended,

supplemented or otherwise modified from time to time.

 

“Convertible

Contingent Senior Debenture Indenture” means the Indenture, dated

March 7, 2003, between the Borrower and Wells Fargo Bank Minnesota,

National Association, as Trustee, for the issuance of the Borrower’s

Convertible Contingent Senior Debentures.

 

“Convertible

Contingent Senior Debentures” means the 1.75% Convertible Contingent Senior

Debentures issued by the Borrower pursuant to the Convertible Contingent Senior

Debenture Indenture.

 

“Current Assets”

means, as at any date of determination, the total assets of the Borrower and

its Subsidiaries on a consolidated basis which may properly be classified as

current assets in conformity with GAAP.

 

“Current

Liabilities” means, as at any date of determination, the current

liabilities of the Borrower and its Subsidiaries on a consolidated basis which

may properly be classified as current liabilities in conformity with GAAP.

 

6

 

“Customary

Permitted Liens” means

 

(a)           Liens (other than Environmental Liens

and any Lien in favor of the PBGC) with respect to the payment of taxes,

assessments or governmental charges or claims, in all cases which are not yet

due or are being contested in good faith by appropriate proceedings and with

respect to which adequate reserves or other appropriate provisions are being

maintained in accordance with GAAP;

 

(b)           statutory Liens of landlords and

Liens of suppliers, vendors, mechanics, carriers, materialmen, warehousemen or

workmen and other Liens imposed by law and created in the ordinary course of

business in all cases for amounts not yet due or which are being contested in

good faith by appropriate proceedings and with respect to which adequate

reserves or other appropriate provisions are being maintained in accordance

with GAAP;

 

(c)           Liens (other than Environmental Liens

and any Lien in favor of the PBGC) incurred or deposits made in the ordinary

course of business in connection with worker’s compensation, unemployment

insurance or other types of social security benefits or to secure the

performance of bids, tenders, sales, leases, contracts (other than for the

repayment of borrowed money), surety, appeal and performance bonds, in all

cases for amounts not yet due or which are being contested in good faith by

appropriate proceedings and with respect to which adequate reserves or other

appropriate provisions are being maintained in accordance with GAAP; and

 

(d)           zoning restrictions, easements,

licenses, reservations, covenants, rights-of-way, utility easements, building

restrictions and other similar charges or encumbrances or irregularities of

title (including leasehold title) on the use of real property which do not

materially interfere with the ordinary conduct of the business of the Loan

Parties and which do not materially adversely affect the value of the real

property.

 

“Debt”

means, as applied to any Person at any time, all indebtedness, obligations or

other liabilities of such Person (i) for borrowed money or evidenced by

debt securities, debentures, acceptances, notes or other similar instruments,

(ii) reimbursement obligations with respect to letters of credit issued

for such Person’s account (to the extent not accounted for in clause (i)

above), (iii) to pay the deferred purchase price of property or services,

except accounts payable and accrued expenses arising in the ordinary course of

business, or (iv) in respect of Capital Leases.

 

“Debt Rating”

means, as of any date, the rating that has been most recently announced by

either S&P or Moody’s, as the case may be, for any class of non-credit

enhanced long-term senior unsecured debt issued by the Borrower.  For purposes of the foregoing, (a) if

any rating established by S&P or Moody’s shall be changed, such change

shall be effective as of the date on which such change is first announced

publicly by the rating agency making such change and (b) if S&P or

Moody’s shall change the basis on which ratings are established, each reference

herein to ratings announced by S&P or Moody’s, as the case may be, shall

refer to the then equivalent rating by S&P or Moody’s, as the case may be.

 

“Default”

means an event which, with the giving of notice or the lapse of time, or both,

would constitute an Event of Default.

 

7

 

“Disclosure

Letter” means the Disclosure Letter dated of even date herewith from the

Borrower to the Administrative Agent and the Lenders.

 

“DOL” means

the United States Department of Labor and any Person succeeding to the

functions thereof.

 

“Dollars”

and “$” mean the lawful money of the United States.

 

“Domestic

Lending Office” means, with respect to any Lender, such Lender’s office,

located in the United States, specified as the “Domestic Lending Office” of

such Lender on Annex II hereto or on the Assignment and Acceptance

by which it became a Lender or such other United States office of such Lender

as it may from time to time specify by written notice to the Borrower and the

Administrative Agent.

 

“EBITDA”

means, for any Financial Covenant Period, (i) Net Income, plus the

following amounts (without duplication) to the extent deducted in calculating

such Net Income: (A) depreciation and amortization expense (including,

without limitation, amortization of intangibles, such as goodwill and

organization costs), (B) interest expense, amortization or writeoff of

Debt and discount and debt issuance costs and commissions, discounts and other

fees and charges associated with Debt (including the Loans), (C) the

provision for income taxes (including federal, state, local and foreign income

taxes), (D) extraordinary or unusual losses, (E) non-cash portion of

nonrecurring losses and charges, (F) other non-operating, non-cash losses

and (G) minority interest expense in respect of equity holdings in

Affiliates; minus (ii) the following amounts (without duplication) for

such Financial Covenant Period to the extent included in the calculation of

such Net Income: (A) the amount of extraordinary gains, (B) interest

income and (C) other non-operating, non-cash income; each item in

clauses (i) and (ii) calculated pursuant to GAAP for such period.

 

“Eligible

Assignee” means (A) any of the following Persons that, immediately

before and after giving effect to any assignment of Loans or Revolving Loan

Commitments hereunder, has an unimpaired capital and surplus of not less than

$100,000,000, approved by the Administrative Agent and, unless a Default or

Event of Default has occurred and is continuing, the Borrower, each such

approval not to be unreasonably withheld or delayed: (i) a commercial bank

organized under the laws of the United States or any state thereof; (ii) a

savings and loan association or savings bank organized under the laws of the

United States or any state thereof; (iii) a commercial bank organized

under the laws of any other country or a political subdivision thereof; provided

that (x) such bank is acting through a branch or agency located in the

United States or (y) such bank is organized under the laws of a country

that is a member of the Organization for Economic Cooperation and Development

or a political subdivision of such a country; and (iv) any other entity

which is an “accredited investor” (as defined in Regulation D under the

Securities Act) which extends credit or buys loans in the ordinary course of

its businesses, including, but not limited to, insurance companies, mutual

funds and lease financing companies; (B) any Lender and (C) any

Affiliate or Approved Fund of any Lender; provided that no Affiliate of

the Borrower and no member of the pharmaceutical industry or other competitor

of the Borrower or any of its Subsidiaries shall be an Eligible Assignee.

 

8

 

“Environmental,

Health or Safety Requirement of Law” means Requirements of Law derived from

or relating to federal, state and local laws, regulations, ordinances or orders

relating to or addressing the environment, health or safety, including but not

limited to any law, regulation, ordinance or order relating to the use,

handling, or disposal of any Contaminant, any law, regulation, ordinance or

order relating to Remedial Action, and any law, regulation, ordinance or order

relating to workplace or worker safety and health, as such Requirements of Law

are promulgated by the specifically authorized agency responsible for

administering such Requirements of Law.

 

“Environmental

Lien” means a Lien in favor of any Governmental Authority for (i) any

liability under any applicable Environmental, Health or Safety Requirement of

Law or (ii) damages arising from, or costs incurred by such Governmental

Authority in response to, a Release or threatened Release of a Contaminant into

the indoor or outdoor environment.

 

“Environmental

Property Transfer Act” means any applicable Requirement of Law triggered by

the transfer, sale, lease, mortgage or closure of any Property, that

conditions, restricts, prohibits or requires any notification or disclosure for

environmental reasons.

 

“Equipment”

means a Person’s present and future (i) equipment and fixtures, including,

without limitation, machinery, manufacturing, distribution, selling, computer

system, data processing and office equipment, assembly systems, tools, molds,

dies, fixtures, appliances, furniture, furnishings, vehicles, vessels,

aircraft, aircraft engines, and trade fixtures, (ii) other tangible

personal property, and (iii) any and all accessions, parts and

appurtenances attached to any of the foregoing or used in connection therewith,

and any substitutions therefor and replacements, products and proceeds thereof.

 

“Equity

Interests” means, with respect to any Person, any Capital Stock issued by

such Person, regardless of class or designation, any limited or general

partnership interest in such Person, or any limited liability membership

interest in such Person, regardless of designation.

 

“ERISA”

means the Employee Retirement Income Security Act of 1974, as amended from time

to time, and any successor statute.

 

“ERISA Affiliate”

means any (i) corporation which is a member of the same controlled group

of corporations (within the meaning of Section 414(b) of the Code) as any Loan

Party, (ii) partnership, trade or business (whether or not incorporated)

which is under common control (within the meaning of Section 414(c) of the

Code) with any Loan Party, and (iii) ”affiliated service group” (as

defined in Section 414(m) of the Code).

 

“Eurodollar

Affiliate” means, with respect to each Lender, the Affiliate of such Lender

(if any) set forth below such Lender’s name under the heading “Eurodollar

Affiliate” on Annex II hereto or on the Assignment and Acceptance

by which it became a Lender or such Affiliate of a Lender as it may from time

to time specify by written notice to the Borrower and the Administrative Agent.

 

“Eurodollar

Interest Payment Date” means (i) with respect to any Eurodollar Rate

Loan, the last day of each Eurodollar Interest Period applicable to such Loan

and (ii) with respect to

 

9

 

any Eurodollar Rate Loan having

a Eurodollar Interest Period of six months, the three-month anniversary of the

first day of such Eurodollar Interest Period.

 

“Eurodollar

Interest Period” has the meaning set forth in Section 4.02(b).

 

“Eurodollar

Lending Office” means, with respect to any Lender, the office or offices of

such Lender (if any) set forth below such Lender’s name under the heading

“Eurodollar Lending Office” on Annex II hereto or on the Assignment

and Acceptance by which it became a Lender or such office or offices of such

Lender as it may from time to time specify by written notice to the Borrower

and the Administrative Agent.

 

“Eurodollar

Rate” means, with respect to any Eurodollar Interest Period applicable to a

Borrowing of Eurodollar Rate Loans, an interest rate per annum obtained by

dividing (i) the rate per annum (rounded upwards, if necessary, to the

nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page) as

the London interbank offered rate for deposits in U.S. dollars at approximately

11:00 a.m. (London time) on the Interest Rate Determination Date for such

Eurodollar Interest Period for a period equal to such Eurodollar Interest

Period (provided that, if for any reason such rate is not available, the

term “Eurodollar Rate” shall mean, for any Interest Period for all Eurodollar

Rate Advances comprising part of the same Borrowing, the rate per annum

(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on

Reuters Screen LIBO Page as the London interbank offered rate for deposits in

Dollars at approximately 11:00 A.M. (London time) two Business Days prior to

the first day of such Interest Period for a term comparable to such Interest

Period; provided, however, if more than one rate is specified on

Reuters Screen LIBO Page, the applicable rate shall be the arithmetic mean of

all such rates), by (ii) a percentage equal to 100% minus the Eurodollar

Reserve Percentage.  The Eurodollar Rate

shall be adjusted automatically on and as of the effective date of any change

in the Eurodollar Reserve Percentage.

 

“Eurodollar

Rate Loans” means those Loans outstanding which bear interest at a rate

determined by reference to the Eurodollar Rate as provided in Section 4.01(a).

 

“Eurodollar

Reserve Percentage” means, for any day, that percentage which is in effect

on such day, as prescribed by the Federal Reserve Board for determining the

maximum reserve requirement (including, without limitation, any emergency,

supplemental or other marginal reserve requirement) for a member bank of the

Federal Reserve System in New York, New York with deposits exceeding five

billion Dollars in respect of “Eurocurrency Liabilities” (or in respect of any

other category of liabilities which includes deposits by reference to which the

interest rate on Eurodollar Rate Loans is determined or any category of

extensions of credit or other assets which includes loans by a non-United

States office of any bank to United States residents).

 

“Event of

Default” means any of the occurrences set forth in Section 11.01

after the expiration of any applicable grace period and the giving of any

applicable notice, in each case as expressly provided in Section 11.01.

 

10

 

“Existing

Letter of Credit” means letter of credit No. SM422382, issued by

Wachovia Bank, National Association for the account of the Borrower, in favor

of certain beneficiaries named therein in the face amount of $463,000.

 

“FDA” shall

mean the Food and Drug Administration.

 

“Federal Funds

Rate” means, for any period, a fluctuating interest rate per annum equal

for each day during such period to the weighted average of the rates on

overnight federal funds transactions with members of the Federal Reserve System

arranged by federal funds brokers, as published for such day (or, if such day

is not a Business Day in New York, New York, for the next preceding Business

Day) in New York, New York by the Federal Reserve Bank of New York, or if such

rate is not so published for any day which is a Business Day in New York, New

York, the average of the quotations for such day on such transactions received

by the Administrative Agent from three federal funds brokers of recognized

standing selected by the Administrative Agent.

 

“Federal

Reserve Board” means the Board of Governors of the Federal Reserve System

or any Governmental Authority succeeding to its functions.

 

“Fee Letter”

means the fee letter dated February 28, 2003 between the Arranger, Wachovia and

the Borrower, as such agreement may be further amended, supplemented or

otherwise modified from time to time.

 

“Financial

Covenant Period” means, in determining compliance with the financial

covenants hereunder, with respect to each fiscal quarter, the financial

information for the immediately preceding four fiscal quarters ending on the

last day of such fiscal quarter.

 

“Fiscal Year”

means the fiscal year of the Borrower and its Subsidiaries ending on December

31 of each calendar year.

 

“Forfeiture

Proceeding” means any action, proceeding or investigation affecting any of

the Loan Parties before any court, governmental department, commission, board,

bureau, agency or instrumentality, domestic or foreign, or the receipt of

notice by any such party that any of them is a suspect in or a target of any

governmental inquiry or investigation, which may result in an indictment of any

of them or the seizure or forfeiture of any of their property.

 

“Funded Debt”

means Debt which matures more than one year from the date of its creation or

matures within one year from such date but is renewable or extendible, at the

option of the debtor, to a date more than one year from such date or arises

under a revolving credit or similar agreement which obligates the lender or

lenders to extend credit during a period of more than one year from such date

including, without limitation, all amounts of Funded Debt required to be paid

or prepaid within one year from the date of determination.

 

“Funding Date”

means the date of the funding of a Loan.

 

“GAAP”

means generally accepted accounting principles set forth in the opinions and

pronouncements of the Accounting Principles Board and the American Institute of

Certified Public Accountants and the Financial Accounting Standards Board or in

such other statements by

 

11

 

such other entity as may be in

general use by significant segments of the accounting profession as in effect

from time to time.

 

“Governing

Documents” means, (a) with respect to any corporation, (i) the

articles/certificate of incorporation (or the equivalent organizational

documents) of such corporation, (ii) the by-laws (or the equivalent

governing documents) of the corporation and (iii) any document setting

forth the designation, amount and/or relative rights, limitations and

preferences of any class or series of such corporation’s Capital Stock;

(b) with respect to any general partnership, (i) the partnership

agreement (or the equivalent organizational documents) of such partnership and

(ii) any document setting forth the designation, amount and/or relative

rights, limitations and preferences of any of the partnership interests;

(c) with respect to any limited partnership, (i) the partnership

agreement (or the equivalent organizational documents) of such partnership,

(ii) a certificate of limited partnership (or the equivalent

organizational documents) and (iii) any document setting forth the

designation, amount and/or relative rights, limitations and preferences of any

of the partnership interests; and (d) with respect to any limited

liability company, (i) the certificate of limited liability (or equivalent

filings) of such limited liability company, (ii) the operating agreement

(or the equivalent organizational documents) of such limited liability company,

and (iii) any document setting forth the designation, amount and/or

relative rights, limitations and preferences of any of such company’s

membership interests.

 

“Governmental

Authority” means any nation or government, any federal, state, local or

other political subdivision thereof and any entity exercising executive,

legislative, judicial, regulatory or administrative functions of or pertaining

to government.

 

“Guaranties”

means, collectively, the Guaranties, substantially in the form of the

Guaranties referred to in the List of Closing Documents, executed by the

Guarantors in favor of the Administrative Agent and the Lenders, as such

Guaranties may be amended, supplemented or otherwise modified from time to

time.

 

“Guarantors”

means, collectively, (i) each Subsidiary that, as of the Closing Date,

(x) accounts for at least 5% of the Borrower’s EBITDA on a consolidated

basis, as determined at the end of the Fiscal Year ended December 31, 2002 or

(y) is a guarantor of the 1998 Senior Notes or the Convertible Contingent

Senior Debentures and (ii) each Subsidiary that executes a Guaranty and an

Acknowledgment of New Loan Party from time to time hereafter in accordance with

Section 8.10.

 

“Holder”

means any Person entitled to enforce any of the Obligations, whether or not

such Person holds any evidence of Indebtedness, including, without limitation,

the Administrative Agent and each Lender.

 

“Indebtedness”

means, as applied to any Person at any time and without duplication,

(a) all indebtedness, obligations or other liabilities of such Person

(i) for borrowed money or evidenced by debt securities, debentures,

acceptances, notes or other similar instruments, and any accrued interest, fees

and charges relating thereto, (ii) with respect to letters of credit

issued for such Person’s account, (iii) to pay the deferred purchase price

of property or services, except accounts payable and accrued expenses arising

in the ordinary course of business, (iv) in respect

 

12

 

of Capital Leases or (v) which

are Accommodation Obligations of the type referred to in clauses (i)

through (iv) above; (b) all indebtedness, obligations or other liabilities

of such Person or others secured by a Lien (other than a Customary Permitted

Lien) on any property of such Person, whether or not such indebtedness,

obligations or liabilities are assumed by such Person (but only to the extent

of the fair market value of such property in the case of indebtedness,

obligations or liabilities that are not assumed by such Person), all as of such

time; (c) all indebtedness, obligations or other liabilities of such

Person in respect of Interest Rate Contracts and foreign exchange contracts,

net of liabilities owed to such Person by the counterparties thereon;

(d) all preferred stock subject (upon the occurrence of any contingency or

otherwise) to mandatory redemption at any time prior to the 91st day

following the Revolving Loan Maturity Date; and (e) all contingent

Contractual Obligations with respect to any of the foregoing.  For the avoidance of doubt, Indebtedness

shall not include any guarantees that are not for other Indebtedness,

including, without limitation, performance guarantees.

 

“Indemnified

Matters” has the meaning ascribed to such term in Section 13.05.

 

“Indemnitees”

has the meaning ascribed to such term in Section 13.05.

 

“Interest

Coverage Ratio” means, with respect to any Financial Covenant Period, the

ratio of (i) EBITDA for such period to (ii) Interest Expense for such

period.

 

“Interest

Expense” means, for any period being measured hereunder, total interest

expense for such period, whether paid or accrued (including the interest

component of Capital Leases) of the Borrower and its Subsidiaries on a

consolidated basis, as determined in conformity with GAAP.

 

“Interest Rate

Contracts” means interest rate exchange, swap, collar, cap, hedging or

similar agreements.

 

“Interest Rate

Determination Date” has the meaning ascribed to such term in Section 4.02(c).

 

“Investment”

means, with respect to any Person, (i) any purchase or other acquisition

by that Person of Securities, or of a beneficial interest in Securities, issued

by any other Person, (ii) any purchase by that Person of all or

substantially all of the assets of a business conducted by another Person, and

(iii) any direct or indirect loan, advance (other than prepaid expenses,

accounts receivable, advances to employees and similar items made or incurred

in the ordinary course of business) or capital contribution by that Person to

any other Person, including all Indebtedness to such Person arising from a sale

of property by such Person other than in the ordinary course of its

business.  The amount of any Investment

shall be the original cost of such Investment, plus the cost of all additions

thereto less the amount of any return of capital or principal to the extent

such return is in cash with respect to such Investment without any adjustments

for increases or decreases in value or write-ups, write-downs or write-offs

with respect to such Investment.

 

“IRS” means

the Internal Revenue Service and any Person succeeding to the functions

thereof.

 

13

 

“Issue”

means, with respect to any Letter of Credit, either issue, or extend the expiry

of, or renew, or increase the amount of, such Letter of Credit, and the term

“Issued” or “Issuance” shall have a corresponding meaning.

 

“Issuing Bank”

means Wachovia, in its capacity as issuer of Letters of Credit, and any

successor or assignee thereof in such capacity.

 

“Lender”

has the meaning ascribed to such term in the preamble hereto.

 

“Letter of

Credit” means any Commercial Letter of Credit or Standby Letter of Credit.

 

“Letter of

Credit Fee” means the fees described in Section 4.03(b).

 

“Letter of

Credit Obligations” means, at any particular time, the sum of (i) all

outstanding Reimbursement Obligations, plus (ii) the aggregate

undrawn face amount of all outstanding Letters of Credit.

 

“Letter of

Credit Reimbursement Agreement” means, with respect to a Letter of Credit,

such form of application therefor and form of reimbursement agreement therefor

(whether in a single or several documents, taken together) as the Issuing Bank

from which the Letter of Credit is requested may employ in the ordinary course

of business for its own account, with such modifications thereto as may be

agreed upon by the Issuing Bank and the Borrower and as are not materially

adverse (in the reasonable judgment of the Issuing Bank) to the interests of

the Lenders; provided, however, in the event of any conflict between

the terms hereof and of any Letter of Credit Reimbursement Agreement, the terms

hereof shall control.

 

“Leverage Ratio”

means, for any Financial Covenant Period, the ratio of (i) the outstanding

principal amount of Funded Debt for the Borrower and its Subsidiaries at the

end of such period, to (ii) EBITDA for such period.

 

“Liabilities

and Costs” means all liabilities, obligations, responsibilities, losses,

damages, personal injury, death costs, punitive damages, economic damages,

consequential damages, treble damages, intentional, willful or wanton injury,

damage or threat to the environment, natural resources or public health or

welfare, costs and expenses (including, without limitation, attorney, expert

and consulting fees and costs of investigation, feasibility studies or Remedial

Action), fines, penalties and monetary sanctions, interest, direct or indirect,

known or unknown, absolute or contingent, past, present or future.

 

“Lien”

means any mortgage, deed of trust, pledge, hypothecation, assignment,

conditional sale agreement, deposit arrangement, security interest,

encumbrance, lien (statutory or other), preference, priority or other security

agreement or preferential arrangement of any kind or nature whatsoever in

respect of any property of a Person, whether granted voluntarily or imposed by

law, and includes the interest of a lessor under a Capital Lease or under any

financing lease having substantially the same economic effect as any of the

foregoing and the filing of any financing statement or similar notice (other

than a financing statement filed by a “true” lessor pursuant to § 9-505 of

the Uniform Commercial Code), naming the owner of such property as debtor,

under the Uniform Commercial Code or other comparable law of any jurisdiction.

 

14

 

“List of

Closing Documents” shall mean the List of Closing Documents attached hereto

and made a part hereof as Exhibit E.

 

“Loan Documents”

means this Agreement, the Notes, the Fee Letter, the Guaranties, the

Contribution Agreement, the Letter of Credit Reimbursement Agreements and all

other instruments, agreements and written Contractual Obligations between any

Loan Party and the Administrative Agent, the Issuing Bank or any Lender

delivered to either the Administrative Agent, the Issuing Bank or such Lender

pursuant to or in connection with the transactions contemplated hereby, in each

case as further amended, supplemented or otherwise modified from time to time,

but specifically excluding any Interest Rate Contracts or foreign exchange

contracts to which any Lender or any Affiliate of a Lender is a party.

 

“Loan Party”

means the Borrower and each of the Guarantors.

 

“Loans”

means all Revolving Loans and Swing Loans.

 

“Margin Stock”

means “margin stock” as such term is defined in Regulation U.

 

“Material

Adverse Effect” means (i) a material adverse effect upon the condition

(financial or otherwise), operations, assets, business or properties of the

Borrower and its Subsidiaries, taken as a whole, (ii) a material adverse

effect on the ability of the Loan Parties to perform their respective payment

obligations under the Loan Documents, or (iii) a material adverse effect

on the ability of the Lenders or the Administrative Agent to enforce the Loan

Documents other than as a result of any action on the part of the

Administrative Agent or any Lender.

 

“Material

Guarantor” means any Guarantor that accounts for at least 15% of the

Borrower’s EBITDA on a consolidated basis, as determined at the end of the

immediately preceding Fiscal Year.

 

“Maximum

Revolving Credit Amount” means, at any particular time, the Revolving Loan

Commitments at such time.

 

“Moody’s”

means Moody’s Investors Services, Inc.

 

“Multiemployer

Plan” means an employee benefit plan as defined in Section 4001(a)(3) of

ERISA which is, or within the immediately preceding six (6) years was,

contributed to by either the Borrower or any ERISA Affiliate.

 

“Net Income”

means, for any period being measured hereunder, the net earnings (or loss)

after taxes of the Borrower and its Subsidiaries on a consolidated basis for

such period taken as a single accounting period determined in conformity with

GAAP.

 

“Net Worth”

means, as at any time of determination, the total assets of the Borrower and

its Subsidiaries on a consolidated basis less total liabilities of the Borrower

and its Subsidiaries on a consolidated basis, each determined in accordance

with GAAP.

 

15

 

“1998 Senior

Note Indenture” means the Senior Indenture dated May 18, 1998 between the

Borrower and Wachovia (formerly known as First Union National Bank), as Trustee

for the issuance of the Borrower’s 1998 Senior Notes.

 

“1998 Senior

Notes” means the Senior Notes due 2008 issued by the Borrower pursuant to

the Senior Note Indenture.

 

“Notes”

means the Revolving Loan Notes and the Swing Loan Notes.

 

“Notice of

Borrowing” means a notice substantially in the form of Exhibit C

attached hereto and made a part hereof.

 

“Notice of

Continuation/Conversion” means a notice substantially in the form of Exhibit D

attached hereto and made a part hereof.

 

“Obligations”

means all Loans, advances, debts, liabilities, obligations, covenants and

duties owing by any Loan Party to any of the Agents, the Issuing Bank, any

Lender, any Affiliate of any of the Agents, the Issuing Bank or any Lender, or

any Person entitled to indemnification pursuant to Section 13.05 of

this Agreement, of any kind or nature, present or future, whether or not

evidenced by any note, guaranty or other instrument, whether arising by reason

of an extension of credit, opening or amendment of a Letter of Credit or

payment of a draft drawn thereunder, arising under this Agreement, the Notes or

any other Loan Document, whether or not for the payment of money, whether arising

by reason of an extension of credit, loan, guaranty, indemnification or in any

other manner, whether direct or indirect (including those acquired by

assignment), absolute or contingent, due or to become due, now existing or

hereafter arising and however acquired, and including all obligations of any

Loan Party under or in connection with any Interest Rate Contract or foreign

exchange contract with any Lender or Affiliate of any Lender.  The term “Obligations” includes, without

limitation, all interest, charges, expenses, fees, attorneys’ fees and

disbursements and any other sum chargeable to the Loan Parties under this

Agreement, the Notes or any other Loan Document or any Interest Rate Contract

or foreign exchange contract with any Lender or Affiliate of any Lender.

 

“Officer’s

Certificate” means, with respect to any Person, a certificate executed on

behalf of such Person by (i) the chairman or vice-chairman of such

Person’s Board of Directors or (ii) such Person’s president, any of its

vice-presidents, its chief financial officer, chief accounting officer, vice

president of finance or its treasurer.

 

“Operating

Lease” means, as applied to any Person, any lease of any property (whether

real, personal or mixed) by that Person as lessee which is not a Capital Lease.

 

“Other Taxes”

has the meaning ascribed to such term in Section 3.04(b).

 

“PBGC”

means the Pension Benefit Guaranty Corporation or any Person succeeding to the

functions thereof.

 

“Permits”

means any permit, approval, authorization, license, variance, or permission

required from a Governmental Authority under an applicable Requirement of Law.

 

16

 

“Permitted

Existing Indebtedness” means the Indebtedness identified as such in

Section 1.01(A) of the Disclosure Letter.

 

“Permitted

Existing Liens” means the Liens on assets of any Loan Party identified as

such in Section 1.01(B) of the Disclosure Letter.

 

“Person”

means any natural person, corporation, limited partnership, general

partnership, joint stock company, joint venture, association, company, trust,

bank, trust company, land trust, business trust, limited liability company or

other organization, whether or not a legal entity, and any Governmental

Authority.

 

“Plan”

means an employee benefit plan defined in Section 3(3) of ERISA (other than a

Multiemployer Plan) in respect of which the Borrower or any ERISA Affiliate is,

or within the immediately preceding six (6) years was, an “employer” as defined

in Section 3(5) of ERISA.

 

“Pro Forma

Basis” means, for purposes of calculating compliance with each of the

applicable financial covenants set forth in Article X to give

effect to a transaction or proposed transaction, that such transaction or

proposed transaction shall be deemed to have occurred as of the first day of

the Financial Covenant Period ended as of the last day of the most recently

ended fiscal quarter preceding the date of determination for which the

Administrative Agent and the Lenders have received certified financial

statements and a Compliance Certificate pursuant to Section 7.1.  As used in this definition, “transaction”

means (i) any acquisition of a product, business line or division, all or

substantially all of the assets of a business or of another Person, or all of

the equity interests of another Person, (ii) any disposition of a product,

business line or division, all or substantially all of the assets of a

business, or all of the equity interests of a Subsidiary, and (iii) any

repurchase, redemption, retirement or other acquisition by the Borrower of its

common stock under Section 9.06. 

In connection with any calculation of the applicable financial covenants

set forth in Article X, upon giving effect to a transaction on a Pro Forma

Basis:

 

(a)           for purposes of any such calculation

in respect of an acquisition or any Restricted Payment referred to in

clause (v) above, any Indebtedness incurred or assumed by any Loan Party

(including the Person acquired, if applicable) in connection with such

acquisition or Restricted Payment (x) shall be deemed to have been

incurred as of the first day of the applicable Financial Covenant Period and

(y) if such Indebtedness has a floating or formula rate, shall have an

implied rate of interest for the applicable Financial Covenant Period for purposes

of this definition, determined by utilizing the rate that is or would be in

effect with respect to such Indebtedness as of the relevant date of

determination;

 

(b)           for purposes of any such calculation

in respect of an acquisition, (1) income statement items (whether positive

or negative) attributable to the Person or property acquired shall be included

beginning as of the first day of the applicable Financial Covenant Period and

(2) pro forma adjustments may be included to the extent that such adjustments

would give effect to events that are (x) directly attributable to such

transaction, (y) expected to have a continuing impact on the Loan Parties

and (z) factually supportable;

 

17

 

(c)           for purposes of any such calculation

in respect of a disposition, (1) any Indebtedness that is retired in

connection with such disposition shall be excluded and deemed to have been

retired as of the first day of the applicable Financial Covenant Period and

(2) income statement items (whether positive or negative) attributable to

the Person or property disposed of shall be excluded; and

 

(d)           for purposes of any such calculation

in respect of the incurrence of Indebtedness as referred to in Section 5.01(e),

any Indebtedness that is retired in connection with such incurrence shall be

excluded and deemed to have been retired as of the first day of the applicable

Financial Covenant Period.

 

“Pro Rata Share”

means, with respect to any Lender, the percentage obtained by dividing

such Lender’s Revolving Loan Commitment (or, if after the Revolving Loan

Commitment Termination Date, the outstanding balance of such Lender’s Revolving

Loans and such Lender’s participation percentages in outstanding Swing Loans

and Letter of Credit Obligations) by the aggregate amount of all

Lenders’ Revolving Loan Commitments (or, if after the Revolving Loan Commitment

Termination Date, the outstanding balance of all Revolving Loans, Swing Loans

and Letter of Credit Obligations).

 

“Process Agent”

has the meaning ascribed to such term in Section 13.20(a).

 

“Property”

means any and all interests in any kind of property or asset, whether real,

personal or mixed, whether tangible or intangible.

 

“RCRA”

means the Resource Conservation and Recovery Act of 1986, 42 U.S.C.

§§ 6901 et seq., any amendments thereto, any successor statutes, and any

regulations promulgated thereunder.

 

“Register”

has the meaning ascribed to such term in Section 13.01(c).

 

“Regulation U”

means Regulation U of the Federal Reserve Board as in effect from time to time.

 

“Regulation X”

means Regulation X of the Federal Reserve Board as in effect from time to time.

 

“Reimbursement

Date” has the meaning ascribed to such term in Section 2.03(d)(i)(A).

 

“Reimbursement

Obligations” means, as to the Borrower, the aggregate reimbursement or

repayment obligations of the Borrower with respect to amounts drawn under

Letters of Credit.

 

“Release”

means release, spill, emission, leaking, pumping, injection, deposit, disposal,

discharge, dispersal, leaching or migration into the indoor or outdoor

environment or into or out of any Property, including the movement of

Contaminants through or in the air, soil, surface water, groundwater or

Property.

 

“Remedial

Action” means any action required to (i) clean up, remove, treat or in

any other way address Contaminants in the indoor or outdoor environment;

(ii) prevent the Release

 

18

 

or threat of Release or

minimize the further Release of Contaminants so they do not migrate or endanger

or threaten to endanger public health or welfare or the indoor or outdoor

environment; or (iii) perform pre-remedial studies and investigations and

post-remedial monitoring and care.

 

“Replaced

Lender” has the meaning ascribed to such term in Section 3.06.

 

“Replacement

Effective Date” has the meaning ascribed to such term in Section 3.06.

 

“Replacement

Event” means, with respect to any Lender, the appointment of, or the taking

of possession by, a receiver, custodian, conservator, trustee or liquidator of

such Lender, or the declaration by the appropriate regulatory authority that

such Lender is insolvent.

 

“Replacement

Lender” means a financial institution which is an Eligible Assignee or is

otherwise reasonably acceptable to the Administrative Agent and the Borrower

and which is not a Loan Party or an Affiliate of a Loan Party.

 

“Reportable

Event” has the meaning ascribed to such term in Section 4043 of ERISA or

regulations promulgated thereunder, other than an event which is not subject to

the thirty (30) day notice requirement of such regulations.

 

“Requirements

of Law” means, as to any Person, the charter and by-laws or other

organizational or governing documents of such Person, and any law, rule or

regulation, or determination of an arbitrator or a court or other Governmental

Authority, in each case applicable to or binding upon such Person or any of its

property or to which such Person or any of its property is subject including,

without limitation, the Securities Act, the Securities Exchange Act,

Regulations U and X, ERISA, the Fair Labor Standards Act and any certificate of

occupancy, zoning ordinance, building, environmental or land use requirement or

Permit or environmental, labor, employment, occupational safety or health law,

rule or regulation.

 

“Requisite

Lenders” means Lenders whose Pro Rata Shares, in the aggregate, are greater

than 50.0%.

 

“Restricted

Junior Payment” means (i) any dividend or other distribution, direct

or indirect, on account of any shares of any class of capital stock of,

partnership interest of or other equity interest of, a Loan Party now or

hereafter outstanding, except a dividend payable solely in shares of that class

of stock or in any junior class of stock to the holders of that class,

(ii) any redemption, retirement, sinking fund or similar payment, purchase

or other acquisition for value, direct or indirect, of any shares of any class

of capital stock of, partnership interest of or other equity interest of, a

Loan Party now or hereafter outstanding and (iii) any payment made to

redeem, purchase, repurchase or retire, or to obtain the surrender of, any

outstanding warrants, options or other rights to acquire shares of any class of

capital stock of, partnership interest of or other equity interest of, a Loan

Party now or hereafter outstanding.

 

“Restricted

Payment” means any Restricted Junior Payment or Restricted Senior Payment.

 

“Restricted

Senior Payment” means any voluntary or optional payment or prepayment of,

and any redemption, purchase, retirement, defeasance, sinking fund or similar

payment and any

 

19

 

claim for rescission with

respect to, principal of and premium, if any, on the 1998 Senior Notes or on

the Convertible Contingent Senior Debentures; provided, however,

that the term “Restricted Senior Payment” shall not include any refinancing of

the 1998 Senior Notes or the Convertible Contingent Senior Debentures that is

permitted under Section 9.01.

 

“Revolving

Credit Obligations” means, at any particular time, the sum of (i) the

outstanding principal amount of the Swing Loans at such time, plus

(ii) the outstanding principal amount of the Revolving Loans at such time,

plus (iii) Letter of Credit Obligations outstanding at such time.

 

“Revolving Loan”

has the meaning ascribed to such term in Section 2.01(a).

 

“Revolving Loan

Commitment” means, with respect to any Lender, the obligation of such

Lender to make Revolving Loans pursuant to the terms and conditions of this

Agreement, and which shall not exceed the principal amount set forth opposite

such Lender’s name under the heading “Revolving Loan Commitment” on Annex I

hereto or the signature page of the Assignment and Acceptance by which it

became (or becomes) a Lender, as modified from time to time pursuant to the

terms of this Agreement or to give effect to any applicable Assignment and

Acceptance, and “Revolving Loan Commitments” means the aggregate principal

amount of the Revolving Loan Commitments of all the Lenders, the maximum amount

of which shall not exceed a principal amount of $300,000,000.

 

“Revolving Loan

Commitment Termination Date” means the day which is the earliest of

(A) the fifth anniversary of the Closing Date, (B) the termination of

the Revolving Loan Commitments pursuant to Section 11.02(a) and

(C) the date of termination in whole of the Revolving Loan Commitments

pursuant to Section 3.01(b).

 

“Revolving Loan

Maturity Date” means May 1, 2008.

 

“Revolving Loan

Notes” has the meaning ascribed to such term in Section 2.04(a).

 

“S&P”

means Standard & Poor’s Ratings Services, a division of The McGraw-Hill

Companies, Inc.

 

“Sale and

Leaseback Transaction” has the meaning ascribed to such term in Section 9.10.

 

“Securities”

means any stock, shares, voting trust certificates, bonds, debentures, notes or

other evidences of indebtedness, secured or unsecured, convertible,

subordinated or otherwise, or any certificates of interest, shares, or

participations in temporary or interim certificates for the purchase or

acquisition of, or any right to subscribe to, purchase or acquire any of the

foregoing, but shall not include any evidence of the Obligations.

 

“Securities Act”

means the Securities Act of 1933, as amended from time to time, and any

successor statute.

 

“Securities

Exchange Act” means the Securities Exchange Act of 1934, as amended from

time to time, and any successor statute.

 

20

 

“Solvent”,

when used with respect to any Person, means that at the time of determination:

 

(a)           the fair market value of its assets

is in excess of the total amount of its liabilities (including, without

limitation, contingent liabilities); and

 

(b)           the present fair saleable value of

its assets is greater than its probable liability on its existing debts as such

debts become absolute and matured; and

 

(c)           it is then able and expects to be

able to pay its debts (including, without limitation, contingent debts and

other commitments) as they mature; and

 

(d)           it has capital sufficient to carry on

its business as conducted and as proposed to be conducted.

 

“Standby Letter

of Credit” means any letter of credit issued by an Issuing Bank pursuant to

Section 2.03 for the account of the Borrower, which is not a

Commercial Letter of Credit.

 

“Strategic

Partner” means any agreement or arrangement with one or more other Persons

to develop, license, manufacture, market, sell or distribute products in lines

of businesses that do not violate Section 9.07 (excluding, however,

any such agreement or arrangement that would be treated under GAAP as an

acquisition of any product reasonably related to the Business of the Borrower

or its Subsidiaries).

 

“Subsidiary”

means any corporation or other entity of which securities or other ownership

interests having ordinary voting power to elect a majority of the Board of

Directors or other persons performing similar functions are at the time

directly or indirectly owned or controlled by such Person, one or more of the

other subsidiaries of such Person or any combination thereof.  When used without reference to a parent

entity, the term “Subsidiary” shall be deemed to refer to a Subsidiary of the

Borrower.

 

“Swing Loan”

has the meaning ascribed to such term in Section 2.02(a).

 

“Swing Loan

Lender” means Wachovia, in its individual capacity, or, in the event Wachovia

is not the Administrative Agent, the Administrative Agent (or any Affiliate of

the Administrative Agent designated by the Administrative Agent), in its

individual capacity.

 

“Swing Loan

Note” has the meaning ascribed to such term in Section 2.04(b).

 

“Taxes” has

the meaning ascribed to such term in Section 3.04(a).

 

“Termination

Event” means (i) any Reportable Event with respect to any Benefit

Plan, (ii) the withdrawal of the Borrower or an ERISA Affiliate from a

Benefit Plan during a plan year in which it was a “substantial employer” as

defined in Section 4001(a)(2) of ERISA, (iii) the occurrence of an

obligation arising under Section 4041 of ERISA of the Borrower or an ERISA

Affiliate to provide affected parties with a written notice of an intent to

terminate a Benefit Plan in a distress termination described in Section 4041(c)

of ERISA, (iv) the institution by the PBGC of proceedings to terminate any

Benefit Plan, (v) any event or condition which constitutes grounds under

Section 4042 of ERISA for the appointment of a Trustee to administer a Benefit

 

21

 

Plan, or (vi) the partial

or complete withdrawal of the Borrower or any ERISA Affiliate from a

Multiemployer Plan.

 

“Type”

means, with respect to any Loan, its nature as a Eurodollar Rate Loan or a Base

Rate Loan.

 

“Uniform

Commercial Code” means the Uniform Commercial Code as enacted in the State

of New York, as it may be amended from time to time.

 

“Voting

Securities” means with respect to any Person, Securities with respect to

any class or classes of capital stock of such Person entitling the holders

thereof ordinarily to vote in the election of the members of the Board of

Directors of such Person.

 

“Working

Capital” means, as at any date of determination, an amount equal to Current

Assets minus Current Liabilities.

 

“Wholly Owned

Subsidiary” means a Subsidiary of the Borrower all the Equity Interests of

which are owned by the Borrower or another Wholly Owned Subsidiary.

 

1.02         Computation of Time Periods.  In this Agreement, in the computation of

periods of time from a specified date to a later specified date, the word

“from” means “from and including” and the words “to” and “until” each mean “to

but excluding.”  Periods of days

referred to in this Agreement shall be counted in calendar days unless Business

Days are expressly prescribed.  Any

period determined hereunder by reference to a month or months or year or years

shall end on the day in the relevant calendar month in the relevant year, if

applicable, immediately preceding the date numerically corresponding to the

first day of such period, provided that if such period commences on the

last day of a calendar month (or on a day for which there is no numerically

corresponding day in the calendar month during which such period is to end),

such period shall, unless otherwise expressly required by the other provisions

of this Agreement, end on the last day of the calendar month.

 

1.03         Accounting Terms.  For purposes of this Agreement, all accounting terms not

otherwise defined herein shall have the meanings assigned to them in conformity

with GAAP.

 

1.04         Calculation of Financial Covenants.  To the extent any transactions shall have

occurred that would necessitate the calculation of any financial covenant on a

Pro Forma Basis (as set forth in the definition of Pro Forma Basis), all

calculations of the financial covenant contained in Section 10.01 (Minimum

Net Worth) for purposes of determining compliance with this Agreement

(other than quarterly and annual covenant compliance calculations set forth in

a Compliance Certificate delivered pursuant to Section 7.01(c))

shall be made on a Pro Forma Basis, and all calculations of the financial

covenants contained in Sections 10.02 (Minimum Interest Coverage

Ratio) and 10.03 (Maximum Leverage Ratio) for purposes of

determining compliance with this Agreement shall be made on a Pro Forma Basis.

 

1.05         Other

Terms.  Terms not otherwise

defined herein which are defined in, or used in, Article 9 of the Uniform

Commercial Code shall have the respective meanings assigned to such terms in

Article 9 of the Uniform Commercial Code.

 

22

 

ARTICLE II

 

AMOUNTS AND TERMS OF LOANS

 

2.01         Revolving

Loan Facility.

 

(a)           Availability.  Subject to the terms and conditions set

forth in this Agreement, each Lender hereby severally agrees to make revolving

loans (each individually, a “Revolving Loan” and, collectively, the “Revolving

Loans”) to the Borrower from time to time during the period from the

Closing Date to the Business Day immediately preceding the Revolving Loan

Commitment Termination Date, in an amount not to exceed such Lender’s Pro Rata

Share of the Availability at such time. 

Each Borrowing of Base Rate Loans or Eurodollar Rate Loans shall be for

a minimum amount of $5,000,000 and in integral multiples of $1,000,000 in

excess of that amount.  All Revolving

Loans comprising the same Borrowing under this Agreement shall be made by the

Lenders simultaneously and proportionately to their then respective Revolving

Loan Commitments, it being understood that no Lender shall be responsible for

any failure by any other Lender to perform its obligation to make a Revolving

Loan hereunder nor shall the Revolving Loan Commitment of any Lender be increased

or decreased as a result of any such failure. 

Subject to the provisions of this Agreement, the Borrower may repay any

outstanding Revolving Loan made to it on any day which is a Business Day and

any amounts so repaid may be reborrowed in accordance with the provisions of

this Section 2.01(a).

 

(b)           Notice of Borrowing.  When the Borrower desires to borrow under

this Section 2.01, the Borrower shall deliver to the Administrative Agent

a Notice of Borrowing, signed by it, no later than 1:00 p.m. (Charlotte time)

(i) on the proposed Funding Date, in the case of a Borrowing of Base Rate

Loans, and (ii) at least three (3) Business Days in advance of the

proposed Funding Date, in the case of a Borrowing of Eurodollar Rate Loans; provided

that no Borrowing of Eurodollar Rate Loans shall be made on the Closing

Date.  Such Notice of Borrowing shall

specify (i) the proposed Funding Date (which shall be a Business Day),

(ii) the amount of the proposed Borrowing, (iii) whether the proposed

Borrowing will be of Base Rate Loans or Eurodollar Rate Loans, and (iv) in

the case of Eurodollar Rate Loans, the requested Eurodollar Interest

Period.  In lieu of delivering such a

Notice of Borrowing, the Borrower may give the Administrative Agent telephonic

notice of any proposed Borrowing by the time required under this Section 2.01(b)

if it confirms such notice by delivery of the Notice of Borrowing to the

Administrative Agent promptly, but in no event later than 5:00 p.m. (Charlotte

time) on the same day.  Any Notice of

Borrowing (or telephonic notice in lieu thereof) given pursuant to this Section 2.01(b)

shall be irrevocable.

 

(c)           Making of Revolving Loans.

 

(i)            Promptly

after receipt of a Notice of Borrowing under Section 2.01(b) (or

telephonic notice in lieu thereof), the Administrative Agent shall notify each

Lender by facsimile, or other similar form of transmission, of the proposed

Borrowing.  Each Lender shall deposit an

amount equal to its Pro Rata Share of the amount requested by the Borrower to

be made as Revolving Loans in the Administrative Agent’s Account at its office

in Charlotte, North Carolina, in immediately available funds, not later than

3:00 p.m. (Charlotte time) on any Funding Date applicable thereto.  Subject to the fulfillment 

 

23

 

of the conditions precedent set forth in Section 5.02

(and, in the event of the initial Borrowing under this Agreement, Section 5.01),

the Administrative Agent shall make the proceeds of such amounts received by it

available to the Borrower at the Administrative Agent’s office in Charlotte,

North Carolina on such Funding Date (or on the date received if later than such

Funding Date).  The failure of any

Lender to deposit the amount described above with the Administrative Agent on

the applicable Funding Date shall not relieve any other Lender of its

obligations hereunder to make its Revolving Loan on such Funding Date.

 

(ii)           Unless

the Administrative Agent shall have been notified by any Lender no later than

3:00 p.m. (Charlotte time) on the applicable Funding Date in respect of any

Borrowing of Revolving Loans that such Lender does not intend to fund its

Revolving Loan requested to be made on such Funding Date, the Administrative

Agent may assume that such Lender has funded its Revolving Loan and is

depositing the proceeds thereof with the Administrative Agent on the Funding

Date, and the Administrative Agent in its sole discretion may, but shall not be

obligated to, disburse a corresponding amount to the Borrower on the Funding Date.  If the Revolving Loan proceeds corresponding

to that amount are advanced to the Borrower by the Administrative Agent but are

not in fact deposited with the Administrative Agent by such Lender on or prior

to the applicable Funding Date, such Lender agrees to pay, and in addition the

Borrower agrees to repay, to the Administrative Agent forthwith on demand such

corresponding amount, together with interest thereon, for each day from the

date such amount is disbursed to or for the benefit of the Borrower until the

date such amount is paid or repaid to the Administrative Agent, (A) in the

case of the Borrower, at the interest rate applicable to such Borrowing and

(B) in the case of such Lender, at the Federal Funds rate for the first

Business Day, and thereafter at the interest rate applicable to such

Borrowing.  If such Lender shall pay to

the Administrative Agent the corresponding amount, the amount so paid shall

constitute such Lender’s Revolving Loan, and if both such Lender and the

Borrower shall pay and repay such corresponding amount, the Administrative

Agent shall promptly pay to the Borrower such corresponding amount.  This Section 2.01(c)(ii) does

not relieve any Lender of its obligation to make its Revolving Loan on any

Funding Date; nor does this Section relieve the Borrower of its obligation to

pay or repay any Lender funding its Revolving Loan pursuant to this Section

interest on such Revolving Loan from such Funding Date until the date on which

such Revolving Loan is repaid in full.

 

(d)           Repayment of Revolving Loans.  The Revolving Loan Commitments shall

terminate, and all outstanding Revolving Loans shall be paid in full, on the

Revolving Loan Commitment Termination Date (or on June 2, 2003, but only if the

Closing Date shall not have occurred on or prior to such date).

 

2.02         Swing Loans.

 

(a)           Swing Loans.  Subject to the terms and conditions set

forth herein, the Swing Loan Lender may, in its sole discretion, make loans

(the “Swing Loans”) to the Borrower, from time to time after the Closing

Date and prior to the Revolving Loan Commitment Termination Date, up to an

aggregate principal amount at any one time outstanding which shall not exceed

an amount equal to $5,000,000.  The

Swing Loan Lender shall have no duty to make or to continue

 

24

 

to make Swing Loans.  All Swing Loans shall be payable on demand

with accrued interest thereon and shall otherwise be subject to all the terms

and conditions applicable to Revolving Loans, except that (x) Swing Loans

shall not have a minimum amount requirement and (y) all interest on the

Swing Loans made by the Swing Loan Lender shall be payable to the Swing Loan

Lender solely for its own account.

 

(b)           Notice of Borrowing.  When the Borrower desires to borrow under

this Section 2.02, it shall deliver to the Administrative Agent an

irrevocable Notice of Borrowing, signed by it, no later than 3:00 p.m.

(Charlotte time) on the day of the proposed Borrowing of a Swing Loan.  Such Notice of Borrowing shall specify

(i) the date of the proposed Borrowing (which shall be a Business Day),

(ii) the amount of the proposed Borrowing and (iii) instructions for

the disbursement of the proceeds of the proposed Borrowing.  In lieu of delivering such a Notice of

Borrowing, the Borrower shall give the Administrative Agent irrevocable

telephonic notice of any proposed Borrowing by 3:00 p.m. (Charlotte time) on

the day of the proposed Borrowing, and shall confirm such notice by delivery of

the Notice of Borrowing by facsimile to the Administrative Agent promptly, but

in no event later than 4:00 p.m. (Charlotte time) on the same day.  All Swing Loans shall be Base Rate Loans.

 

(c)           Making of Swing Loans.  The Swing Loan Lender shall deposit the

amount it intends to fund, if any, in respect of the Swing Loans requested by

the Borrower with the Administrative Agent at its office in Charlotte, North

Carolina not later than 3:00 p.m. (Charlotte time) in immediately available

funds on the date of the proposed Borrowing applicable thereto.  The Swing Loan Lender shall not make any

Swing Loan during the period commencing on the first Business Day after it

receives written notice from the Requisite Lenders that one or more of the

conditions precedent contained in Section 5.02 shall not on such

date be satisfied, and ending when such conditions are satisfied, and the Swing

Loan Lender shall not otherwise be required to determine that, or take notice

whether, the conditions precedent set forth in Section 5.02 hereof

have been satisfied in connection with the making of any Swing Loan.  Subject to the preceding sentence, the

Administrative Agent shall make such proceeds available to the Borrower at the

Administrative Agent’s office in Charlotte, North Carolina on the date of the

proposed Borrowing and shall disburse such proceeds to the Borrower in

accordance with the Borrower’s disbursement instructions set forth in the

applicable Notice of Borrowing.

 

(d)           Repayment of Swing Loans.  The Borrower shall repay the outstanding

Swing Loans owing to the Swing Loan Lender (i) upon demand by the Swing

Loan Lender and (ii) on the Revolving Loan Commitment Termination

Date.  In the event that the Borrower

fails to repay any Swing Loans, together with interest thereon, as set forth in

the first sentence of this paragraph, then, upon the request of the Swing Loan

Lender, each Lender shall make Revolving Loans to the Borrower (irrespective of

the satisfaction of the conditions in Section 5.02 or the

requirement to deliver a Notice of Borrowing in Section 2.01(b),

which conditions and requirement such Lenders irrevocably waive) in an amount

equal to such Lender’s Pro Rata Share of the aggregate amount of the Swing

Loans then outstanding (net of that portion of such Swing Loan, if any, owing

to such Lender in its capacity as a Swing Loan Lender) after giving effect to

any prepayments and repayments made by the Borrower, and the Borrower hereby

authorizes the Administrative Agent to apply the proceeds of such Revolving

Loans to the repayment of such Swing Loans. 

To the extent the Administrative Agent receives any amounts in

prepayment or repayment of outstanding Revolving Loans prior to such request,

the

 

25

 

Administrative Agent shall

apply such amounts when received to the repayment of the Swing Loans then

outstanding.  The failure of any Lender

to make available to the Administrative Agent its Pro Rata Share of such

Revolving Loans shall not relieve any other Lender of its obligation hereunder

to make available to the Administrative Agent such other Lender’s Pro Rata

Share of such Revolving Loans on the date of such request.

 

2.03         Letters of

Credit.  Subject to the terms

and conditions set forth herein, the Issuing Bank hereby agrees to Issue for

the account of the Borrower one or more Letters of Credit during the period

from the Closing Date to the date which is the fifth Business Day prior to the

Revolving Loan Maturity Date, subject to the following provisions:

 

(a)           Types and Amounts.  The Issuing Bank shall not have any obligation

to Issue, and shall not Issue any Letter of Credit at any time:

 

(i)            if

the aggregate Letter of Credit Obligations with respect to the Issuing Bank,

after giving effect to the Issuance of the Letter of Credit requested

hereunder, shall exceed $50,000,000  or

any limit imposed by law or regulation upon the Issuing Bank;

 

(ii)           if

the Issuing Bank receives written notice (A) from the Administrative Agent

at or before 3:00 p.m. (Charlotte time) on the date of the proposed Issuance of

such Letter of Credit that immediately after giving effect to the Issuance of

such Letter of Credit, (1) the Letter of Credit Obligations at such time

would exceed $50,000,000  or

(2) the Revolving Credit Obligations at such time would exceed the Maximum

Revolving Credit Amount at such time, or (B) from the Requisite Lenders at

or before 1:00 p.m. (Charlotte time) on the date of the proposed Issuance of

such Letter of Credit that one or more of the conditions precedent contained in

Article V, as applicable, would not on such date be satisfied (or

waived pursuant to Section 13.09), unless such conditions are

thereafter satisfied or waived and written notice of such satisfaction or

waiver is given to the Issuing Bank by the Administrative Agent (and the

Issuing Bank shall not otherwise be required to determine that, or take notice

whether, the conditions precedent set forth in Article V, as

applicable, have been satisfied or waived); or

 

(iii)          if

the Letter of Credit requested would have an expiration date later than the

earlier of (A) the date which occurs 180 days following the date of

Issuance with respect to a Commercial Letter of Credit or the date which occurs

one year following the date of Issuance with respect to a Standby Letter of

Credit or (B) five Business Days immediately preceding the Revolving Loan

Maturity Date; provided that any Letter of Credit may, by its terms, be

renewable or automatically renew for successive periods of up to one year so

long as such Letter of Credit expires on or prior to the date referred to in

clause (B) above; or

 

(iv)          which

is in a currency other than Dollars.

 

(b)           Conditions.  In addition to being subject to the

satisfaction of the conditions precedent contained in Article V, as

applicable, the obligation of the Issuing Bank to Issue any Letter of Credit is

subject to the satisfaction in full of the following conditions:

 

26

 

(i)            if

the Issuing Bank so requests, the Borrower shall have executed and delivered to

such Issuing Bank and the Administrative Agent a Letter of Credit Reimbursement

Agreement and such other documents and materials as are customarily required

for the issuance of similar Letters of Credit by the Issuing Bank;

 

(ii)           the

terms of the proposed Letter of Credit shall be satisfactory to the Issuing

Bank in its reasonable credit judgment; and

 

(iii)          no

order, judgment or decree of any court, arbitrator or Governmental Authority

shall purport by its terms to enjoin or restrain the Issuing Bank from Issuing

the Letter of Credit and no law, rule or regulation applicable to the Issuing

Bank and no request or directive (whether or not having the force of law and

whether or not the failure to comply therewith would be unlawful) from a

Governmental Authority with jurisdiction over the Issuing Bank shall prohibit

or request that the Issuing Bank refrain from the Issuance of letters of credit

generally or the Issuance of such Letter of Credit.

 

(c)           Issuance of Letters of Credit.  The Borrower shall give the Issuing Bank and

the Administrative Agent written notice that it is requesting that the Issuing

Bank Issue a Letter of Credit not later than 3:00 p.m. (Charlotte time) on the

third Business Day preceding the requested date for Issuance thereof, or such

shorter notice as may be reasonably acceptable to such Issuing Bank and the

Administrative Agent.  Such notice shall

be irrevocable unless and until such request is denied by the applicable

Issuing Bank pursuant to the terms hereof and shall specify (A) the stated

amount of the Letter of Credit requested, (B) the effective date (which

shall be a Business Day) of Issuance of such Letter of Credit, (C) the

date on which such Letter of Credit is to expire, (D) the Person for whose

benefit such Letter of Credit is to be Issued, and (E) other relevant

terms of such Letter of Credit.  Such

Issuing Bank shall notify the Administrative Agent immediately upon receipt of

a written notice from the Borrower requesting that a Letter of Credit be Issued

and, upon the Administrative Agent’s request therefor, send a copy of such

notice to the Administrative Agent.  The

Issuing Bank shall give the Administrative Agent written notice, or telephonic

notice confirmed promptly thereafter in writing, of the Issuance of a Letter of

Credit (which notice the Administrative Agent shall promptly transmit by

facsimile or similar transmission to each Lender).

 

(d)           Reimbursement Obligations; Duties

of Issuing Bank.

 

(i)            Notwithstanding

any provisions to the contrary in any Letter of Credit Reimbursement Agreement:

 

(A)          the Borrower

shall reimburse the Issuing Bank for amounts drawn under each Letter of Credit,

no later than the date (the “Reimbursement Date”) which is one Business

Day after the Borrower receives notice from the Issuing Bank that a draft has

been presented under such Letter of Credit; and

 

(B)           all

Reimbursement Obligations with respect to any Letter of Credit shall bear

interest at the rate applicable to Base Rate Loans in accordance with Section 4.01(a)

from the date of the relevant drawing under such Letter of Credit

 

27

 

until the Reimbursement Date and thereafter at the

rate applicable in accordance with Section 4.01(d).

 

(ii)           The

Issuing Bank shall give the Administrative Agent written notice, or telephonic notice

confirmed promptly thereafter in writing, of all drawings under a Letter of

Credit and the payment (or the failure to pay when due) by the Borrower on

account of a Reimbursement Obligation (which notice the Administrative Agent

shall promptly transmit by facsimile or similar transmission to each Lender).

 

(iii)          No

action taken or omitted, in good faith and without gross negligence or willful

misconduct, by the Issuing Bank under or in connection with any Letter of

Credit shall put the Issuing Bank under any resulting liability to any Lender

or the Borrower or, so long as such Letter of Credit is not Issued in violation

of Section 2.03(a), relieve any Lender of its obligations hereunder

to the Issuing Bank.  Solely as between

the Issuing Bank and the Lenders, in determining whether to pay under any

Letter of Credit, the Issuing Bank shall have no obligation to the Lenders

other than to confirm that any documents required to be delivered under a

respective Letter of Credit appear to have been delivered and that they appear

on their face to comply with the requirements of such Letter of Credit.

 

(e)           Participations.

 

(i)            Immediately

upon Issuance by the Issuing Bank of any Letter of Credit in accordance with

the procedures set forth in this Section 2.03, each Lender shall be

deemed to have irrevocably and unconditionally purchased and received from the

Issuing Bank, without recourse or warranty, an undivided interest and

participation in such Letter of Credit to the extent of such Lender’s Pro Rata

Share, including, without limitation, all obligations of the Borrower with

respect thereto (other than amounts owing to the Issuing Bank under Section 2.03(g))

and any security therefor and guaranty pertaining thereto.

 

(ii)           If

the Issuing Bank makes any payment under any Letter of Credit and the Borrower

does not repay such amount to the Issuing Bank on the Reimbursement Date, the

Issuing Bank shall promptly notify the Administrative Agent, which shall

promptly notify each Lender, and each Lender shall promptly and unconditionally

pay to the Administrative Agent for the account of the Issuing Bank, in

immediately available funds, the amount of such Lender’s Pro Rata Share of such

payment (net of that portion of such payment, if any, made by such Lender in

its capacity as the Issuing Bank), and the Administrative Agent shall promptly

pay to the Issuing Bank such amounts received by it, and any other amounts

received by the Administrative Agent for the Issuing Bank’s account, pursuant

to this Section 2.03(e). 

All such payments shall constitute Revolving Loans made to the Borrower

pursuant to Section 2.01 (irrespective of the satisfaction of the

conditions in Section 5.02 or the requirement in Section 2.01(b)

to deliver a Notice of Borrowing, which conditions and requirement, for the

purpose of refunding any Reimbursement Obligation owing to the Issuing Bank,

the Lenders irrevocably waive).  If a

Lender does not make its Pro Rata Share of the amount of such payment available

to the Administrative Agent, such Lender agrees to pay to the Administrative

Agent for the account of the Issuing Bank, forthwith on demand, such amount

together with interest

 

28

 

thereon, for the first Business Day after the date

such payment was first due at the Federal Funds Rate, and thereafter at the

interest rate then applicable to a Base Rate Loan in accordance with Section 4.01(a).  The failure of any such Lender to make

available to the Administrative Agent for the account of an Issuing Bank its

Pro Rata Share of any such payment shall neither relieve any other Lender of

its obligation hereunder to make available to the Administrative Agent for the

account of the Issuing Bank such other Lender’s Pro Rata Share of any payment

on the date such payment is to be made nor increase the obligation of any other

Lender to make such payment to the Administrative Agent.  This Section does not relieve the Borrower

of its obligation to pay or repay any Lender funding its Pro Rata Share of such

payment pursuant to this Section interest on the amount of such payment from

such date such payment is to be made until the date on which payment is repaid

in full.

 

(iii)          Whenever

the Issuing Bank receives a payment on account of a Reimbursement Obligation,

including any interest thereon, as to which any Lender has made a Revolving

Loan pursuant to clause (ii) of this Section 2.03(e),

the Issuing Bank shall promptly pay to the Administrative Agent such payment

for distribution to the Lenders in accordance with Section 3.03.  Each such payment shall be made by the

Issuing Bank or the Administrative Agent, as the case may be, on the Business

Day on which such Person receives the funds paid to such Person pursuant to the

preceding sentence, if received prior to 11:00 a.m. (Charlotte time) on such

Business Day, and otherwise on the next succeeding Business Day.

 

(iv)          Upon

the request of any Lender, the Issuing Bank shall furnish such Lender copies of

any Letter of Credit or Letter of Credit Reimbursement Agreement to which the

Issuing Bank is party and such other documentation as reasonably may be

requested by such Lender.

 

(v)           The

obligations of a Lender to make payments to the Administrative Agent for the

account of the Issuing Bank with respect to a Letter of Credit shall be

irrevocable, shall not be subject to any qualification or exception whatsoever

except willful misconduct or gross negligence of the Issuing Bank, and shall be

honored in accordance with this Article II (irrespective of the

satisfaction of the conditions described in Article V, as

applicable, which conditions, for the purposes of refunding any Reimbursement

Obligation owed to the Issuing Bank, such Lenders irrevocably waive) under all

circumstances, including, without limitation, any of the following circumstances:

 

(A)          any

lack of validity or enforceability hereof or of any of the other Loan

Documents;

 

(B)           the

existence of any claim, setoff, defense or other right which the Borrower may

have at any time against a beneficiary named in a Letter of Credit or any

transferee of a beneficiary named in a Letter of Credit (or any Person for whom

any such transferee may be acting), the Administrative Agent, the Issuing Bank,

any Lender, or any other Person, whether in connection herewith, with any

Letter of Credit, the transactions contemplated herein or any unrelated

 

29

 

transactions (including any underlying transactions

between the account party and beneficiary named in any Letter of Credit);

 

(C)           any

draft, certificate or any other document presented under the Letter of Credit

having been determined to be forged, fraudulent, invalid or insufficient in any

respect or any statement therein being untrue or inaccurate in any respect;

 

(D)          the

surrender or impairment of any security for the performance or observance of

any of the terms of any of the Loan Documents;

 

(E)           any

failure by the Issuing Bank to make any reports required pursuant to Section 2.03(h)

or the inaccuracy of any such report; or

 

(F)           the

occurrence of any Event of Default or Default.

 

(f)            Payment of Reimbursement

Obligations.

 

(i)            The

Borrower unconditionally agrees to pay to the Issuing Bank, in Dollars, the

amount of all Reimbursement Obligations, interest and other reasonable amounts

payable to the Issuing Bank under or in connection with the Letters of Credit

when such amounts are due and payable, irrespective of any claim, setoff,

defense or other right which the Borrower may have at any time against the

Issuing Bank or any other Person.

 

(ii)           In

the event any payment by the Borrower received by the Issuing Bank with respect

to a Letter of Credit and distributed by the Administrative Agent to the

Lenders on account of their participation is thereafter set aside, avoided or

recovered from the Issuing Bank in connection with any receivership,

liquidation or bankruptcy proceeding, each such Lender which received such

distribution shall, upon demand by the Issuing Bank, contribute such Lender’s

Pro Rata Share of the amount set aside, avoided or recovered together with

interest at the rate required to be paid by the Issuing Bank upon the amount

required to be repaid by it.

 

(g)           Issuing Bank Charges.  The Borrower shall pay to the Issuing Bank,

solely for its own account, the standard charges assessed by the Issuing Bank

in connection with the issuance, administration, amendment and payment or

cancellation of Letters of Credit and such compensation in respect of such

Letters of Credit for the Borrower’s account as may be agreed upon by the

Borrower and the Issuing Bank from time to time.

 

(h)           Issuing Bank Reporting

Requirements.  The Issuing Bank

shall, no later than the tenth (10th) Business Day following the last day of

each calendar month, provide to the Administrative Agent and the Borrower a

schedule for Letters of Credit issued by it, in form and substance reasonably

satisfactory to the Administrative Agent and the Borrower, setting forth the

aggregate Letter of Credit Obligations outstanding to it at the end of each

month and any information requested by the Administrative Agent or the Borrower

relating to the date of issue, account party, amount, expiration date and

reference number of each Letter of Credit issued by it.

 

30

 

(i)            Indemnification; Exoneration.

 

(A)          In

addition to all other amounts payable to the Issuing Bank, the Borrower hereby

agrees to defend, indemnify, and save the Administrative Agent, the Issuing

Bank and each Lender harmless from and against any and all claims, demands,

liabilities, penalties, damages, losses (other than loss of profits), costs,

charges and expenses (including reasonable attorneys’ fees but excluding taxes)

which the Administrative Agent, the Issuing Bank or such Lender may incur or be

subject to as a consequence, direct or indirect, of (i) the Issuance of

any Letter of Credit other than as a result of the gross negligence or willful

misconduct of the Issuing Bank, as determined by a court of competent

jurisdiction, or (ii) the failure of the Issuing Bank issuing a Letter of

Credit to honor a drawing under such Letter of Credit as a result of any act or

omission, whether rightful or wrongful, of any present or future de jure

or de facto government or Governmental Authority.

 

(B)           As

between the Borrower on the one hand and the Administrative Agent, the Lenders

and the Issuing Bank on the other hand, the Borrower assumes all risks of the

acts and omissions of, or misuse of Letters of Credit by, the respective

beneficiaries of the Letters of Credit. 

In furtherance and not in limitation of the foregoing, subject to the

provisions of the Letter of Credit Reimbursement Agreements, the Administrative

Agent, the Issuing Bank and the Lenders shall not be responsible for (except to

the extent resulting from their gross negligence or willful misconduct, as

determined by a court of competent jurisdiction):  (i) the form, validity, legality, sufficiency, accuracy,

genuineness or legal effect of any document submitted by any party in connection

with the application for and Issuance of the Letters of Credit, even if it

should in fact prove to be in any or all respects invalid, insufficient,

inaccurate, fraudulent or forged; (ii) the validity, legality or

sufficiency of any instrument transferring or assigning or purporting to transfer

or assign a Letter of Credit or the rights or benefits thereunder or proceeds

thereof, in whole or in part, which may prove to be invalid or ineffective for

any reason; (iii) failure of the beneficiary of a Letter of Credit to

comply duly with conditions required in order to draw upon such Letter of

Credit; (iv) errors, omissions, interruptions or delays in transmission or

delivery of any messages, by mail, facsimile, cable, telegraph, telex or

otherwise, whether or not they be in cipher; (v) errors in interpretation

of technical terms; (vi) any loss or delay in the transmission or

otherwise of any document required in order to make a drawing under any Letter

of Credit or of the proceeds thereof; (vii) the misapplication by the

beneficiary of a Letter of Credit of the proceeds of any drawing under such

Letter of Credit; (viii) any litigation, proceeding or charges with

respect to such Letter of Credit; and (ix) any consequences arising from

causes beyond the control of the Administrative Agent, the Issuing Bank or the

Lenders.

 

(j)            Existing Letter of Credit.  The parties hereto agree that, as of the

Closing Date, the Issuing Bank shall be deemed to have issued the Existing

Letter of Credit pursuant to this Agreement (provided that the actual

dates of issuance and expiry thereof shall not be deemed

 

31

 

modified hereby) and the

Existing Letter of Credit shall be deemed to be a Letter of Credit for all

purposes hereunder and under the other Loan Documents.  Specifically, and without limitation of the

foregoing or the other provisions of this Section 2.03,

(i) the undrawn face amount of the Existing Letter of Credit, for so long

as the same shall be outstanding, shall be included in calculating (x) the

limits set forth in clauses (i) and (ii) of Section 2.03(a)

and (y) the aggregate Letter of Credit Obligations, (ii) each Lender

hereby absolutely and unconditionally agrees to pay to the Issuing Bank, in

accordance with Section 2.03(e)(ii), such Lender’s Pro Rata Share of

each payment made by the Issuing Bank under the Existing Letter of Credit,

together with interest in accordance with Section 2.03(e)(ii), and

(iii) with respect to the Existing Letter of Credit, the Issuing Bank

shall have the benefit of all agreements, covenants and indemnities of the

Issuing Bank set forth in this Agreement and shall comply with all agreements

and obligations set forth herein that bind the Issuing Bank, insofar as the

same apply to Letters of Credit generally. 

On the Closing Date, Wachovia shall return to the Borrower any

collateral supporting the Existing Letter of Credit, including all amounts in

the cash collateral account established pursuant to the Cash Collateral

Agreement dated as of March 7, 2003 between the Borrower and Wachovia (which

shall thereupon be deemed terminated).

 

2.04         Promise

to Pay; Evidence of Debt.

 

(a)           Revolving Loans.  The Borrower agrees to pay when due the

principal amount of each Revolving Loan which is made to the Borrower, and

further agrees to pay all unpaid interest accrued thereon, in accordance with

the terms of this Agreement and the promissory notes evidencing the Revolving

Loans owing to the Lenders. The Borrower shall execute and deliver to each

Lender a promissory note to evidence the Revolving Loans owing to such Lender

and agrees to execute and deliver to such Lender and any assignee of such

Lender such promissory notes as are necessary after giving effect to any

assignment thereof pursuant to Section 13.01, each substantially in

the form of Exhibit B-1 attached hereto and made a part hereof (all

such promissory notes and all amendments thereto, replacements thereof and

substitutions therefor being collectively referred to as the “Revolving Loan

Notes”; and “Revolving Loan Note” means any one of the Revolving

Loan Notes, in each case as amended, supplemented or otherwise modified from

time to time).

 

(b)           Swing Loans.  The Borrower agrees to pay when due the

principal amount of each Swing Loan which is made to the Borrower, and further

agrees to pay all unpaid interest accrued thereon, in accordance with the terms

of this Agreement and the promissory notes evidencing the Swing Loans owing to

the Swing Loan Lender.  The Borrower

shall execute and deliver to the Swing Loan Lender a promissory note to evidence

the Swing Loans owing to the Swing Loan Lender and agrees to execute and

deliver to the Swing Loan Lender and any assignee of the Swing Loan Lender such

promissory notes as are necessary after giving effect to any assignment thereof

pursuant to Section 13.01, each substantially in the form of Exhibit B-2

attached hereto and made a part hereof (all such promissory notes and all

amendments thereto, replacements thereof and substitutions therefor being

collectively referred to as the “Swing Loan Notes”; and “Swing Loan

Note” means any one of the Swing Loan Notes, in each case as amended,

supplemented or otherwise modified from time to time).

 

2.05         Use of

Proceeds of Loans.  The proceeds

of the Revolving Loans shall be used to provide for the working capital and

general corporate requirements of the Borrower and its

 

32

 

Subsidiaries, including,

without limitation, acquisitions and the repayment, repurchase or other

redemption of Indebtedness permitted under this Agreement.

 

2.06         Authorized Officers, Employees and

Administrative Agents.  On the

Closing Date and from time to time thereafter, the Borrower shall deliver to

the Administrative Agent an Officer’s Certificate in substantially the form of Exhibit

F attached hereto setting forth the names of the officers, employees and

agents of the Borrower, in each case who are authorized to request Loans on

behalf of the Borrower and containing a specimen signature of each such

officer, employee or agent.  The officers,

employees and agents so authorized shall also be authorized to act for the

Borrower in respect of all other matters relating to the Loan Documents.  The Administrative Agent shall be entitled

to rely conclusively on each such officer’s, employee’s or agent’s authority to

request such Loan until the Administrative Agent receives written notice to the

contrary.  In addition, the

Administrative Agent shall be entitled to rely conclusively on any written

notice sent to it by telecopy.  The

Administrative Agent shall have no duty to verify the authenticity of the

signature appearing on, or any telecopy or facsimile of, any written Notice of

Borrowing or any other document, and, with respect to an oral request for such

a Loan, the Administrative Agent shall have no duty to verify the identity of

any person representing himself or herself as one of the officers, employees or

agents authorized to make such request or otherwise to act on behalf of the

Borrower.  Neither the Administrative

Agent nor any Lender shall incur any liability to the Borrower or any other

Person in acting upon any facsimile or telephonic notice referred to above

which the Administrative Agent believes in good faith to have been given by a

duly authorized officer or other person authorized to borrow on behalf of the

Borrower.  The Borrower hereby

authorizes the Administrative Agent to disburse the proceeds of each Borrowing

in accordance with the terms of any written instructions from any of such authorized

officers, provided that the Administrative Agent shall not be obligated

under any circumstances to forward amounts to any account not listed in an

Account Designation Letter.  The

Borrower may at any time deliver to the Administrative Agent an Account

Designation Letter listing any additional accounts or deleting any accounts

listed in a previous Account Designation Letter.

 

ARTICLE III

 

PAYMENTS AND PREPAYMENTS

 

3.01         Voluntary Prepayments; Reductions

in Revolving Loan Commitments.

 

(a)           Voluntary Prepayments.  The Borrower may, at any time and from time

to time, prepay the Loans in whole or in part upon at least one (1) Business

Day’s (with respect to Base Rate Loans) or three (3) Business Days’ (with

respect to Eurodollar Loans) prior written notice to the Administrative Agent

(which the Administrative Agent shall promptly transmit to each Lender, it

being agreed that the failure of the Administrative Agent to give such notice

shall not affect the Borrower’s right to prepay any Loan); provided, however,

that (i) any partial prepayment shall be in minimum amounts of $1,000,000

and in multiples of $1,000,000 in excess thereof (except if such prepayment

prepays the entire outstanding amount of the applicable Borrowing of Loans) and

no partial prepayment of Eurodollar Rate Loans made pursuant to any single

Borrowing shall reduce the aggregate outstanding principal amount of the

remaining Loans under such Borrowing to less than $5,000,000 or to any greater

amount not a

 

33

 

multiple of $1,000,000 in excess

thereof (except if such prepayment prepays the entire outstanding amount of

such Borrowing) and (ii) Eurodollar Rate Loans may only be prepaid, in

whole or in part, (A) on the expiration date of the then applicable

Eurodollar Interest Period or (B) otherwise upon payment of the amounts

described in Section 4.02(f). 

Any notice of prepayment given to the Administrative Agent under this Section 3.01(a)

shall specify the Loans to be prepaid, the date (which shall be a Business Day)

of prepayment, and the aggregate principal amount of the prepayment.  When notice of prepayment is delivered as

provided herein, the principal amount of the Loans specified in such notice

shall become due and payable on the prepayment date specified in such notice.

 

(b)           Voluntary Reductions in Revolving

Loan Commitments.  The Borrower,

upon at least three (3) Business Days’ prior notice to the Administrative Agent

(which the Administrative Agent shall promptly transmit to each Lender), shall

have the right, at any time and from time to time, to terminate in whole or

permanently reduce ratably in part the unused portions of the Revolving Loan

Commitments, provided that the Borrower shall have made whatever payment

may be required to reduce the Revolving Credit Obligations to an amount less

than or equal to the Revolving Loan Commitments as reduced or terminated on the

date of such reduction.  Any such

partial reduction shall be in an aggregate minimum amount of $5,000,000 and

integral multiples of $1,000,000 in excess of that amount, and shall reduce the

Revolving Loan Commitment of each Lender proportionately in accordance with

such Lender’s Pro Rata Share.  Any

notice of termination or reduction given to the Administrative Agent under this

Section 3.01(b) shall specify the date (which shall be a Business

Day) of such termination or reduction and, with respect to a partial reduction,

the aggregate principal amount thereof. 

When notice of termination or reduction is delivered as provided herein,

the principal amount of any payment required under this Section 3.01(b)

shall become due and payable on the termination or reduction date specified in

such notice.

 

(c)           The prepayments and payments in

respect of reductions and terminations described in subsections (a) and

(b) of this Section 3.01 may be made pursuant to such subsections

at any time and from time to time without premium or penalty (except as

provided in Section 4.02(f)).

 

34

 

3.02         Mandatory

Prepayments.  In the event that,

on any date, the aggregate Revolving Credit Obligations at such time exceed the

aggregate Revolving Loan Commitments at such time (after giving effect to any

concurrent termination or reduction thereof) (the “Excess Amount”), the

Borrower will on such date, and solely to the extent of the Excess Amount,

prepay the outstanding principal amount of the Swing Loans and, if after having

so prepaid such Swing Line Loans, if any, there remains an Excess Amount, then

solely to the extent of such remaining Excess Amount, the Borrower will prepay

the outstanding principal amount of the Revolving Loans; provided that,

to the extent the Excess Amount is greater than the aggregate principal amount

of Swing Loans and Revolving Loans outstanding immediately prior to the

application of such prepayment, the amount so prepaid (up to the Excess Amount)

shall instead be retained by the Administrative Agent and held as cash

collateral for Letter of Credit Obligations in an account to be established by

the Administrative Agent, and thereupon such cash shall be deemed to reduce the

aggregate Letter of Credit Obligations by an equivalent amount and shall be

promptly released by the Administrative Agent to the Borrower in such amounts

as such Excess Amount may be reduced from time to time.

 

3.03         Payments.

 

(a)           Manner and Time of Payment.  All payments of principal, interest, fees

and other Obligations which are payable to the Administrative Agent or any

Lender shall be made without condition or deduction for any counterclaim,

defense, recoupment or set-off, in Dollars and in immediately available funds,

delivered to the Administrative Agent not later than 1:00 p.m. (Charlotte time)

on the date due, by deposit of such funds to the Administrative Agent’s

Account.  The Administrative Agent shall

thereafter cause to be distributed to the Lenders their respective Pro Rata

Shares of such payments in accordance with the provisions of Section 3.03(b)

if received prior to 1:00 p.m. (Charlotte time), and on the next succeeding

Business Day, if received thereafter, by the Administrative Agent.

 

(b)           Apportionment of Payments.

 

(i)            Subject

to the provisions of Section 3.03(b)(ii) all payments of principal

and interest in respect of outstanding Revolving Loans shall be applied by the

Administrative Agent to the ratable payment of the Revolving Loans owing to the

Lenders in accordance with their respective Pro Rata Shares thereof.

 

(ii)           After

the occurrence of an Event of Default and while the same is continuing, the

Administrative Agent shall apply all payments and prepayments of any

Obligations in the following order:

 

(A)          first,

to pay principal of and interest on any Revolving Loans which the

Administrative Agent may have advanced on behalf of any Lender pursuant to Section 2.01(c)(ii)

for which the Administrative Agent has not been reimbursed by such Lender or

the Borrower;

 

(B)           second,

to pay Obligations in respect of any fees, expense reimbursements or

indemnities then due to the Agents (solely in their capacity as Agents);

 

35

 

(C)           third,

to pay obligations in respect of any expense reimbursements or indemnities then

due to any Lender; and

 

(D)          fourth,

to pay interest on the Loans;

 

(E)           fifth,

to pay the principal amount of the Loans then outstanding in accordance with

each Lender’s Pro Rata Share;

 

(F)           sixth,

to pay all other Obligations in such order as the Administrative Agent may

determine in its sole discretion.

 

The

order of priority set forth in this Section 3.03(b)(ii) and the

related provisions of this Agreement are set forth solely to determine the

rights and priorities of the Administrative Agent and the Lenders as among

themselves.  If sufficient funds are not

available to fund all Obligations described in any of the foregoing

clauses (A) through (F), the available funds shall be allocated to the

Obligations described in such clause ratably.

 

(c)           Payments on Non-Business Days.  Whenever any payment to be made by the

Borrower hereunder or under the Notes is stated to be due on a day which is not

a Business Day, the payment shall instead be due on the next succeeding

Business Day, and any such extension of time shall be included in the

computation of the payment of interest and fees hereunder.

 

3.04         Taxes.

 

(a)           Payments Free and Clear of Taxes.  Any and all payments by the Borrower

hereunder, under the Notes or under any other Loan Document shall be made free

and clear of and without deduction or withholding for any and all present or

future taxes, levies, imposts, duties, fees, deductions, charges or withholdings,

and all interest, penalties, additions to tax and liabilities with respect

thereto, excluding, in the case of each Lender and the Administrative Agent

(i) taxes imposed on its income, capital, profits or gains and franchise

taxes imposed on it, in each case by (A) the United States except

withholding taxes contemplated pursuant to Section 3.04(e)(ii)(C),

(B) the Governmental Authority of the jurisdiction in which such Lender’s

office is located or (C) the Governmental Authority in which such Person

is organized, managed, controlled or doing business, in each case including all

political subdivisions thereof, and (ii) taxes (including income taxes and

branch profits taxes) imposed on or measured by the Administrative Agent’s or

each Lender’s overall net income and franchise taxes imposed as a result of a

present or former connection between the Administrative Agent or such Lender

and the jurisdiction of the Governmental Authority imposing such tax or any

political subdivision thereof or taxing authority thereof or therein (other

than any such connection arising solely from the Administrative Agent or such

Lender having executed, delivered or performed its obligations or received a

payment under, or enforced, the Notes or any other Loan Document) (all such

non-excluded taxes, levies, imposts, deductions, charges, withholdings and

liabilities being hereinafter referred to as “Taxes”).  If the Borrower shall be required by law to

withhold or deduct any Taxes from or in respect of any sum payable hereunder,

under the Notes or under any other Loan Document to any Lender or the

Administrative Agent, (x) such sum payable shall be increased as may be

necessary so that after making all required withholdings or deductions

(including withholdings or deductions applicable to additional sums payable

under this

 

36

 

Section 3.04)

such Lender or the Administrative Agent (as the case may be) receives an amount

equal to the sum it would have received had no such withholdings or deductions

been made, (y) the Borrower shall make such withholdings or deductions,

and (z) the Borrower shall pay the full amount withheld or deducted to the

relevant taxation authority or other authority in accordance with applicable

law.

 

(b)           Other Taxes.  In addition, the Borrower agrees to pay any

present or future stamp, value-added or documentary taxes or any other excise

or property taxes, charges or similar levies which arise from and which relate

directly to (i) any payment made under any Loan Document or (ii) the

execution, delivery or registration of, or otherwise with respect to, this

Agreement, the Notes or any other Loan Document (hereinafter referred to as “Other

Taxes”).

 

(c)           Indemnification.  The Borrower will indemnify each Lender and

the Administrative Agent against, and reimburse each on demand for, the full

amount of all Taxes and Other Taxes (including, without limitation, any Taxes

or Other Taxes imposed by any Governmental Authority on amounts payable under

this Section 3.04 and any additional income or franchise taxes

resulting therefrom, subject to the provisions of Section 3.04(g))

incurred or paid by such Lender or the Administrative Agent (as the case may

be) or any Affiliate of such Lender and any liability (including penalties,

interest, and out-of-pocket expenses paid to third parties) arising therefrom

or with respect thereto, whether or not such Taxes or Other Taxes were

correctly or lawfully payable.  A

certificate as to any amount payable to any Person under this Section 3.04

submitted by such Person to the Borrower shall, absent manifest error, be

final, conclusive and binding upon all parties hereto.  This indemnification shall be made within

thirty (30) days from the date such Person makes written demand therefor and

within thirty (30) days after the receipt of any refund of the Taxes or Other

Taxes following final determination that the Taxes or Other Taxes which gave

rise to the indemnification were not required to be paid, such Person shall

repay the amount of such paid indemnity to the Borrower; provided, however,

that the Borrower shall not be obligated to make payment to any Lender or the

Administrative Agent (as the case may be) pursuant to this Section 3.04

in respect of penalties, interest and other liabilities attributable to any

Taxes or Other Taxes, to the extent such penalties, interest and other

liabilities are attributable to the gross negligence or willful misconduct of

such Lender or the Administrative Agent or any of their Affiliates.  After any Lender or the Administrative Agent

(as the case may be) receives written notice of the imposition of the Taxes or

Other Taxes which are subject to this Section 3.04, such Lender and

the Administrative Agent will act in good faith to promptly notify the Borrower

of its obligations hereunder.

 

(d)           Receipts.  Within thirty (30) days after the date of

any payment of Taxes or Other Taxes by the Borrower, the Borrower will furnish

to the Administrative Agent, at its address referred to in Section 13.10,

the original or a certified copy of a receipt or other documentation reasonably

satisfactory to the Administrative Agent evidencing payment thereof.  The Borrower will furnish to the

Administrative Agent upon the Administrative Agent’s request from time to time

an Officer’s Certificate stating that all Taxes and Other Taxes of which it is

aware that are due have been paid and that no additional Taxes or Other Taxes

of which it is aware are due.

 

37

 

(e)           Foreign Bank Certifications.

 

(i)            Each

Lender that is not created or organized under the laws of the United States or

a political subdivision thereof shall deliver to the Borrower and the

Administrative Agent on or before the Closing Date or the date on which such

Lender becomes a Lender pursuant to Section 13.01 hereof a true and

accurate certificate executed by a duly authorized officer of such Lender to

the effect that such Lender is eligible to receive payments hereunder and under

the Notes without deduction or withholding of United States federal income tax

(A) under the provisions of an applicable tax treaty concluded by the

United States (in which case the certificate shall be accompanied by one duly

completed copy of IRS Form W-8BEN (or any successor or substitute form)),

(B) under Sections 1442(c)(1) and 1442(a) of the Code (in which case the

certificate shall be accompanied by one duly completed copy of IRS Form W-8ECI

(or any successor or substitute form)) or (C) under Section 871(h) or

881(c) of the Code (in which case the certificate shall be accompanied by one

duly completed copy of IRS Form W-8BEN (or any successor or substitute form)).

 

(ii)           Each

such Lender further agrees to deliver to the Borrower and the Administrative

Agent from time to time, a true and accurate certificate executed by a duly

authorized officer of such Lender before or promptly upon the occurrence of any

event requiring a change in the most recent certificate previously delivered by

it to the Borrower and the Administrative Agent pursuant to this Section 3.04(e).  Each certificate required to be delivered

pursuant to this Section 3.04(e)(ii) shall certify as to one of the

following:

 

(A)          that

such Lender can continue to receive payments hereunder and under the Notes

without deduction or withholding of United States federal income tax;

 

(B)           that

such Lender cannot continue to receive payments hereunder and under the Notes

without deduction or withholding of United States federal income tax as

specified therein but does not require additional payments pursuant to Section 3.04(a)

because it is entitled to recover the full amount of any such deduction or

withholding from a source other than the Borrower;

 

(C)           that

such Lender is no longer capable of receiving payments hereunder and under the

Notes without deduction or withholding of United States federal income tax as

specified therein by reason of the adoption or implementation of, or any change

in, or in the interpretation or administration of, any law or regulation

(including the Code, regulations thereunder or any applicable tax treaty) or

any guideline or request from any Governmental Authority or quasi-governmental

authority after the later of the Closing Date or the date on which a Lender

became a Lender pursuant to Section 13.01 and that it is not

capable of recovering the full amount of the same from a source other than the

Borrower; or

 

38

 

(D)          that

such Lender is no longer capable of receiving payments hereunder without

deduction or withholding of United States federal income tax as specified

therein other than by reason of the adoption or implementation of, or any

change in, or in the interpretation or administration of, any law or regulation

(including the Code, regulations thereunder or any applicable tax treaty) or

any guideline or request from any Governmental Authority or quasi-governmental

authority after the later of the Closing Date or the date on which a Lender

became a Lender pursuant to Section 13.01.

 

Any

notice given by any Lender or other Person under this Section 3.04

shall be effective only if given within one year after such Lender or other

Person becomes aware or should have become aware of the events giving rise to

such notice.

 

(f)            Forms.  The Borrower shall not be required to pay

any Taxes or Other Taxes pursuant to this Section 3.04 in respect

of U.S. federal income taxes if the obligation to withhold with respect to such

Taxes or Other Taxes results from, or would not have occurred but for, the

failure of any Lender to deliver the forms described in Section 3.04(e)

in the manner and at the times specified therein; provided, however,

that the Borrower shall be required to pay any Taxes or Other Taxes

contemplated pursuant to Section 3.04(e)(ii)(C).

 

(g)           Credits.  If and to the extent that any Lender is

able, in its sole discretion and without any obligation to do so, to apply or

otherwise take advantage of any offsetting tax credit or other similar tax

benefit arising out of or in conjunction with any deduction or withholding

which gives rise to an obligation on the Borrower to pay any Taxes or Other

Taxes pursuant to this Section 3.04 then such Lender shall, to the

extent that in its sole opinion it can do so without prejudice to the retention

of the amount of such credit or benefit and without any other adverse tax

consequences for such Lender, reimburse to the Borrower at such time as such

tax credit or benefit shall have actually been received by such Lender such

amount as such Lender shall have determined to be attributable to the relevant

deduction or withholding and as will leave such Lender in no better or worse

position than it would have been in if the payment of such Taxes or Other Taxes

had not been required.  Nothing in this subsection

shall require any Lender to disclose any information regarding its tax affairs

generally or its calculation of Taxes (including any tax returns).

 

(h)           Conduit Arrangements.  Notwithstanding anything to the contrary

contained in this Section 3.04, if a Lender is a conduit entity

participating in a conduit financing arrangement (as defined in

Section 7701(1) of the Code and the Treasury Regulations issued

thereunder) with respect to any payments made by the Borrower under this

Agreement, the Notes or any Loan Document, the Borrower shall not be obligated

to pay additional amounts to such Lender pursuant to this Section 3.04

to the extent that the amount of Taxes exceeds the amount that would have been

otherwise payable had such Lender not been a conduit entity participating in a

conduit financing arrangement.

 

3.05         Increased Capital.  If any Lender determines that (i) the adoption or

implementation after the date hereof of or any change after the date hereof in

or in the interpretation or administration of any law or regulation or any guideline

or request after the date hereof from any central bank or other Governmental

Authority or quasi-governmental authority

 

39

 

exercising jurisdiction, power

or control over such Lender or banks or financial institutions generally

(whether or not having the force of law), compliance with which affects or

would affect the amount of capital required or expected to be maintained by

such Lender or any corporation controlling such Lender and (ii) the amount

of such capital is increased by or based upon the making or maintenance by any

Lender of its Loans, any Lender’s participation in or obligation to participate

in the Loans or other advances made hereunder or under the Notes or the

existence of any Lender’s obligation to make Loans, then, in any such case,

upon demand by such Lender (with a copy of such demand to the Administrative

Agent), the Borrower agrees to pay to the Administrative Agent for the account

of such Lender, from time to time as specified by such Lender, additional

amounts sufficient to compensate such Lender or such corporation therefor, provided

such Lender is also generally charging its customers therefor.  Such demand shall be accompanied by a

statement as to the amount of such compensation and include a brief summary of

the basis for such demand.  Such

statement shall be conclusive and binding for all purposes, absent manifest

error.  Any notice given by any Lender

under this Section 3.05 shall be effective only if given within one

year after such Lender becomes aware or should have become aware of the events

giving rise to such notice.

 

3.06         Mitigation;

Replacement of Lenders.  Any

Lender claiming any amounts pursuant to Sections 3.04, 3.05

or 4.01(f) shall use reasonable efforts (consistent with legal and

regulatory restrictions) to avoid any costs, reductions, Taxes or Other Taxes

in respect of which such amounts are claimed, including the filing of any

certificate or document reasonably requested by the Borrower or the changing of

the jurisdiction of its Eurodollar Lending Office if such efforts would avoid

the need for or reduce the amount of any such amounts which would thereafter

accrue and would not, in the sole determination of such Lender, result in any

additional unreimbursed costs, expenses or risks to such Lender or would be

otherwise materially disadvantageous to such Lender.  The Borrower may, at any time and so long as no Event of Default

has then occurred and is continuing, and at its sole expense (including with

respect to the processing fee referred to in Section 13.01(b)),

replace any Lender (i) that has requested compensation from the Borrower

under Section 3.04, Section 3.05 or Section 4.01(f),

(ii) the obligation of which to make or maintain Eurodollar Rate Loans has

been suspended under Section 4.02(e) or (iii) defaults in the

making of any Revolving Loan required to be made by it hereunder, in any case

under clauses (i), (ii) or (iii) above by written notice to such Lender

and the Administrative Agent identifying one or more Replacement Lenders to

replace such Lender (the “Replaced Lender”), provided that

(i) the notice from the Borrower to the Replaced Lender and the

Administrative Agent provided for hereinabove shall specify an effective date

for such replacement (the “Replacement Effective Date”), which shall be

at least five (5) Business Days after such notice is given, (ii) as of the

relevant Replacement Effective Date, each Replacement Lender shall enter into

an Assignment and Acceptance with the Replaced Lender pursuant to Section 13.01(b),

pursuant to which such Replacement Lenders collectively shall acquire, in such

proportion among them as they may agree with the Borrower and the

Administrative Agent (which agreement shall not be unreasonably withheld), all

(but not less than all) of the Revolving Loan Commitment and outstanding

Revolving Loans of the Replaced Lender, and, in connection therewith, shall pay

(x) to the Replaced Lender, as the purchase price in respect thereof, an

amount equal to the sum as of the Replacement Effective Date (without

duplication) of (1) the unpaid principal amount of, and all accrued but

unpaid interest on, all outstanding Revolving Loans of the Replaced Lender and

(2) the Replaced Lender’s ratable share of all accrued but unpaid fees owing

to the Replaced Lender hereunder, (y) to the Administrative Agent, for its

 

40

 

own account, any amounts owing

to the Administrative Agent by the Replaced Lender under Section 2.01(c)(ii),

and (z) to the Administrative Agent, for the account of the Swing Loan

Lender, any amounts owing to the Swing Loan Lender under Section 2.03,

and (iii) all other obligations of the Borrower owing to the Replaced

Lender (other than those specifically described in clause (ii) above in

respect of which the assignment purchase price has been, or is concurrently

being, paid), including, without limitation, amounts payable under Sections 3.04,

3.05 and 4.01(f) that give rise to the replacement of such

Replaced Lender and amounts payable under Section 4.02(f) as a

result of the actions required to be taken under this Section 3.06,

shall be paid in full by the Borrower to the Replaced Lender on or prior to the

Replacement Effective Date.

 

ARTICLE IV

 

INTEREST AND FEES

 

4.01         Interest on the Loans and other

Obligations.

 

(a)           Rate of Interest.

 

(i)            All

Revolving Loans and the outstanding amount of all other Obligations (other than

Swing Loans) shall bear interest on the unpaid amount thereof from the date

such Loans are made and such other Obligations are due and payable until paid

in full, except as otherwise provided in Section 4.01(d), as

follows:

 

(A)          If a

Base Rate Loan or such other Obligation, at a rate per annum equal to the sum

of (I) the Base Rate as in effect from time to time as interest accrues, plus

(II) the Applicable Base Rate Margin in effect at such time; and

 

(B)           If

a Eurodollar Rate Loan, at a rate per annum equal to the sum of (I) the

Eurodollar Rate determined for the applicable Eurodollar Interest Period, plus

(II) the Applicable Eurodollar Rate Margin in effect from time to time

during such Eurodollar Interest Period.

 

(ii)           All

Swing Loans shall bear interest on the unpaid amount thereof from the date such

Loans are made until paid in full, except as otherwise provided in Section 4.01(d),

at a rate per annum equal to the sum of (I) the Base Rate as in effect

from time to time as interest accrues, plus (II) the Applicable Base Rate

Margin in effect at such time.

 

(iii)          The

applicable basis for determining the rate of interest on the Loans shall be

selected by the Borrower at the time a Notice of Borrowing or a Notice of

Conversion/Continuation is delivered by the Borrower to the Administrative

Agent; provided, however, the Borrower may not select the

Eurodollar Rate as the applicable basis for determining the rate of interest on

such a Loan if (x) such Loan is to be made on the Closing Date or

(y) at the time of such selection an Event of Default or Default has

occurred and is continuing.  If on any

day any Loan is outstanding with respect to which notice has not been timely

delivered to the Administrative Agent in accordance with the

 

41

 

terms hereof specifying the basis for determining the

rate of interest on that day, then for that day interest on that Loan shall be

determined by reference to the Base Rate.

 

(b)           Interest Payments.

 

(i)            Interest

accrued on each Base Rate Loan shall be payable in arrears (A) on the

first Business Day of each calendar quarter, commencing on the first such day

following the making of such Base Rate Loan and (B) on the Revolving Loan

Maturity Date or such other date on which such Loans become due and payable and

on any other date of prepayment or repayment of any principal portion thereof (but

only as to the principal amount so prepaid or repaid).

 

(ii)           Interest

accrued on each Eurodollar Rate Loan shall be payable in arrears (A) on

each Eurodollar Interest Payment Date applicable to such Loan and (B) on

the Revolving Loan Maturity Date or such other date on which such Loans become

due and payable and on any other date such Loans are repaid or prepaid in full.

 

(iii)          Interest,

if any, accrued on the principal balance of all other Obligations shall be

payable in arrears (A) on the first Business Day of each calendar month,

commencing on the first such day following the incurrence of such Obligation

and (B) on the Revolving Loan Maturity Date or such other date on which

such Obligations become due and payable.

 

(c)           Conversion or Continuation.

 

(i)            The

Borrower shall have the option (A) to convert at any time all or any part

of the outstanding Base Rate Loans (other than Swing Loans) to Eurodollar Rate

Loans; (B) to convert all or any part of outstanding Eurodollar Rate Loans

having Eurodollar Interest Periods which expire on the same date to Base Rate

Loans on such expiration date; or (C) to continue all or any part of

outstanding Eurodollar Rate Loans having Eurodollar Interest Periods which

expire on the same date as Eurodollar Rate Loans, and the succeeding Eurodollar

Interest Period of such continued Loans shall commence on such expiration date;

provided, however, no such outstanding Loan may be continued as,

or be converted into, a Eurodollar Rate Loan (i) if the continuation of,

or the conversion into, would violate any of the provisions of Section 4.02

or (ii) if an Event of Default or Default would occur or has occurred and

is continuing.  Any conversion into or

continuation of Eurodollar Rate Loans under this Section 4.01(c)

shall be in a minimum amount of $5,000,000 and in integral multiples of

$1,000,000 in excess of that amount except if such lesser amount represents the

total amount of such Type of Loans outstanding, and no partial conversion of

Eurodollar Rate Loans made pursuant to any single Borrowing shall reduce the

aggregate outstanding principal amount of the remaining Eurodollar Rate Loans

under such Borrowing to less than $5,000,000 or to any greater amount not a

multiple of $1,000,000 in excess thereof. 

Any conversion into Base Rate Loans under this Section 4.01(c)

shall be in a minimum amount of $5,000,000 and in integral multiples of

$1,000,000 in excess of that amount except if such lesser amount represents the

total amount of such Type of Loans outstanding.

 

42

 

(ii)           To

convert or continue Loans under Section 4.01(c)(i), the Borrower shall

deliver a Notice of Conversion/Continuation to the Administrative Agent no

later than 1:00 p.m. (Charlotte time) at least three (3) Business Days in

advance of the proposed conversion/continuation date.  A Notice of Conversion/Continuation shall specify (A) the

proposed conversion/continuation date (which shall be a Business Day),

(B) the aggregate principal amount of the Loans to be converted/continued,

(C) whether such Loans shall be converted and/or continued and (D) in

the case of a conversion to, or continuation of, Eurodollar Rate Loans, the

requested Eurodollar Interest Period. 

In lieu of delivering a Notice of Conversion/Continuation, the Borrower

may give the Administrative Agent telephonic notice of any proposed

conversion/continuation by the time required under this Section 4.01(c)(ii),

and such notice shall be confirmed in writing delivered to the Administrative

Agent promptly (but in no event later than 5:00 p.m. (Charlotte time) on the

same day).  Promptly after receipt of a

Notice of Conversion/Continuation under this Section 4.01(c)(ii)

(or telephonic notice in lieu thereof), the Administrative Agent shall notify

each Lender by facsimile, or other similar form of transmission, of the

proposed conversion/continuation.  Any

Notice of Conversion/Continuation for conversion to, or continuation of, Loans

(or telephonic notice in lieu thereof) shall be irrevocable, and the Borrower

shall be bound to convert or continue in accordance therewith.

 

(d)           Default Interest.  Notwithstanding the rates of interest

specified in Section 4.01(a) or elsewhere herein, (i) upon the

occurrence of any Event of Default specified in Section 11.01(a)

and for as long thereafter as such Event of Default shall be continuing, the

principal balance of all Loans and (to the maximum extent permitted by law) of

all other Obligations shall bear interest at a rate which is 2.0% per annum in

excess of the rate of interest applicable to such Obligations from time to

time, and (ii) upon the occurrence of any other Event of Default and for

as long thereafter as such Event of Default shall be continuing, the Requisite

Lenders may elect that the principal balance of all Loans and (to the maximum

extent permitted by law) of all other Obligations bear interest during such

period at a rate which is 2.0% per annum in excess of the rate of interest

applicable to such Obligations from time to time, and in each case under

clauses (i) and (ii), such default interest shall be payable on demand.

 

(e)           Computation of Interest.  Interest on (i) Base Rate Loans and all

other Obligations shall be computed on the basis of the actual number of days

elapsed in the period during which interest accrues and a year of 365/366 days

and (ii) Eurodollar Rate Loans shall be computed on the basis of the

actual number of days elapsed in the period during which interest accrues and a

year of 360 days.  In computing interest

on any Loan, the date of the making of the Loan shall be included and the date

of payment made in accordance with Section 3.03 shall be excluded; provided,

however, if a Loan is repaid on the same day on which it is made, one

(1) day’s interest shall be paid on such Loan.

 

(f)            Changes; Legal Restrictions.  If after the date hereof any Lender

determines that the adoption or implementation of or any change in or in the

interpretation or administration of any law or regulation or any guideline or

request from any central bank or other Governmental Authority or

quasi-governmental authority exercising jurisdiction, power or control over any

Lender or over banks or financial institutions generally (whether or not having

the force of law), compliance with which, in each case after the date hereof:

 

43

 

(i)            (x) subjects

a Lender (or its Applicable Lending Office) to charges (other than Taxes) of

any kind which is applicable to the Revolving Loan Commitments of the Lenders

to make Eurodollar Rate Loans, or (y) changes the basis of taxation of, or

subjects to tax, payments to a Lender of principal, fees, interest, or any

other amount payable hereunder with respect to any Loans; or

 

(ii)           imposes,

modifies, or holds applicable, any reserve (other than reserves taken into

account in calculating the Eurodollar Rate), special deposit, compulsory loan,

FDIC insurance or similar requirement against assets held by, or deposits or

other liabilities (including those pertaining to Letters of Credit) in or for

the account of, advances or loans by, commitments made, or other credit

extended by, or any other acquisition of funds by, a Lender or any Applicable

Lending Office or Eurodollar Affiliate of that Lender;

 

and the result of any of the

foregoing is to increase the cost to that Lender of making, renewing or

maintaining the Loans or its Revolving Loan Commitments or to reduce any amount

receivable thereunder; then, in any such case, within thirty (30) days after

written demand by such Lender (with a copy of such demand to the Administrative

Agent), the Borrower shall pay to the Administrative Agent for the account of

such Lender, from time to time as specified by such Lender, such amount or

amounts as may be necessary to compensate such Lender or its Eurodollar Affiliate

for any such additional cost incurred or reduced amount received.  Such demand shall be accompanied by a

statement as to the amount of such compensation and include a summary of the

basis for such demand.  Such statement

shall be conclusive and binding for all purposes, absent manifest error.  Any notice given by any Lender under this Section 4.01(f)

shall be effective only if given within one year after such Lender becomes

aware or should have become aware of the events giving rise to such notice.

 

(g)           Confirmation of Eurodollar Rate.  Upon the request of the Borrower from time

to time, the Administrative Agent shall promptly provide to the Borrower such

information with respect to the applicable Eurodollar Rate as may be reasonably

requested.

 

(h)           Issuing Bank Fee.  The Borrower shall pay to the Issuing Bank,

solely for its own account, with respect to each Letter of Credit issued by the

Issuing Bank, an additional fee in an amount equal to 0.125% per annum on the

undrawn face amount of such Letter of Credit, payable quarterly in arrears on

the first Business Day of each calendar quarter.

 

4.02         Special Provisions Governing

Eurodollar Rate Loans.  With

respect to Eurodollar Rate Loans:

 

(a)           Amount of Advance.  Each Borrowing of Eurodollar Rate Loans shall

be for a minimum amount of $5,000,000 and in integral multiples of 1,000,000 in

excess of that amount.

 

(b)           Determination of Eurodollar

Interest Period.  By giving notice

as set forth in Section 2.01(b) (with respect to a Borrowing of

Eurodollar Rate Loans) or Section 4.01(c) (with respect to a

conversion into or continuation of Eurodollar Rate Loans), the Borrower shall

have the option, subject to the other provisions of this Section 4.02,

to select an interest period (a 

 

44

 

“Eurodollar Interest Period”)

to apply to the Loans described in such notice, subject to the following

provisions:

 

(i)            The

Borrower may only select, as to a particular Borrowing of Eurodollar Rate

Loans, a Eurodollar Interest Period of either one, two, three or six months in

duration;

 

(ii)           In

the case of immediately successive Eurodollar Interest Periods applicable to a

Borrowing of Eurodollar Rate Loans, each successive Eurodollar Interest Period

shall commence on the day on which the next preceding Eurodollar Interest

Period expires;

 

(iii)          If

any Eurodollar Interest Period would otherwise expire on a day which is not a

Business Day, such Eurodollar Interest Period shall be extended to expire on

the next succeeding Business Day if the next succeeding Business Day occurs in

the same calendar month, and if there shall be no succeeding Business Day in

such calendar month, such Eurodollar Interest Period shall expire on the

immediately preceding Business Day;

 

(iv)          The

Borrower may not select a Eurodollar Interest Period as to any Revolving Loan

if such Eurodollar Interest Period terminates later than the Revolving Loan

Maturity Date; and

 

(v)           There

shall be no more than six (6)  Eurodollar

Interest Periods in effect at any one time.

 

(c)           Determination of Interest Rate.  As soon as practicable on the second

Business Day prior to the first day of each Eurodollar Interest Period (the “Interest

Rate Determination Date”), the Administrative Agent shall determine

(pursuant to the procedures set forth in the definition of “Eurodollar Rate”)

the interest rate which shall apply to Eurodollar Rate Loans for which an

interest rate is then being determined for the applicable Eurodollar Interest

Period, and shall promptly give notice thereof (in writing or by telephone

confirmed in writing) to the Borrower and to each Lender.  The Administrative Agent’s determination

shall be presumed to be correct, absent manifest error, and shall be binding

upon the Borrower.

 

(d)           Interest Rate Unascertainable,

Inadequate or Unfair.  In the event

that at least one (1) Business Day before the Interest Rate Determination Date:

 

(i)            the

Administrative Agent reasonably determines that adequate and fair means do not

exist for ascertaining the applicable interest rates by reference to which the

Eurodollar Rate then being determined is to be fixed;

 

(ii)           the

Requisite Lenders advise the Administrative Agent that Dollar deposits in the

principal amounts of the Eurodollar Rate Loans comprising such Borrowing are

not generally available in the London interbank market for a period equal to

such Eurodollar Interest Period; or

 

45

 

(iii)          the

Requisite Lenders advise the Administrative Agent that the Eurodollar Rate as

determined by the Administrative Agent, after taking into account the

adjustments for reserves and increased costs provided for in Section 4.01(f),

will not adequately and fairly reflect the cost to such Lenders of funding

Loans of such Type;

 

then the Administrative Agent shall

forthwith give notice thereof to the Borrower, whereupon (until the

Administrative Agent notifies the Borrower that the circumstances giving rise

to such suspension no longer exist) the right of the Borrower to elect to have

Loans bear interest based upon the Eurodollar Rate shall be suspended and each

outstanding Loan of such Types shall be converted into a Base Rate Loan on the

last day of the then current Eurodollar Interest Period therefor, and any

Notice of Borrowing for which Revolving Loans have not then been made shall be

deemed to be a request for Base Rate Loans, notwithstanding any prior election

by the Borrower to the contrary.

 

(e)           Illegality.

 

(i)            If

at any time any Lender determines (which determination shall, absent manifest

error, be final and conclusive and binding upon all parties) that the making or

continuation of any Eurodollar Rate Loan has become unlawful or impermissible

by compliance by that Lender with any law, governmental rule, regulation or

order of any Governmental Authority (whether or not having the force of law and

whether or not failure to comply therewith would be unlawful or would result in

costs or penalties), then, and in any such event, such Lender may give notice

of that determination, in writing, to the Borrower and the Administrative

Agent, and the Administrative Agent shall promptly transmit the notice to each

other Lender.

 

(ii)           When

notice is given by a Lender under Section 4.02(e)(i), (A) the

Borrower’s right to request from such Lender and such Lender’s obligation, if

any, to make Eurodollar Rate Loans shall be immediately suspended, and such

Lender shall make a Base Rate Loan as part of any requested Borrowing of

Eurodollar Rate Loans and (B) if the affected Eurodollar Rate Loan or

Loans are then outstanding, the Borrower shall immediately, or if permitted by

applicable law, no later than the date permitted thereby, upon at least one (1)

Business Day’s prior written notice to the Administrative Agent and the

affected Lender, convert each such Loan into a Base Rate Loan.

 

(iii)          If

at any time after a Lender gives notice under Section 4.02(e)(i)

such Lender determines that it may lawfully make Eurodollar Rate Loans, such

Lender shall promptly give notice of that determination, in writing, to the

Borrower and the Administrative Agent, and the Administrative Agent shall

promptly transmit the notice to each other Lender.  The Borrower’s right to request, and such Lender’s obligation, if

any, to make Eurodollar Rate Loans shall thereupon be restored.

 

(f)            Compensation.  In addition to all amounts required to be

paid by the Borrower pursuant to Section 4.01, the Borrower shall

compensate each Lender, upon demand, for all losses, expenses and liabilities

(including, without limitation, any loss or expense incurred by reason of the

liquidation or reemployment of deposits or other funds acquired by such Lender

to fund or maintain such Lender’s Eurodollar Rate Loans to the Borrower but

excluding any loss of

 

46

 

the Applicable Eurodollar Rate

Margin on the relevant Loans) which that Lender may sustain (i) if for any

reason a Borrowing, conversion into or continuation of Eurodollar Rate Loans

does not occur on a date specified therefor in a Notice of Borrowing or a Notice

of Conversion/ Continuation given by the Borrower or in a telephonic request by

it for borrowing or conversion/continuation or a successive Eurodollar Interest

Period does not commence after notice therefor is given pursuant to Section 4.01(c),

including, without limitation, pursuant to Section 4.02(d),

(ii) if for any reason any Eurodollar Rate Loan is prepaid (including,

without limitation, mandatorily pursuant to Section 3.02) on a date

which is not the last day of the applicable Eurodollar Interest Period, (iii) as

a consequence of a required conversion of a Eurodollar Rate Loan to a Base Rate

Loan as a result of any of the events indicated in Section 4.02(d)

or 4.02(e) or (iv) as a consequence of any failure by the Borrower

to repay Eurodollar Rate Loans when required by the terms hereof.  The Lender making demand for such

compensation shall deliver to the Borrower concurrently with such demand a

written statement in reasonable detail as to such losses, expenses and liabilities,

and this statement shall be conclusive as to the amount of compensation due to

that Lender, absent manifest error.

 

(g)           Affiliates Not Obligated.  No Eurodollar Affiliate or other Affiliate

of any Lender shall be deemed a party hereto or shall have any liability or

obligation hereunder.

 

4.03         Fees.

 

(a)           Unused Commitment Fee.  The Borrower agrees to pay to the

Administrative Agent, for the account of the Lenders in accordance with their

Pro Rata Shares of the aggregate Revolving Loan Commitments, during the period

commencing on the Closing Date and ending on the Revolving Loan Commitment

Termination Date, a fee accruing at the rate of 0.375% per annum on the average

amount by which the Revolving Loan Commitments exceed the Revolving Credit

Obligations minus the outstanding principal amount of the Swing Loans, such fee

being payable quarterly, in arrears, on the first Business Day of each calendar

quarter and on the Revolving Loan Commitment Termination Date, in each case in

respect of the quarter (or portion thereof) immediately preceding the date such

payment is required.

 

(b)           Letter of Credit Fee.  In addition to any charges paid pursuant to Section 2.03(g),

the Borrower shall pay to the Administrative Agent, for the account of the

Lenders in accordance with their respective Pro Rata Shares:

 

(i)            with

respect to each Commercial Letter of Credit issued by the Issuing Bank, a fee

at a per annum rate equal to 0.125% on the face amount of such Letter of

Credit, payable quarterly in arrears on the first Business Day of each calendar

quarter; and

 

(ii)           with

respect to each Standby Letter of Credit Issued by the Issuing Bank, a fee at a

per annum rate equal to the Applicable Eurodollar Rate Margin on the undrawn

face amount of such Letter of Credit, payable quarterly in arrears on the first

Business Day of each calendar quarter.

 

(c)           Computation of Fees.  All of the above fees payable on a per annum

basis shall be computed on the basis of the actual number of days elapsed in a

year of 360 days.  All such fees

 

47

 

shall be payable in addition

to, and not in lieu of, interest, compensation, expense reimbursements,

indemnification and other Obligations.

 

ARTICLE V

 

CONDITIONS TO LOANS

 

5.01         Conditions Precedent to Closing and

to Initial Loans.  The occurrence

of the Closing Date and the obligation of each Lender to make the initial Loans

requested to be made by it hereunder (whether on or at any time after the

Closing Date) shall be subject to the satisfaction of all of the following

conditions precedent:

 

(a)           Documents.  The Administrative Agent (on behalf of

itself and the Lenders) shall have received on or before the Closing Date all

of the following:

 

(i)            this

Agreement, the Notes, the Guaranties, the Contribution Agreement, an Account

Designation Letter and all other agreements, documents, instruments,

certificates, opinions and corporate resolutions described in the List of

Closing Documents, each duly executed where appropriate and in form and

substance satisfactory to the Lenders and in sufficient copies for each of the

Lenders; and

 

(ii)           such

additional documentation as the Administrative Agent or the Requisite Lenders

may reasonably request.

 

(b)           Consents and Approvals; No Adverse

Action.  All approvals, permits and

consents of any Governmental Authorities or other Persons required in

connection with the execution and delivery of this Agreement and the other Loan

Documents and the consummation of the transactions contemplated hereby and

thereby shall have been obtained, without the imposition of conditions that are

not reasonably acceptable to the Administrative Agent, and all related filings,

if any, shall have been made, and all such approvals, permits, consents and

filings shall be in full force and effect and the Administrative Agent shall have

received such copies thereof as it shall have reasonably requested; all

applicable waiting periods shall have expired without any adverse action being

taken or threatened by any Governmental Authority having jurisdiction; and no

action, proceeding, investigation, regulation or legislation shall have been

instituted, threatened or proposed before, and no order, injunction or decree

shall have been entered by, any court or other Governmental Authority, in each

case to enjoin, restrain or prohibit, to obtain substantial damages in respect

of, or to impose materially adverse conditions upon, this Agreement, any of the

other Loan Documents or the consummation of the transactions contemplated

hereby or thereby, or that, in the reasonable opinion of the Administrative

Agent, could be expected to have a Material Adverse Effect.

 

(c)           Searches.  The Administrative Agent shall have received

certified reports from an independent search service satisfactory to it listing

any judgment or tax lien filing or Uniform Commercial Code financing statement

that names the Borrower or any Guarantor as debtor in any of such jurisdictions

as may be selected by the Administrative Agent, and the results thereof shall

be reasonably satisfactory to the Administrative Agent.

 

48

 

(d)           No Change in Condition.  Since December 31, 2002, there shall not

have occurred any Material Adverse Effect or any event, condition or state of

facts that could reasonably be expected to result in a Material Adverse Effect.

 

(e)           Compliance Certificate.  The Administrative Agent shall have received

a Compliance Certificate, duly completed and signed by the Borrower’s Chief

Financial Officer, demonstrating the Borrower’s compliance with the financial

covenants set forth in Article X, determined on a Pro Forma Basis

as of March 31, 2003 after giving effect to the making of Loans hereunder on

the Closing Date, if any, and the application of the proceeds thereof.

 

(f)            No Default.  No Default or Event of Default shall have

occurred and be continuing or would result from the making of any Loans on the

Closing Date.

 

(g)           Representations and Warranties.  All of the representations and warranties

contained in Section 6.01 and in the other Loan Documents shall be

true and complete in all material respects on and as of the Closing Date.

 

(h)           Fees and Expenses Paid.  There shall have been paid to the

Administrative Agent, for the account of the Agents and the Lenders and

Affiliates of each, all fees due and payable on or before the Closing Date, and

all expenses (including, without limitation, legal fees and expenses) due and

payable on or before the Closing Date.

 

(i)            Financial Information.  The Administrative Agent shall have

received, with copies for each Lender, (i) each of the financial

statements referred to in Section 6.01(h), (ii) an opening

consolidated pro forma balance sheet of the Borrower and its Subsidiaries, as

of December 31, 2002, giving effect to the issuance of the Convertible

Contingent Senior Debentures and the consummation of the transactions

contemplated by this Agreement (and the making of any Loans hereunder on the

Closing Date and the application of the proceeds thereof) and

(iii) six-year projected consolidated balance sheets of the Borrower and

its Subsidiaries, and related consolidated statements of income and cash flow,

prepared on a quarterly basis for the first year included in the projections

and annually for all other periods included in the projections, each in form

and substance reasonably satisfactory to the Administrative Agent and the

Lenders.

 

5.02         Conditions

Precedent to All Loans.  The

obligation of each Lender to make any Loan requested to be made by it on any

Funding Date on or after the Closing Date is subject to the following

conditions precedent as of each such date:

 

(a)           Representations and Warranties.  As of such date, both before and after

giving effect to the Loans to be made, all of the representations and

warranties contained in Section 6.01 and in the other Loan

Documents shall be true and complete in all material respects (except to the

extent that such representations or warranties are made as of an earlier date,

in which case they shall be true and complete in all material respects as of

such earlier date).

 

(b)           No Defaults.  As of such date, no Default or Event of

Default shall have occurred and be continuing or would result from the making

of the requested Loan or the application of the proceeds therefrom.

 

49

 

Each request by the Borrower

for a Loan, each submission by the Borrower of a Notice of Borrowing, and each

acceptance by the Borrower of the proceeds of each Loan made hereunder, shall

constitute a representation and warranty by the Borrower as of the Funding Date

in respect of such Loan that all the conditions contained in this Section 5.02

have been satisfied.

 

ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES

 

6.01         Representations and Warranties of

the Borrower.  In order to

induce the Lenders to enter into this Agreement and to make the Loans, the

Borrower hereby represents and warrants as follows:

 

(a)           Organization; Powers.  Each Loan Party (i) is duly organized,

validly existing and in good standing under the laws of its jurisdiction of

organization, (ii) is qualified to conduct business as a foreign

corporation and is in good standing in every jurisdiction in which such

qualification is required, except where the failure to so qualify is not

reasonably likely to result in a Material Adverse Effect, and (iii) has

all requisite power and authority to own, operate and encumber its assets and

to conduct its business as presently contemplated.

 

(b)           Authority.

 

(i)            Each

Loan Party has the requisite power and authority to execute, deliver and

perform each of the Loan Documents to which it is a party.

 

(ii)           No

other action or proceeding on the part of any Loan Party is necessary to

execute, deliver and perform each of the Loan Documents to which it is a party

thereto or to consummate the transactions contemplated thereby.

 

(iii)          Each

of the Loan Documents to which any Loan Party is a party has been duly executed

and delivered by such Loan Party and constitutes the legal, valid and binding

obligation of such Loan Party, enforceable against such Loan Party in

accordance with its terms, except as such enforceability may be limited by

(i) bankruptcy, insolvency, reorganization or other similar laws affecting

the enforcement of creditors’ rights generally and (ii) general principles

of equity relating to enforceability (regardless of whether such enforceability

is considered in a proceeding in equity or at law).

 

(c)           Ownership.  Section 6.01(C) of the Disclosure

Letter sets forth the ownership of the Borrower and its Subsidiaries as of the

date hereof and separately indicates each Subsidiary that is required to be a

Guarantor as of the Closing Date.  Each

Loan Party has delivered to the Administrative Agent true and complete copies

of the Governing Documents for such Loan Party in effect as of the date hereof.

 

(d)           No Conflict.  The execution, delivery and performance by

each Loan Party of each Loan Document to which it is a party and the

consummation of the transactions contemplated thereby do not and will not

(i) conflict with the Governing Documents of such Loan Party,

(ii) violate any Requirements of Law (including Regulation U) or any

material

 

50

 

Contractual Obligation of such

Loan Party, or (iii) result in or require the creation or imposition of

any Lien whatsoever upon any of the property or assets of such Loan Party.

 

(e)           Governmental Consents.  Except as set forth in Section 6.01(E)

of the Disclosure Letter, the execution, delivery and performance by each Loan

Party of each Loan Document to which it is a party and the consummation of the transactions

contemplated thereby do not and will not require any registration with, consent

or approval of, or notice to, or other action to, with or by any Governmental

Authority, except consents and filings that have been obtained or made or will

be obtained and made by the date when due.

 

(f)            Governmental Regulation.  No Loan Party is subject to regulation under

the Public Utility Holding Company Act of 1935, the Federal Power Act, the

Interstate Commerce Act, or the Investment Company Act of 1940, or any other

federal or state statute or regulation which limits its ability to incur

indebtedness or its ability to consummate the transactions contemplated by the

Loan Documents.

 

(g)           Subsidiaries.  As of the Closing Date, the Borrower has no

Subsidiaries or interests in any joint venture or partnership of any other

Person other than the Subsidiaries and material joint ventures and partnerships

set forth on Section 6.01(C) of the Disclosure Letter.

 

(h)           Financial Position of the Borrower.  True and complete copies of the audited

consolidated balance sheets as at the end of the fiscal years ended

December 31, 2002, 2001 and 2000, and the related consolidated statements

of income and cash flow for the Borrower and its Subsidiaries have been

delivered to the Administrative Agent and the Lenders.  The foregoing financial statements were

prepared in conformity with GAAP and fairly present in all material respects

the financial position and the results of operations and cash flows of the

Borrower and its Subsidiaries, for each of the periods covered thereby as at

the respective dates thereof.  As of the

Closing Date, no Loan Party has any Accommodation Obligation, contingent

liability or liability for any Taxes, long-term leases or commitments, not

reflected in the foregoing financial statements which will have or is

reasonably likely to have a Material Adverse Effect.

 

(i)            Projections.  The Borrower has delivered to the

Administrative Agent and each Lender pursuant to Section 5.01(i)

certain projected financial statements of the Borrower and its Subsidiaries

which have been prepared in good faith and using accounting principles

consistently applied.

 

(j)            Litigation; Adverse Effects.  Except as set forth in Sections 6.01(J)

and 6.01(O) of the Disclosure Letter, there is no action, suit, proceeding,

investigation or arbitration before or by any Governmental Authority or private

arbitrator pending or, to the knowledge of each Loan Party, overtly threatened

against such Loan Party or any of its assets (i) challenging the validity

or the enforceability of any of the Loan Documents or transactions contemplated

thereby or (ii) in which there is a reasonable possibility of an adverse

determination and which, if adversely determined, will or is reasonably likely

to result in any Material Adverse Effect. 

There is no material loss contingency within the meaning of GAAP which

has not been reflected in the financial statements of the Borrower and its

Subsidiaries and which will or is reasonably likely to result in any Material

Adverse Effect.  No Loan Party is

(A) in violation of any applicable Requirements of Law which violation

will have or is reasonably likely to have a Material

 

51

 

Adverse Effect or

(B) subject to, or in default with respect to, any final judgment, writ,

injunction, restraining order or order of any nature, decree, rule or

regulation of any court or Governmental Authority which will have or is

reasonably likely to have a Material Adverse Effect.

 

(k)           No Material Adverse Effect.  Since December 31, 2002, there has occurred

no event which has had or is reasonably likely to have a Material Adverse

Effect.

 

(l)            Payment of Taxes.  All tax returns and material reports

required to be filed by the Borrower have been timely filed, and all taxes,

assessments, fees and other governmental charges shown on such returns have

been paid when due and payable, except such taxes, if any, as are reserved

against in accordance with GAAP and are being contested in good faith by

appropriate proceedings.

 

(m)          Disclosure.  The representations and warranties of each

Loan Party contained in the Loan Documents and all certificates and other

documents delivered pursuant to the terms thereof, do not contain any untrue

statement of a material fact or omit to state a material fact necessary in

order to make the statements contained therein, in light of the circumstances

under which they were made, not misleading in any material respect.

 

(n)           Requirements of Law.  Each Loan Party is in compliance in all

material respects with all Requirements of Law applicable to it and its

business.

 

(o)           Environmental Matters.  To each Loan Party’s knowledge, upon inquiry

and investigation completed by such Loan Party as diligently and as thoroughly

as would reasonably be required to determine any facts relevant to the

representations set forth herein, and except as set forth in

Section 6.01(O) of the Disclosure Letter hereto, (i) such Loan Party

and its operations and real property comply in all respects with all applicable

Environmental, Health or Safety Requirements of Law, except where noncompliance

has not resulted in or would not be reasonably likely to have a Material

Adverse Effect; (ii) such Loan Party has obtained all environmental,

health and safety Permits necessary for its operations and Property and all

such Permits are in good standing and such Loan Party is in compliance with all

terms and conditions of such Permits except such as has not resulted in or

would not be reasonably likely to have a Material Adverse Effect; (iii) no

Loan Party nor its operations is subject to any order from or written agreement

with any Governmental Authority or private party or any judicial or

administrative proceeding or investigation respecting any Environmental, Health

or Safety Requirements of Law or any Release or threatened Release of a

Contaminant into the indoor or outdoor environment except such as has not

resulted in or would not be reasonably likely to have a Material Adverse

Effect; (iv) no Loan Party nor its operations is subject to any Remedial

Action or other Liabilities and Costs arising from the Release or threatened

Release of a Contaminant into the indoor or outdoor environment except such as

has not resulted in or would not be reasonably likely to have a Material

Adverse Effect; (v) no Loan Party has filed any notice under any

Requirement of Law indicating treatment, storage or disposal of a hazardous

waste, as that term is defined under 40 CFR Part 261 or any applicable state

equivalent except such as has 

 

52

 

not resulted in or would not be

reasonably likely to have a Material Adverse Effect; (vi) no Loan Party

has filed any notice under applicable Requirement of Law reporting any

unresolved Release of a Contaminant into the indoor or outdoor environment

except such as has not resulted in or would not be reasonably likely to have a

Material Adverse Effect; (vii) no Environmental Liens have attached to any

Property of any Loan Party securing obligations, individually or in the

aggregate, in an amount of $25,000,000 or more; (viii) no Loan Party has

received any written notice or claim to the effect that it is or may be liable

to any Person as a result of the Release or threatened Release of a Contaminant

into the indoor or outdoor environment except such as has not resulted in or

would not be reasonably likely to have a Material Adverse Effect; and

(ix) no transaction contemplated by this Agreement is subject to any

Environmental Property Transfer Act.

 

(p)           ERISA.  Each Plan which is intended to be qualified

under Section 401(a) of the Code as currently in effect has been determined by

the IRS to be so qualified, and each trust related to any such Plan has been so

determined to be exempt from federal income tax under Section 501(a) of the

Code as currently in effect, except for changes for which the remedial

amendment period has not expired. 

Neither the Borrower nor any ERISA Affiliate maintains or contributes to

any employee welfare benefit plan within the meaning of Section 3(1) of ERISA,

other than a Multiemployer Plan, which provides benefits to employees after

termination of employment other than as required under Part 6 of Title I of

ERISA or any applicable state law.  Each

of the Borrower and its Subsidiaries is in compliance in all material respects

with the responsibilities, obligations or duties imposed on it by ERISA or

regulations promulgated thereunder with respect to all Plans.  No accumulated funding deficiency (as

defined in Section 302(a)(2) of ERISA and Section 412(a) of the Internal

Revenue Code) exists in respect to any Benefit Plan.  Except as set forth on Section 6.01(P) of the Disclosure

Letter, neither the Borrower nor any ERISA Affiliate nor any fiduciary of any

Plan (i) has engaged in a nonexempt “prohibited transaction” described in

Section 406 of ERISA or Section 4975 of the Internal Revenue Code or

(ii) has taken any action which would constitute or result in a

Termination Event with respect to any Plan which would result in a material

liability to the Borrower or an ERISA Affiliate.  Neither the Borrower nor any ERISA Affiliate has incurred any

material liability to the PBGC which has not been paid within the applicable

period permitted by law.  Schedule B to

the most recent annual report filed with the IRS with respect to each Benefit

Plan and furnished to the Administrative Agent is complete and accurate in all

material respects.  Since the date of

each such Schedule B, there has been no material adverse change in the funding

status or financial condition of the Benefit Plan relating to such Schedule B

which would result in a Material Adverse Effect.  Neither the Borrower nor any ERISA Affiliate has failed to make

any required installment under subsection (m) of Section 412 of the Code and any

other payment required under Section 412 of the Code on or before the due date

for such installment or other payment which could reasonably be expected to

result in a lien under Section 412 of the Code.  Neither the Borrower nor any ERISA Affiliate is required to

provide security to a Benefit Plan under Section 401(a)(29) of the Internal

Revenue Code due to a Plan amendment that results in an increase in current

liability for the plan year.  The

Borrower and its Subsidiaries and its ERISA Affiliates are current with respect

to all obligations they may have relating to any Multiemployer Plan to which

they are or have been obligated to contribute. 

Neither the Borrower nor any ERISA Affiliate has or is likely to incur

any withdrawal liability with respect to any Multiemployer Plan which would

have a Material Adverse Effect.

 

(q)           Labor Matters.  No Loan Party is a party to any labor

contract as of the Closing Date.  As of

the Closing Date, there are no strikes, lockouts or other disputes relating to

any

 

53

 

collective bargaining or

similar agreement to which such Loan Party is a party which would have or is

reasonably likely to have a Material Adverse Effect.

 

(r)            Securities Activities.  No Loan Party is engaged in the business of

extending credit for the purpose of purchasing or carrying Margin Stock.

 

(s)           Solvency.  After giving effect to the receipt and

application of the Loans in accordance with the terms of this Agreement, each

Loan Party is Solvent.

 

(t)            Patents, Trademarks, Permits,

etc.; Government Approvals.

 

(i)            Each

Loan Party owns, is licensed or, to the Borrower’s knowledge, otherwise has the

lawful right to use the permits and other governmental approvals, patents,

trademarks, trade names, copyrights, technology, know-how and processes

necessary for the conduct of its business as currently conducted which are

material to its condition (financial or otherwise), operations and performance,

except where the failure to do so will not or is not reasonably likely to

result in a Material Adverse Effect. 

There are no claims pending or, to such Loan Party’s knowledge, overtly

threatened that such Loan Party is infringing or otherwise adversely affecting

the rights of any Person with respect to such permits and other governmental

approvals, patents, trademarks, trade names, copyrights, technology, know-how

and processes, except for such claims and infringements as do not, in the

aggregate, give rise to any liability on the part of such Loan Party which has

or is reasonably likely to have a Material Adverse Effect.

 

(ii)           The

consummation of the transactions contemplated by the Loan Documents will not

impair such Loan Party’s ownership of or rights under (or the license or other

right to use, as the case may be) any permits and governmental approvals,

patents, trademarks, trade names, copyrights, technology, know-how or processes

in any manner which has or is reasonably likely to have a Material Adverse

Effect.

 

(u)           Assets and Properties.  Each Loan Party has good and marketable or

merchantable title to all of its owned assets and property (tangible and

intangible), and all such assets and property are free and clear of all Liens

except Liens permitted under Section 9.03.  Substantially all of the assets and property

owned by, leased to or used by such Loan Party are in good operating condition

and repair, ordinary wear and tear excepted, are free and clear of any known

defects except such defects as do not substantially interfere with the

continued use thereof in the conduct of normal operations, and are able to

serve the function for which they are currently being used, except in each case

where the failure of such asset to meet such requirements would not have or is

not reasonably likely to have a Material Adverse Effect.  Neither this Agreement nor any other Loan

Document, nor any transaction contemplated under any Loan Document, will affect

any right, title or interest of such Loan Party in and to any of such assets in

a manner that would have or is reasonably likely to have a Material Adverse

Effect.

 

(v)           Insurance.  Section 6.01(V) of the Disclosure

Letter accurately sets forth all insurance policies and programs currently in

effect as of the Closing Date with respect to the respective property and

assets and business of the Borrower and its Subsidiaries, specifying for each

such policy and program, (i) the amount thereof and the amount of the

deductible relating

 

54

 

thereto, (ii) the risks

insured against thereby, (iii) the name of the insurer and each insured

party thereunder, (iv) the policy or other identification number thereof,

(v) the expiration date thereof, (vi) the annual premium with respect

thereto and (vii) the current rating of such insurer by A.M. Best or an

established rating agency reasonably satisfactory to the Administration Agent.

 

ARTICLE VII

 

REPORTING COVENANTS

 

The Borrower

covenants and agrees so long as any Revolving Loan Commitment is outstanding

and thereafter until payment in full of the Obligations:

 

7.01         Financial

Statements.  Each Loan Party

shall maintain a system of accounting established and administered in

accordance with sound business practices to permit preparation of financial

statements in conformity with GAAP, and each of the financial statements

described below shall be prepared from such system and records.  The Borrower shall deliver or cause to be

delivered to the Administrative Agent:

 

(a)           Quarterly Reports.  As soon as practicable, and in any event

within forty-five (45) days after the end of each of the first three fiscal

quarters in each Fiscal Year, consolidated balance sheets of the Borrower and

its Subsidiaries as at the end of such period and the related consolidated

statements of income and cash flow of the Borrower and its Subsidiaries for

such fiscal quarter, certified by the Chief Financial Officer of the Borrower

as fairly presenting the financial position of the Borrower as at the dates

indicated and the results of its operations and cash flow for the fiscal quarter

indicated in accordance with GAAP, subject to normal year-end adjustments and

the absence of complete footnote disclosure, provided that, so long as

the Borrower files quarterly reports on Form 10-Q with the Commission, the

delivery of such Form 10-Q for such fiscal quarter shall satisfy the

requirements of this Section 7.01(a).

 

(b)           Annual Reports.  As soon as practicable, and in any case

within ninety (90) days after the end of such Fiscal Year, (i) the audited

consolidated (and unaudited consolidating) balance sheet of the Borrower and

its Subsidiaries as of the end of such Fiscal Year and the related audited

consolidated (and unaudited consolidating) statements of income and audited

consolidated statement of cash flow of the Borrower and its Subsidiaries for

such Fiscal Year, provided that, so long as the Borrower files an annual

report on Form 10-K with the Commission, the delivery of such Form 10-K for

such annual period accompanied by unaudited consolidating balance sheets and

statements of income of the Borrower and its Subsidiaries shall satisfy the

requirements of this Section 7.01(b)(i), and (ii) a report

thereon of PricewaterhouseCoopers, LLP, or such other independent certified

public accountants reasonably acceptable to the Administrative Agent, which

report shall be unqualified and shall state that such financial statements

fairly present the financial position of the Borrower as at the dates indicated

and the results of its operations and cash flow for the periods indicated in

conformity with GAAP applied on a basis consistent with prior years (or

containing disclosure of the effect on the financial condition or results of

operations of any change in the application of accounting practices during such

year) and that the examination by such accountants in connection with such

financial statements has been made in accordance with generally accepted

auditing standards.

 

55

 

(c)           Officer’s Certificate; Compliance

Certificate.  Together with each

delivery of any financial statement pursuant to subsections (a) and (b) of

this Section 7.01, (i) an Officer’s Certificate substantially

in the form of Exhibit F attached hereto and made a part hereof,

stating that such officer has reviewed the terms of the Loan Documents and has

made, or caused to be made under his supervision, a review in reasonable detail

of the transactions and consolidated financial condition of the Borrower during

the accounting period covered by such financial statements, that such review

has not disclosed the existence during or at the end of such accounting period,

and that such officer does not have knowledge of the existence as at the date

of such Officer’s Certificate, of any condition or event which constitutes an

Event of Default or Default, or, if any such condition or event existed or

exists, specifying the nature and period of existence thereof and what action

the Borrower has taken, is taking and proposes to take with respect thereto and

(ii) a certificate substantially in the form of Exhibit G

attached hereto and made a part hereof (the “Compliance Certificate”),

signed by the Borrower’s Chief Financial Officer, setting forth calculations

(with such specificity as the Lenders may reasonably request) for the period

then ended which demonstrate compliance, when applicable, with the provisions

of Article IX and Article X.

 

(d)           Budgets; Business Plans; Financial

Projections.  As soon as practicable

and in any event not later than the 60th day following the beginning

of each Fiscal Year, (i) a quarterly budget of the Borrower and its

Subsidiaries for such Fiscal Year; (ii) an annual business plan of the

Borrower and its Subsidiaries for such Fiscal Year, accompanied by a report

explaining the changes and departures from the business plan delivered to the

Administrative Agent and the Lenders for the preceding Fiscal Year; and

(iii) a plan and financial forecast, prepared in accordance with the

Borrower’s normal accounting procedures applied on a consistent basis, for such

Fiscal Year and for the two (2) succeeding Fiscal Years of the Borrower,

including, without limitation, (A) a forecasted balance sheet of the

Borrower as at the end of such Fiscal Year and (B) forecasted statements

of income and cash flow of the Borrower for such Fiscal Year.

 

7.02         Management

Reports.  The Borrower shall

deliver or cause to be delivered to the Administrative Agent copies of any

management reports delivered to any Loan Party or to any officer or employee

thereof by the independent, certified public accountants in connection with the

financial statements delivered pursuant to Section 7.01.

 

7.03         Other

Financial Information.

 

(a)           To the extent not readily obtainable

through public filings, the Borrower shall deliver or cause to be delivered to

the Administrative Agent, such other information, reports, contracts,

schedules, lists, documents, agreements and instruments with respect to the

business, condition (financial or otherwise), operations, performance,

properties or prospects of any Loan Party as the Administrative Agent or any

Lender may, from time to time, reasonably request.

 

(b)           The Borrower shall deliver or cause

to be delivered to the Administrative Agent copies of all financial statements,

reports and notices, if any, sent or made available generally by the Borrower

to the holders of its publicly-held Securities or to a trustee under any

indenture or filed by the Borrower with the Commission, and of all press

releases made available generally by the Borrower to the public concerning

material developments in the Borrower’s business.

 

56

 

7.04         Defaults

and Other Events.  Promptly upon

any Loan Party obtaining knowledge (i) of any condition or event which

constitutes a Default or an Event of Default, (ii) that any Person has

given any notice to any Loan Party or taken any other action with respect to a

claimed default or event or condition of the type referred to in Section 11.01(e)

or (iii) of any condition or event which has or is reasonably likely to

have a Material Adverse Effect, such Loan Party shall deliver to the

Administrative Agent and the Lenders an Officer’s Certificate specifying

(A) the nature and period of existence of any such claimed default, Event

of Default, Default, condition or event, (B) the notice given or action

taken by such Person in connection therewith and (C) what action the

Borrower and such Loan Party have taken, are taking and propose to take with

respect thereto.

 

7.05         Lawsuits.  Promptly upon any Loan Party obtaining

knowledge of the institution of (i) any action, suit, proceeding or

arbitration against or affecting such Loan Party or any asset of such Loan

Party (which action, suit, proceeding or arbitration is reasonably likely to

result in a Material Adverse Effect) not previously disclosed pursuant to

Section 6.01(J) or 6.01(O) of the Disclosure Letter and required to be

publicly disclosed, the Borrower or such Loan Party shall give written notice

thereof to the Administrative Agent and the Lenders and provide such other information

as may be reasonably available to enable each Lender and the Administrative

Agent to evaluate such matters except, in each case, where the same is fully

covered by insurance (other than applicable deductible); and (ii) in

addition to the requirements set forth in clause (i) of this Section 7.05,

the Borrower upon request of the Administrative Agent or the Requisite Lenders

shall promptly give written notice of the status of any action, suit,

proceeding, governmental investigation or arbitration covered by a report

delivered pursuant to clause (i) above and provide such other information

as may be reasonably available to it to enable each Lender and the

Administrative Agent to evaluate such matters.

 

7.06         ERISA Notices.  The Borrower shall deliver or cause to be

delivered to the Administrative Agent:

 

(i)            As

soon as possible, and in any event within ten (10) days after either the

Borrower or an ERISA Affiliate knows or has reason to know that a Termination

Event has occurred, a written statement of the Chief Financial Officer of the

Borrower describing such Termination Event and the action, if any, which the

Borrower or such ERISA Affiliate has taken, is taking or proposes to take, with

respect thereto, and, when known, any action taken or threatened by the IRS,

the DOL or the PBGC with respect thereto;

 

(ii)           as

soon as possible, and in any event within ten (10) days, after either the

Borrower or an ERISA Affiliate knows or has reason to know that a non-exempt

prohibited transaction (defined in Section 406 of ERISA and Section 4975 of the

Code) that would result in a material liability to the Borrower or an ERISA

Affiliate has occurred, a statement of the Chief Financial Officer of the

Borrower describing such transaction;

 

(iii)          within

ten (10) days after the filing thereof with the IRS, a copy of each funding

waiver request filed with respect to any Benefit Plan and all communications

received by either the Borrower or an ERISA Affiliate with respect to such

request;

 

57

 

(iv)          promptly

upon, and in any event within ten (10) days after, receipt by either the

Borrower or an ERISA Affiliate of a notice of the PBGC’s intention to terminate

a Benefit Plan or to have a trustee appointed to administer a Benefit Plan,

copies of each such notice;

 

(v)           promptly

upon, and in any event within ten (10) days after, receipt by either the

Borrower or an ERISA Affiliate of an unfavorable determination letter from the

IRS regarding the qualification of a Plan under Section 401(a) of the Code, a

copy of said determination letter, if such disqualification would result in a

material liability to the Borrower or any of its Subsidiaries;

 

(vi)          promptly

upon, and in any event within ten (10) days after receipt by the Borrower of a notice

from a Multiemployer Plan regarding the imposition of material withdrawal

liability, a copy of said notice; and

 

(vii)         promptly

upon, and in any event within ten (10) days after, the Borrower or any of its

Subsidiaries fails to make a required installment under subsection (m) of

Section 412 of the Code or any other payment required under Section 412 of the

Code on or before the due date for such installment or payment, a notification

of such failure, if such failure could result in either the imposition of a

Lien under said Section 412 or otherwise have a Material Adverse Effect on the

Borrower or any of its Subsidiaries.

 

7.07         Environmental

Notices.  The Borrower shall

notify the Administrative Agent, in writing, promptly, and in any event within

ten (10) days after any Loan Party’s learning thereof, of any of the following

(subject to the last sentence of this Section):  (i) written notice or claim to the effect that such Loan

Party is or may be liable to any Person as a result of the Release or threatened

Release of any Contaminant into the indoor or outdoor environment;

(ii) written notice that such Loan Party is subject to investigation by

any Governmental Authority evaluating whether any Remedial Action is needed to

respond to the Release or threatened Release of any Contaminant into the indoor

or outdoor environment; (iii) written notice that any Property of such

Loan Party is subject to an Environmental Lien; (iv) written notice of

violation to such Loan Party or awareness by the Borrower or such Loan Party of

a condition which might reasonably result in a notice of violation to such Loan

Party  of any Environmental, Health or

Safety Requirement of Law, which could have a Material Adverse Effect on the

Borrower or such Loan Party; (v) commencement or written threat of any

judicial or administrative proceeding alleging a violation of any

Environmental, Health or Safety Requirement of Law; (vi) new or proposed

changes to any existing Environmental, Health or Safety Requirement of Law that

could have a Material Adverse Effect on the operations of the Borrower or such

Loan Party; or (vii) any proposed acquisition of stock, assets, real

estate or leasing of property, or any other action by the Borrower or such Loan

Party that could subject the Borrower or such Loan Party to Environmental,

Health or Safety Liabilities and Costs that could have a Material Adverse

Effect.  For purposes of

clauses (i), (ii) and (iii), written notice shall include other

non-written communications given to an agent or employee of the Borrower or

such Loan Party with direct or indirect supervisory responsibility with respect

to the activity, if any, which is the subject of such communication, if such

activity could have a Material Adverse Effect. 

With respect to clauses (i) through (vii) above, such notice shall

be required only if (A) the liability or potential liability, or with

respect to clause (vi), the cost or potential cost of compliance, which is

 

58

 

the subject matter of the

notice is likely to exceed $35,000,000, or if (B) such liability or

potential liability or cost of compliance when added to other liabilities of

the Borrower and its Subsidiaries of the kind referred to in clauses (i)

through (vii) above is likely to exceed $75,000,000.

 

7.08         FDA Notices.  The Borrower shall provide to the

Administrative Agent (to the extent not otherwise required to be provided

pursuant to Section 7.05):

 

(a)           promptly after the same become

available to the Borrower, with respect to each manufacturing facility of the

Borrower or its Subsidiaries, all warning letters alleging violations of FDA

regulatory requirements at such manufacturing facility that would be required

to be publicly disclosed by the Borrower in a filing with the Commission as

determined by the Borrower;

 

(b)           promptly after the same become

available to the Borrower, with respect to each manufacturing facility of the

Borrower or its Subsidiaries, all inspectional observations recorded on a Form

FD 483 and issued by the FDA at the conclusion of any FDA inspections of such

facility (other than pre-approval inspections and post-approval inspections)

that would be required to be publicly disclosed by the Borrower in a filing

with the Commission as determined by the Borrower; and

 

(c)           all written responses to the FDA by

or on behalf of the Borrower or its Subsidiaries concerning alleged violations

of FDA regulatory requirements contained in warning letters or Form FD 483s

referred to in subsections (a) or (b) of this Section 7.08.

 

7.09         Labor Matters.  The Borrower shall notify the Administrative

Agent in writing, promptly, but in any event within ten (10) days after

learning thereof, of (i) any material labor dispute to which any Loan

Party may become a party, any strikes, lockouts or other disputes relating to

any Loan Party’s plants and other facilities and (ii) any material

liability incurred with respect to the closing of any plant or other facility

of any Loan Party.

 

7.10         Other

Information.  Promptly upon

receiving a request therefor from the Administrative Agent or the Requisite

Lenders, the Borrower and its Subsidiaries shall prepare and deliver to the

Administrative Agent such other information with respect to any Loan Party as

from time to time may be reasonably requested by the Administrative Agent or

the Requisite Lenders.

 

ARTICLE VIII

 

AFFIRMATIVE COVENANTS

 

The Borrower

covenants and agrees so long as any Revolving Loan Commitment is outstanding

and thereafter until payment in full of the Obligations:

 

8.01         Existence, etc.  Each Loan Party shall at all times maintain

its existence and preserve and keep, or cause to be preserved and kept, in full

force and effect its rights and franchises material to its businesses except

where the loss or termination of such rights and

 

59

 

franchises does not have or is

not likely, individually or in the aggregate, to have a Material Adverse

Effect.

 

8.02         Powers;

Conduct of Business.  Each Loan

Party shall qualify and remain qualified to do business in each jurisdiction in

which the nature of its business requires it to be so qualified except for

those jurisdictions where failure to so qualify does not have or is not

reasonably likely to have, individually or in the aggregate, a Material Adverse

Effect.

 

8.03         Compliance

with Laws, etc.  Each Loan Party

shall (i) comply with all Requirements of Law and all restrictive

covenants affecting such Person or the business, property, assets or operations

of such Person and (ii) obtain as needed all Permits necessary for its

operations and maintain such Permits in good standing except in the case where

noncompliance with either clause (i) or (ii) above does not have or is not

reasonably likely to have, individually or in the aggregate, a Material Adverse

Effect.

 

8.04         Payment

of Taxes and Claims.  Each Loan

Party shall pay (i) all taxes, assessments and other governmental charges

imposed upon it or on any of its properties or assets or in respect of any of

its franchises, business, income or property before any penalty or interest

accrues thereon, the failure to make payment of which will have or is

reasonably likely to have, individually or in the aggregate, a Material Adverse

Effect, and (ii) all claims (including, without limitation, claims for

labor, services, materials and supplies) for sums which have become due and

payable prior to the same becoming subject to a Lien upon any of such Person’s

properties or assets and prior to the time when any penalty or fine shall be

incurred with respect thereto, the failure to make payment of which will have

or is reasonably likely to have, individually or in the aggregate, a Material

Adverse Effect; provided, however, that no such taxes,

assessments and governmental charges referred to in clause (i) above or claims

referred to in clause (ii) above need be paid if being contested in good

faith by appropriate proceedings promptly instituted and diligently conducted

and if adequate reserves shall have been set aside therefor in accordance with

GAAP.

 

8.05         Insurance.  Each Loan Party shall maintain, with

financially sound and reputable insurers, insurance in such amounts and against

such liabilities and hazards as customarily is maintained by other companies

operating similar businesses.

 

8.06         Inspection of Property; Books and

Records; Discussions.  Each Loan

Party shall permit any authorized representative(s) designated by the

Administrative Agent to visit and inspect any of the assets of such Loan Party,

to examine, audit, check and make copies of its financial and accounting

records, books, journals, orders, receipts and any correspondence and other

data relating to its businesses or the transactions contemplated by the Loan

Documents (including, without limitation, in connection with environmental

compliance, hazard or liability), to discuss such Person’s affairs, finances

and accounts with its officers and, in the presence of an officer of such Loan

Party, independent certified public accountants, all upon reasonable notice and

at such reasonable times during normal business hours, once each fiscal year; provided,

however, that upon the occurrence and during the continuance of an Event

of Default each Loan Party shall permit any authorized representative(s)

designated by the Administrative Agent or any Lender to do all of the foregoing

without notice, at any time and as often as the Administrative Agent or any

Lender may request.  Each such

visitation and inspection (i) by or

 

60

 

on behalf of any Lender shall

be at such Lender’s expense and (ii) by or on behalf of the Administrative

Agent shall be at the Borrower’s expense. 

Each Loan Party shall keep and maintain in all material respects proper

books of record and account in which entries in conformity with GAAP subject to

normal year-end audit adjustments and the absence of complete footnote

disclosure shall be made of all dealings and transactions in relation to its

businesses and activities.

 

8.07         ERISA

Compliance.  The Borrower shall,

and shall cause to the best of its ability, each ERISA Affiliate to, establish,

maintain and operate all Plans to comply in all material respects with the

provisions of ERISA, the Code, all other applicable laws, and the regulations

and interpretations thereunder and the respective requirements of the governing

documents for such Plans except where the failure to do so will not have or is

not reasonably likely to have a Material Adverse Effect.

 

8.08         Maintenance

of Property.  Each Loan Party

shall maintain in all material respects its owned and leased property in good

condition and repair (ordinary wear and tear excepted) and in accordance with

any applicable manufacturers’ specifications and recommendations, and not

permit, commit or suffer any waste (except in the ordinary course of business)

or abandonment of any such property and from time to time shall make or cause

to be made all repairs, renewal and replacements thereof, except where the

failure to make such repairs, renewals and replacements would not have or is

not reasonably likely to have, individually or in the aggregate, a Material

Adverse Effect; provided, however, that such property may be

altered, renovated or discarded in the ordinary course of business.

 

8.09         Maintenance of Licenses, Permits, etc.  Each Loan Party shall maintain in full force

and effect all licenses, permits, governmental approvals, franchises,

authorizations or other rights necessary for the operation of its business,

except where the failure to obtain any of the foregoing would not have or is

not reasonably likely to have, individually or in the aggregate, a Material

Adverse Effect; and notify the Administrative Agent in writing, promptly after

learning thereof, of the suspension, cancellation, revocation or discontinuance

of or of any pending or overtly threatened action or proceeding seeking to

suspend, cancel, revoke or discontinue any such license, permit, governmental

approval, franchise authorization or right where such action will have or is

reasonably likely to have a Material Adverse Effect.

 

8.10         Loan Party.  On or prior to April 15 of each year, the

Borrower will cause each Subsidiary (other than a Loan Party) that accounts for

at least 5% of the Borrower’s EBITDA on a consolidated basis, as determined at

the end of the immediately preceding Fiscal Year, and upon the acquisition of a

Person that accounts for at least 5% of the Borrower’s EBITDA on a Pro Forma

Basis, the Borrower will cause such acquired Person, to execute and deliver

to the Administrative Agent a Guaranty and an Acknowledgment of New Loan Party

and otherwise to become a Loan Party hereunder.  Additionally, within 10 Business Days after any Subsidiary of the

Borrower becomes a guarantor of the 1998 Senior Notes or the Convertible

Contingent Senior Debentures, the Borrower will cause such Subsidiary to

execute and deliver to the Administrative Agent a Guaranty and an

Acknowledgment of New Loan Party and otherwise to become a Loan Party

hereunder; provided that if any Subsidiary that has executed and

delivered a Guaranty and has become a Loan Party solely because of the

requirements of this sentence and not because of the first sentence of this

Section (including any Subsidiary that executed a

 

61

 

Guaranty and became a Loan

Party as of the Closing Date and that, as of the Closing Date, would not have

been required to become a Guarantor pursuant to the first sentence of this

Section) is thereafter released from its guaranty of the 1998 Senior Notes or

the Convertible Contingent Senior Debentures, then such Subsidiary shall

thereupon automatically be released from its Guaranty and the Contribution

Agreement and shall no longer be a Loan Party hereunder.

 

ARTICLE IX

 

NEGATIVE COVENANTS

 

The Borrower

covenants and agrees so long as any Revolving Loan Commitment is outstanding

and thereafter until payment in full of the Obligations:

 

9.01         Indebtedness.  The Loan Parties shall not, directly or

indirectly, create, incur, assume or otherwise become or remain liable with

respect to any Indebtedness, except:

 

(i)            the

Obligations;

 

(ii)           trade

payables in the ordinary course of business;

 

(iii)          Permitted

Existing Indebtedness;

 

(iv)          to

the extent permitted by Section 9.13, obligations under Capital

Leases and purchase money Indebtedness incurred by the Loan Parties to finance

the acquisition of Property if, when added to all other obligations and

Indebtedness created, incurred or assumed under this clause (iv), the

aggregate amount of such obligations and Indebtedness does not exceed 15% of

Net Worth at such time;

 

(v)           Indebtedness

(including Accommodation Obligations) owing by a Loan Party to the Borrower or

any Subsidiary;

 

(vi)          Accommodation

Obligations that are permitted under Section 9.05;

 

(vii)         Interest

Rate Contracts with respect to the Loans;

 

(viii)        other

unsecured Indebtedness incurred in an aggregate principal amount not to exceed

$100,000,000 outstanding at any time;

 

(ix)           foreign

exchange contracts entered into for the purpose of hedging foreign exchange

risk;

 

(x)            Attributable

Debt if, when added to all other Attributable Debt created, incurred or assumed

under this clause (x), the aggregate amount outstanding does not exceed

15% of Net Worth;

 

62

 

(xi)           Indebtedness

in a currency other than Dollars incurred by a Loan Party that has operations

outside of the United States, provided that the aggregate amount of such

Indebtedness does not exceed $20,000,000 at any time;

 

(xii)          Indebtedness

of any Person existing immediately prior to its being consolidated with or

merged into the Borrower or a Subsidiary or its becoming a Subsidiary; provided

that such Indebtedness shall not have been created or assumed in contemplation

of such consolidation or merger or such Person’s becoming a Subsidiary; and provided

further that immediately after any such Indebtedness is acquired or

assumed under this clause (xii), the aggregate principal amount of all

Indebtedness acquired or assumed under this clause (xii) does not exceed

15% of Net Worth at such time; and

 

(xiii)         refinancings,

extensions or other modifications of any of the items of Indebtedness described

in clauses (iii), (iv), (v), (vi), (viii), (x) or (xii) above, provided

that the principal amount thereof outstanding at such time is not increased and

that the terms of such refinancing, extensions or modifications are not

materially adverse to the Lenders.

 

9.02         Sales of

Assets.  The Loan Parties shall

not, directly or indirectly, sell, assign, transfer, lease, convey or otherwise

dispose of any assets, whether now owned or hereafter acquired, or enter into

any agreement to do so, except:

 

(i)            sales

of inventory in the ordinary course of business;

 

(ii)           the

disposition of Property if such Property is obsolete or no longer used in or

useful in the ordinary course of such Loan Party’s business;

 

(iii)          leases,

subleases, licenses and sublicenses of Property to other persons in the

ordinary course of business;

 

(iv)          the

transactions set forth in Section 9.02(iv) of the Disclosure Letter;

 

(v)           the

sale of Property provided that (A) the value of such Property does

not exceed 15% of Net Worth at the time of such sale and (B) when added to

all other Property sold, assigned, transferred, leased, conveyed or otherwise

disposed of under this clause (v), the aggregate amount does not exceed

20% of Net Worth during any twelve-month period;

 

(vi)          the

transactions set forth in Section 9.02(vi) of the Disclosure Letter;

 

(vii)         any

sale of assets required by a Governmental Authority in connection with the

acquisition of other assets;

 

(viii)        the

sale or transfer of Property pursuant to a transaction permitted under Section 9.10;

and

 

(ix)           other

sales of assets with an aggregate market value not in excess of $20,000,000 in

any Fiscal Year;

 

63

 

provided

that, notwithstanding clauses (i) through (viii) above, in no instance

shall any Loan Party, directly or indirectly, sell, assign, transfer, lease,

convey or otherwise dispose of any accounts receivable of such Loan Party,

except for assignments in the ordinary course of business of past due accounts

receivable for collection and except as may be required under clause (vii)

above.

 

9.03         Liens.  The Loan Parties shall not, directly or

indirectly, create, incur, assume or permit to exist any Lien on or with

respect to their Property, except:

 

(i)            Permitted

Existing Liens;

 

(ii)           Customary

Permitted Liens;

 

(iii)          Liens

securing Indebtedness permitted under Section 9.01(iv), provided

that the Lien extends only to the property subject to such Capital Leases or

the acquired Property, Liens securing Indebtedness under Section 9.01(xi),

provided that the Lien extends to Property outside the United States,

and Liens in favor of a Loan Party securing Indebtedness under Section 9.01(v);

 

(iv)          leases

or subleases and licenses or sublicenses granted to others, in each case

incidental to, and not interfering with, the ordinary conduct of the business

of the Borrower and its Subsidiaries;

 

(v)           rights

of setoff and similar arrangements and Liens in favor of depository

institutions and securities intermediaries to secure customary fees and similar

amounts related to bank accounts or securities accounts;

 

(vi)          any

Lien existing on Property of a Person immediately prior to its being

consolidated with or merged into the Borrower or a Subsidiary or its becoming a

Subsidiary, or any Lien existing on Property acquired by the Borrower or any

Subsidiary at the time such Property is so acquired (whether or not the

Indebtedness secured thereby shall have been assumed); provided that

(A) no such Lien shall have been created or assumed in contemplation of

such consolidation or merger or such Person’s becoming a Subsidiary or such

acquisition of Property and (B) each such Lien shall extend solely to the

item or items of Property so acquired and, if required by the terms of the

instrument originally creating such Lien, other property which is an

improvement to or is acquired for specific use in connection with such

Property;

 

(vii)         Liens

not otherwise permitted by the other clauses of this Section 9.03

securing Indebtedness at any time outstanding in an aggregate amount not to

exceed 15% of Net Worth;

 

(viii)        attachment

and judgment Liens that do not constitute an Event of Default pursuant to Section 11.01(h);

and

 

(ix)           any

Lien renewing, extending or refunding any Lien permitted by clauses (i)

through (vii), provided that such Lien is not extended to any other

Property.

 

64

 

9.04         Investments.  The Loan Parties shall not, directly or

indirectly, make any Investment (other than Investments made in the ordinary

course of business) if, immediately before and after giving effect to such

Investment, an Event of Default shall have occurred and be continuing.

 

9.05         Accommodation

Obligations.  The Loan Parties

shall not, directly or indirectly, create or become or be liable with respect

to any Accommodation Obligation, except:

 

(i)            recourse

obligations resulting from endorsement of negotiable instruments for collection

in the ordinary course of business;

 

(ii)           the

Guaranties and guaranties of the 1998 Senior Notes and the Convertible

Contingent Senior Debentures;

 

(iii)          Accommodation

Obligations in respect of obligations of customers and suppliers in an

aggregate amount not to exceed $50,000,000 at any time;

 

(iv)          Accommodation

Obligations in Strategic Partners, provided that the aggregate amount of

all such Accommodation Obligations made, created or assumed under this

clause (iv) does not exceed 10% of Net Worth;

 

(v)           Accommodation

Obligations in respect of Indebtedness owing by a Loan Party to the Borrower or

any Subsidiary;

 

(vi)          Accommodation

Obligations in respect of Indebtedness owing by Subsidiaries that are not Loan

Parties in an aggregate amount not to exceed 5% of Net Worth;

 

(vii)         Accommodation

Obligations in the ordinary course of business with respect to the loans of

officers, directors and employees of a Loan Party in an aggregate amount not to

exceed $15,000,000 at any time; and

 

(viii)        Accommodation

Obligations with respect to Indebtedness of Loan Parties otherwise permitted

under Section 9.01.

 

9.06         Restricted

Payments.  The Loan Parties

shall not, directly or indirectly, (a) declare or make any Restricted

Junior Payments, except that any Loan Party may make dividends and other

distributions to the Borrower or another Loan Party, and except that the

Borrower may, so long as (i) no Event of Default has occurred and is

continuing and (ii) on a Pro Forma Basis immediately after giving effect

to such Restricted Junior Payment the Leverage Ratio would not exceed 2.25 to

1.0, make other Restricted Junior Payments in an aggregate amount from and

after August 5, 2002 not to exceed $125,000,000, or (b) declare or make

any Restricted Senior Payments, except that the Borrower may, so long as

(i) no Event of Default has occurred and is continuing and (ii) on a

Pro Forma Basis immediately after giving effect to such Restricted Senior

Payment the Leverage Ratio would not exceed 2.25 to 1.0, make Restricted Senior

Payments in an aggregate amount from and after the Closing Date not to exceed

$170,000,000.

 

65

 

9.07         Change

in Nature of Business.  The Loan

Parties shall not make any material change in the nature or conduct of their

Business in general.

 

9.08         Transactions

with Affiliates.  None of the

Loan Parties shall, directly or indirectly, enter into or permit to exist any

transaction with any Affiliate of such Loan Party except for

(i) transactions in existence as of the date hereof and described in

Section 9.08 of the Disclosure Letter, (ii) transactions between or

among the Loan Parties, (iii) transactions the terms of which are not less

favorable to such Loan Party than those that might be obtained in an arm’s

length transaction at the time from a Person who is not an Affiliate, and

(iv) reimbursement for reasonable salaries, bonuses and other compensation

paid to officers, directors and managers of such Loan Party commensurate with

salary, bonus and compensation levels of other companies engaged in a similar

business in similar circumstances.

 

9.09         Restriction on Fundamental Changes.  No Loan Party shall merge into or

consolidate with any other Person, or permit any other Person to merge into it,

or liquidate, wind-up or dissolve (or suffer any liquidation or dissolution),

or convey, lease, sell, transfer or otherwise dispose of, in one transaction or

series of transactions, all or substantially all of its business or assets,

whether now or hereafter acquired except that:

 

(i)            Any

Loan Party may merge or consolidate into, or liquidate or dissolve into, the

Borrower, provided that the Borrower is the surviving entity;

 

(ii)           Other

than with respect to the Borrower, any Loan Party may merge or consolidate

into, or liquidate or dissolve into, any other Loan Party; and

 

(iii)          Any

Person may merge or consolidate into a Loan Party, or a Loan Party may merge or

consolidate into any Person, provided that (A) such Person is an

entity organized and existing under the laws of a State in the United States;

(B) the Loan Party is the surviving entity and if the Loan Party is not

the Borrower such Loan Party is a Wholly-Owned Subsidiary of the Borrower; and

(C) no Default or Event of Default has occurred or will occur prior to and

after giving effect to such merger or consolidation.

 

9.10         Sales and

Leasebacks.  No Loan Party shall

become liable, by assumption or by Accommodation Obligation, with respect to

any lease of any property (whether real or personal or mixed) (i) which

such Loan Party has sold or transferred or will sell or transfer to any other

Person or (ii) which such Loan Party intends to use for substantially the

same purposes as any other asset which it has sold or transferred or will sell

or transfer to any other Person in connection with such lease (a “Sale and

Leaseback Transaction”); provided that a Loan Party may enter into a

Sale and Leaseback Transaction if the gross cash proceeds of such Sale and

Leaseback Transaction are at least equal to the fair market value (as

determined in good faith by the Board of Directors of such Loan Party) of the

Property that is the subject of such Sale and Leaseback Transaction and such

Loan Party is not in violation of Section 9.01(x) after giving

effect thereto.

 

9.11         Margin

Regulations.  No Loan Party

shall use all or any portion of the proceeds of any Loan made under this

Agreement (i) to purchase or carry any Margin Stock or (ii) in

violation of Regulation U.

 

66

 

9.12         ERISA.  The Borrower shall not, nor shall it permit

any ERISA Affiliate to, do any of the following to the extent the same will

have or is reasonably likely to have a Material Adverse Effect:

 

(i)            engage,

or knowingly permit any ERISA Affiliate to engage, in any prohibited

transaction described in Sections 406 of ERISA or 4975 of the Code for which a

class exemption is not available or a private exemption has not been previously

obtained from the DOL;

 

(ii)           permit

to exist any accumulated funding deficiency (as defined in Sections 302 of

ERISA or 412 of the Code), with respect to any Benefit Plan, which has not been

waived;

 

(iii)          fail,

or permit any ERISA Affiliate to fail, to pay timely required contributions or

annual installments due with respect to any waived funding deficiency to any

Plan;

 

(iv)          terminate,

or permit any ERISA Affiliate to terminate, any Benefit Plan which would result

in any liability of the Borrower, or any ERISA Affiliate under Title IV of

ERISA or under such Benefit Plan; or

 

(v)           fail,

or permit any ERISA Affiliate to fail, to pay any required installment under

section (m) of Section 412 of the Code or any other payment required under

Section 412 of the Code or Section 302 of ERISA on or before the due date for

such installment or other payment.

 

9.13         Capital

Expenditures.  The Loan Parties

shall not make or incur any Capital Expenditures in any Fiscal Year if, after

giving effect to such Capital Expenditures, the aggregate amount of all Capital

Expenditures made by the Loan Parties during such Fiscal Year would exceed the

amount set forth below for such Fiscal Year:

 

	

  Fiscal Year Ending

  	

   

  	

  Maximum Amount

  	

   

  
	

  December 31, 2003

  	

   

  	

  $

  	

  130,000,000

  	

   

  
	

  December 31, 2004

  	

   

  	

  $

  	

  140,000,000

  	

   

  
	

  December 31, 2005

  	

   

  	

  $

  	

  150,000,000

  	

   

  
	

  December 31, 2006

  	

   

  	

  $

  	

  150,000,000

  	

   

  
	

  December 31, 2007

  	

   

  	

  $

  	

  150,000,000

  	

   

  
	

  December 31,

  2008

  	

   

  	

  $

  	

  150,000,000

  	

   

  

 

provided,

however, that for each of the Fiscal Years ending December 31, 2003,

2004 and 2005, the Borrower may incur up to $30,000,000 in Capital Expenditures

above the maximum amount prescribed in this Section 9.13, with such

additional Capital Expenditures reducing the maximum amount of Capital

Expenditures permitted hereunder in the subsequent Fiscal Year on a

dollar-for-dollar basis.

 

67

 

9.14         Amendment

of Governing Documents.  No Loan

Party shall amend, supplement or otherwise change its Governing Documents in

any respect that is materially detrimental to the Lenders.

 

9.15         Environmental

Liabilities.  Except as

disclosed in Section 6.01(O) of the Disclosure Letter, no Loan Party shall

become legally obligated, whether by settlement, stipulation, nonappealable

judgment, nonappealable conclusion of an administrative proceeding, or statute,

for any Liabilities and Costs which exceed $35,000,000 in a particular instance

or $75,000,000 in the aggregate, arising out of or relating to (i) the

Release or threatened Release at any location of any Contaminant into the

environment, or any Remedial Action in response thereto or (ii) any

violation of any Environmental, Health or Safety Requirement of Law.

 

ARTICLE X

 

FINANCIAL COVENANTS

 

The Borrower

covenants and agrees so long as any Revolving Loan Commitment is outstanding

and thereafter until payment in full of the Obligations:

 

10.01       Minimum Net

Worth.  The Net Worth of the

Borrower and its Subsidiaries on a consolidated basis at the last day of each

fiscal quarter of each Fiscal Year shall not be less than the sum of

(i) $1,438,627,000 plus (ii) an amount equal to the sum of 50% of Net

Income for each fiscal quarter ending after December 31, 2002 (provided

that Net Income for any such fiscal quarter shall be taken into account for

purposes of this calculation only if positive).

 

10.02       Minimum

Interest Coverage Ratio.  The

Interest Coverage Ratio of the Borrower and its Subsidiaries on a consolidated

basis at the last day of each fiscal quarter of each Fiscal Year shall not be

less than 7.0 to 1.0.

 

10.03       Maximum

Leverage Ratio.  The Leverage

Ratio of the Borrower and its Subsidiaries on a consolidated basis at the last

day of each fiscal quarter of each Fiscal Year shall not be greater than 2.25

to 1.0.

 

ARTICLE XI

 

EVENTS OF DEFAULT; RIGHTS AND

REMEDIES

 

11.01       Events of

Default.  Each of the following

occurrences shall constitute an Event of Default under this Agreement:

 

(a)           Failure to Make Payments When Due.  The Borrower shall fail to pay any principal

of any Note when due, shall fail to pay any interest on any Note within three

(3) Business Days after such interest shall have become due, or shall fail to

pay any other Obligation within five (5) Business Days after such Obligation

shall have become due.

 

(b)           Breach of Representation or

Warranty.  Any representation or

warranty made or deemed to have been made by any Loan Party under this

Agreement, the Notes, any of the other

 

68

 

Loan Documents or any

certificate or statement furnished by any Loan Party pursuant to this Agreement

shall be false in any material respect when made.

 

(c)           Breach of Certain Covenants.  Any Loan Party shall fail duly and

punctually to perform or observe any agreement, covenant or obligation binding

on such Loan Party under Section 7.04, Section 8.01, Article IX

or Article X of this Agreement.

 

(d)           Other Defaults.  Any Loan Party shall fail duly and punctually

to perform or observe any term, covenant or obligation binding on such Loan

Party (i) under Section 7.01 or Section 7.08 of

this Agreement and such failure shall continue unremedied for ten (10) Business

Days after the occurrence of such failure or (ii) under this Agreement

(other than as described in Sections 11.01(a), (c) or (d)(i)),

and such failure shall continue unremedied for thirty (30) days after any

senior officer of any Loan Party knew, or, in the exercise of due care, should

have known, of such failure (or such lesser period of time as is mandated by

applicable Requirements of Law).

 

(e)           Default as to Other Indebtedness.  Any Loan Party shall fail to make any

payment when due (whether by scheduled maturity, required prepayment,

acceleration, demand or otherwise, and after giving effect to applicable grace

periods) with respect to any Indebtedness (other than an Obligation) if the

aggregate principal amount of such other Indebtedness is $35,000,000 or more;

or any breach, default or event of default shall occur, or any other condition

shall exist under any instrument, agreement or indenture pertaining to any such

Indebtedness, if the effect thereof (with or without the giving of notice or

lapse of time or both) is to cause an acceleration, mandatory redemption or

other required repurchase of such Indebtedness or permit the holder or holders

of such Indebtedness to accelerate the maturity of any such Indebtedness or

require a redemption or other repurchase of such Indebtedness; or any such

Indebtedness shall be otherwise declared to be due and payable (by acceleration

or otherwise) or required to be prepaid, redeemed or otherwise repurchased by

any Loan Party (other than by a regularly scheduled required prepayment) prior

to the stated maturity thereof; or the holder or holders of any Lien, securing

obligations of $25,000,000 or more, shall commence foreclosure of such Lien

upon property of any Loan Party; provided that, notwithstanding anything

to the contrary contained herein, this Section 11.01(e) shall not

apply to any secured Indebtedness that becomes due as a result of the voluntary

sale or transfer of the property or assets securing such Indebtedness, but provided

further that such secured Indebtedness is paid when due.

 

(f)            Involuntary Bankruptcy;

Appointment of Receiver, etc.

 

(i)            An

involuntary case shall be commenced against any Loan Party and the petition

shall not be dismissed, stayed, bonded or discharged within sixty (60) days; or

a court having jurisdiction in the premises shall enter a decree or order for

relief in respect of any Loan Party in an involuntary case, under any

applicable bankruptcy, insolvency or other similar law now or hereinafter in

effect; or any other similar relief shall be granted under any applicable

federal, state, local or foreign law; or the Board of Directors of any Loan

Party (or any committee thereof) adopts any resolution or otherwise authorizes

any action to approve any of the foregoing.

 

69

 

(ii)           A

decree or order of a court having jurisdiction in the premises for the

appointment of a receiver, liquidator, sequestrator, trustee, custodian or

other officer having similar powers over any Loan Party or over all or a

substantial part of the assets of any Loan Party shall be entered; or an

interim receiver, trustee or other custodian of any Loan Party or of all or a

substantial part of the assets of any Loan Party shall be appointed or a

warrant of attachment, execution or similar process against any substantial part

of the assets of any Loan Party shall be issued and any such event shall not be

stayed, dismissed, bonded or discharged within sixty (60) days; or the Board of

Directors of any Loan Party (or any committee thereof) adopts any resolution or

otherwise authorizes any action to approve any of the foregoing.

 

(g)           Voluntary Bankruptcy; Appointment

of Receiver, etc.  Any Loan Party

shall commence a voluntary case under any applicable bankruptcy, insolvency or

other similar law now or hereafter in effect, or shall consent to the entry of

an order for relief in an involuntary case, or to the conversion of an

involuntary case to a voluntary case, under any such law, or shall consent to

the appointment of or taking possession by a receiver, trustee or other

custodian for all or a substantial part of its assets; or any Loan Party shall

make any assignment for the benefit of creditors or shall be unable or fail, or

shall admit in writing its inability, to pay its debts as such debts become

due; or the Board of Directors of any Loan Party (or any committee thereof)

adopts any resolution or otherwise authorizes any action to approve any of the

foregoing.

 

(h)           Judgments and Attachments.  Any money judgment (other than a money

judgment (x) covered by insurance as to which the insurance company has

acknowledged coverage or (y) for which a Loan Party has a binding right

(acknowledged by the indemnitor) to be indemnified by an indemnitor having a

rating for any class of its non-credit enhanced long-term senior unsecured debt

of not less than “BBB-” from S&P or “Baa3” from Moody’s or any of the

indemnitors identified on Section 11.01(H) of the Disclosure Letter), writ

or warrant of attachment, or similar process against any Loan Party or any

assets of any Loan Party involving in any case an amount in excess of

$35,000,000 is entered and shall remain undischarged, unvacated, unbonded or

unstayed for a period of thirty (30) days.

 

(i)            Dissolution.  Any order, judgment or decree shall be

entered against any Loan Party decreeing its involuntary dissolution or split

up and such order shall remain undischarged and unstayed for a period of sixty

(60) days.

 

(j)            Certain Loan Documents.  At any time, for any reason, this Agreement,

any Note, the Contribution Agreement or any Guaranty ceases to be in full force

and effect or any Loan Party seeks to repudiate its obligations hereunder or

thereunder.

 

(k)           ERISA Liabilities.  Any Termination Event occurs which will or

is reasonably likely to subject either the Borrower or an ERISA Affiliate to a

liability which will, or is reasonably likely to have, a Material Adverse

Effect.

 

(l)            Waiver Application.  The plan administrator of any Benefit Plan

applies under Section 412(d) of the Code for a waiver of the minimum funding

standards of Section 412(a) of the Code and the Administrative Agent reasonably

believes that the substantial business hardship

 

70

 

upon which the application for

the waiver is based could subject either the Borrower or any ERISA Affiliate to

liability which will or is reasonably likely to have a Material Adverse Effect.

 

(m)          Change of Control.  A Change of Control shall have occurred.

 

An Event of Default shall be

deemed “continuing” until cured or waived in writing in accordance with Section 13.09.

 

11.02       Rights and

Remedies.  Upon the occurrence

of any Event of Default described in Section 11.01(f) or 11.01(g),

the Revolving Loan Commitments shall automatically and immediately terminate

and the unpaid principal amount of, and any and all accrued interest on, the

Obligations and all accrued fees shall automatically become immediately due and

payable, without presentment, demand, or protest or other requirements of any

kind (including, without limitation, valuation and appraisement, diligence,

presentment, notice of intent to demand or accelerate and of acceleration), all

of which are hereby expressly waived by the Borrower, and the obligations of

the Lenders to make Loans hereunder shall thereupon terminate; and upon the

occurrence and during the continuance of any other Event of Default, the

Administrative Agent shall, at the request, or may with the consent, of the

Requisite Lenders, declare (i) that the Revolving Loan Commitments are

terminated, whereupon the Revolving Loan Commitments shall immediately

terminate, and/or (ii) the unpaid principal amount of, and any and all

accrued interest on, the Obligations and all accrued fees to be, and the same

shall thereupon be, immediately due and payable, without presentment, demand,

or protest or other requirements of any kind (including, without limitation,

valuation and appraisement, diligence, presentment, notice of intent to demand

or accelerate and of acceleration, except as may be specifically provided for

herein), all of which are hereby expressly waived by the Borrower.  Notwithstanding the foregoing, the

provisions of this Section 11.02 shall not apply to Obligations of

any Loan Party under or in connection with any Interest Rate Contract or

foreign exchange contract with any Lender or Affiliate of any Lender, the

rights and remedies with respect to which shall be governed by the terms of

such contracts and applicable law.

 

ARTICLE XII

 

THE ADMINISTRATIVE AGENT

 

12.01       Appointment.

 

(a)           Each Lender hereby designates and

appoints Wachovia as the Administrative Agent of such Lender under this

Agreement, and each Lender hereby irrevocably authorizes the Administrative

Agent to take such action on its behalf under the provisions of this Agreement,

the Notes and the Loan Documents and to exercise such powers as are set forth

herein or therein together with such other powers as are reasonably incidental

thereto.  As to any matters not

expressly provided for by this Agreement or the other Loan Documents, the

Administrative Agent shall not be required to exercise any discretion or take

any action.  Notwithstanding the

foregoing, the Administrative Agent shall be required to act or refrain from

acting (and shall be fully protected in so acting or refraining from acting)

upon the instructions of the Requisite Lenders (unless the instructions or

consent of all of the Lenders is required hereunder or thereunder) and such

instructions shall be binding upon all Lenders; provided, however,

the 

 

71

 

Administrative Agent shall not

be required to take any action which (i) the Administrative Agent believes

will expose it to personal liability unless the Administrative Agent receives

an indemnification satisfactory to it from the Lenders with respect to such

action or (ii) is contrary to this Agreement, the Notes, the other Loan

Documents or applicable law.  The

Administrative Agent agrees to act as such on the express conditions contained

in this Article XII.

 

(b)           The provisions of this Article XII

are solely for the benefit of the Administrative Agent and the Lenders, and

none of the Loan Parties shall have any rights to rely on or enforce any of the

provisions hereof (other than as expressly set forth in Section 12.07).  In performing its functions and duties under

this Agreement, the Administrative Agent shall act solely as agent of the

Lenders and does not assume and shall not be deemed to have assumed any

obligation or relationship of agency, trustee or fiduciary with or for any Loan

Party.  The Administrative Agent may

perform any of its duties hereunder, or under the Loan Documents, by or through

its agents or employees.

 

12.02       Nature of

Duties.  The Administrative

Agent shall not have any duties or responsibilities except those expressly set

forth in this Agreement or in the Loan Documents.  The duties of the Administrative Agent shall be mechanical and

administrative in nature.  The

Administrative Agent shall not have by reason of this Agreement a fiduciary

relationship in respect of any Holder. 

Nothing in this Agreement or any of the Loan Documents, expressed or

implied, is intended to or shall be construed to impose upon the Administrative

Agent any obligations in respect of this Agreement or any of the Loan Documents

except as expressly set forth herein or therein.  Each Lender shall make its own independent investigation of the

financial condition and affairs of the Borrower and the other Loan Parties in

connection with the Loans hereunder and shall make its own appraisal of the

credit worthiness of the Borrower and the other Loan Parties initially and on a

continuing basis, and the Administrative Agent shall not have any duty or

responsibility, either initially or on a continuing basis, to provide any

Holder with any credit or other information with respect thereto (except for

reports required to be delivered by the Administrative Agent under the terms of

this Agreement).  If the Administrative

Agent seeks the consent or approval of the Lenders to the taking or refraining

from taking of any action hereunder, the Administrative Agent shall send notice

thereof to each Lender.  The

Administrative Agent shall promptly notify each Lender at any time that the

Lenders so required hereunder have instructed the Administrative Agent to act

or refrain from acting pursuant hereto.

 

12.03       Rights,

Exculpation, etc.

 

(a)           Liabilities; Responsibilities.  None of the Agents, any Affiliate of any

Agent, or any of their respective officers, directors, employees, agents,

attorneys or consultants shall be liable to any Holder for any action taken or

omitted by them hereunder, under the Notes or under any of the Loan Documents,

or in connection therewith, except that no Person shall be relieved of any

liability imposed by law for gross negligence or willful misconduct.  The Administrative Agent shall not be liable

for any apportionment or distribution of payments made by it in good faith, and

if any such apportionment or distribution is subsequently determined to have

been made in error the sole recourse of any Holder to whom payment was due, but

not made, shall be to recover from other Holders any payment in excess of the

amount to which they are determined to have been entitled.  The Administrative Agent shall not be

responsible to any Holder for any recitals, statements, representations or

warranties herein or for the execution, effectiveness,

 

72

 

genuineness, validity,

legality, enforceability, collectibility, or sufficiency of this Agreement, the

Notes or any of the other Loan Documents or the transactions contemplated

thereby, or for the financial condition of the Borrower or any other Loan

Party.  The Administrative Agent is not

making any representation and warranty in connection with, and shall not be

required to make any inquiry concerning, the performance or observance of any

of the terms, provisions or conditions of this Agreement, the Notes or any of

the Loan Documents, or the financial condition of the Borrower or any other

Loan Party, or the existence or possible existence of any Default or Event of

Default.

 

(b)           Right to Request Instructions.  The Administrative Agent may at any time

request instructions from the Lenders (and after all Obligations owing to the

Lenders have been paid in full, from the Holders) with respect to any actions

or approvals which by the terms of any of the Loan Documents the Administrative

Agent is permitted or required to take or to grant, and the Administrative

Agent shall be absolutely entitled to refrain from taking any action or to

withhold any approval and shall not be under any liability whatsoever to any

Person for refraining from any action or withholding any approval under any of

the Loan Documents until it shall have received such instructions from those

Lenders or Holders, as the case may be, from whom the Administrative Agent is

required to obtain such instructions for the pertinent matter in accordance

with the Loan Documents.  Without

limiting the generality of the foregoing, no Holder shall have any right of

action whatsoever against the Administrative Agent as a result of the

Administrative Agent acting or refraining from acting under the Loan Documents

in accordance with the instructions of all Lenders or, where required by the

express terms of this Agreement, a lesser proportion of the Lenders, or of all

Holders (after the Obligations owing to the Lenders have been paid in full).

 

(c)           IntraLinks.  Any information, notice, document or other

communication posted by the Administrative Agent on IntraLinks shall constitute

delivery of such information, notice, document or other communication to each

Lender upon receipt by such Lender of notification from the Administrative

Agent that such information, notice, document or other communication has been

posted.

 

12.04       Reliance.  The Administrative Agent shall be entitled

to rely upon any written notices, statements, certificates, orders or other

documents or any telephone message believed by it in good faith to be genuine

and correct and to have been signed, sent or made by the proper Person, and

with respect to all matters pertaining to this Agreement or any of the Loan

Documents and its duties hereunder or thereunder, upon advice of legal counsel,

independent public accountants and other experts selected by it.

 

12.05       Indemnification.  To the extent that the Administrative Agent

is not reimbursed and indemnified by the Borrower, the Lenders will reimburse

and indemnify the Administrative Agent for and against any and all liabilities,

obligations, losses, damages, penalties, actions, judgments, suits, reasonable

costs, reasonable expenses or disbursements of any kind or nature whatsoever

which may be imposed on, incurred by, or asserted against it in any way

relating to or arising out of the Loan Documents or any action taken or omitted

by the Administrative Agent under the Loan Documents, in proportion to each

Lender’s Pro Rata Share; provided that no Lender shall be liable for any

portion of such liabilities, obligations, losses, damages, penalties, actions,

judgments, suits, costs, expenses or disbursements resulting from the

Administrative

 

73

 

Agent’s gross negligence or

willful misconduct.  The obligations of

the Lenders under this Section 12.04 shall survive the payment in

full of the Loans and all other Obligations and the termination of this

Agreement.  In the event that after

payment and distribution of any amount by the Administrative Agent to Lenders,

any Lender or third party, including the Borrower, any creditor of the Borrower

or a trustee in bankruptcy, recovers from the Administrative Agent any amount

found to have been wrongfully paid to the Administrative Agent or disbursed by

the Administrative Agent to Lenders, then Lenders, in proportion to their

respective Pro Rata Shares, shall reimburse the Administrative Agent for all

such amounts.

 

12.06       The Administrative Agent

Individually.  With respect to

the Loans made by it, Wachovia shall have and may exercise the same rights and

powers hereunder and is subject to the same obligations and liabilities as and

to the extent set forth herein for any other Lender.  The terms “Lenders” or “Requisite Lenders” or any similar terms

shall, unless the context clearly otherwise indicates, include Wachovia in its

individual capacity as a Lender or one of the Requisite Lenders.  Wachovia and its Affiliates may accept

deposits from, lend money to, and generally engage in any kind of banking,

trust or other business with the Borrower, any of its Subsidiaries or any of

its Affiliates as if it were not acting as the Administrative Agent pursuant

hereto.

 

12.07       Successor

Administrative Agents.

 

(a)           Resignation.  The Administrative Agent may resign from the

performance of all its functions and duties hereunder at any time by giving at

least thirty (30) days’ prior written notice to the Borrower and the

Lenders.  Such resignation shall take

effect upon the acceptance by a successor Administrative Agent of appointment

pursuant to this Section 12.07.

 

(b)           Appointment by Requisite Lenders.  Upon any such notice of resignation, the

Requisite Lenders shall have the right to appoint a successor Administrative

Agent selected from among the Lenders, which appointment shall be subject to

the prior written approval of the Borrower (which may not be unreasonably

withheld, and shall not be required upon the occurrence and during the

continuance of an Event of Default).

 

(c)           Appointment by Retiring

Administrative Agent.  If a

successor Administrative Agent shall not have been appointed within the thirty

(30) day period provided in Section 12.07(a), the retiring

Administrative Agent shall then appoint a successor Administrative Agent who

shall serve as the Administrative Agent until such time, if any, as the

Requisite Lenders appoint a successor Administrative Agent as provided above.  Each Lender shall indemnify and hold the

Administrative Agent harmless for and against any and all liabilities,

obligations, losses, damages, penalties, actions, judgments, suits, reasonable

costs, reasonable expenses or disbursements of any kind or nature whatsoever

which may be imposed on, incurred by, or asserted against it in any way

relating to or arising out of the appointment of a successor Administrative

Agent pursuant to the terms of this subsection (c).

 

(d)           Rights of the Successor and Retiring

Administrative Agents.  Upon the

acceptance of any appointment as Administrative Agent hereunder by a successor

Administrative Agent, such successor Administrative Agent shall thereupon

succeed to and become vested with all the rights, powers, privileges and duties

of the retiring Administrative Agent, and the retiring 

 

74

 

Administrative Agent shall be

discharged from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s

resignation hereunder as Administrative Agent, the provisions of this Article XII

shall inure to its benefit as to any actions taken or omitted to be taken by it

while it was the Administrative Agent under this Agreement.

 

12.08       Relations

Among Lenders.  Each Lender

agrees that it will not take any legal action, nor institute any actions or

proceedings, against the Borrower or any other Loan Party without the prior

written consent of the Requisite Lenders. 

Without limiting the generality of the foregoing, no Lender may

accelerate or otherwise enforce its portion of the Obligations, except in

accordance with Section 11.02.

 

12.09       Concerning

the Loan Documents.

 

(a)           Authority.  Each Lender authorizes and directs the

Administrative Agent to enter into any Loan Documents for the benefit of the

Lenders.  Each Lender agrees that any

action taken by the Administrative Agent or all Lenders (or, where required by

the express terms of this Agreement, a lesser proportion of the Lenders) in

accordance with the provisions of this Agreement or the other Loan Documents,

and the exercise by the Administrative Agent or all Lenders (or, where so

required, such lesser proportion) of the powers set forth herein or therein,

together with such other powers as are reasonably incidental thereto, shall be

authorized and binding upon all of the Lenders.  Without limiting the generality of the foregoing, the

Administrative Agent shall have the sole and exclusive right and authority to

(i) act as the disbursing and collecting agent for the Lenders with

respect to all payments and collections arising in connection with this

Agreement and the Loan Documents; (ii) execute and deliver each Loan

Document and accept delivery of each such agreement delivered by any Loan Party

and (iii) except as may be otherwise specifically restricted by the terms

of this Agreement or any other Loan Document, exercise all remedies given to

the Administrative Agent or the Lenders under the Loan Documents, applicable

law or otherwise.

 

(b)           Delivery of Information.  To the extent not separately delivered by

the Borrower, the Administrative Agent agrees to deliver to each Lender (by

IntraLinks in accordance with Section 12.03(c), mail, courier or

fax) the information, notices, statements and other communications delivered in

writing by the Borrower to the Administrative Agent pursuant to Article VII.

 

12.10       Other Agents.  Notwithstanding any other provision of this

Agreement or any of the other Loan Documents, the Syndication Agents and

Documentation Agents in their capacity as such are named as such for

recognition purposes only, and in their capacities as such shall have no

powers, rights, duties, responsibilities or liabilities with respect to this

Agreement and the other Loan Documents and the transactions contemplated hereby

and thereby.

 

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ARTICLE XIII

 

MISCELLANEOUS

 

13.01       Assignments

and Participations.

 

(a)           Assignments.  No assignment or participation of any

Lender’s rights or obligations under this Agreement and the Notes shall be made

except in accordance with this Section 13.01.  Each Lender may assign to one or more

Eligible Assignees all or a portion of its rights and obligations under this

Agreement and the Notes in accordance with the provisions of this Section 13.01.

 

(b)           Limitations on Assignments.  Each assignment shall be subject to the

following conditions: (i) each assignment shall be of a constant, and not

a varying, ratable percentage of all of the assigning Lender’s rights and

obligations in respect of its interest being assigned under this Agreement and

its Note and, in the case of a partial assignment, shall be in a minimum

principal amount of $5,000,000, except that such limitation shall not apply to

(x) an assignment by any Lender of any portion of its rights and

obligations to another Lender or an Affiliate or Approved Fund of any Lender or

(y) an assignment by any Lender of all of its rights or obligations under

this Agreement to an Eligible Assignee, (ii) each such assignment shall be

to an Eligible Assignee, and (iii) the parties to each such assignment

shall execute and deliver to the Administrative Agent, for its acceptance and

recording in the Register, an Assignment and Acceptance, together with a

processing and recordation fee of $3,500; provided, however, any

Lender may assign any or all of its rights and obligations under this Agreement

to any of its Affiliates or to any Approved Fund of such Lender without notice

to or consent of the Borrower or the Administrative Agent and without being

subject to the foregoing conditions. 

Upon such execution, delivery, acceptance and recording in the Register,

from and after the effective date specified in each Assignment and Acceptance

and accepted by the Administrative Agent (which effective date shall not be any

earlier than the date on which the Administrative Agent so accepts and records

the Assignment and Acceptance in the Register), (x) the assignee

thereunder shall, in addition to any rights and obligations hereunder held by

it immediately prior to such effective date, if any, have the rights and

obligations hereunder that have been assigned to it pursuant to such Assignment

and Acceptance and shall, to the fullest extent permitted by law, have the same

rights and benefits hereunder as if it were an original Lender hereunder and

(y) the assigning Lender shall, to the extent that rights and obligations

hereunder have been assigned by it pursuant to such Assignment and Acceptance,

relinquish its rights and be released from its obligations under this Agreement

(and, in the case of an Assignment and Acceptance covering all or the remaining

portion of such assigning Lender’s rights and obligations under this Agreement,

the assigning Lender shall cease to be a party hereto).

 

(c)           The Register.  The Administrative Agent, acting for this

purpose as agent for the Borrower, shall maintain at its address referred to in

Section 13.10 a copy of each Assignment and Acceptance delivered to

and accepted by it and a register (the “Register”) for the recordation

of the names and addresses of the Lenders and the Revolving Loan Commitment of

each Lender from time to time and whether such Lender is an original Lender or

the assignee of another Lender pursuant to an Assignment and Acceptance.  The Administrative Agent shall incur no

liability of any kind to the Borrower, any Loan Party, any Lender or any other

Person with

 

76

 

respect to its maintenance of

the Register or the recordation of information therein.  The Register shall include a control account

and a subsidiary account for each Lender, in which accounts (taken together)

shall be recorded (i) the date and amount of each Borrowing made

hereunder, (ii) the amount of any principal or interest due and payable or

to become due and payable from the Borrower to each Lender hereunder and

(iii) the amount of any sum received by the Administrative Agent from the

Borrower hereunder and each Lender’s share thereof.  The Administrative Agent will render a monthly statement of such

accounts to the Borrower.  Each such

statement shall be deemed final, binding and conclusive upon the Borrower and

the other Loan Parties in all respects as to all matters reflected therein

(absent manifest error) unless the Borrower, within thirty (30) days after the

date such statement is rendered, delivers to the Administrative Agent written

notice of any objections which the Borrower may have to any such

statement.  In that event, only those

items expressly objected to in such notice shall be deemed to be disputed by

the Borrower.  The entries in the

Register shall be final, conclusive and binding upon the Borrower and the other

Loan Parties for all purposes, absent manifest error, and the Borrower, each of

its Subsidiaries and each other Loan Party, the Administrative Agent and the

Lenders shall treat each Person whose name is recorded in the Register as a

Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by the Borrower or

any Lender at any reasonable time and from time to time upon reasonable prior

notice.  No assignment of any Revolving

Loan Commitment, Loan or Note, or any interest therein, shall be effective

unless and until the Assignment and Acceptance has been accepted by the

Administrative Agent and registered in the Register.  This Section 13.01(c) shall be construed so that all

Revolving Loan Commitments, Loans and Notes, and any interest therein, are

maintained at all times in “registered form” within the meaning of sections

163(f), 871(h) and 881(c) of the Code.

 

(d)           Fee.  Upon its receipt of an Assignment and Acceptance executed by the

assigning Lender and an Eligible Assignee and a processing and recordation fee

of $3,500 (payable by the assigning Lender or the assignee, as shall be agreed

between them), the Administrative Agent shall, if such Assignment and

Acceptance has been completed and is in compliance with this Agreement and in

substantially the form of Exhibit A hereto, (i) accept such

Assignment and Acceptance, (ii) record the information contained therein

in the Register and (iii) give prompt notice thereof to the Borrower and

the other Lenders.

 

(e)           Participations.  Each Lender may sell participations to one

or more commercial banks, lending institutions, finance companies, insurance

companies, other financial institutions or funds in or to all or a portion of

its rights and/or obligations under and in respect of any and all facilities

under this Agreement (including, without limitation, all or a portion of any or

all of its Revolving Loan Commitments hereunder and the Loans owing to it); provided,

however, that (i) such Lender’s obligations under this Agreement

(including, without limitation, its Revolving Loan Commitments hereunder) shall

remain unchanged, (ii) such Lender shall remain solely responsible to the

other parties hereto for the performance of such obligations, (iii) the

Borrower, the Administrative Agent and the other Lenders shall continue to deal

solely and directly with such Lender in connection with such Lender’s rights

and obligations under this Agreement and (iv) such participant’s rights to

agree or to restrict such Lender’s ability to agree to the modification, waiver

or release of any of the terms of the Loan Documents, to consent to any action or

failure to act by any party to any of the Loan Documents or any of their

respective Affiliates, or to exercise or refrain from exercising any powers or

rights which any Lender may 

 

77

 

have under or in respect of the

Loan Documents, shall be limited to the right to consent to (A) any

increase in or extension of the Revolving Loan Commitment of the Lender from

whom such participant purchased a participation, (B) the reduction of the

principal of, or rate or amount of interest (other than interest accruing at

the default rate) on, the Loans subject to such participation (other than by

the payment or prepayment thereof), (C) the postponement of any date fixed

for any payment of principal of, or interest on, the Loans subject to such

participation (except with respect to any modifications of the provisions

relating to prepayments of Loans and other Obligations), (D) releasing any

Material Guarantor of its obligations under a Guaranty (other than in

connection with any sale of such Guarantor permitted hereunder, in which case

such release shall be automatic upon such sale) and (E) releasing any

material portion of any collateral securing the Obligations (other than in

connection with any sale of assets or sale of a Subsidiary permitted

hereunder).

 

(f)            Information Regarding the

Borrower.  Any Lender may, in

connection with any assignment or participation or proposed assignment or

participation pursuant to this Section 13.01, disclose to the

assignee or participant or proposed assignee or participant, any information

relating to the Borrower or any Subsidiary of the Borrower or any other Loan

Party furnished to such Lender by the Administrative Agent or by or on behalf

of the Borrower, such Subsidiary or such Loan Party; provided that,

prior to any such disclosure, such assignee or participant, or proposed

assignee or participant, shall agree to preserve in accordance with Section 13.23

the confidentiality of any confidential information described therein.

 

(g)           Payment to Participants.  Anything in this Agreement to the contrary

notwithstanding, in the case of any participation, all amounts payable by the

Borrower under the Loan Documents shall be calculated and made in the manner

and to the parties required hereby as if no such participation had been sold.

 

(h)           Lenders’ Creation of Security

Interests.  Notwithstanding any

other provision set forth in this Agreement, any Lender may at any time create

a security interest in all or any portion of its rights under this Agreement

and its Notes (including, without limitation, Obligations owing to it and the

Notes held by it) in favor of any Federal Reserve Bank of the Federal Reserve

Board without notice to or consent of the Borrower or the Administrative Agent.

 

13.02       Relations

Among Lenders.  Each Lender

agrees that it will not take any action, nor institute any actions or

proceedings, against the Borrower or any other Loan Party with respect to the

Obligations, without the prior written consent of Requisite Lenders.

 

13.03       Replacement

of Lender.  In the event that a

Replacement Event occurs and is continuing with respect to any Lender, the

Borrower may designate a Replacement Lender to assume such Lender’s Revolving

Loan Commitment hereunder, to purchase the Loans and participations of such

Lender and such Lender’s rights hereunder, without recourse to or

representation or warranty by, or expense to, such Lender for a purchase price

equal to the outstanding principal amount of the Loans payable to such Lender

plus any accrued but unpaid interest on such Loans and accrued but unpaid fees

owing to such Lender, and upon such assumption, purchase and substitution, and

subject to the execution and delivery to the Administrative Agent by the

Replacement Lender of documentation satisfactory to the Administrative Agent

(pursuant to which such Replacement Lender shall assume the obligations

 

78

 

of such original Lender under

this Agreement), the Replacement Lender shall succeed to the rights and

obligations of such Lender hereunder and such Lender shall no longer be a party

hereto or have any rights hereunder, provided that the obligations of

the Borrower to such Lender under Section 13.05 hereof with respect

to events occurring or obligations arising before such replacement shall

survive such replacement.

 

13.04       Expenses.

 

(a)           Generally.  The Borrower agrees upon demand to pay, or

reimburse the Administrative Agent for, all of the Administrative Agent’s

reasonable audit, legal, appraisal, valuation, filing, document duplication and

reproduction and investigation expenses and for all other reasonable

out-of-pocket costs and expenses of every type and nature (including, without

limitation, the reasonable fees, expenses and disbursements of legal counsel,

auditors, accountants, appraisers, printers, insurance and environmental

advisers, and other consultants and agents) incurred by the Administrative

Agent in connection with (i) the preparation, negotiation, and execution

of this Agreement and the other Loan Documents; (ii) the interpretation of

this Agreement (including, without limitation, the satisfaction or attempted

satisfaction of any of the conditions set forth in Article V), the

other Loan Documents and the making of the Loans hereunder; (iii) the

ongoing administration of this Agreement and the Loans, including consultation

with attorneys in connection therewith and with respect to the Administrative

Agent’s rights and responsibilities under this Agreement and the other Loan

Documents and the Administrative Agent’s periodic audits of the Borrower and

the other Loan Parties to the extent provided herein; (iv) the protection,

collection or enforcement of any of the Obligations or the enforcement of any

of the Loan Documents; (v) the commencement, defense or intervention in

any court proceeding relating in any way to the Obligations, the assets of any

Loan Party, any Loan Party, this Agreement or any of the other Loan Documents;

(vi) the response to, and preparation for, any subpoena or request for

document production with which the Administrative Agent is served or deposition

or other proceeding in which the Administrative Agent is called to testify, in

each case, relating in any way to the Obligations, the assets of any Loan

Party, any Loan Party, this Agreement or any of the other Loan Documents; and

(vii) any amendments, consents, waivers, assignments, restatements, or

supplements to any of the Loan Documents and the preparation, negotiation, and

execution of the same.

 

(b)           After Default.  The Borrower further agrees to pay or

reimburse the Administrative Agent and each Lender upon demand for all

out-of-pocket costs and expenses, including, without limitation, reasonable

attorneys’ fees of counsel to the Administrative Agent and a single counsel to

the Lenders, after the occurrence and during the continuance of an Event of

Default (i) in enforcing any Loan Document or any of the Obligations or

any security therefor or exercising or enforcing any other right or remedy

available by reason of such Event of Default; (ii) in connection with any

refinancing or restructuring of the credit arrangements provided under this

Agreement in the nature of a “work-out” or in any insolvency or bankruptcy

proceeding; (iii) in commencing, defending or intervening in any

litigation or in filing a petition, complaint, answer, motion or other

pleadings in any legal proceeding relating to the Obligations, the Property,

any Loan Party and related to or arising out of the transactions contemplated

hereby or by any of the other Loan Documents; and (iv) in taking any other

action in or with respect to any suit or proceeding (bankruptcy or otherwise)

described in clauses (i) through (iii) above.

 

79

 

13.05       Indemnity.  The Borrower further agrees to defend,

protect, indemnify, and hold harmless the Administrative Agent, the Syndication

Agents, the Documentation Agents, each of the Lenders and each of their

respective Affiliates, and their respective officers, directors, employees, attorneys

and agents (including, without limitation, those retained in connection with

the satisfaction or attempted satisfaction of any of the conditions set forth

in Article V) (collectively, the “Indemnitees”) from and

against any and all liabilities, obligations, losses (other than loss of

profits), damages, penalties, actions, judgments, suits, claims, costs,

expenses and disbursements of any kind or nature whatsoever (excluding any

taxes and including, without limitation, the reasonable fees and disbursements

of counsel for such Indemnitees in connection with any investigative,

administrative or judicial proceeding, whether or not such Indemnitees shall be

designated a party thereto), imposed on, incurred by, or asserted against such

Indemnitees in any manner relating to or arising out of (a) this

Agreement, the Notes, the other Loan Documents, or any act, event or

transaction related or attendant thereto, the making of the Loans, the

management of such Loans, the use or intended use of the proceeds of the Loans,

or any of the transactions contemplated by the Loan Documents, or (b) any

Liabilities and Costs under any Environmental Health or Safety Requirements or

Law or common law principles arising from or in connection with the past,

present or future operations of any Loan Party or any of its predecessors in

interest, or the past, present or future environmental condition of any

Property of any Loan Party, the presence of asbestos-containing materials at

any Property of any Loan Party or the Release or threatened Release of any

Contaminant into the environment from any Property of any Loan Party or to

which any Loan Party sent any Contaminant for treatment, storage disposal or

recycling (collectively, the “Indemnified Matters”); provided, however,

the Borrower shall have no obligation to an Indemnitee hereunder with respect

to Indemnified Matters caused by or resulting from the willful misconduct, bad

faith or gross negligence of any Indemnitee or disputes among Indemnitees, as

determined by a court of competent jurisdiction in a judgment or order.  To the extent that the undertaking to

indemnify, pay and hold harmless set forth in the preceding sentence may be

unenforceable because it is violative of any law or public policy, the Borrower

shall contribute the maximum portion which it is permitted to pay and satisfy

under applicable law, to the payment and satisfaction of all Indemnified

Matters incurred by the Indemnitees.

 

13.06       Change

in Accounting Principles.  If

any change in the accounting principles used in the preparation of the most

recent financial statements referred to in Section 7.01 are

hereafter required or permitted by the rules, regulations, pronouncements and

opinions of the Financial Accounting Standards Board or the American Institute

of Certified Public Accountants (or successors thereto or agencies with similar

functions) and are adopted by the Borrower and its Subsidiaries with the

agreement of its independent certified public accountants and such changes

result in a change in the method or results of calculation of any of the

covenants, standards or terms found in Article IX and Article X,

the parties hereto agree to enter into negotiations in order to amend such

provisions so as to equitably reflect such changes with the desired result that

the criteria for evaluating compliance with such covenants, standards and terms

by the Borrower and its Subsidiaries shall be the same after such changes as if

such changes had not been made; provided, however, (i) no

change in GAAP that would affect the method of calculation of any of the

covenants, standards or terms shall be given effect in such calculations until

such provisions are amended, in a manner satisfactory to the Requisite Lenders

and the Borrower, to so reflect such change in accounting principles and

(ii) the Borrower shall be deemed to be in compliance

 

80

 

with such covenants if and to

the extent that the Borrower would have been in compliance therewith under GAAP

as in effect immediately prior to such change.

 

13.07       Setoff.  In addition to any Liens granted under the

Loan Documents and any rights now or hereafter granted under applicable law,

upon the occurrence and during the continuance of any Event of Default, each

Lender and any Affiliate of any Lender is hereby authorized by the Borrower and

each other Loan Party at any time and from time to time, without notice to any

Person (any such notice being hereby expressly waived) to set off and to

appropriate and to apply any and all deposits (general or special, including,

but not limited to, indebtedness evidenced by certificates of deposit, whether

matured or unmatured (but not including trust accounts)) and any other

Indebtedness at any time held or owing by such Lender or any of its Affiliates

to or for the credit or the account of the Borrower or such other Loan Party

against and on account of the Obligations of the Borrower to such Lender or any

of its Affiliates, including, but not limited to, all Loans and all claims of

any nature or description arising out of or in connection with this Agreement

or the Notes, irrespective of whether or not (i) such Lender shall have

made any demand hereunder or (ii) the Administrative Agent, at the request

or with the consent of the Requisite Lenders, shall have declared the principal

of and interest on the Loans and other amounts due hereunder and under the

Notes to be due and payable as permitted by Article XI and even

though such Obligations may be contingent or unmatured.  Each Lender agrees that it shall not,

without the express consent of the Requisite Lenders, and that it shall, to the

extent it is lawfully entitled to do so, upon the request of the Requisite

Lenders, exercise its setoff rights hereunder against any accounts of the

Borrower or any other Loan Party now or hereafter maintained with such Lender

or any of its Affiliates.

 

13.08       Ratable

Sharing.  The Lenders agree

among themselves that (i) with respect to all amounts received by them

which are applicable to the payment of the Obligations (excluding the amounts

described in Sections 3.04, 3.05 and 4.01(f))

equitable adjustment will be made so that, in effect, all such amounts will be

shared among them ratably in accordance with their Pro Rata Shares, whether

received by voluntary payment, by the exercise of the right of setoff or

banker’s lien, by counterclaim or cross-action or by the enforcement of any or

all of the Obligations (excluding the amounts described in Sections 3.04,

3.05 and 4.01(f), (ii) if any of them shall by voluntary payment

or by the exercise of any right of counterclaim, setoff, banker’s lien or

otherwise, receive payment of a proportion of the aggregate amount of the

Obligations held by it, which is greater than the amount which such Lender is

entitled to receive hereunder, the Lender receiving such excess payment shall

purchase, without recourse or warranty, an undivided interest and participation

(which it shall be deemed to have done simultaneously upon the receipt of such

payment) in such Obligations owed to the others so that all such recoveries

with respect to such Obligations shall be applied ratably in accordance with

their Pro Rata Shares; provided, however, that if all or part of

such excess payment received by the purchasing party is thereafter recovered from

it, those purchases shall be rescinded and the purchase prices paid for such

participations shall be returned to such party to the extent necessary to

adjust for such recovery, but without interest except to the extent the

purchasing party is required to pay interest in connection with such

recovery.  Each of the Loan Parties

agrees that any Lender so purchasing a participation from another Lender

pursuant to this Section 13.08 may, to the fullest extent permitted

by law, exercise all its rights of payment (including, subject to Section 13.07,

the right of setoff) with respect to such participation as fully as if such

Lender were the direct creditor of the Borrower or such Loan Party in the

amount of such participation.

 

81

 

13.09       Amendments

and Waivers.  Unless otherwise

provided in this Agreement, no amendment or modification of any provision of

this Agreement or any other Loan Document shall be effective without the

written agreement of the Requisite Lenders (or the Administrative Agent at the

written direction or with the written consent of the Requisite Lenders) and the

Borrower, and no termination or waiver of any provision of this Agreement or

any other Loan Document, or consent to any departure by the Borrower or any

other Loan Party therefrom, shall be effective without the written concurrence

of the Requisite Lenders (or the Administrative Agent at the written direction

or with the written consent of the Requisite Lenders).  Notwithstanding the foregoing:

 

(a)           Any amendment, modification,

termination, waiver or consent with respect to any of the following shall be

effective only with the written agreement of each Lender directly affected

thereby: (i) reduction of the principal of, or rate or amount of interest

on, its portion of the Loans or any fees or other amounts payable to such

Lender (other than by the payment or prepayment thereof),

(ii) postponement of any date fixed for any payment of principal of, or

interest on, any Loans made or held by such Lender or any fees or other amounts

payable to such Lender (other than with respect to any modifications of the

provisions relating to prepayments of Loans and other Obligations), or

(iii) any increase in the amount of, or extension of, any Revolving Loan

Commitment of such Lender;

 

(b)           Any amendment, modification,

termination, waiver or consent with respect to any of the following shall be

effective only with the written agreement of each Lender: (i) waiver of

any of the conditions specified in Section 5.01 (except with

respect to a condition based upon another provision of this Agreement, the

waiver of which requires only the concurrence of the Requisite Lenders),

(ii) releasing any material portion of any collateral securing the

Obligations (other than in connection with any sale of assets or sale of a

Subsidiary permitted hereunder), (iii) any increase in the aggregate

amount of the Revolving Loan Commitments over the amount in effect immediately

prior to such increase, (iv) amendment of the definition of “Requisite

Lenders”, or (v) amendment of Section 13.08 or this Section 13.09;

 

(c)           Any amendment, modification,

termination, waiver or consent with respect to releasing any Material Guarantor

of its obligations under a Guaranty (other than in connection with any sale of

such Guarantor permitted hereunder, in which case such release shall be

automatic upon such sale) shall be effective only with the written agreement of

Lenders whose Pro Rata Shares, in the aggregate, are not less than 95.0%:

 

(d)           Any amendment, modification,

termination, waiver or consent with respect to any of the respective rights or

obligations of the Issuing Bank, the Swing Loan Lender or the Administrative

Agent set forth in this Agreement or any other Loan Document shall be effective

only by a written agreement, signed by the Issuing Bank, the Swing Loan Lender

or the Administrative Agent, as applicable, in addition to the Lenders, if any,

required as provided herein to take such action; and

 

(e)           The Fee Letter may be amended or modified,

and any rights thereunder waived, in a writing signed by the parties thereto.

 

82

 

Any waiver or

consent shall be effective only in the specific instance and for the specific

purpose for which it was given.  No

notice to or demand on the Borrower in any case shall entitle the Borrower to

any other or further notice or demand in similar or other circumstances.

 

13.10       Notices.

 

(a)           Unless otherwise specifically

provided herein, any notice or other communication herein required or permitted

to be given shall be in writing and may be personally served, faxed or sent by

courier service or United States certified mail and shall be deemed to have

been given when delivered in person or by courier service, upon receipt of a

facsimile or three (3) Business Days after deposit in the United States mail

with postage prepaid and properly addressed. 

Notices to the Administrative Agent pursuant to Articles II, III

or XII shall not be effective until received by the Administrative

Agent.  For the purposes hereof, the

addresses of the parties hereto (until notice of a change thereof is delivered

as provided in this Section 13.10) shall be as set forth below

opposite party’s name on Annex II hereto or the signature page of any

applicable Assignment and Acceptance, or, as to each party, at such other

address as may be designated by such party in a written notice to all of the

other parties to this Agreement.  For

purposes of any Loan Document, the address of each Loan Party shall be as set

forth on Annex II attached hereto.

 

(b)           The Borrower agrees to indemnify and

hold harmless each Indemnitee from and against any and all claims, damages,

liabilities, obligations, losses, penalties, actions, judgments, suits, costs,

disbursements and expenses of any kind or nature (including, without

limitation, reasonable fees and disbursements of counsel to any such

Indemnitee) which may be imposed on, incurred by or asserted against any such

Indemnitee in any manner relating to or arising out of any action taken or

omitted by such Indemnitee in good faith in reliance on any notice or other

written communication in the form of a facsimile purporting to be from the

Borrower; provided that the Borrower shall have no obligation under this

Section 13.10(b) to an Indemnitee with respect to any indemnified

matter caused by or resulting from the gross negligence, bad faith or willful

misconduct of that Indemnitee, as determined by a court of competent

jurisdiction in a judgment or order.

 

13.11       Survival of Warranties and Agreements.  All representations and warranties made

herein and all obligations of the Borrower in respect of taxes, indemnification

and expense reimbursement shall survive the execution and delivery of this

Agreement and the other Loan Documents, the making and repayment of the Loans

and the termination of this Agreement and shall not be limited in any way by

the passage of time or occurrence of any event and shall expressly cover time

periods when the Administrative Agent or any of the Lenders may have come into

possession or control of any assets of any Loan Party.

 

13.12       Failure or Indulgence Not Waiver;

Remedies Cumulative.  No failure

or delay on the part of the Administrative Agent or any Lender in the exercise

of any power, right or privilege under this Agreement, the Notes or any of the

other Loan Documents shall impair such power, right or privilege or be

construed to be a waiver of any default or acquiescence therein, nor shall any

single or partial exercise of any such power, right or privilege preclude other

or further exercise thereof or of any other right, power or privilege.  All rights and remedies existing under this

Agreement, the Notes and the other Loan Documents are cumulative to and not

exclusive of any rights or remedies otherwise available.

 

83

 

13.13       Marshalling;

Payments Set Aside.  Neither the

Administrative Agent nor any Lender shall be under any obligation to marshall

any assets in favor of the Borrower, any other Loan Party or any other Person

or against or in payment of any or all of the Obligations.  To the extent that the Borrower makes a

payment or payments to the Administrative Agent or the Lenders, or any of such

Persons exercises its rights of setoff, and such payment or payments or the

proceeds of such enforcement or setoff or any part thereof are subsequently

invalidated, declared to be fraudulent or preferential, set aside or required

to be repaid to a trustee, receiver or any other party, then to the extent of

such recovery, the obligation or part thereof originally intended to be

satisfied, and all Liens, right and remedies therefor, shall be revived and

continued in full force and effect as if such payment had not been made or such

enforcement or setoff had not occurred.

 

13.14       Independence

of Covenants.  All covenants

hereunder shall be given independent effect so that if a particular action or

condition is not permitted by any of such covenants, the fact that it would be

permitted by an exception to, or be otherwise within the limitations of,

another covenant shall not avoid the occurrence of an Event of Default or

Default if such action is taken or condition exists.

 

13.15       Severability.  In case any provision in or obligation under

this Agreement, the Notes or the other Loan Documents shall be invalid, illegal

or unenforceable in any jurisdiction, the validity, legality and enforceability

of the remaining provisions or obligations, or of such provision or obligation

in any other jurisdiction, shall not in any way be affected or impaired

thereby.

 

13.16       Headings.  Section headings in this Agreement are

included herein for convenience of reference only and shall not constitute a

part of this Agreement or be given any substantive effect.

 

13.17       Governing Law.  THIS AGREEMENT SHALL BE INTERPRETED, AND THE

RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED, IN ACCORDANCE WITH THE

LAWS OF THE STATE OF NEW YORK.

 

13.18       Limitation

of Liability.  No claim may be

made by the Borrower, any other Loan Party, any Lender, the Administrative

Agent or any other Person against the Administrative Agent or any other Lender

or the Affiliates, directors, officers, employees, attorneys or agents of any

of them for any special, consequential or punitive 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 the Notes or the

other Loan Documents, or any act, omission or event occurring in connection

therewith; and the Borrower, each other Loan Party, each Lender and the

Administrative Agent hereby waive, release and agree not to sue upon any such

claim for any such damages, whether or not accrued and whether or not known or

suspected to exist in its favor.

 

13.19       Successors

and Assigns.  This Agreement,

the Notes and the other Loan Documents shall be binding upon the parties

thereto and their respective successors and assigns and shall inure to the

benefit of the parties thereto and the successors and permitted assigns of

 

84

 

the Lenders.  The rights hereunder of the Borrower and the

other Loan Parties, or any interest therein, may not be assigned without the

written consent of all Lenders.

 

13.20       Certain

Consents and Waivers.

 

(a)           Personal Jurisdiction.

 

(i)            EACH

OF THE ADMINISTRATIVE AGENT, THE LENDERS, THE BORROWER AND THE OTHER LOAN

PARTIES IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,

TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL COURT

SITTING IN NEW YORK, NEW YORK, AND ANY COURT HAVING JURISDICTION OVER APPEALS

OF MATTERS HEARD IN SUCH COURTS, IN ANY ACTION OR PROCEEDING ARISING OUT OF,

CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG

THEM IN CONNECTION WITH THIS AGREEMENT, WHETHER ARISING IN CONTRACT, TORT,

EQUITY OR OTHERWISE, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND

EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL

CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED

IN SUCH STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL

COURT.  EACH OF THE BORROWER AND THE

OTHER LOAN PARTIES IRREVOCABLY DESIGNATES AND APPOINTS CT CORPORATION, AS ITS

AGENT (THE “PROCESS AGENT”) FOR SERVICE OF ALL PROCESS IN ANY SUCH

PROCEEDING IN ANY SUCH COURT, SUCH SERVICE BEING HEREBY ACKNOWLEDGED TO BE

EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.  EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS, THE BORROWER AND

THE OTHER LOAN PARTIES AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR

PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY

SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  EACH OF THE BORROWER AND THE OTHER LOAN

PARTIES WAIVES IN ALL DISPUTES ANY OBJECTION THAT IT MAY HAVE TO THE LOCATION

OF THE COURT CONSIDERING THE DISPUTE.

 

(ii)           EACH

OF THE BORROWER AND THE OTHER LOAN PARTIES AGREES THAT THE ADMINISTRATIVE AGENT

SHALL HAVE THE RIGHT TO PROCEED AGAINST THE BORROWER OR ANY OF THE OTHER LOAN

PARTIES OR THEIR RESPECTIVE PROPERTY IN A COURT IN ANY LOCATION TO ENABLE THE

ADMINISTRATIVE AGENT AND THE LENDERS TO REALIZE ON ANY SECURITY FOR THE

OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF

THE ADMINISTRATIVE AGENT OR ANY LENDER. 

EACH OF THE BORROWER AND THE OTHER LOAN PARTIES WAIVES ANY OBJECTION

THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH THE ADMINISTRATIVE AGENT

OR ANY LENDER MAY COMMENCE A PROCEEDING DESCRIBED IN THIS SECTION.

 

85

 

(b)           Service of Process.  EACH OF THE BORROWER AND THE OTHER LOAN

PARTIES IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE

AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES

THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE PROCESS AGENT

OR THE BORROWER’S OR SUCH LOAN PARTY’S NOTICE ADDRESS SPECIFIED BELOW, SUCH

SERVICE TO BECOME EFFECTIVE TEN (10) DAYS AFTER SUCH MAILING.  EACH OF THE BORROWER AND THE OTHER LOAN

PARTIES IRREVOCABLY WAIVES ANY OBJECTION (INCLUDING, WITHOUT LIMITATION, ANY

OBJECTION OF THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON

CONVENIENS) WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH

ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER

LOAN DOCUMENT IN ANY JURISDICTION SET FORTH ABOVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY

OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE

AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER OR ANY OTHER LOAN

PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

 

(c)           Waiver of Jury Trial.  EACH OF THE ADMINISTRATIVE AGENT, THE

LENDERS, THE BORROWER AND THE OTHER LOAN PARTIES IRREVOCABLY WAIVES TRIAL BY

JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, THE NOTES OR

ANY OTHER LOAN DOCUMENT.

 

13.21       Counterparts; Effectiveness;

Inconsistencies.  This Agreement

and any amendments, waivers, consents, or supplements hereto may be executed in

counterparts, each of which when so executed and delivered shall be deemed an

original, but all such counterparts together shall constitute but one and the

same instrument.  This Agreement shall

become effective against the Borrower, each other Loan Party, each Lender and

the Administrative Agent on the date hereof when each such party hereto

executes and delivers this Agreement. 

This Agreement and each of the other Loan Documents shall be construed

to the extent reasonable to be consistent one with the other, but to the extent

that the terms and conditions hereof are actually inconsistent with the terms

and conditions of any other Loan Document, this Agreement shall govern.

 

13.22       Entire

Agreement.  This Agreement,

taken together with all of the other Loan Documents, embodies the entire

agreement and understanding among the parties hereto and supersedes all prior

agreements and understandings, written and oral, relating to the subject matter

hereof.

 

13.23       Confidentiality.

 

(a)           The Lenders shall hold all nonpublic

information obtained from any Loan Party pursuant to this Agreement or any of

the other Loan Documents in accordance with such Lender’s customary procedures

for handling confidential information of this nature and in accordance with

safe and sound banking practices and in any event any Lender may make

disclosure (i) to its Affiliates or to any other Lender, (ii) to its

accountants, attorneys and other advisors who are notified of the confidential

nature thereof (provided in the case of (i) and (ii)

 

86

 

that such parties shall be

subject to the provisions of this Section to the same extent as such Lender),

(iii) as reasonably required by a bona fide offeree, transferee or

participant (including, for purposes of this Section, any counterparty or

prospective counterparty to any credit default swap or similar credit

derivative transaction relating to the obligations of the Borrower under this

Agreement) in connection with the contemplated transfer or participation, provided

that any such offeree, transferee or participant agrees in writing (and

requires any of its offerees, transferees or participants to agree in writing)

to comply with this Section 13.23, (iv) as required or

requested by any Governmental Authority or representative thereof,

(v) pursuant to any applicable Requirement of Law or legal process,

(vi) in connection with the exercise of its remedies hereunder, or

(vii) to the extent the same has become publicly available other than as a

result of a breach of this Agreement. 

In no event shall any Lender be obligated or required to return any

materials furnished by the Borrower or any other Loan Party; provided, however,

each offeree shall be required to agree that if it does not become a transferee

or participant it shall return all materials furnished to it by the Borrower or

any other Loan Party in connection with this Agreement or any of the other Loan

Documents.

 

(b)           Notwithstanding anything to the contrary in Section 13.23(a)

or otherwise in the Loan Documents, the information subject to any

confidentiality requirement shall not include, and the Administrative Agent and

each Lender may disclose without limitation of any kind, any information with

respect to the “tax treatment” and “tax structure” (in each case, within the

meaning of Treasury Regulation Section 1.6011-4) of the transactions

contemplated hereby and all materials of any kind (including opinion or other

tax analyses) that are provided to the Administrative Agent or such Lender

relating to such tax treatment and tax structure; provided that with

respect to any document or similar item that in either case contains

information concerning the tax treatment or tax structure of the transactions

as well as other information, this sentence shall only apply to such portions

of the document or similar item that relate to the tax treatment or tax

structure of the Loans, Letters of Credit and transactions contemplated

hereby.  The Loan Parties acknowledge

that one or more of the Lenders may treat its Loans as part of a transaction

that is subject to Treasury Regulation Section 1.6011-4 or Section 301.6112-1,

and the Administrative Agent and such Lender or Lenders, as applicable, may

file such IRS forms or maintain such lists and other records as they may

determine is required by such Treasury Regulations.

 

[Signatures appear on the following pages]

 

87

 

IN WITNESS

WHEREOF, this Agreement has been duly executed as of the date first above

written.

 

 

	

   

  	

  WATSON

  PHARMACEUTICALS, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ CHARLIE

  SLACIK

  
	

   

  	

  Title:

  	

  Executive

  Vice President and

  Chief Financial Officer

  

 

S-1

 

	

   

  	

  WACHOVIA

  BANK, NATIONAL

  ASSOCIATION,

  
	

   

  	

  as

  Administrative Agent, Issuing Bank, Swing Loan

  Lender, and Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Craig

  Rappaport

  
	

   

  	

  Title:

  	

  Associate

  

 

S-2

 

	

   

  	

  CIBC WORLD

  MARKETS CORP., as Syndication

  Agent

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Terence

  Moore

  	 

	

   

  	

  Title:

  	

  Executive

  Director

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  CIBC INC.,

  as Lender

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

   

  	

   

  	 

	

   

  	

  By:

  	

  /s/ Terence

  Moore

  	 

	

   

  	

  Title:

  	

  Executive

  Directo

  	 

 

S-3

 

	

   

  	

  BANK OF

  AMERICA, N.A., as Syndication Agent

  and as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ JOSEPH

  CORAH

  
	

   

  	

  Title:

  	

  Principal

  

 

S-4

 

	

   

  	

  LEHMAN

  COMMERCIAL PAPER, INC., as

  Documentation Agent and as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Suzanne

  Flynn

  
	

   

  	

  Title:

  	

  Authorized

  Signatory

  

 

S-5

 

	

   

  	

  MORGAN

  STANLEY BANK, as Documentation

  Agent and as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Jaap L.

  Tonckens

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-6

 

	

   

  	

  WELLS FARGO

  BANK, N.A., as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Peitty

  Chou

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-7

 

	

   

  	

  UNION BANK

  OF CALIFORNIA, N.A., as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Peter

  Thompson

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-8

 

	

   

  	

  COMERICA

  BANK, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ John D.

  Bonifacio

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-9

 

	

   

  	

  BANCO

  POPULAR DE PUERTO RICO,

  NEW YORK BRANCH, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Hector

  J. Gonzalez

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-10

 

 

	

   

  	

  SUMITOMO

  MITSUI BANKING

  CORPORATION, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Al

  Galluzzo

  
	

   

  	

  Title:

  	

  SVP

  

 

S-11

 

	

   

  	

  U.S. BANK,

  NATIONAL ASSOCIATION, as

  Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Janet

  Jordan

  
	

   

  	

  Title:

  	

  Vice

  President

  

 

S-12

 

	

   

  	

  THE BANK OF

  EAST ASIA, LIMITED, as Lender

  	 

	

   

  	

   

  	 

	

   

  	

   

  	 

	

   

  	

  By:

  	

  /s/ David

  Loh

  	

  /s/ Victor

  Li

  
	

   

  	

  Title:

  	

  VP

  	

  VP & GM

  
					

 

S-13

 

	

   

  	

  THE NORTHERN

  TRUST COMPANY, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Steve

  Ryan

  
	

   

  	

  Title:

  	

  Vice President

  

 

S-14

 

	

   

  	

  CHIAO TUNG

  BANK CO., LTD.  NEW YORK

  AGENCY, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Chun-Kai

  Ilu

  
	

   

  	

  Title:

  	

  VP & AGM

  

 

S-15

 

ANNEX I

 

COMMITMENTS

 

 

	

  Lender

  	

   

  	

  Revolving

  Loan

  Commitment

  	

   

  
	

  Wachovia Bank, National Association

  	

   

  	

  $

  	

  46,400,000

  	

   

  
	

  CIBC Inc.

  	

   

  	

  26,400,000

  	

   

  
	

  Bank of America, N.A.

  	

   

  	

  26,400,000

  	

   

  
	

  Lehman Commercial Paper, Inc.

  	

   

  	

  26,400,000

  	

   

  
	

  Morgan Stanley Bank

  	

   

  	

  26,400,000

  	

   

  
	

  Wells Fargo Bank, N.A.

  	

   

  	

  20,000,000

  	

   

  
	

  Union Bank of California, N.A.

  	

   

  	

  20,000,000

  	

   

  
	

  Comerica Bank

  	

   

  	

  19,000,000

  	

   

  
	

  Banco Popular de Puerto Rico, New York

  Branch

  	

   

  	

  19,000,000

  	

   

  
	

  Sumitomo Mitsui Banking Corporation

  	

   

  	

  19,000,000

  	

   

  
	

  U.S. Bank, National Association

  	

   

  	

  19,000,000

  	

   

  
	

  The Bank of East Asia, Limited

  	

   

  	

  13,500,000

  	

   

  
	

  The Northern Trust Company

  	

   

  	

  13,500,000

  	

   

  
	

  Chiao Tung Bank Co., Ltd.  New York Agency

  	

   

  	

  5,000,000

  	

   

  
	

  Total

  	

   

  	

  $

  	

  300,000,000

  	

   

  

 

 

ANNEX II

 

ADDRESSES FOR NOTICES

 

	

  LOAN PARTIES

  
	

  Watson

  Pharmaceuticals, Inc., and its Subsidiaries

  	

   

  	

  311 Bonnie

  Circle

  Corona, California 92680-2882

  Attention:  Chief Financial Officer

  Phone:  800-249-5499

  Fax:  909-270-1096

  With a copy

  to:  

  311 Bonnie

  Circle

  Corona, California 92680-2882

  Attention:  General Counsel

  Phone:  800-249-5499

  Fax:  909-270-1096

  
	

  ADMINISTRATIVE AGENT

  
	

  Wachovia

  Bank, National Association

  	

   

  	

  Primary

  Credit Contact: 

  

  301 S. College Street, 6th Floor

  Charlotte, North Carolina 28288-0732

  Attention: Craig Rappaport

  Phone:  704-715-1762

  Fax:  704-715-8033

  

  
Loan Administration:  

  201 S. College Street  

  Charlotte, North Carolina 28288

  Attention: Lisa G. Starnes

  Phone:  704-383-4131

  Fax:  704-383-0835

  
	

  LENDERS

  
	

  CIBC Inc.

  	

   

  	

  Primary

  Credit Contact:

  425 Lexington Avenue, 8th Floor

  New York, New York 10017

  Attention:  Terence Moore

  Phone:  212-856-3528

  Fax:  212-856-3761

  Email:  Terence.moore@us.cibc.com 

  

  

  Loan Administration:  

  Two Paces West, Suite 1200

  

 

 

	

   

  	

   

  	

  2727 Paces

  Ferry Road

  Atlanta, Georgia  30339

  Attention:  Kathryn S. McGovern

  Phone:  770-319-4821

  Fax:  770-319-4950

  
	

   

  	

   

  	

   

  
	

  Bank of America,

  N.A.

  	

   

  	

  Primary

  Credit Contact:

  100 North Tryon Street

  NC1007-17-11

  Charlotte, NC  28255

  Attention:  Joe Corah

  Phone:  704-386-5976

  Fax:  704-388-6002

  Email: 

  Joseph.l.corab@bankofamerica.com

  

  Loan Administration:  

  CA4-706-05-11  

  1850 Gateway Blvd.  

  Concord, CA  94520-3282  

  Attention:  Erlinda Famularcano  

  Phone:  925-675-7659  

  Fax:  888-969-9230  

  Email: 

  erlind.o.famularcano@bankofamerica.com

  
	

   

  	

   

  	

   

  
	

  Lehman

  Commercial Paper, Inc.

  	

   

  	

  Primary

  Credit Contact: 

  

  745 7th Avenue, 6th Floor

  New York, New York  10019

  Attention:  Suzanne Flynn  

  Phone:  212-526-3163  

  Fax:  646-758-2096  

  Email:  Sflynn@lehman.com

  
Loan Administration:  

  745 7th Avenue, 16th Floor  

  New York, New York  10019  

  Attention:  Michael Lardiere  

  Phone:  212-526-6560  

  Fax:  212-526-6653  

  Email:  mlardier@lehman.com

  
	

   

  	

   

  	

   

  
	

  Morgan

  Stanley Bank

  	

   

  	

  Primary

  Credit Contact: 

  

  750 7th Avenue, 11th Floor  

  New York, New York  10020  

  Attention:  David Morin  

  Phone:  212-762-2621  

  

 

 

	

   

  	

   

  	

  Fax:  212-507-3138  

  Email:  david.morin@morganstanley.com

  

  Loan Administration:  

  1633 Broadway, 26th Floor  

  New York, New York 10019  

  Attention:  Theresa Amato  

  Phone:  212-537-1384  

  Fax:  212-537-1867/1866

  
	

   

  	

   

  	

   

  
	

  Wells Fargo

  Bank, N.A.

  	

   

  	

  Primary

  Credit Contact: 

  

  707 Wilshire Blvd, 16th Floor 

  

  MAC E2818-163  

  Los Angeles, CA 90017  

  Attention:  Lucy Nixon  

  Phone:  213-614-5804  

  Fax:  213-614-2569 

  
Loan Administration:  

  201 Third Street, 8th Floor 

  

  MAC A0187-080  

  San Francisco, CA  94103  

  Attention:  Ginnie Padgett  

  Phone:  415-477-5374  

  Fax:  415-512-1943

  
	

   

  	

   

  	

   

  
	

  Union Bank

  of California, N.A.

  	

   

  	

  Primary

  Credit Contact: 

  

  445 South Figueroa Street, 10F  

  Los Angeles, CA  90071  

  Attention:  Peter Thompson  

  Phone:  213-236-6911  

  Fax:  213-236-7637  

  Email:  peter.Thompson@uboc.com 

  
Loan Administration:  

  CLSO, Commercial Loan Operations  

  601 Potrero Grande, 2nd Floor 

  

  Monterey Park, CA  91754  

  Attention:  Shirley Davis  

  Phone:  323-720-2870  

  Fax:  323-720-2252/51  

  Email:  Shirley.Davis@uboc.com

  
	

   

  	

   

  	

   

  
	

  Comerica

  Bank

  	

   

  	

  Primary

  Credit Contact: 

  

  1920 Main Street, Suite 1150  

  

 

 

	

   

  	

   

  	

  Irvine,

  CA  92614 

  Attention:  John D. Bonifacio  

  Phone:  949 -798-7243  

  Fax:  949 -476-1222  

  Email:  jdbonifacio@comercia.com

  
Loan Administration:  

  3980 Howard Hughes Parkway, Suite 350 

  

  Las Vegas, Nevada  89109  

  Attention:  Regina C. McGuire  

  Phone:  702-791-4804  

  Fax:  702 -791-2371  

  Email:  rcmcguire@comercia.com

  
	

   

  	

   

  	

   

  
	

  Banco

  Popular de Puerto Rico, New York Branch

  	

   

  	

  Primary

  Credit Contact: 

  

  7 West 51st Street  

  New York, New York  10019  

  Attention:  Hector J. Gonzalez  

  Phone:  212-445-1988  

  Fax:  212-245-4677 

  
Loan Administration:  

  9600 Bryn Mawr  

  Rosemont, Illinois  60018  

  Attention:  Jim Breman  

  Phone:  847-994-5460  

  Fax:  847-994-5917

  
	

   

  	

   

  	

   

  
	

  Sumitomo

  Mitsui Banking Corporation

  	

   

  	

  Primary

  Credit Contact: 

  

  777 South Figueroa Street, Suite 2600 

  

  Los Angeles, CA  90017-5824  

  Attention:  CBDA-II, Al Galluzzo  

  Phone:  213-955-0855  

  Fax:  213-623-6832  

  Email:  Al_Galluzzo@smbcgroup.com

  
Loan Administration:  

  277 Park Avenue  

  New York, New York  10172  

  Attention:  Deal Administration, Paul

  Kane  

  Phone:  212-224-4311  

  Fax:  212-224-5488

  
	

   

  	

   

  	

   

  
	

  U.S. Bank,

  National Association

  	

   

  	

  Primary

  Credit Contact: 

  

  555 SW Oak Street, 4th Floor PD-OR-P4CB  

  

 

 

	

   

  	

   

  	

  Portland,

  OR  97204

  Attention:  Janet E. Jordan  

  Phone:  503-275-5871  

  Fax:  503-275-5428  

  Email:  janet.jordan@usbank.com

  
Loan Administration:  

  555 SW Oak Street, PD-OR-P7CB  

  Portland, OR  97204  

  Attention:  Lennie Regalado  

  Phone:  503-275-5960  

  Fax:  503-275-4600

  
	

   

  	

   

  	

   

  
	

  The Bank of

  East Asia, Limited

  	

   

  	

  Primary

  Credit Contact: 

  

  Los Angeles Branch  

  600 Wilshire Blvd., Suite 1550  

  Los Angeles, CA  90017  

  Attention:  David Loh  

  Phone:  213-892-1572  

  Fax:  213-892-1004  

  Email:  lohd@beala.com

  
Loan Administration:  

  Los Angeles Branch  

  600 Wilshire Blvd., Suite 1550  

  Los Angeles, CA  90017  

  Attention:  Simon Keung  

  Phone:  213-892-1572  

  Fax:  213-892-1004  

  Email:  keungs@beala.com

  
	

   

  	

   

  	

   

  
	

  The Northern

  Trust Company

  	

   

  	

  Primary

  Credit Contact: 

  

  56 S. LaSalle Street  

  Chicago, Illinois  60675  

  Attention:  Steve Ryan  

  Phone:  312-444-3199  

  Fax:  312-444-7028  

  Email:  SR59@ntrs.com 

  
Loan Administration:  

  801 S. Camel  

  Chicago, Illinois  60675  

  Attention:  Krista Clarke  

  Phone:  312-444-5776  

  Fax:  312-444-3502  

  

 

 

	

   

  	

   

  	

  Email:  KC25@ntrs.com

  
	

   

  	

   

  	

   

  
	

  Chiao Tung

  Bank Co., Ltd.  New York Agency

  	

   

  	

  Primary

  Credit Contact: 

  

  One World Financial Center, 30th Floor  

  200 Liberty Street  

  New York, New York  10281  

  Attention:  Ifen Lee  

  Phone:  212-285-2666 Ext. 238  

  Fax:  212-285-2922  

  Email:  CTBNYA@aol.com

  
Loan Administration:  

  One World Financial Center, 30th Floor  

  200 Liberty Street  

  New York, New York  10281  

  Attention:  Lina Chen  

  Phone:  212-285-2666 Ext. 239  

  Fax:  212-285-2922  

  Email:  CTBNYA@aol.com<PAGE>

                                                                     EXHIBIT 4.1
                                                                          Shares
                                                                              xx
Number
xx
                                                                CUSIP 45890M 109

                     INTEGRATED ALARM SERVICES GROUP, INC.

              AUTHORIZED CAPITAL         SHARES          PAR VALUE

THIS CERTIFIES THAT                     IS THE OWNER OF            FULL PAID AND
NON-ASSESSABLE SHARES OF THE CAPITAL STOCK OF INTEGRATED ALARM SERVICES GROUP,
INC. TRANSFERABLE ON THE BOOKS OF THE CORPORATION IN PERSON OR BY DULY
AUTHORIZED ATTORNEY UPON SURRENDER OF THIS CERTIFICATE PROPERLY ENDORSED.

IN WITNESS WHEREOF THE SAID CORPORATION HAS CAUSED THIS CERTIFICATE TO BE SIGNED
BY ITS DULY AUTHORIZED OFFICERS AND SEALED WITH THE SEAL OF THE CORPORATION,
THIS                         DAY                   OF                       A.D.

------------------------                               ------------------------
               SECRETARY                                CHIEF EXECUTIVE OFFICER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]