Document:

Exhibit 10.18

 

	
 
    	
Execution Copy
    

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of September 21, 2009 (the “Effective Date”) among OXFORD FINANCE CORPORATION, a Delaware corporation with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (“Collateral Agent”), the Lenders listed on Schedule 1.1 hereof and otherwise party hereto from time to time (each a “Lender” and collectively, the “Lenders”), and PTC THERAPEUTICS, INC., a Delaware corporation (“Borrower”), provides the terms on which Lenders shall lend to Borrower and Borrower shall repay Lenders. The parties agree as follows:

 

1                                         ACCOUNTING AND OTHER TERMS

 

Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 14. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.

 

2                                         LOAN AND TERMS OF PAYMENT

 

2.1                               Promise to Pay Borrower hereby unconditionally promises to pay each Lender, the outstanding principal amount of all Term Loans advanced to Borrower by such Lender and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance with this Agreement.

 

2.2                               Term Loans.

 

(a)                                 Availability. Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, (i) during the First Draw Period, to make term loans to Borrower in an aggregate amount up to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) according to each Lender’s Term A Loan Commitment Percentage as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term A Loan”, and collectively as the “Term A Loans”) and (ii) during the Second Draw Period, to make additional term loans to Borrower in an aggregate amount up to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) according to each Lender’s Term B Loan Commitment Percentage as set forth on Schedule 1.1 hereto (subject to adjustment as provided on Schedule 1.1) (such term loans are hereinafter referred to singly as a “Term B Loan”, and collectively as the “Term B Loans”; each of the Term A Loans and the Term B Loans is referred to singly herein as a “Term Loan”, and the Term A Loans and the Term B Loans are referred to collectively herein as the “Term Loans”). After repayment, no Term Loan may be re-borrowed.

 

(b)                                 Repayment. Borrower shall make monthly payments of interest only (accrued at the applicable interest rate as set forth in Section 2.3 of this Agreement) on each Term Loan commencing on the first (1st) Payment Date following the Funding Date of such Term Loan, and continuing on the Payment Date in each of the following (i) five (5) consecutive months with respect to the Term Loan A and (ii) six (6) consecutive months with respect to the Term Loan B. Commencing on the Amortization Date in respect of a Term Loan, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal and interest, in arrears, on such Term Loan to each Lender, as calculated by Collateral Agent based upon: (1) the principal amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule equal to thirty (30) months. All unpaid principal and accrued interest with respect to each Term Loan is due and payable in full on such Term Loan’s Maturity Date. The Term Loans may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).

 

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(c)                                  Mandatory Prepayments. (i) If the Term Loans are accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (A) all outstanding principal of the Term Loans plus accrued interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other sums, that shall have become due and payable, including Lenders’ Expenses, if any, and interest at the Default Rate with respect to any past due amounts.

 

(ii) In the event Borrower permanently discontinues Borrower’s pursuit of active development of Ataluren (also known as PTC124®) for all therapeutic indications (as determined by the Lenders in their reasonable discretion) (the “PTC124 Discontinuation”), Borrower will give prompt written notice to Collateral Agent, and the Lenders shall have the right, upon written notice to Borrower, to require Borrower to repay the Term Loans in full, in which case Borrower shall immediately pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of: (A) all outstanding principal of the Term Loans plus accrued interest thereon through the prepayment date (accrued at the applicable interest rate as set forth in Section 2.3 of this Agreement), (B) the Final Payment, (C) an amount equal to fifty percent (50%) of the Prepayment Fee, plus (D) all other sums, that shall have become due and payable, including Lenders’ Expenses, if any, and interest at the Default Rate with respect to any past due amounts. Notwithstanding the foregoing, the PTC124 Discontinuation shall not be deemed to have occurred (and the Lenders shall not have the right to require Borrower to repay the Term Loans as a result of the PTC124 Discontinuation) in the event that after the Effective Date Borrower receives a lump sum cash payment(s) (which payment(s) are recognized by Borrower as revenue or equity, or any combination thereof, but not indebtedness) of at least $25,000,000 in the aggregate.

 

(d)                                 Permitted Prepayment of Loans. Borrower shall have the option to prepay all, but not less than all, of the Term Loans advanced by the Lenders under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least fifteen (15) days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued interest thereon through the prepayment date (accrued at the applicable interest rate as set forth in Section 2.3 of this Agreement), (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other sums, that shall have become due and payable, including Lenders’ Expenses, if any, and interest at the Default Rate with respect to any past due amounts.

 

(e)                                  Final Payment. Notwithstanding (but without duplication with) the foregoing provisions of this Section 2.2, on the Maturity Date of a Term Loan, Borrower shall pay to each Lender in accordance with its respective Pro Rata Share the Final Payment in respect of such Term Loan.

 

2.3                               Payment of Interest on the Credit Extensions.

 

(a)                                 Interest Rate. Subject to Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a fixed per annum rate equal to the Basic Rate, calculated by Collateral Agent on the Funding Date of the Term Loans, which interest shall be payable monthly in accordance with Sections 2.2(b) and 2.3(e). Interest shall accrue on each Term Loan for the day on which the Term Loan is made, and shall accrue on a Term Loan, or any portion thereof, for the day on which the Term Loan or such portion is paid.

 

(b)                                 Default Rate. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points (5.00%) above the Basic Rate (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Collateral Agent.

 

(c)                                  360-Day Year. Interest shall be computed on the basis of a 360-day year consisting of twelve (12) months of thirty (30) days.

 

(d)                                 Debit of Accounts. Each Lender may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes

 

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such Lender under the Loan Documents when due. These debits shall constitute a loan payment and not constitute the exercise of a right of set-off.

 

(e)                                  Payments. Except as otherwise expressly provided herein, all loan payments by Borrower hereunder shall be made to the respective Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein. Unless otherwise provided, interest is payable monthly on the Payment Date of each month. Payments of principal and/or interest received after 12:00 noon Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid. All payments to be made by Borrower hereunder or under any other Loan Document, including payments of principal and interest made hereunder and pursuant to any other Loan Document, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in lawful money of the United States and in immediately available funds.

 

2.4                               Secured Promissory Notes. Each Term Loan shall be evidenced by a Secured Promissory Note in the form attached as Exhibit D  hereto (each a “Secured Promissory Note”), and shall be repayable as set forth herein. Borrower irrevocably authorizes each Lender to make or cause to be made, on or about the Funding Date of any Term Loan or at the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s Secured Promissory Note Record reflecting the making of such Term Loan or (as the case may be) the receipt of such payment. The outstanding amount of each Term Loan set forth on such Lender’s Secured Promissory Note Record shall be, absent manifest error, a prima facie evidence of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of Borrower hereunder or under any Secured Promissory Note to make payments of principal of or interest on any Secured Promissory Note when due. Upon receipt of an affidavit of an officer of a Lender as to the loss, theft, destruction, or mutilation of its Secured Promissory Note together with a lost security indemnity from the related Lender, Borrower shall issue, in lieu thereof, a replacement Secured Promissory Note in the same principal amount thereof and of like tenor.

 

2.5                               Fees. Borrower shall pay to Collateral Agent (or in the case of clause (b) below, to the Lenders):

 

(a)                                 Facility Fee. A fully earned, non-refundable facility fee of Three Hundred Twelve Thousand Five Hundred Dollars ($312,500) to be shared between the Lenders pursuant to their respective Commitment Percentages. The facility fee shall be due and payable in two installments as follows: (i) $234,375 of the facility fee shall be due and payable on the Effective Date, and (ii) the remaining $78,125 of the facility fee shall be due and payable on the date on which Borrower achieves positive Phase IIb results for Borrower’s Ataluren program (PTC124) for the Duchenne indication, which shall be evidenced by a final written determination to proceed, without further testing or trials, with the filing of a new drug application with the US Food and Drug Administration for Ataluren for the Duchenne indication, which such determination has been made by the joint development committee for Ataluren (which includes Genzyme, Inc. and Borrower) acting unanimously and supported by the findings of the independent safety monitoring board for the Phase IIb Ataluren clinical trial (“Positive Pivotal Ataluren Data”), whether or not Borrower draws down the Term B Loans. In the event Borrower does not achieve Positive Pivotal Ataluren Data on or prior to April 30, 2010, the second installment of the facility fee of $78,125 shall not be due and payable.

 

(b)                                 Final Payment. The Final Payment, when due hereunder, to be paid to the Lenders in accordance with their respective Pro Rata Shares;

 

(c)                                  Prepayment Fee. The Prepayment Fee, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares; and

 

(d)                                 Lenders’ Expenses. All Lenders’ Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due (and in the absence of any other due date specified herein, such Lenders’ Expenses shall be due within five (5) days of demand therefor).

 

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3                                         CONDITIONS OF LOANS

 

3.1                               Conditions Precedent to Initial Credit Extension. Each Lender’s obligation to make a Term Loan is subject to the condition precedent that Collateral Agent shall consent to or shall have received, in form and substance satisfactory to Collateral Agent, such documents, and completion of such other matters, as Collateral Agent may reasonably deem necessary or appropriate, including, without limitation:

 

(a)                                 duly executed original signatures to the Loan Documents to which Borrower is a party;

 

(b)                                 duly executed original signatures to the Control Agreements with Wachovia Bank and Capital Advisors Group/State Street Bank (collectively, the “Borrower’s Account Banks”);

 

(c)                                  duly executed original Secured Promissory Notes in favor of each Lender according to its Commitment Percentage in amounts not to exceed the Term Loans;

 

(d)                                 the Operating Documents of Borrower and good standing certificates of Borrower certified by the Secretary of State of the State of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date;

 

(e)                                  good standing certificates certified by the Secretary of State of the State of New Jersey as of a date no earlier than thirty (30) days prior to the Effective Date to the effect that Borrower is qualified to transact business in such State;

 

(f)                                   duly executed original signatures to the completed Borrowing Resolutions for Borrower;

 

(g)                                  Collateral Agent shall have received certified copies, dated as of a recent date, of financing statement searches, as Collateral Agent shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released;

 

(h)                                 a landlord’s consent executed in favor of Collateral Agent in respect of each of Borrower’s facilities located in South Plainfield, New Jersey;

 

(i)                                     a bailee’s consent executed in favor of Collateral Agent in respect of Borrower’s property located in the facilities of Borrower’s vendor, Kendle International, in Hamilton County, Cincinnati, Ohio;

 

(j)                                    a legal opinion of Borrower’s counsel dated as of the Effective Date together with the duly executed original signatures thereto;

 

(k)                                 evidence satisfactory to Collateral Agent that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable benefit of the Lenders; and

 

(l)                                     payment of the fees and Lenders’ Expenses then due as specified in Section 2.5 hereof.

 

3.2                               Conditions Precedent to all Credit Extensions. The obligation of each Lender to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent:

 

(a)                                 timely receipt by the Collateral Agent of an executed Payment/Advance Form in the form of Exhibit B  attached hereto;

 

(b)                                 the representations and warranties in Section 5 shall be true, in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly

 

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referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true, accurate and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and

 

(c)                                  in such Lender’s reasonable discretion, there has not been any Material Adverse Change or any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Collateral Agent.

 

3.3                               Covenant to Deliver. Borrower agrees to deliver to Collateral Agent each item required to be delivered to Collateral Agent under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Collateral Agent of any such item shall not constitute a waiver by the Lenders of Borrower’s obligation to deliver such item, and any such Credit Extension in the absence of a required item shall be made in Collateral Agent’s sole discretion.

 

3.4                               Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan set forth in this Agreement, to obtain a Term Loan, Borrower shall notify Collateral Agent (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 noon Eastern time three (3) Business Days prior to the date the Term Loan is to be made. Together with any such electronic or facsimile notification, Borrower shall deliver to Collateral Agent by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Upon receipt of a Payment/Advance Form, Collateral Agent shall promptly provide a copy of the same to each Lender. Collateral Agent may rely on any telephone notice given by a person whom Collateral Agent reasonably believes is a Responsible Officer or designee. On the Funding Date, each Lender shall credit and/or transfer (as applicable) to Borrower’s Designated Deposit Account, an amount equal to its Term Loan Commitment.

 

4                                         CREATION OF SECURITY INTEREST

 

4.1                               Grant of Security Interest. Borrower hereby grants Collateral Agent, for the ratable benefit of the Lenders, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Collateral Agent, for the ratable benefit of the Lenders, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral, subject only to Permitted Liens that may have priority as permitted by the terms of this Agreement. If Borrower shall acquire a commercial tort claim (as defined in the Code), Borrower shall promptly notify Collateral Agent in a writing signed by Borrower of the general details thereof (and further details as may be required by Collateral Agent) and grant to Collateral Agent, for the ratable benefit of the Lenders, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Collateral Agent.

 

If this Agreement is terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as the Lenders’ obligation to make Credit Extensions has terminated, Collateral Agent, and if appropriate, each Lender shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower.

 

4.2                               Authorization to File Financing Statements. Borrower hereby authorizes Collateral Agent to file financing statements, without prior notice to Borrower, with all appropriate jurisdictions to perfect or protect Collateral Agent’s and each Lender’s interest or rights hereunder, including a notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Collateral Agent and the Lenders under the Code. Such financing statements may indicate the Collateral as “all assets of Debtor” or words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Collateral Agent’s discretion (provided that such financing statements shall specifically refer to those assets excluded from Collateral on Exhibit A hereto). Collateral Agent shall use commercially reasonable efforts to provide Borrower with a copy of all financing statements filed, indicating the jurisdiction and date of filing, promptly after each such filing, provided that failure of Collateral Agent to provide Borrower with such copies or other

 

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information shall not impair the validity or priority of any financing statement or impair or restrict any of the rights and remedies of Collateral Agent and the Lenders under the Loan Documents.

 

5                                         REPRESENTATIONS AND WARRANTIES

 

Borrower represents and warrants as follows at all times unless expressly provided below:

 

5.1                               Due Organization, Authorization: Power and Authority. Borrower and each of its Subsidiaries, if any, are duly existing and in good standing, as Registered Organizations in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Collateral Agent a completed perfection certificate signed by Borrower (the “Perfection Certificate”). Borrower represents and warrants that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by this Agreement). If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Collateral Agent of such occurrence and provide Collateral Agent with Borrower’s organizational identification number.

 

The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect), or (v) constitute an event of default under any material agreement by which Borrower or any of its Subsidiaries or their respective properties is bound (other than the Oxford Equipment Financing, which default has been waived by Oxford). Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on Borrower’s business.

 

5.2                               Collateral. Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts other than the Collateral Accounts with Borrower’s Account Banks or the other investment accounts, if any, described in the Perfection Certificate delivered to Collateral Agent in connection herewith with respect of which Borrower has given Collateral Agent notice and taken such actions as are necessary to give Collateral Agent a perfected security interest therein.

 

On the Effective Date, the Collateral (other than raw materials or unfinished products that may be in transit or located at third party manufacturing sites) is not in the possession of any third party bailee (such as a warehouse) except as disclosed in the Perfection Certificate. None of the components of the Collateral (other than raw materials or unfinished products that may be in transit or located at third party manufacturing sites) shall be maintained at locations other than as disclosed in the Perfection Certificate on the Effective Date or as permitted pursuant to Section 7.2. In the event that Borrower, after the Effective Date, intends to store or otherwise deliver any portion of the Collateral to a bailee (other than raw materials or unfinished products that may be in transit or located at third party manufacturing sites), then Borrower will first receive the written consent of Collateral Agent and such bailee

 

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must execute and deliver a bailee agreement in form and substance satisfactory to Collateral Agent in its reasonable discretion.

 

All Inventory is in all material respects of good and marketable (although not necessarily approved for sale to the public as regulated by the FDA) quality, free from material defects.

 

Borrower is the sole owner of its Intellectual Property, except for licenses permitted by the terms of Section 7.1 hereof and those licenses described in the Perfection Certificate. Schedule 5.2 sets forth all patents and patent applications owned or exclusively licensed to Borrower and indicates which of such patents and patent applications are owned by Borrower and which are licensed by Borrower from third parties (the “Licensed IP”). The Licensed IP is not necessary for the conduct of Borrower’s Ataluren (PTC124), PTC299 and GEMS research and development programs nor the manufacture, sale and marketing of products, if any, which may be developed from such programs. Each issued Patent owned by Borrower is, to the best of Borrower’s knowledge, valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business. Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any material license or other agreement with respect to which Borrower is a licensee that (a) prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could interfere with Collateral Agent’s right to sell any Collateral. Borrower shall provide written notice to Collateral Agent within ten (10) days of entering or becoming bound by any such license or agreement (other than over-the-counter software that is commercially available to the public). In respect of such licenses or agreements, Borrower shall take such steps as Collateral Agent requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (x) all such licenses or agreements to be deemed “Collateral” and for Collateral Agent to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the future, and (y) Collateral Agent to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Collateral Agent’s rights and remedies under this Agreement and the other Loan Documents. Notwithstanding the foregoing, the terms of the preceding sentence shall not apply to exclusive and non-exclusive license agreements solely for the use of the intellectual property of a third party in which Borrower is licensee.

 

5.3                               Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than Two Hundred Fifty Thousand Dollars ($250,000.00).

 

5.4                               No Material Deterioration in Financial Condition; Financial Statements. All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Collateral Agent fairly present, in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations on the dates of such statements or for the periods then ended. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Collateral Agent.

 

5.5                               Solvency. As of the Effective Date, the fair salable value of Borrower’s assets (including Borrower’s enterprise value minus disposition costs) exceeds the fair value of its liabilities; and Borrower is able to pay its debts (including trade debts) as they mature; provided, that for purposes of this Section 5.5, Borrower’s liabilities shall not include liabilities attributable to deferred revenue (notwithstanding that recognition of such liabilities may be required by GAAP).

 

5.6                               Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act, if and as applicable to Borrower. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing,

 

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treating, or transporting any hazardous substance other than in material compliance with applicable laws. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.

 

None of the Borrower, its Affiliates or any of their respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law, (ii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person. Neither Borrower nor, to the knowledge of Borrower, any of its Affiliates or agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law.

 

5.7                               Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments.

 

5.8                               Tax Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports, and Borrower and its Subsidiaries have timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower, except for non-material tax reporting or payment deficiencies occurring prior to the Effective Date which have been cured. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

5.9                               Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements and not for personal, family, household or agricultural purposes.

 

5.10                        Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given to Collateral Agent or any Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Collateral Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).

 

6                                         AFFIRMATIVE COVENANTS

 

Borrower shall do all of the following:

 

6.1                               Government Compliance.

 

(a)                                 Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, the noncompliance with which could reasonably be expected to have a material adverse effect on Borrower’s business.

 

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(b)                                 Obtain and keep in full force and effect, all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which it is a party and the grant of a security interest to Collateral Agent for the ratable benefit of the Lenders, in all of the Collateral. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Collateral Agent.

 

6.2                               Financial Statements, Reports, Certificates.

 

(a)                                 Deliver to Collateral Agent: (i) as soon as available, but no later than forty five (45) days after the last day of each fiscal quarter, a company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such quarter certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent; (ii) no later than ten (10) Business Days after the last day of each month, a company prepared cash report certified by a Responsible Officer showing Borrower’s cash balances as of the end of such month; (iii) as soon as available, but no later than thirty (30) days after the last day of each month, copies of the bank statements for each bank account maintained by Borrower; (iv) as soon as available, but no later than one hundred twenty (120) days after the last day of Borrower’s fiscal year (commencing with Borrower’s fiscal year ended December 31, 2009), audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Collateral Agent in its reasonable discretion (which shall include KPMG, the accounting firm utilized by the Borrower on the Effective Date); (v) as soon as available after approval thereof by Borrower’s Board of Directors, Borrower’s operating and capital budgets as approved by Borrower’s Board of Directors; (vi) within five (5) days of delivery, copies of all statements, reports and notices made available to all of Borrower’s security holders or to any holders of Subordinated Debt; (vii) in the event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on Borrower’s or another website on the Internet; (vi) a prompt report of any legal actions pending or threatened against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00) or more; and (viii) other financial information reasonably requested by Collateral Agent.

 

(b)                                 Within thirty (30) days after the last day of each month, deliver to Collateral Agent, a duly completed Compliance Certificate signed by a Responsible Officer.

 

6.3                               Inventory; Returns. Borrower and/or its agents shall keep all Inventory in good and marketable (although not necessarily approved for sale to the public as regulated by the FDA) condition, free from material defects and maintain such Inventory in accordance with appropriate storage requirements. Returns and allowances between Borrower (and/or Borrower’s agents) and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date or as are customary in the pharmaceutical industry. Borrower must promptly notify Collateral Agent of all returns, recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars ($250,000).

 

6.4                               Taxes;  Pensions. Timely file and require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file and pay, all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Collateral Agent, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms.

 

6.5                               Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and location and as Collateral Agent may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent, provided however, Collateral Agent acknowledges and agrees that Borrower’s insurance companies and coverage in effect as of the Effective Date are satisfactory for Borrower’s current properties and business. All property policies shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral Agent, as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer shall endeavor to give Collateral Agent at least thirty (30) days (or ten (10) days if due to non-payment of premium) notice before canceling, amending, or declining to renew its policy. At Collateral Agent’s request, Borrower shall deliver certified copies of policies and evidence of all

 

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premium payments. Proceeds payable under any casualty or business interruption policy shall, at Collateral Agent’s option, be payable to Collateral Agent on behalf of the Lenders on account of the Obligations. Notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing, (i) Borrower shall have the option of applying the proceeds of any casualty policy up to Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property, provided that any such replaced or repaired property (a) shall be of equal or like value as the replaced or repaired Collateral and (b) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest, and (ii) Borrower shall have the option of applying the proceeds of any casualty policy in excess of Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property, provided that (a) prior to the receipt and application of such proceeds, Borrower shall have delivered to the Collateral Agent and the Lenders a reinvestment plan detailing such replacement or repair which plan shall be acceptable to the Required Lenders in their reasonable discretion, (b) such proceeds are deposited into an account which is subject to a Control Agreement in favor of the Collateral Agent, (c) such proceeds shall be applied to such replacement or repair within one hundred eighty (180) days after receipt thereof by the Borrower (with any remaining unspent proceeds after such one hundred eighty (180) day period being payable to Collateral Agent for application to the Obligations), (d) any such replaced or repaired property (1) shall be of equal or like value as the replaced or repaired Collateral and (2) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest. In the event Lenders do not in their reasonable discretion approve of such a reinvestment plan detailing the replacement or repair of destroyed or damaged property, the related proceeds payable under any casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent on account of the Obligations. After the occurrence and during the continuance of an Event of Default, all proceeds payable under any casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent on account of the Obligations. In the event that any proceeds payable under any casualty policy are to be applied on account of the Obligations, Borrower shall cooperate with Collateral Agent to cause such proceeds to be paid to Collateral Agent, including, without limitation, executing any endorsements of such proceeds in favor of Collateral Agent. Borrower fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Collateral Agent, Collateral Agent may make all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Collateral Agent deems prudent.

 

6.6                               Operating Accounts.

 

(a)                                 Maintain all of Borrower’s Collateral Accounts, operating and investment accounts with Borrower’s Account Banks, which accounts are subject to Control Agreements in favor of Collateral Agent.

 

(b)                                 Provide Collateral Agent five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Borrower’s Account Banks. In addition, for each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Borrower’s Account Banks) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Collateral Agent’s Lien in such Collateral Account in accordance with the terms hereunder, which Control Agreement may not be terminated without prior written consent of Collateral Agent. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Collateral Agent by Borrower as such.

 

6.7                               Protection of Intellectual Property Rights. Borrower shall: (a) use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of its Intellectual Property; (b) promptly advise Collateral Agent in writing of material infringements of its Intellectual Property of which Borrower has knowledge; and (c) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Collateral Agent’s written consent.

 

6.8                               Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Collateral Agent, without expense to Collateral Agent, Borrower and its officers, employees and agents and Borrower’s Books, to the extent that Collateral Agent may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Collateral Agent with respect to any Collateral or relating to Borrower provided that with respect to claim, suit, counterclaim or proceeding brought by a third party (i.e., other than the Collateral Agent, the Lenders or Borrower), Borrower may withhold such portion of Borrower’s Books as would be reasonably be

 

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required to protect Borrower’s attorney-client privilege in respect of such third party claim, suit, counterclaim or proceeding (unless Borrower and the Collateral Agent or Lenders are parties to a joint defense agreement in which case no such information may be withheld).

 

6.9                               Notices of Litigation and Default. Borrower will give prompt written notice to Collateral Agent of any litigation or governmental proceedings pending or threatened (in writing) against Borrower which would reasonably be expected to have a material adverse effect with respect to Borrower’s business. Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Collateral Agent of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default.

 

6.10                        Creation/Acquisition of Subsidiaries. In the event Borrower or any Subsidiary creates or acquires any Subsidiary, Borrower and such Subsidiary shall promptly notify Collateral Agent of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Collateral Agent to cause each such Subsidiary to become a co-Borrower hereunder or to guarantee the Obligations of Borrower under the Loan Documents and, in each case, grant a continuing pledge and security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A  hereto); and Borrower shall grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, a perfected security interest in the stock, units or other evidence of ownership of each Subsidiary.

 

6.11                        New Drug Application. In the event Borrower borrows any Term B Loan, Borrower shall file a New Drug Application (NDA) with the Food and Drug Administration in respect of Borrower’s Ataluren program on or before December 31, 2010.

 

6.12                        Further Assurances.

 

(a) Execute any further instruments and take further action as Collateral Agent reasonably requests to perfect or continue Collateral Agent’s Lien in the Collateral or to effect the purposes of this Agreement.

 

(b) Deliver to Collateral Agent, within ten (10) days after the same are sent or received, copies of all material correspondence, reports, documents and other filings received from any Governmental Authority that could reasonably be expected to have a material adverse effect on any of the Governmental Approvals material to Borrower’s business or otherwise material to the operations of Borrower or any of its Subsidiaries.

 

(c)                                  Deliver to Collateral Agent, within ten (10) days after request therefor from Collateral Agent or the Lenders, copies of all material correspondence, reports, documents and other filings sent by Borrower to any Governmental Authority or a summary thereof.

 

7                                         NEGATIVE COVENANTS

 

Borrower shall not do any of the following without the prior written consent of the Required Lenders:

 

7.1                               Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete or replaced Equipment; and (c) in connection with Permitted Liens and Permitted Investments; (d) of non-exclusive licenses for the use of the property, of Borrower or its Subsidiaries in the ordinary course of business; or (e) exclusive licenses for the use of the property, of Borrower or its Subsidiaries in connection with joint ventures and corporate collaborations provided each such exclusive license is specifically approved by Borrower’s Board of Directors and approved with the prior written consent of the Required Lenders (which with respect to any Lender other than Oxford or MidCap Financial, LLC, a Delaware limited liability company (and its affiliates, herein referred to collectively as “MidCap”) shall be approved in such Lender’s reasonable discretion (other than with respect to exclusive licenses of PTC124 or PTC299 in all or substantially all the worldwide geographic regions in which the Borrower

 

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retains rights to such drug or any license which would result in a “deemed liquidation” as defined in Borrower’s Certificate of Incorporation, in respect of which such approval shall be granted in such Lender’s sole discretion)). Notwithstanding the foregoing or any other provision of this Agreement, Borrower may Transfer all or any part of its business or property if either (i) Borrower obtains the prior written consent of the Required Lenders or (ii) Borrower repays the Term Loans in full in accordance with 2.2(d) and pays to the Lenders all amounts required to be paid pursuant to such Section 2.2(d) in connection with such prepayment (including, without limitation, the Final Payment and the Prepayment Fee) in full prior to or simultaneously with the consummation of such Transfer.

 

7.2                               Changes in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate, wind up or dissolve or elect or resolve to liquidate, wind up or dissolve; or (c) (i) permit any Key Person to cease to be employed by Borrower or actively involved in the senior management of Borrower (unless such change is approved by the Borrower’s Board of Directors and a replacement for such Key Person approved by the Borrower’s Board of Directors is engaged within one hundred twenty (120) days), or (ii) enter into any transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction own more than 50% of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering or to venture capital investors so long as Borrower identifies to Collateral Agent the venture capital investors prior to the closing of the transaction). Borrower shall not, without at least thirty (30) days prior written notice to Collateral Agent: (1) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Twenty Thousand Dollars ($20,000) in Borrower’s assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization.

 

7.3                               Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. A Subsidiary may merge or consolidate into another Subsidiary (provided such surviving Subsidiary is a “co-Borrower” hereunder or has provided a secured guaranty hereunder) or into Borrower provided Borrower is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom. Notwithstanding the foregoing or any other provision of this Agreement, Borrower may merge, consolidate, be acquired or acquire all or substantially all of the capital stock or property of another Person if either (i) Borrower obtains the prior written consent of the Required Lenders or (ii) Borrower repays the Term Loans in full in accordance with 2.2(d) and pays to the Lenders all amounts required to be paid pursuant to such Section 2.2(d) in connection with such prepayment (including, without limitation, the Final Payment and the Prepayment Fee) in full prior to or simultaneously with the consummation of such merger, consolidation or acquisition.

 

7.4                               Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

 

7.5                               Encumbrance. Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein (except for Permitted Liens that may have priority permitted by the terms of this Agreement), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Collateral Agent) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property (or any exclusive or non-exclusive license agreement whereby Borrower is the licensee of any Intellectual Property (other than any non-assignment provisions contained in such exclusive or non-exclusive license agreements)), except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein.

 

7.6                               Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6(b) hereof.

 

7.7                               Distributions; Investments. (a) Pay any dividends (other than dividends payable solely in common stock) or make any distribution or payment or redeem, retire or purchase any capital stock (other than repurchases pursuant to the

 

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terms of employee stock purchase plans, employee restricted stock agreements or similar plans), or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so.

 

7.8                               Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.

 

7.9                               Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to the Lenders.

 

7.10                        Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

7.11                        Compliance with Anti-Terrorism Laws. Collateral Agent hereby notifies Borrower that pursuant to the requirements of Anti-Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and record certain information and documentation that identifies Borrower and its principals, which information includes the name and address of Borrower and its principals and such other information that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws. Borrower will not, nor will Borrower permit any Subsidiary or Affiliate to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists. Borrower shall immediately notify Collateral Agent if Borrower has knowledge that Borrower or any Subsidiary or Affiliate is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering. Borrower will not, nor will Borrower permit any Subsidiary or Affiliate to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

8                                         EVENTS OF DEFAULT

 

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:

 

8.1                               Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date (unless such failure is the result of the failure of the Lenders to debit the Designated Deposit Account for such payment on the date when due and on such date sufficient monies were on deposit in the Designated Deposit Account to make such payment, in which case a three (3) Business Day grace period shall apply), or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);

 

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8.2                               Covenant Default.

 

(a)                                 Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, or 6.10 or violates any covenant in Section 7; or

 

(b)                                 Borrower or any of its Subsidiaries fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Grace periods provided under this Section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above;

 

8.3                               Material Adverse Change. A Material Adverse Change occurs;

 

8.4                               Attachment; Levy; Restraint on Business.

 

(a)                                 (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with the Lenders or any Lender Affiliate, or (ii) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and

 

(b)                                 (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any part of its business;

 

8.5                               Insolvency (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed);

 

8.6                               Other Agreements. There is a default in any agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) or that could have a material adverse effect on Borrower’s business.

 

8.7                               Judgments. One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order or decree);

 

8.8                               Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent and/or the Lenders or to induce Collateral Agent and/or the Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made;

 

8.9                               Subordinated Debt. A default or breach occurs under any agreement between Borrower and any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or the Lenders, or

 

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any creditor that has signed such a subordination, intercreditor, or other similar agreement with Collateral Agent or the Lenders breaches any terms of such agreement; or

 

8.10                        Governmental Approvals. Any Governmental Approval applicable to Borrower shall have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or non-renewal (i) has, or could reasonably be expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold any Governmental Approval in any other jurisdiction.

 

8.11                        Lien Priority. Except as permitted by Collateral Agent, any Lien created hereunder or by any other Loan Document shall at any time fail to constitute a valid and perfected Lien on all of the Collateral purported to be secured thereby, subject to no prior or equal Lien, other than Permitted Liens.

 

9                                         RIGHTS AND REMEDIES

 

9.1                               Rights and Remedies.

 

(a) Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, and at the written direction of any Lender shall, without notice or demand, do any or all of the following: (i) deliver notice of the Event of Default to Borrower, (ii) by notice to Borrower declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations shall be immediately due and payable without any action by Collateral Agent or the Lenders) or (iii) by notice to Borrower suspend or terminate the obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders (but if an Event of Default described in Section 8.5 occurs all obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders shall be immediately terminated without any action by Collateral Agent or the Lenders).

 

(b) Without limiting the rights of the Collateral Agent and the Lenders set forth in Section 9.1 (a) above, upon the occurrence and during the continuance of an Event of Default Collateral Agent shall have the right, at the written direction of the Required Lenders, without notice or demand, to do any or all of the following:

 

(i) foreclose upon and/or sell or otherwise liquidate, the Collateral;

 

(ii) apply to the Obligations any (a) balances and deposits of Borrower that Collateral Agent or any Lender holds or controls, or (b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; and/or

 

(iii) commence and prosecute an Insolvency Proceeding or consent to the Borrower commencing any Insolvency Proceeding.

 

(c) Without limiting the rights of the Collateral Agent and the Lenders set forth in Sections 9.1(a) and (b) above, upon the occurrence and during the continuance of an Event of Default Collateral Agent shall have the right, without notice or demand, to do any or all of the following:

 

(i) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Collateral Agent considers advisable, notify any Person owing Borrower money of Collateral Agent’s security interest in such funds, and verify the amount of such account;

 

(ii) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Collateral

 

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Agent requests and make it available as Collateral Agent designates. Collateral Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Collateral Agent a license to enter and occupy any of its premises, without charge, to exercise any of Collateral Agent’s rights or remedies;

 

(iv) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, and/or advertise for sale, the Collateral. Collateral Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Collateral Agent’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise agreements inure to Collateral Agent for the benefit of the Lenders;

 

(v) place a “hold” on any account maintained with Collateral Agent or the Lenders and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;

 

(vi) demand and receive possession of Borrower’s Books (other than computer software that Borrower is expressly prohibited from transferring by the terms of the agreement by which Borrower obtained such software); and

 

(vii) Subject to clauses 9.1(a) and (b), exercise all rights and remedies available to Collateral Agent under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof).

 

Notwithstanding any provision of this Section 9.1 to the contrary, upon the occurrence of any Event of Default, Collateral Agent shall have the right to exercise any and all remedies referenced in this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance. As used in the immediately preceding sentence, “Exigent Circumstance” means any event or circumstance that, in the reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any material portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof, destruction or material waste thereof, or failure of Borrower after reasonable demand to maintain or reinstate adequate casualty insurance coverage, or which, in the judgment of Collateral Agent, could result in a material diminution in value of the Collateral.

 

9.2                               Power of Attorney. Borrower hereby irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Collateral Agent or a third party as the Code permits. Borrower hereby appoints Collateral Agent as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Collateral Agent’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Collateral Agent and the Lenders are under no further obligation to make Credit Extensions hereunder. Collateral Agent’s foregoing appointment as Borrower’s attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Collateral Agent’s and the Lenders’ obligation to provide Credit Extensions terminates.

 

9.3                               Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Collateral Agent may obtain such insurance or make such payment, and all amounts so paid by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral. Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent

 

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obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No such payments by Collateral Agent are deemed an agreement to make similar payments in the future or Collateral Agent’s waiver of any Event of Default.

 

9.4                               Application of Payments and Proceeds. Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times thereafter received by Collateral Agent from or on behalf of Borrower of all or any part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall have the continuing and exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and (b) the proceeds of any sale of, or other realization upon all or any part of the Collateral shall be applied: first, to the Lenders Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but for the provisions of the United States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the Obligations outstanding; and fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent or any Lender under the Loan Documents. Any balance remaining shall be delivered to Borrower or to whoever may be lawfully entitled to receive such balance or as a court of competent jurisdiction may direct. In carrying out the foregoing, (x) amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any particular category shall receive an amount equal to its pro rata share of amounts available to be applied pursuant thereto for such category. Any reference in this Agreement to an allocation between or sharing by the Lenders of any right, interest or obligation “ratably,” “proportionally” or in similar terms shall refer to Pro Rata Share unless expressly provided otherwise. Collateral Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each Lender’s portion of any Term Loan and the ratable distribution of interest, fees and reimbursements paid or made by Borrower. Notwithstanding the foregoing, (a) a Lender receiving a scheduled payment shall not be responsible for determining whether the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or dates, then such Lender shall remit to the Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as instructed by Collateral Agent and (b) for so long as Oxford is Collateral Agent and the holder of the Indebtedness represented by the Oxford Equipment Financing, all payments received by Collateral Agent in respect of the Obligations (other than payments representing the proceeds of the Equipment financed pursuant to the Oxford Equipment Financing) shall be applied in the following order of priority: (i) first, to the Obligations then due and payable to the Lenders under the Loan Documents, and (ii) second, to the payment of the Indebtedness represented by the Oxford Equipment Financing. Any payment or distribution of any kind or character, whether in cash, properties or securities, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to the other Lender for application to the payments of amounts due on the other Lender’s claims. To the extent any payment for the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one another as is necessary to ensure that such return of payment is on a pro rata basis. If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and bailee for the Collateral Agent and other Lenders for purposes of perfecting Collateral Agent’s security interest therein. Notwithstanding anything to the contrary herein, any warrants issued to the Lenders by Borrower, the stock issuable thereunder, any equity securities purchased by Lenders, any amounts paid thereunder, any dividends, and any other rights in connection therewith shall not be subject to the terms and conditions of this Agreement. Nothing herein shall affect any Lender’s rights under any such warrants, stock, or other equity securities to administer, manage, transfer, assign, or exercise such warrants, stock, or other equity securities for its own account.

 

9.5                               Liability for Collateral. So long as Collateral Agent and the Lenders consult with Borrower and to the extent practicable comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.

 

9.6                               No Waiver; Remedies Cumulative. Collateral Agent’s failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Collateral Agent thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Collateral Agent and then is only effective for the specific instance and

 

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purpose for which it is given. Collateral Agent’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Collateral Agent has all rights and remedies provided under the Code, by law, or in equity. Collateral Agent’s exercise of one right or remedy is not an election, and Collateral Agent’s waiver of any Event of Default is not a continuing waiver. Collateral Agent’s delay in exercising any remedy is not a waiver, election, or acquiescence.

 

9.7                               Demand Waiver. Borrower waives, to the fullest extent permitted by law, demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Collateral Agent on which Borrower is liable.

 

10                                  NOTICES

 

All notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by-electronic mail (if an email address is specified herein) or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, or facsimile number, or indicated below (with a copy to any appropriate email address indicated below). Any of Collateral Agent, Lender or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10.

 

	
If to Borrower:
    	
PTC Therapeutics, Inc.

100 Corporate Court

Middlesex Business Center

South Plainfield, New Jersey 07080

Attn: Legal Department

Telephone: 908-222-7000

Fax: 908-222-1128
    
	
 

with a copy to (which   shall not constitute notice):

 
    
	
 
    	
Faber Daeufer & Rosenberg PC,

950 Winter Street

Suite 4500

Waltham, MA 02451

Attn: Joseph L. Faber

Fax: (781)795-4747

Email: Joe.faber@fdrpc.com
    

 

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If   to Collateral Agent or Oxford:   
    	
Oxford Finance Corporation

133 North Fairfax Street

Alexandria, Virginia 22314

Attention: General Counsel

Fax: (703) 519-5225
    
	
 
    	
 
    
	
with   a copy to:
    	
Riemer & Braunstein LLP

Three Center Plaza

Boston, Massachusetts 02108

Attn: David A. Ephraim,   Esquire

Fax: (617) 880-3456

Email: DEphraim@riemerlaw.com
    
	
 
    	
 
    
	
If   to MidCap:
    	
Midcap Financial, LLC

7735 Old Georgetown Rd, Suite 400

Bethesda, MD 20814

Attn: Loan Servicing — PTC Transaction
    

 

11                                  CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

 

New York law governs the Loan Documents without regard to principles of conflicts of law. Borrower, Lenders and Collateral Agent each submit to the exclusive jurisdiction of the State and Federal courts in New York. NOTWITHSTANDING THE FOREGOING, COLLATERAL AGENT AND LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH COLLATERAL AGENT AND LENDERS (IN ACCORDANCE WITH THE PROVISIONS OF SECTION 9.1) DEEM NECESSARY OR APPROPRIATE TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE COLLATERAL AGENT’S AND LENDERS’ RIGHTS AGAINST BORROWER OR ITS PROPERTY. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any state or federal court located in New York City, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.

 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, THE LENDERS AND COLLATERAL AGENT EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

12                                  GENERAL PROVISIONS

 

12.1                        Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Collateral Agent’s prior written consent (which may be granted or withheld in Collateral Agent’s discretion, subject to Section 12.11). The Lenders have the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant

 

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participation in all or any part of, or any interest in, the Lenders’ obligations, rights, and benefits under this Agreement and the other Loan Documents; provided, however that so long as no Event of Default has occurred and is continuing, any such sale, assignment, negotiation or grant of a participation by any Lender (other than a sale, assignment or participation to a Qualified Assignee (as defined below)) of its obligations, rights, and benefits under this Agreement and the other Loan Documents shall require the prior written consent of Collateral Agent. As used herein, “Qualified Assignee” means (a) any Lender and any Affiliate of any Lender and (b) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act) which extends credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which has a rating of BBB or higher from S&P and a rating of Baa2 or higher from Moody’s at the date that it becomes a Lender and in each case of clauses (a) and (b), which, through its applicable lending office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that no person proposed to become a Lender after the Effective Date and determined by Collateral Agent to be acting in the capacity of a vulture fund or distressed debt purchaser shall be a Qualified Assignee, and no person or Affiliate of such person proposed to become a Lender after the Effective Date and that holds any subordinated debt or stock issued by Borrower shall be a Qualified Assignee.

 

12.2                        Indemnification. Borrower agrees to indemnify, defend and hold Collateral Agent and the Lenders and their respective directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Collateral Agent or the Lenders (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Indemnified Person from, following, or arising from transactions between Collateral Agent, and/or the Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct (collectively, the “Indemnified Liabilities”). Borrower hereby further indemnifies, defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and disbursements of counsel for such Indemnitee) in connection with any investigative, response, remedial, administrative or judicial matter or proceeding, whether or not such Indemnified Person shall be designated a party thereto and including any such proceeding initiated by or on behalf of Borrower, and the reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and any commission, fee or compensation claimed by any broker (other than any broker retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be imposed on, incurred by or asserted against such Indemnified Person as a result of or in connection with the transactions contemplated hereby and the use or intended use of the proceeds of the loan proceeds.

 

12.3                        Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement.

 

12.4                        Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision.

 

12.5                        Correction of Loan Documents. Collateral Agent and the Lenders may correct patent errors and fill in any blank dates in this Agreement and the other Loan Documents consistent with the agreement of the parties.

 

12.6                        Integration. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents.

 

12.7                        Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

12.8                        Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify each Lender and Collateral Agent shall survive until the statute of limitations with respect to such claim or cause of action shall have run.

 

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12.9                        Confidentiality. In handling any confidential information of Borrower, the Lenders and Collateral Agent shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to the Lenders’ and Collateral Agent’s Subsidiaries or Affiliates who are bound by terms of confidentiality no less restrictive than those contained herein; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral Agent shall obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision, unless an Event of Default has occurred and is continuing, in which case, the Lenders and Collateral Agent shall use commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent considers appropriate in exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent does not know that the third party is prohibited from disclosing the information.

 

Without limiting the foregoing, Collateral Agent may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as, in connection with the development of client databases, reporting purposes, and market analysis, Collateral Agent does not disclose Borrower’s identity or the identity of any person associated with Borrower or any patentable subject matter unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement.

 

12.10                 Right of Set Off.  Borrower hereby grants to Collateral Agent and to each Lender, a lien, security interest and right of set off as security for all Obligations to Collateral Agent and each Lender hereunder, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Collateral Agent or the Lenders or any entity under the control of Collateral Agent or the Lenders (including a Collateral Agent affiliate) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Collateral Agent or the Lenders may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 

12.11                 Amendments.

 

(a)                                 No amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the Lenders having (x) more than 60% of the Term Loan Commitments of all Lenders or (y) if such Term Loan Commitments have expired or been terminated, more than 60% of the aggregate outstanding principal amount of the Term Loans (the “Required Lenders”); provided, however, that so long as a party that is a Lender hereunder on the Effective Date does not assign any portion of its Term Loan Commitment or Term Loan (other than to an Affiliate of such Lender), the “Required Lenders” shall include such Lender (or such Affiliate of such Lender to which such Lender may assign its interest). Except as set forth in clause (b) below, all such amendments, modifications, terminations or waivers requiring the consent of the “Lenders” shall require the written consent of Required Lenders.

 

(b)                                 No amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document shall, unless in writing and signed by Collateral Agent and each Lender directly affected thereby: (i) increase or decrease the Commitment of any Lender (which shall be deemed to affect all Lenders), (ii) reduce the principal of or rate of interest on any Obligation or the amount of any fees payable hereunder (other than waiving the imposition of the Default Rate), (iii) postpone the date fixed for or waive any

 

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payment of principal of or interest on any Term Loan, or any fees or reimbursement obligation hereunder, (iv) release all or substantially all of the Collateral, or consent to a transfer of any material Intellectual Property, in each case, except as otherwise expressly permitted in the Loan Documents (which shall be deemed to affect ail Lenders), (v) subordinate the lien granted in favor of Collateral Agent securing the Obligations (which shall be deemed to affect all Lenders), (vi) release a Loan Party from, or consent to a Loan Party’s assignment or delegation of, such Loan Party’s obligations hereunder and under the other Loan Documents or any Guarantor from its guaranty of the Obligations (which shall be deemed to affect all Lenders) or (vii) amend, modify, terminate or waive Section 9.4, 12.10 or 12.11(a) or this Section 12.11(b).

 

(c)                                  Notwithstanding any provision in this Section 12.11 to the contrary, no amendment, modification, termination or waiver affecting or modifying the rights or obligations of Collateral Agent hereunder shall be effective unless signed by Borrower, Collateral Agent and Required Lenders.

 

Any amendment, modification, supplement, termination, waiver or consent pursuant to this Section 12.11 shall apply equally to, and shall be binding upon, all the Lenders and Collateral Agent.

 

12.12                 Publicity.

 

Borrower will not directly or indirectly publish, disclose or otherwise use in any public disclosure, advertising material, promotional material, press release or interview, any reference to the name, logo or any trademark of Collateral Agent or any Lender or any of their Affiliates or any reference to this Agreement or the financing evidenced hereby, in any case except (a) as required by applicable law, subpoena or judicial or similar order, in which case Borrower shall endeavor to give Collateral Agent prior written notice of such publication or other disclosure, (b) with the consent of the Collateral Agent and of each Lender named in such public disclosure or press release, or (c) any subsequent disclosure of any information previously disclosed in accordance with this Section 12.12.

 

Each Lender and Borrower hereby authorizes each Lender to publish the name of such Lender and Borrower, the existence of the financing arrangements referenced under this Agreement, the primary purpose and/or structure of those arrangements, the amount of credit extended under each facility, the title and role of each party to this Agreement, and the total amount of the financing evidenced hereby in any “tombstone”, comparable advertisement or press release which such Lender elects to submit for publication. In addition, each Lender and Borrower agrees that each Lender may provide lending industry trade organizations with information necessary and customary for inclusion in league table measurements after the Effective Date. With respect to any of the foregoing, such authorization shall be subject to such Lender providing Borrower and the other Lenders with an opportunity to review and confer with such Lender regarding, and approve, the contents of any such tombstone, advertisement or information, as applicable, prior to its initial submission for publication, but subsequent publications of the same tombstone, advertisement or information shall not require Borrower’s approval.

 

13                                  COLLATERAL AGENT

 

13.1                        Appointment and Authorization of Collateral Agent. Each Lender hereby irrevocably appoints, designates and authorizes Collateral Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, Collateral Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term “agent” herein and in the other Loan Documents with reference to Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

 

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13.2                        Delegation of Duties. Collateral Agent may execute any of its duties under this Agreement or any other Loan Document by or through its, or its Affiliates’, agents, employees or attorneys-in-fact and shall be entitled to obtain and rely upon the advice of counsel and other consultants or experts concerning all matters pertaining to such duties. Collateral Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

 

13.3                        Liability of Collateral Agent. Except as otherwise provided herein, no Collateral Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by Borrower or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Collateral Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of Borrower or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Collateral Agent-Related Person shall be under any obligation to any Lender or participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties, books or records of Borrower or any Affiliate thereof.

 

13.4                        Reliance by Collateral Agent. Collateral Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower), independent accountants and other experts selected by Collateral Agent. Collateral Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such advice or concurrence of all Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of all Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders.

 

13.5                        Notice of Default. Collateral Agent shall not be deemed to have knowledge or notice of the occurrence of any default and/or Event of Default, unless Collateral Agent shall have received written notice from a Lender or Borrower, describing such default or Event of Default. Collateral Agent will notify the Lenders of its receipt of any such notice. Collateral Agent shall take such action with respect to an Event of Default as may be directed in writing by the Required Lenders in accordance, with Article 9(a); provided, however, that while an Event of Default has occurred and is continuing, Collateral Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default as Collateral Agent shall deem advisable or in the best interest of the Lenders, including without limitation, satisfaction of other security interests, liens or encumbrances on the Collateral not permitted under the Loan Documents, payment of taxes on behalf of Borrower, payments to landlords, warehouseman, bailees and other persons in possession of the Collateral and other actions to protect and safeguard the Collateral, and actions with respect to insurance claims for casualty events affecting Borrower and/or the Collateral.

 

13.6                        Credit Decision; Disclosure of Information by Collateral Agent. Each Lender acknowledges that no Collateral Agent-Related Person has made any representation or warranty to it, and that no act by Collateral Agent hereafter taken, including any consent to and acceptance of any assignment or review of the affairs of Borrower or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Collateral Agent-Related Person to any Lender as to any matter, including whether Collateral Agent-Related Persons have disclosed material information in their possession. Each Lender represents to Collateral Agent that it has, independently and without reliance upon any Collateral Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of, and investigation into, the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower and its respective Subsidiaries,

 

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and all applicable bank or other regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance upon any Collateral Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower. Except for notices, reports and other documents expressly required to be furnished to the Lenders by Collateral Agent herein, Collateral Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of Borrower or any of its Affiliates which may come into the possession of any Collateral Agent-Related Person.

 

13.7                        Indemnification of Collateral Agent. Whether or not the transactions contemplated hereby are consummated, each Lender shall, severally and pro rata based on its respective Pro Rata Share, indemnify upon demand each Collateral Agent-Related Person (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), and hold harmless each Collateral Agent-Related Person from and against any and all Indemnified Liabilities (which shall not include legal expenses of Collateral Agent incurred in connection with the closing of the transactions contemplated by this Agreement) incurred by it; provided, however, that no Lender shall be liable for the payment to any Collateral Agent-Related Person of any portion of such Indemnified Liabilities to the extent determined in a judgment by a court of competent jurisdiction to have resulted from such Collateral Agent-Related Person’s own gross negligence or willful misconduct; provided, however, that no action taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 13.7. Without limitation of the foregoing, each Lender shall, severally and pro rata based on its respective Pro Rata Share, reimburse Collateral Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including Lenders’ Expenses incurred after the closing of the transactions contemplated by this Agreement) incurred by Collateral Agent (in its capacity as Collateral Agent, and not as a Lender) in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that Collateral Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section 13.7 shall survive the payment in full of the Obligations, the termination of this Agreement and the resignation of Collateral Agent.

 

13.8                        Collateral Agent in its Individual Capacity. With respect to its Credit Extensions, Oxford shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not Collateral Agent, and the terms “Lender” and “Lenders” include Oxford in its individual capacity.

 

13.9                        Successor Collateral Agent. Collateral Agent may resign as Collateral Agent upon ten (10) days’ notice to the Lenders. If Collateral Agent resigns under this Agreement, all Lenders shall appoint from among the Lenders (or the affiliates thereof) a successor Collateral Agent for the Lenders, which successor Collateral Agent shall (unless an Event of Default has occurred and is continuing) be subject to the approval of Borrower (which approval shall not be unreasonably withheld or delayed). If no successor Collateral Agent is appointed prior to the effective date of the resignation of Collateral Agent, Collateral Agent may appoint, after consulting with the Lenders, a successor Collateral Agent from among the Lenders (or the affiliates thereof). Upon the acceptance of its appointment as successor Collateral Agent hereunder, the Person acting as such successor Collateral Agent shall succeed to all the rights, powers and duties of the retiring Collateral Agent and the respective term “Collateral Agent” means such successor Collateral Agent and the retiring Collateral Agent’s appointment, powers and duties in such capacities shall be terminated without any other further act or deed on its behalf. After any retiring Collateral Agent’s resignation hereunder as Collateral Agent, the provisions of this Article 13 and Sections 2.4(d) and 12.2 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement. If no successor Collateral Agent has accepted appointment as Collateral Agent by the date ten (10) days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Collateral Agent hereunder until such time, if any, as the Lenders appoint a successor agent as provided for above.

 

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13.10                 Collateral Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to Borrower, Collateral Agent (irrespective of whether the principal of any Loan, shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Collateral Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)                               to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Credit Extensions and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and Collateral Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and Collateral Agent and their respective agents and counsel and all other amounts due the Lenders and Collateral Agent allowed in such judicial proceeding); and

 

(b)                               to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to Collateral Agent and, in the event that Collateral Agent shall consent to the making of such payments directly to the Lenders, to pay to Collateral Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Collateral Agent and its agents and counsel, and any other amounts due Collateral Agent under Section 2.4(d). To the extent that Collateral Agent fails timely to do so, each Lender may file a claim relating to such Lender’s claim.

 

13.11                 Collateral and Guaranty Matters. The Lenders irrevocably authorize Collateral Agent, at its option and in its discretion, to release any Guarantor and any Lien on any Collateral granted to or held by Collateral Agent under any Loan Document (i) upon the date that all Obligations due hereunder have been fully and indefeasibly paid in full and no Term Loan Commitments or other obligations of any Lender to provide funds to Borrower under this Agreement remain outstanding, (ii) that is transferred or to be transferred as part of or in connection with any Transfer permitted hereunder or under any other Loan Document, or (iii) as approved in accordance with Section 12.11. Upon request by Collateral Agent at any time, all Lenders will confirm in writing Collateral Agent’s authority to release its interest in particular types or items of Property, pursuant to this Section 13.11.

 

13.12                 Cooperation of Borrower. If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 12.1, (ii) make Borrower’s management reasonably available upon prior notice to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions and (iii) assist Collateral Agent or the Lenders in the preparation of information relating to the financial affairs of Borrower as any prospective participant or assignee of a Term Loan Commitment or Term Loan reasonably may request. Subject to the provisions of Section 12.9 Borrower authorizes each Lender to disclose to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement.

 

14                                  DEFINITIONS

 

14.1                        Definitions. As used in this Agreement, the following terms have the following meanings:

 

“Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower.

 

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“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

“Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.

 

“Agreement” is defined in the preamble hereof.

 

“Amortization Date” is, (i) with respect Term Loan A, March 1, 2010, and (b) with respect to Term Loan B, the 8th Payment Date following the Funding Date of Term Loan B.

 

“Anti-Terrorism Laws” means any Laws relating to terrorism or money laundering, including Executive Order No. 13224 (effective September 24, 2001), the USA PATRIOT Act, the Laws comprising or implementing the Bank Secrecy Act, and the Laws administered by OFAC.

 

“Basic Rate” is, with respect to a Term Loan, the per annum rate of interest (based on a year of 360 days) equal to the greater of (i) 13.65% and (ii) the sum of (a) the three-month U.S. LIBOR rate reported on Bankrate.com three (3) Business Days prior to the Funding Date of such Term Loan, plus (b) 12.40%.

 

“Blocked Person” means any Person: (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list.

 

“Borrower” is defined in the preamble hereof.

 

“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

 

“Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors and delivered by such Person to Collateral Agent approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying that (a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents on behalf of such Person, together with a sample of the true signature(s) of such Person(s), and (d) that Collateral Agent and the Lenders may conclusively rely on such certificate unless and until such Person shall have delivered to Collateral Agent a further certificate canceling or amending such prior certificate.

 

“Business Day” is any day that is not a Saturday, Sunday or a day on which Collateral Agent is closed.

 

“Cash Equivalents” are (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., and (c) certificates of deposit issued maturing no more than one (1) year after issue. For the avoidance of doubt, the direct purchase by Borrower, co-borrower, or any subsidiary of Borrower of any Auction Rate Securities, or purchasing participations in, or

 

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entering into any type of swap or other derivative transaction, or otherwise holding or engaging in any ownership interest in any type of Auction Rate Security by Borrower, co-borrower, or any subsidiary of Borrower shall be conclusively determined by the Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate each other provision of this agreement governing Permitted Investments; provided however, that Borrower shall not be prohibited from engaging in transactions to hedge against currency fluctuations up to a maximum of $5,000,000 provided that such transactions are effected in accordance with a foreign exchange hedge policy that has been approved by Borrower’s Board of Directors and the Collateral Agent; and provided further, that in the event that a foreign exchange hedge policy has been approved by Borrower’s Board of Directors but not the Collateral Agent, Borrower shall not be prohibited from engaging in transactions to hedge against currency fluctuations up to a maximum of $500,000. Notwithstanding the foregoing, Cash Equivalents does not include and each Borrower and Subsidiary is prohibited from purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an auction rate security; provided however, that Borrower shall not be prohibited from engaging in transactions to hedge against currency fluctuations up to a maximum of $5,000,000 provided that such transactions are effected in accordance with a foreign exchange hedge policy that has been approved by Borrower’s Board of Directors and the Collateral Agent and; and provided further, that in the event that a foreign exchange hedge policy has been approved by Borrower’s Board of Directors but not the Collateral Agent, Borrower shall not be prohibited from engaging in transactions to hedge against currency fluctuations up to a maximum of $500,000.

 

“Claims” are defined in Section 12.2.

 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of New York; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Collateral Agent’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “Code”  shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.

 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A.

 

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account.

 

“Collateral Agent” means, Oxford, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit of the Lenders.

 

“Collateral Agent-Related Person” means the Collateral Agent, together with its Affiliates, and the officers, directors, employees, agents, advisors, auditors and attorneys-in-fact of such Persons; provided, however, that no Collateral Agent-Related Person shall be an Affiliate of Borrower.

 

“Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time.

 

“Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Communication” is defined in Section 10.

 

“Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit C.

 

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“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Collateral Agent pursuant to which Collateral Agent obtains control (within the meaning of the Code) for the benefit of the Lenders over such Deposit Account, Securities Account, or Commodity Account.

 

“Credit Extension” is any Term Loan or any other extension of credit by Collateral Agent or the Lenders for Borrower’s benefit.

 

“Default Rate” is defined in Section 2.3(b).

 

“Deposit Account”  is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Designated Deposit Account” is Borrower’s deposit account, account number 2000030197279, maintained with Wachovia Bank.

 

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

 

“Effective Date” is defined in the preamble of this Agreement.

 

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

 

“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations.

 

“Event of Default” is defined in Section 8.

 

“Final Payment” is a payment (which payment is in addition to and not a substitution for the regular monthly payments of principal plus accrued interest and is intended as yield enhancement, not as a penalty) due on the earlier to occur of (a) the Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d), equal to the original principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to the Lenders in accordance with their respective Pro Rata Shares.

 

“Final Payment Percentage” is three percent (3.00%).

 

“First Draw Period” is the period commencing on the Effective Date and ending on September 25, 2009.

 

“Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day.

 

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“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession in the United States, which are applicable to the circumstances as of the date of determination.

 

“General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

 

“Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization that has any authority or jurisdiction over Borrower and/or Borrower’s business and operations.

 

“Guarantor” is any present or future guarantor of the Obligations.

 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations.

 

“Indemnified Liabilities” is defined in Section 12.2.

 

“Indemnified Person” is defined in Section 12.2.

 

“Insolvency Proceeding”  is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

 

“Intellectual Property” includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, trade names, service marks, mask works, rights of use of any name, domain names, or any other similar rights, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, clinical and non-clinical data, rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing.

 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

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“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.

 

“Key Person” is each of Borrower’s President & Chief Executive Officer, Chief Medical Officer, Senior Vice President — Research and CMC, Senior Vice President — Commercial, and Chief Financial Officer, who are Stuart W. Peltz, Langdon Miller, Neil Almstead, Theresa Natalicchio, and William Baird, III, respectively, as of the Effective Date.

 

“Lender” is any one of the Lenders.

 

“Lenders” shall mean the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party to this Agreement pursuant to Section 12.1.

 

“Lenders’ Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent or the Lenders in connection with the Loan Documents.

 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property.

 

“Loan Documents” are, collectively, this Agreement, the Warrant, the Perfection Certificate, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of the Lenders and Collateral Agent in connection with this Agreement, all as amended, restated, or otherwise modified.

 

“Loan Party” is Borrower and each Guarantor.

 

“Material Adverse Change” is (a) a material impairment in the perfection or priority of the Collateral Agent’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) or prospects of Borrower; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

 

“Maturity Date” is, with respect a Term Loan, the date which is twenty-nine (29) months after the Amortization Date with respect to such Term Loan.

 

“Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Lenders’ Expenses, the Prepayment Fee, the Final Payment, and other amounts Borrower owes the Lenders now or later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and the performance of Borrower’s duties under the Loan Documents.

 

“OFAC” is the U.S. Department of Treasury Office of Foreign Assets Control.

 

“OFAC Lists” are, collectively, the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Executive Orders.

 

“Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its

 

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partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.

 

“Oxford Equipment Financing” is that certain Master Security Agreement dated as of July 30, 2004, by and among Borrower and Oxford and the Notes and other documents entered into from time to time prior to the Effective Date in connection therewith.

 

“Payment/Advance Form” is that certain form attached hereto as Exhibit B.

 

“Payment Date” is the first day of each calendar month.

 

“Perfection Certificate” is defined in Section 5.1.

 

“Permitted Indebtedness” is:

 

(a)                                 Borrower’s Indebtedness to the Lenders and Collateral Agent under this Agreement and the other Loan Documents;

 

(b)                                 Indebtedness existing on the Effective Date and shown on the Perfection Certificate;

 

(c)                                  Subordinated Debt;

 

(d)                                 unsecured Indebtedness to trade creditors incurred in the ordinary course of business;

 

(e)                                  Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;

 

(f)                                   Indebtedness secured by Permitted Liens; and

 

(g)                                  extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

 

“Permitted Investments” are:

 

(a)                                 Investments shown on the Perfection Certificate and existing on the Effective Date; and

 

(b)                                 Cash Equivalents;

 

(c)                                  Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;

 

(d)                                 unsecured Investments to trade creditors incurred in the ordinary course of Borrower’s business (e.g., up front payments under a vendor agreement); and

 

(e)                                  Investments made pursuant to Borrower’s Investment Policy Guidelines dated March 8, 2007, as in effect as of the Effective Date or as thereafter amended with the consent of the Required Lenders, which consent shall not be unreasonably withheld.

 

“Permitted Liens” are:

 

(a)                                 Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents;

 

31

 

(b)                                 Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;

 

(c)                                  purchase money Liens (i) on three pieces of laboratory Equipment acquired or held by Borrower prior to the Effective Date for financing the acquisition of the Equipment securing no more than Six Hundred Thousand Dollars ($600,000) in the aggregate amount outstanding, (ii) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than One Hundred Thousand Dollars ($100,000) in the aggregate amount outstanding, or (iii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;

 

(d)                                 statutory Liens securing claims or demands of materialmen, mechanics, carriers, warehousemen, landlords and other Persons imposed without action of such parties, provided they have no priority over any of Collateral Agent’s Lien and the aggregate amount of such Liens does not any time exceed Two Hundred Fifty Thousand Dollars ($250,000);

 

(e)                                  leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other than real property or Intellectual Property) granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Collateral Agent a security interest;

 

(f)                                   banker’s liens, rights of setoff and Liens in favor of financial institutions incurred made in the ordinary course of business arising in connection with Borrower’s deposit accounts or securities accounts held at such institutions to secure payment of fees and similar costs and expenses subject to Borrower’s compliance with Section 6.6(b) hereof;

 

(g)                                  Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);

 

(h)                                 Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.5 or 8.7;

 

(i)                                     non-exclusive ‘licenses of Intellectual Property granted to third parties in the ordinary course of business;

 

(j)                                    exclusive licenses for the use of the property, of Borrower or its Subsidiaries in connection with joint ventures and corporate collaborations provided each such exclusive license is specifically approved by Borrower’s Board of Directors and approved with the prior written consent of the Required Lenders (which with respect to any Lender other than Oxford or MidCap shall be approved in such Lender’s reasonable discretion (other than with respect to exclusive licenses of PTC124 or PTC299 in all or substantially all the worldwide geographic regions in which the Borrower retains rights to such drug or any license which would result in a “deemed liquidation” as defined in Borrower’s Certificate of Incorporation, in respect of which such approval shall be granted in such Lender’s sole discretion));

 

(j)                                    Liens in favor of Oxford or its successors or assigns encumbering Borrower’s Equipment financed pursuant to the Oxford Equipment Financing; and

 

(k)                                 Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) and (c) above, but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness may not increase.

 

32

 

“Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

 

“Positive Pivotal Ataluren Data” is defined in Section 2.5 hereof.

 

“Prepayment Fee” means with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to:

 

(i)                                     for a prepayment made on or after the Effective Date through and including the date which is twelve (12) months thereafter, six percent (6.0%) of the principal amount of the Term Loans prepaid;

 

(ii)                                  for a prepayment made after the date which is twelve (12) months after the Effective Date through and including the date which is twenty-four (24) months after the Effective Date, three and one-half percent (3.5%) of the principal amount of the Term Loans prepaid; and

 

(ii)                                  for a prepayment made after the date which is twenty-four (24) months after the Effective Date and prior to the Term Loan Maturity Date, two percent (2.0%) of the principal amount of the Term Loan prepaid.

 

“Pro Rata Share”  means, with respect to each Lender, a percentage (expressed as a decimal, rounded to the ninth decimal place) determined by dividing the amount of Term Loans held by such Lender by the aggregate amount of all outstanding Term Loans.

 

“PTC124 Discontinuation” is defined in Section 2.2(c)(ii).

 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made

 

“Required Lenders” is defined in Section 12.11.

 

“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, 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.

 

“Responsible Officer” is any of the President and Chief Executive Officer or Chief Financial Officer of Borrower.

 

“Second Draw Period” is the period commencing on the date on which Borrower achieves Positive Pivotal Ataluren Data and ending on April 30, 2010.

 

“Secured Promissory Note”  is defined in Section 2.4.

 

“Secured Promissory Note Record” is a record maintained by each Lender with respect to the outstanding Obligations and credits made thereto.

 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form

 

33

 

and substance satisfactory to the Required Lenders entered into between Collateral Agent, Borrower and the other creditor), on terms acceptable to the Required Lenders.

 

“Subsidiary” means, with respect to any Person, any Person of which more than 50.0% of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or one or more of Affiliates of such Person.

 

“Term Loan” is defined in Section 2.2(a) hereof.

 

“Term A Loan” is defined in Section 2.2(a) hereof.

 

“Term B Loan” is defined in Section 2.2(a) hereof.

 

“Term Loan Commitment” means, for any Lender, the obligation of such Lender to make a Term Loan, up to the principal amount shown on Schedule 1.1. “Term Loan Commitments” means the aggregate amount of such commitments of all Lenders.

 

“Transfer” is defined in Section 7.1.

 

“Warrants” are those certain Warrants to Purchase Stock dated as of the Effective Date executed by Borrower in favor of each Lender.

 

34

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
PTC THERAPEUTICS, INC.
    	
 
    
	
 
    	
 
    
	
By 
    	
/s/ Stuart Peltz
    	
 
    
	
Name: 
    	
Stuart Peltz
    	
 
    
	
Title: 
    	
President & CEO
    	
 
    
	
 
    	
 
    
	
COLLATERAL AGENT:
    	
 
    
	
 
    	
 
    
	
OXFORD   FINANCE CORPORATION, as Collateral Agent and as a Lender
    
	
 
    	
 
    
	
By
    	
/s/ John G. Henderson
    	
 
    
	
Name:
    	
John G. Henderson
    	
 
    
	
Title:
    	
Vice President & General   Counsel
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
LENDERS:
    	
 
    
	
 
    	
 
    
	
OXFORD   FINANCE CORPORATION, as a Lender
    
	
 
    	
 
    
	
By
    	
/s/ John G. Henderson
    	
 
    
	
Name:
    	
John G. Henderson
    	
 
    
	
Title:
    	
Vice President & General   Counsel
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
MIDCAP   FINANCIAL, LLC, as a Lender
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Josh Groman
    	
 
    
	
Name:
    	
Josh Groman
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

35

 

SCHEDULE 1.1

 

LENDERS AND COMMITMENTS

 

	
Lender
    	
 
    	
Term A Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
10,000,000
    	
 
    	
80
    	
%
    
	
Midcap Financial, LLC
    	
 
    	
$
    	
2,500,000
    	
 
    	
20
    	
%
    
	
TOTAL
    	
 
    	
$
    	
12,500,000
    	
 
    	
100.00
    	
%
    

 

	
Lender
    	
 
    	
Term B Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
10,000,000
    	
*
    	
80
    	
%
    
	
Midcap Financial, LLC
    	
 
    	
$
    	
2,500,000
    	
 
    	
20
    	
%
    
	
TOTAL
    	
 
    	
$
    	
12,500,000
    	
 
    	
100.00
    	
%
    

 

	
Lender
    	
 
    	
Aggregate Commitments
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
20,000,000
    	
 
    	
80
    	
%
    
	
Midcap Financial, LLC
    	
 
    	
$
    	
5,000,000
    	
 
    	
20
    	
%
    
	
TOTAL
    	
 
    	
$
    	
25,000,000
    	
 
    	
100.00
    	
%
    

 

*Oxford’s Term B Loan Commitment is subject to reduction in an amount equal to the aggregate outstanding obligations (including, without limitation, all principal, accrued interest and fees) owed by Borrower to Oxford in respect of the Oxford Equipment Financing on the Funding Date of Term B Loans in the event that Oxford has not sold its interest in the Oxford Equipment Financing to a third party prior to the Funding Date of Term B Loans. Oxford has no obligation to sell its interest in the Oxford Equipment Financing to a third party, and Oxford’s determination of whether to sell its interest in the Oxford Equipment Financing to a third party shall be made in Oxford’s sole discretion.

 

 

SCHEDULE 5.2

 

PTC Therapeutics, Inc.

Patent/Patent Applications

September 2009

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-104-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/19760
    	
 
    	
6/21/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC   Therapeutics, Inc. (“PTC”).
    	
 
    	
 
    
	
1100-104-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/519,243
    	
 
    	
12/21/2004
    	
 
    	
7,291,461
    	
 
    	
11/6/2007
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-105-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2493808.00
    	
 
    	
7/24/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-105-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
3765998.00
    	
 
    	
7/24/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-105-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/23075
    	
 
    	
7/24/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-105-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/521,775
    	
 
    	
1/21/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Modulate Premature Translation Termination and Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-109-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2493816.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Nucleoside   Compounds and their Use for Nonsense Suppression and the Treatment of Genetic   Dise
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-109-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
3766015.60
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Nucleoside   Compounds and their Use for Nonsense Suppression and the Treatment of Genetic   Dise
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-109-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/23185
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Nucleoside   Compounds and their Use for Nonsense Suppression and the Treatment of Genetic   Dise
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-109-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/048,659
    	
 
    	
1/21/2005
    	
 
    	
7,449,570
    	
 
    	
11/11/2008
    	
 
    	
Use of Nucleoside   Compounds for Nonsense Suppression and the Treatment of Genetic Diseases
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-110-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2493458.00
    	
 
    	
1/25/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-110-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
256755.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-110-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
3766012.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-110-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/23182
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-110-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
4/17/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-110-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/048.656
    	
 
    	
1/21/2005
    	
 
    	
7,405,233
    	
 
    	
7/29/2008
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-111-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2493457.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Acetylamino Benzoic Acid   Compounds and their Use for Nonsense Suppression and the Treatment of Disea
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    

 

Priviledged/Confidential Work Product

 

1

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-111-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
254157.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Acetylamino Benzoic Acid   Compounds and their Use for Nonsense Suppression and the Treatment of Disea
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-111-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
3766013.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Acetylamino Benzoic Acid   Compounds and their Use for Nonsense Suppression and the Treatment of Disea
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-111-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/23183
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Acetylamino Benzoic Acid   Compounds and their Use for Nonsense Suppression and the Treatment of Disea
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-111-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/789,625
    	
 
    	
4/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Acetylamino   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-111-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/048,657
    	
 
    	
1/21/2005
    	
 
    	
7,247,741
    	
 
    	
7/24/2007
    	
 
    	
Acetytamino Benzoic Acid   Compounds and their Use for Nonsense Suppression and the Treatment of Disea
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-118-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2521992.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2004229487.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-008
    	
 
    	
New Zealand
    	
 
    	
Granted
    	
 
    	
543263.00
    	
 
    	
4/9/2004
    	
 
    	
543263
    	
 
    	
4/9/2009
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
2005/010747
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2006-509896
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20055314.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-019
    	
 
    	
Russian Federation
    	
 
    	
Granted
    	
 
    	
200501601.00
    	
 
    	
4/9/2004
    	
 
    	
9120
    	
 
    	
8/22/2007
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-020
    	
 
    	
Cuba
    	
 
    	
Filed
    	
 
    	
190/2005
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7100245.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-026
    	
 
    	
Colombia
    	
 
    	
Filed
    	
 
    	
5113348.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0409319-4
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-055
    	
 
    	
Singapore
    	
 
    	
Granted
    	
 
    	
200506657-6
    	
 
    	
4/9/2004
    	
 
    	
118461
    	
 
    	
10/31/2007
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-056
    	
 
    	
India
    	
 
    	
Granted
    	
 
    	
2948/CHENP/2005
    	
 
    	
4/9/2004
    	
 
    	
230604
    	
 
    	
5/25/2009
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

2

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-118-070
    	
 
    	
Costa Rica
    	
 
    	
Filed
    	
 
    	
8086.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W-00200503004
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-078
    	
 
    	
Egypt
    	
 
    	
Filed
    	
 
    	
633/2005
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-106
    	
 
    	
Morocco
    	
 
    	
Granted
    	
 
    	
28594.00
    	
 
    	
4/9/2004
    	
 
    	
27802
    	
 
    	
4/9/2004
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
1-2005-501823
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-139
    	
 
    	
Trinidad
    	
 
    	
Filed
    	
 
    	
TT/VA/2005/00165
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200480015905.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-147
    	
 
    	
South Africa
    	
 
    	
Granted
    	
 
    	
2005/08298
    	
 
    	
4/9/2004
    	
 
    	
2005/08298
    	
 
    	
1/31/2007
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
171343.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-187
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2005-7019319
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-200
    	
 
    	
Eurasian Patent   Convention
    	
 
    	
Granted
    	
 
    	
200501601.00
    	
 
    	
4/9/2004
    	
 
    	
9120
    	
 
    	
8/22/2007
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-220
    	
 
    	
United Arab Emirates
    	
 
    	
Filed
    	
 
    	
270/2006
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4759404.90
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/11106
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-255
    	
 
    	
Ukraine
    	
 
    	
Filed
    	
 
    	
200510644.00
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-259
    	
 
    	
Mongolia
    	
 
    	
Granted
    	
 
    	
3641.00
    	
 
    	
4/9/2004
    	
 
    	
2707
    	
 
    	
4/21/2006
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-118-280
    	
 
    	
Uzbekistan
    	
 
    	
Filed
    	
 
    	
IAP20050393
    	
 
    	
4/9/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Oxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

3

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-118-555
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/241,700
    	
 
    	
9/29/2005
    	
 
    	
7,202,262
    	
 
    	
4/10/2007
    	
 
    	
Benzoic Acid or   Benzonate Substituted 1,2,4-Oxadiazole Compounds and Their Use For the   Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - CoM
    
	
1100-118-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/042,652
    	
 
    	
1/24/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4 Qxadiazole Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - MoU
    
	
1100-118-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/822,259
    	
 
    	
4/9/2004
    	
 
    	
6,992,096
    	
 
    	
1/31/2006
    	
 
    	
1,2,4 Oxadiazote Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - CoM
    
	
1100-134-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2394470.00
    	
 
    	
7/14/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-007
    	
 
    	
Australia
    	
 
    	
Granted
    	
 
    	
22720/01
    	
 
    	
12/13/2001
    	
 
    	
784947
    	
 
    	
6/3/2006
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2001-545593
    	
 
    	
6/14/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-014
    	
 
    	
France
    	
 
    	
Granted
    	
 
    	
986492.70
    	
 
    	
12/13/2000
    	
 
    	
1238110
    	
 
    	
2/18/2009
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-017
    	
 
    	
Italy
    	
 
    	
Granted
    	
 
    	
986492.70
    	
 
    	
12/13/2000
    	
 
    	
1238110
    	
 
    	
2/18/2009
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-018
    	
 
    	
Switzerland
    	
 
    	
Granted
    	
 
    	
986492.70
    	
 
    	
12/13/2000
    	
 
    	
1238110
    	
 
    	
2/18/2009
    	
 
    	
Methods of Assaying for   Compounds that Inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-698
    	
 
    	
Germany
    	
 
    	
Granted
    	
 
    	
986492.70
    	
 
    	
12/13/2000
    	
 
    	
1238110
    	
 
    	
2/18/2009
    	
 
    	
Methods of Assaying for   Compounds that Inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-227
    	
 
    	
European Patent   Convention
    	
 
    	
Granted
    	
 
    	
986492.70
    	
 
    	
12/13/2000
    	
 
    	
1238110
    	
 
    	
2/18/2009
    	
 
    	
Methods of Assaying for   Compounds that Inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US00/34232
    	
 
    	
12/13/2000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods of Assaying for   Compounds that Inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Jointly owned by PTC and   Amgen SF, LLC. Exclusively licensed to PTC pursuant to the Tularik Agreement.
    	
 
    	
 
    
	
1100-134-666
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/228,803
    	
 
    	
8/21/2002
    	
 
    	
7,026,122
    	
 
    	
4/11/2006
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-Mediat
    	
 
    	
Ownership assigned to   PTC pursuant to the Tularik Agreement.
    	
 
    	
Formerly jointly owned   by PTC and Tularik
    
	
1100-134-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/318,940
    	
 
    	
12/22/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Ownership assigned to   PTC pursuant to the Tularik Agreement.
    	
 
    	
Formerly jointly owned   by PTC and Tularik
    
	
1100-134-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
09/461,508
    	
 
    	
12/14/1999
    	
 
    	
6,458,538
    	
 
    	
10/1/2002
    	
 
    	
Methods of Assaying for   Compounds that Inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Ownership assigned to   PTC pursuant to the Tularik Agreement.
    	
 
    	
Formerly jointly owned   by PTC and Tularik
    
	
1100-207-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
8019547.20
    	
 
    	
11/6/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods of Assaying for   Compounds that inhibit Premature Translation Termination and Nonsense-mediat
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-138-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2493815.00
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nucleoside Compounds and   their use for Treating Cancer and Diseases Associated with Somatic Mutation
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

4

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-138-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
3766014.90
    	
 
    	
7/23/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nucleoside Compounds and   their use for Treating Cancer and Diseases Associated with Somatic Mutation
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-138-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US03/23184
    	
 
    	
7/22/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nucleoside Compounds and   their use for Treating Cancer and Diseases Associated with Somatic Mutation
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-138-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/906,665
    	
 
    	
10/2/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nucleoside Compounds and   their use for Treating Cancer and Diseases Associated with Somatic Mutation
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-138-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/625,059
    	
 
    	
7/22/2003
    	
 
    	
7,291,603
    	
 
    	
11/6/2007
    	
 
    	
Nucleoside Compounds and   their use for Treating Cancer and Diseases Associated with Somatic Mutation
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-151-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2582885.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-151-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5804171.60
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression Use of These Compounds for the Manufacture of a Medicament for Tr
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-151-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/036762
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-151-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/577,176
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, Use of These Compounds for the Manufacture of a Medicament For
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2583976.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005296730.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the Manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
554310.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the Manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/004487
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-536867
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7114098.50
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
3575/DELNP/2007
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the Manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580042808.50
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
182461.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5807462.60
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the Manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/36764
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

5

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-152-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2007-7009154
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Use of Defined Compounds   for the Manufacture of a Medicament for Preventing/Treating Diseases Result
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-152-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/577,189
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-153-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2583177.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-153-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5807667.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-153-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/037052
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-153-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/577,192
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2583971.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005295727.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
554437.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/004484
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-536865
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for The Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7114097.60
    	
 
    	
12/27/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
P10515995-4
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazote   Compounds and Their USe for the Manufacture of Medicament for Treating Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200702648-7
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
3576/DELNP/2007
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-117
    	
 
    	
Phillpines
    	
 
    	
Filed
    	
 
    	
1-2007-500807
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580042744.90
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazoles or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-147
    	
 
    	
South Africa
    	
 
    	
Filed
    	
 
    	
2007/03671
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
COMPOUNDS FOR NONSENSE   SUPPRESSION, AND METHODS FOR THEIR USE\n
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
182464.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

6

 

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-154-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5804194.80
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/036761
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2007-7010794
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-154-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/577,177
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrazole or Triazole   Compounds and Their Use for the Manufacture of a Medicament for Treating   Somatic
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2583159.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005295778.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
554327.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/004479
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-536837
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
8101510.10
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0516110-0
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200702507-5
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
3577/DELNP/2007
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
1-2007-500805
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580042743.40
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-147
    	
 
    	
South Africa
    	
 
    	
Filed
    	
 
    	
2007/02933
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
182459.00
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5815159.80
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/036673
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2007-7010767
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-157-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/577,191
    	
 
    	
10/13/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds for Nonsense   Suppression, and Methods for Their Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2603402.00
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions of an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutuation Suppression Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2006235115.00
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Suppress
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
562197.00
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

7

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-170-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/012206
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2008-505534
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20075682.00
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
8106626.10
    	
 
    	
6/17/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0609089-3
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200716713-3
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadlaiofe for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W-00200703359
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200680020100.40
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
186433.00
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadlazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
6749439.30
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadlazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US06/012887
    	
 
    	
4/6/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-170-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/918,114
    	
 
    	
10/4/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compositions and Methods   for Dosing an Orally Active 1,2,4-oxadiazoie for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - MoU Low   Dosing Regimen
    
	
1100-171-777
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/370,229
    	
 
    	
3/6/2006
    	
 
    	
7,304,080
    	
 
    	
12/74/2007
    	
 
    	
Substituted   1,2,4-Oxadiazoles, Compositions and Methods of Use
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2007235524.00
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
571899.00
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
Mx/a/2008/012515
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20084488.00
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

8

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-173-019
    	
 
    	
Russian Federation
    	
 
    	
Filed
    	
 
    	
2007142957.00
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0710213-5
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200807301-7
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
5887/CHENP/2008
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W00200803279
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780020127.80
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
194454.00
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
7754745.30
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/008268
    	
 
    	
3/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-173-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/234,592
    	
 
    	
9/29/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Production   of Functional Protein from DNA Having a Nonsense Mutation and the Treatment
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - MoU - Novel   Protein
    
	
1100-174-666
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
11/370,130
    	
 
    	
3/6/2006
    	
 
    	
7,419,991B2
    	
 
    	
9/2/2008
    	
 
    	
3-[5-(2-Fluoro-Phenyt-[1,2,4]Oxadlazol-3-YL]-Benzoic   Acid, Compositions, and Methods for the Use The
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - Picture Claim   - CoM
    
	
1100-175-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2662749.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-002
    	
 
    	
Argentina
    	
 
    	
Filed
    	
 
    	
P070103975
    	
 
    	
9/7/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazoie Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-003
    	
 
    	
Chile
    	
 
    	
Filed
    	
 
    	
2606-2007
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-004
    	
 
    	
Malaysia
    	
 
    	
Filed
    	
 
    	
PI20090941
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazoie Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-005
    	
 
    	
Peru
    	
 
    	
Filed
    	
 
    	
1203-2007
    	
 
    	
9/7/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2007292915.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
575511.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a20O9/002439
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazoie Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-011
    	
 
    	
Taiwan
    	
 
    	
Filed
    	
 
    	
96133607.00
    	
 
    	
9/8/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2009-527430
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-019
    	
 
    	
Russian Federation
    	
 
    	
Filed
    	
 
    	
2009113019.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazoie Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

9

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-175-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0716996-5
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200901588-4
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadlazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
1-2009-500433
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazote Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-255
    	
 
    	
Ukraine
    	
 
    	
Filed
    	
 
    	
200903350.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadlazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780041169.X
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-147
    	
 
    	
South Africa
    	
 
    	
Filed
    	
 
    	
2009/01782
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
197445.00
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadlazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-187
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2009-7007202
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-189
    	
 
    	
Vietnam
    	
 
    	
Filed
    	
 
    	
1-2009-00626
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
7837899.90
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadlazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-228
    	
 
    	
Patent Cooperation Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/019561
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Oxadiazole Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-175-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/899,813
    	
 
    	
9/6/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of 1,2,4-Qxadlazote Benzoic Acids
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - Manufacturing   Process
    
	
1100-177-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2663574.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-002
    	
 
    	
Argentina
    	
 
    	
Filed
    	
 
    	
P070104212
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of a   3-[5-(2-Dluorophenyl)- [1,2,4]Oxadlazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-003
    	
 
    	
Chile
    	
 
    	
Filed
    	
 
    	
2743-2007
    	
 
    	
9/25/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of a   3-[5-(2-Dluorophenyl)-[1,2,4]Oxadlazole-3-YL]-Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-004
    	
 
    	
Malaysia
    	
 
    	
Filed
    	
 
    	
PI20091186
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazoie-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-005
    	
 
    	
Peru
    	
 
    	
Filed
    	
 
    	
1290.20
    	
 
    	
9/25/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of a   3-[5-(2-Dluorophenyl)-[1,2,4]Oxadiazole-3-YL]-Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2007300542.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
575795.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2009/003160
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-011
    	
 
    	
Taiwan
    	
 
    	
Filed
    	
 
    	
96135785.00
    	
 
    	
9/26/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of a   3-[5-(2-Dluorophenyl)- [1,2,4]Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2009-529270
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-013
    	
 
    	
Venezuela
    	
 
    	
Filed
    	
 
    	
2007-002061
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

10

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-177-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20091488.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-019
    	
 
    	
Russian Federation
    	
 
    	
Filed
    	
 
    	
2009115649.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-(5-(2-Fluorophenyl)-[1,2,4]-Oxadiazote-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0717107-2
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadlazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200901948-0
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W-00200900747
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadlazote-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
1-2009-500530
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadlazole-3-Yt]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780043582.X
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-147
    	
 
    	
South Africa
    	
 
    	
Filed
    	
 
    	
2009/01949
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
197717.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4)-Oxadiazote-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-187
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2009-7008202
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-189
    	
 
    	
Vietnam
    	
 
    	
Filed
    	
 
    	
1-2009-00809
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-227
    	
 
    	
European Patent Convention
    	
 
    	
Filed
    	
 
    	
7838770.10
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/020633
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazote-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-255
    	
 
    	
Ukraine
    	
 
    	
Filed
    	
 
    	
200904012.00
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of   3-[5-(2-Fluorophenyl)-[1,2,4]-Oxadiazole-3-YL]- Benzoic Acid
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-177-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/904,005
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Crystalline Forms of a   3-[5-(2-Dluorophenyl)- [1,2,4]Oxadiazole-3-YL]- Benzoic Add
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - Solid Forms
    
	
1100-178-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
7873433.20
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Hydroxylated   1,2,4-Oxadiazole Benzoic Acid Compounds, Compositions Thereof and the Use for   Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-178-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PTC/US07/020631
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Hydroxylated 1,2,4-Oxadiazole   Benzoic Acid Compounds, Compositions Thereof and the Use for Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-178-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/904,001
    	
 
    	
9/24/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Hydroxylated 1,2,4-Oxadiazole   Benzoic Acid Compounds, Compositions Thereof and the Use for Nonsense
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - Metabolites
    
	
1100-180-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/724,408
    	
 
    	
3/14/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
1,2,4-Oxadiazote Benzoic   Acid Compounds and their Use for Nonsense Suppression and the Treatment of
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - Pharmaceutical   Compositions
    
	
1100-181-003
    	
 
    	
Chile
    	
 
    	
Filed
    	
 
    	
2923-2007
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

11

 

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1100-181-005
    	
 
    	
Peru
    	
 
    	
Filed
    	
 
    	
1386-2007
    	
 
    	
10/12/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2007308067.00
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2009/003909
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-011
    	
 
    	
Taiwan
    	
 
    	
Filed
    	
 
    	
96138340.00
    	
 
    	
10/12/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2009-532453
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20091826.00
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-019
    	
 
    	
Russian Federation
    	
 
    	
Filed
    	
 
    	
2009117590.00
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200902485-2
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W-00200900954
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780045655.00
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-187
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2009-7009602
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
7852738.90
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/021921
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1100-181-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/974,068
    	
 
    	
10/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Dosing an   Orally Active 1,2,4-Oxadiazole for Nonsense Mutation Therapy
    	
 
    	
Owned by PTC.
    	
 
    	
Ataluren - High Dosing
    
	
1100-204-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/140,641
    	
 
    	
6/17/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ureido Substituted   Benzoic Acid Compounds and their Use for Nonsense Suppression and the   Treatment o
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2443711.00
    	
 
    	
10/8/2003
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
581690.00
    	
 
    	
4/11/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
2725663.50
    	
 
    	
4/11/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US02/11757
    	
 
    	
4/11/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-666
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/347,748
    	
 
    	
2/3/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-102-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/475,024
    	
 
    	
2/3/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

12

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1200-103-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US02/11758
    	
 
    	
4/11/2002
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-103-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/059,721
    	
 
    	
2/21/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Small Molecules that Bind Specific RNA Structural Motifs
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-113-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2520415.00
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-113-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2006-509431
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-113-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4758530.20
    	
 
    	
9/26/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-113-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/009572
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-113-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/551,301
    	
 
    	
9/27/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-114-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2520510.00
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-114-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2006-509432
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-114-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4758532.00
    	
 
    	
9/25/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-114-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/009574
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-114-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/551,304
    	
 
    	
9/27/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Target tRNA Splicing Endonuclease and Uses of Said Compounds
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-115-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2520664.00
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Targeting Enzymes of the   tRNA Splicing Pathway for Identification of Anti-Fungal And/Or Anti-Prolife
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-115-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2006-509407
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Targeting Enzymes of the   tRNA Splicing Pathway for Identification of Anti-Fungal And/Or Anti-Prolife
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-115-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4758540.10
    	
 
    	
9/25/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Targeting Enzymes of the   tRNA Splicing Pathway for Identification of Anti-Fungal And/Or Anti-Prolife
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-115-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/009590
    	
 
    	
3/26/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Targeting Enzymes of the   tRNA Splicing Pathway for identification of Anti-Fungal And/Or Antl-Proiife
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-115-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/551.300
    	
 
    	
9/27/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Targeting Enzymes of the   tRNA Splicing Pathway for Identification of Anti-Fungal And/Or Anti-Prolife
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-121-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2574076.00
    	
 
    	
8/16/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMS II)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-121-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-522473
    	
 
    	
8/16/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMS II)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

13

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1200-121-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7107669.80
    	
 
    	
8/16/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMS II)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-121-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4781055.10
    	
 
    	
8/16/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMS II)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-121-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/26309
    	
 
    	
8/16/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMS II)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-121-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/895.393
    	
 
    	
7/21/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Gene Expression (GEMSII)
    	
 
    	
Owned by PTC.
    	
 
    	
GEMS
    
	
1200-122-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2514184.00
    	
 
    	
1/21/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Modulate Untranslated Region-Based Regulation and Methods of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-122-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4704085.20
    	
 
    	
1/21/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Modulate Untranslated Region-Based Regulation and Methods of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-122-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/001643
    	
 
    	
1/21/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   Compounds that Modulate Untranslated Region-Based Regulation and Methods of
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-122-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/543,033
    	
 
    	
7/21/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for identifying   Compounds that Modulate Untranslated Region-Based Regulation and Methods of
    	
 
    	
Owned by PTC.
    	
 
    	
GEMS
    
	
1200-140-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2531321.00
    	
 
    	
7/2/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-140-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2006-518793
    	
 
    	
7/2/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-140-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4777457.70
    	
 
    	
7/2/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-140-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/021334
    	
 
    	
7/2/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-140-666
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/317,899
    	
 
    	
12/30/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-140-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/884,695
    	
 
    	
7/2/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
RNA Processing Protein   Complexes and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-141-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
1/17/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Systems for   the Identification of RNA Regulatory Sequences and Compounds that Modulate t
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-141-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/000423
    	
 
    	
1/17/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Systems for   the Identification of RNA Regulatory Sequences and Compounds that Modulate t
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-141-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/542,255
    	
 
    	
7/17/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Systems for   the Identification of RNA Regulatory Sequences and Compounds that Modulate t
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-145-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2546363.00
    	
 
    	
5/17/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Her2 Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-145-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4811268.40
    	
 
    	
11/17/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Her2 Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-145-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/38496
    	
 
    	
11/17/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Her2 Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-145-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/579,500
    	
 
    	
5/16/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating Her2 Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

14

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1200-160-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/047156
    	
 
    	
12/28/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Cell Based Methods and   Systems for the Identification of RNA Regulatory Sequences and Compounds that
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-160-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/813,027
    	
 
    	
12/28/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Cell Based Methods and   Systems for the Identification of RNA Regulatory Sequences and Compounds that
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-189-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/143,705
    	
 
    	
6/20/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Muscular Dystrophy (IGF1 - Alpha 7 -Utrophin - GEMS)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-190-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/143,697
    	
 
    	
6/20/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating Muscular   Dystrophy (Myostatin - GEMS)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-191-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/144,577
    	
 
    	
6/23/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Spinal Muscular Atrophy (SMA GEMS)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-202-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US09/003238
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Spinal Muscular Atrophy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-202-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/473,116
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Spinal Muscular Atrophy
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-205-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
OCT/US09/004636
    	
 
    	
8/13/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods For Treating   Viral Infections
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-206-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US09/004625
    	
 
    	
8/13/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods For Treating   Muscular Athropies
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1200-206-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/156,429
    	
 
    	
2/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods For Treating   Muscular Athropies
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2588389.00
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/006178
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-543448
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
8101584.20
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580046708X
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5852074.30
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2005/042482
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-146-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/720,061
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Substituted Phenols as   Active Agents Inhibiting VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2559408.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Anglogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005222632.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
550258.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Anglogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
PA/a/2006/010546
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-504011
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
2006 4519
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives Useful   In the inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7107009.70
    	
 
    	
6/29/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-026
    	
 
    	
Colombia
    	
 
    	
Filed
    	
 
    	
6104127.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbcline Derivatives   Useful in the Inhibition of Anglogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200606424-0
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
6031/DELNP/2006
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

15

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1300-147-068
    	
 
    	
Ecuador
    	
 
    	
Filed
    	
 
    	
SP-06-6928
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
WO200602552
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
12006501796.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580014943.90
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-147
    	
 
    	
South Africa
    	
 
    	
Granted
    	
 
    	
2006/08176
    	
 
    	
3/15/2005
    	
 
    	
2006/08176
    	
 
    	
8/28/2008
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
178079.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-200
    	
 
    	
Eurasian Patent   Convention
    	
 
    	
Filed
    	
 
    	
100601697.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5725560.60
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/008481
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-255
    	
 
    	
Ukraine
    	
 
    	
Filed
    	
 
    	
2006 10306
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2006-7021300
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-147-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/079,420
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
PTC299 - CoM
    
	
1300-148-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2559545.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005222627.00
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful In the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
PA/A/2006/010542
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-503999
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7106283.60
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful In the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580014951.30
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5733369.20
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/08452
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-148-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/592,761
    	
 
    	
9/14/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetra-Cyclic Carboline   Derivatives Useful in the Inhibition of Angiogenesis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-149-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2567111.00
    	
 
    	
6/28/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-149-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
6/28/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-149-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7106179.30
    	
 
    	
6/11/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-149-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
4809465.00
    	
 
    	
6/28/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-149-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US04/020751
    	
 
    	
6/28/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

16

 

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1300-149-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
10/851,074
    	
 
    	
5/24/2004
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods and Agents for   Screening for Compounds Capable of Modulating VEGF Expression
    	
 
    	
Owned by PTC.
    	
 
    	
GEMS - Biotech
    
	
1300-156-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2588607.00
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/006180
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline.   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-543450
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
TBD
    	
 
    	
7/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580046669.30
    	
 
    	
7/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5852076.80
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2005/042484
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-156-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/720,057
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbazole, Carboline,   and the Indole Derivatives Useful in the Inhibition of VEGF Production
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2588384.00
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2007/006179
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-543449
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
8101585.10
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580046673.X
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5852075.00
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2005/042483
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-158-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/720.055
    	
 
    	
11/23/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Tetrahydrocarbazoles as   Active Agents for Inhibiting VEGF Production by Translational Control
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-166-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2008-506824
    	
 
    	
4/17/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Treatment of Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-166-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
8107284.20
    	
 
    	
4/17/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Treatment of Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-166-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
6750554.50
    	
 
    	
4/17/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Treatment of Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-166-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US06/014547
    	
 
    	
4/17/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Treatment of Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-166-333
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/107,783
    	
 
    	
4/18/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Treatment of Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
PTC299 - MoU
    
	
1300-172-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/765,871
    	
 
    	
6/20/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Inhibition of VEGF   Translation
    	
 
    	
Owned by PTC.
    	
 
    	
PTC299 - MoU
    

 

17

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1300-185-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US08/004810
    	
 
    	
4/12/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Administration of   Carboline Derivatives Useful in the Treatment of Cancer and other Diseases
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-185-333
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/735.069
    	
 
    	
4/13/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Administration of   Carboline Derivatives Useful in the Treatment of Cancer and other Diseases
    	
 
    	
Owned by PTC.
    	
 
    	
PTC299 - MoU
    
	
1300-186-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US08/004809
    	
 
    	
4/12/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Administration of   Carboline Derivatives Useful In the Treatment of Cancer and Other Diseases
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-194-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US09/43395
    	
 
    	
7/1/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
BMI-1 Protein Expression   Modulators
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-195-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2009/049399
    	
 
    	
7/1/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Screening   for Compounds for Treating Cancer BMI-1)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-197-888
    	
 
    	
United States
    	
 
    	
Docketed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbolines Derivatives   Associating with the VDAC and other proteins and the Use of Carboline Derivat
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-198-888
    	
 
    	
United States
    	
 
    	
Docketed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
SIRNA Molecules for the   Treatment of Cancer and other Diseases
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-199-888
    	
 
    	
United States
    	
 
    	
Docketed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carbolines Derivatives   Useful in the Treatment of Cancer and other Diseases (CIP 868)
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-213-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,651
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Method of Treating   Kaposi Sarcoma
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-214-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,649
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Prostate Conditions \n
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-215-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,652
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Processes for the   Preparation of Substituted Tetrahydro Beta-Carbolines
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-216-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,653
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Cancer and Non-Neoplastic Conditions
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-217-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,654
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Brain Tumors
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-218-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/181,650
    	
 
    	
5/27/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Neurofibromatosis
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-219-888
    	
 
    	
United States
    	
 
    	
Docketed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Method for Treating   Breast Cancer
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1300-220-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200901748-4
    	
 
    	
3/15/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Carboline Derivatives   Useful in the Inhibition of Anglogenesis\n
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1400-201-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2007/020462
    	
 
    	
9/21/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrrolinone Compounds as   Inhibitors of Bacterial Peptidyl tRNA Hydrolase and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1400-201-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/441,932
    	
 
    	
3/19/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Pyrrolinone Compounds as   Inhibitors of Bacterial Peptidyl tRNA Hydrolase and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1400-200-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US2007/020461
    	
 
    	
9/21/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Heretocyclic Inhibitors   of Bacterial Peptidyl tRNA Hydrolase and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1400-200-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/441,929
    	
 
    	
3/19/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Heretocydic Inhibitors   of Bacterial Peptidyl tRNA Hydrolase and Uses Thereof
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2578636.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005275182.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
553329.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/A/2007/000762
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-522565
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7107221.90
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
542/DELNP/2007
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580031886.50
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5773284.40
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/024882
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Thienopyridines for   Treating Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-150-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/180,779
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

18

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1500-165-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2573185.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
2005275181.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-008
    	
 
    	
New Zealand
    	
 
    	
Filed
    	
 
    	
553173.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/A/2007/000481
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2007-521619
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-015
    	
 
    	
Norway
    	
 
    	
Filed
    	
 
    	
20070194.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
7107222.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-026
    	
 
    	
Colombia
    	
 
    	
Filed
    	
 
    	
7014310.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating Hepatitis   C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-037
    	
 
    	
Brazil
    	
 
    	
Filed
    	
 
    	
PI0511834
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-055
    	
 
    	
Singapore
    	
 
    	
Filed
    	
 
    	
200700197-7
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-056
    	
 
    	
India
    	
 
    	
Filed
    	
 
    	
595/DELNP/2007
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-068
    	
 
    	
Ecuador
    	
 
    	
Filed
    	
 
    	
SP-07-7252
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-076
    	
 
    	
Indonesia
    	
 
    	
Filed
    	
 
    	
W00200700138
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-117
    	
 
    	
Philippines
    	
 
    	
Filed
    	
 
    	
1-2007-500119
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200580030803.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-147
    	
 
    	
South Africa
    	
 
    	
Filed
    	
 
    	
2007/01235
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-158
    	
 
    	
Israel
    	
 
    	
Filed
    	
 
    	
180645.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-200
    	
 
    	
Eurasian Patent   Convention
    	
 
    	
Filed
    	
 
    	
200700243.00
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
5791638.90
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US05/024881
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-255
    	
 
    	
Ukraine
    	
 
    	
Filed
    	
 
    	
a22701232
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2007-7003515
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-165-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/180,961
    	
 
    	
7/14/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-168-333
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/331,180
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2636905.00
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-002
    	
 
    	
Argentina
    	
 
    	
Filed
    	
 
    	
P070100168
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-003
    	
 
    	
Chile
    	
 
    	
Filed
    	
 
    	
103-2007
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-004
    	
 
    	
Malaysia
    	
 
    	
Filed
    	
 
    	
20070066.00
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-005
    	
 
    	
Peru
    	
 
    	
Filed
    	
 
    	
40 2007
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/a/2008/009059
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-010
    	
 
    	
Thailand
    	
 
    	
Filed
    	
 
    	
701000139.00
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-011
    	
 
    	
Taiwan
    	
 
    	
Filed
    	
 
    	
96101523.00
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2008-550442
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-013
    	
 
    	
Venezuela
    	
 
    	
Filed
    	
 
    	
2007-000066
    	
 
    	
1/13/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
9102637.60
    	
 
    	
3/19/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780008902.80
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
7718004.00
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/00923
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-182-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/653,448
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2636916.00
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-002
    	
 
    	
Argentina
    	
 
    	
Filed
    	
 
    	
P080100139
    	
 
    	
1/11/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-003
    	
 
    	
Chile
    	
 
    	
Filed
    	
 
    	
0078-2008
    	
 
    	
1/11/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-005
    	
 
    	
Peru
    	
 
    	
Filed
    	
 
    	
121.00
    	
 
    	
1/11/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    

 

19

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1500-183-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
MX/2008/009059
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-010
    	
 
    	
Thailand
    	
 
    	
Filed
    	
 
    	
801000156.00
    	
 
    	
1/11/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-011
    	
 
    	
Taiwan
    	
 
    	
Filed
    	
 
    	
97101218.00
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2008-550455
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-013
    	
 
    	
Venezuela
    	
 
    	
Filed
    	
 
    	
2008-000038
    	
 
    	
1/10/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-016
    	
 
    	
Pakistan
    	
 
    	
Filed
    	
 
    	
17/2008
    	
 
    	
1/7/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-023
    	
 
    	
Hong Kong
    	
 
    	
Filed
    	
 
    	
9103304.60
    	
 
    	
4/7/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-146
    	
 
    	
China P.R.
    	
 
    	
Filed
    	
 
    	
200780008916.00
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1600-183-227
    	
 
    	
European Patent Convention
    	
 
    	
Filed
    	
 
    	
7716610.60
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/00996
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-183-333
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/653,450
    	
 
    	
1/16/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-188-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/US07/004721
    	
 
    	
2/23/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Combinations Comprising   HCV Protease Inhibitor(s) and HCV IRES Inhibitor(s), and Methods of Treatmen
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-188-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/281,022
    	
 
    	
2/23/2007
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Combinations Comprising   HCV Protease Inhibitor(s) and HCV IRES Inhibitor(s), and Methods of   Treatmen
    	
 
    	
Owned by PTC.
    	
 
    	
 
    
	
1500-203-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/166,893
    	
 
    	
4/6/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Treating   Hepatitis C
    	
 
    	
Jointly owned under   Research Collab with Schering-Plough (via its affiliate Essex Chemie). S-P   has primary commercialization rights; PTC can conduct research and may gain   commercialization rights under certain circumstances (e.g., reversion).
    	
 
    	
 
    
	
1500-208-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/166,883
    	
 
    	
4/6/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Compounds and Methods   for Antiviral Treatment 
    	
 
    	
Jointly owned under   Research Collab with Schering-Plough (via its affiliate Essex Chemie). S-P   has primary commercialization rights; PTC can conduct research and may gain   commercialization rights under certain circumstances (e.g., reversion).
    	
 
    	
 
    
	
1500-209-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/166,913
    	
 
    	
4/6/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
HCV Inhibitor and   Therapeutic Agent Combinations
    	
 
    	
Jointly owned under   Research Collab with Schering-Plough (via its affiliate Essex Chemie). S-P   has primary commercialization rights; PTC can conduct research and may gain   commercialization rights under certain circumstances (e.g., reversion).
    	
 
    	
 
    
	
1500-210-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/166,922
    	
 
    	
4/6/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Indole Combinations
    	
 
    	
Jointly owned under   Research Collab with Schering-Plough (via its affiliate Essex Chemie). S-P   has primary commercialization rights; PTC can conduct research and may gain   commercialization rights under certain circumstances (e.g.. reversion).
    	
 
    	
 
    
	
1500-211-888
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
61/166,926
    	
 
    	
4/6/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
HCV Inhibitor and   Theurapeutic Agent Combinations
    	
 
    	
Jointly owned under   Research Collab with Schering-Plough (via Its affiliate Essex Chemie). S-P   has primary commercialization rights; PTC can conduct research and may gain   commercialization rights under certain circumstances (e.g., reversion).
    	
 
    	
 
    
	
1000-100-777
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/151,800
    	
 
    	
5/21/2002
    	
 
    	
6,583,309
    	
 
    	
6/24/2003
    	
 
    	
Ureas and Compositions   thereof, and methods for their use for treating Cancer, inflammation or a Vir
    	
 
    	
Exclusively licensed to   PTC pursuant to an agreement with the University of Medicine and Dentistry of   New Jersey (“UMDNJ Agreement”).
    	
 
    	
 
    
	
1000-100-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
09/679,728
    	
 
    	
10/4/2000
    	
 
    	
6.420,591
    	
 
    	
7/16/2002
    	
 
    	
Carbamates and   Compositions thereof and Methods for their Use for Treating   Cancer, Inflammation or a
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-101-333
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/098,946
    	
 
    	
4/4/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for identifying   RNA Binding Compounds
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-101-666
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/295,761
    	
 
    	
11/15/2002
    	
 
    	
6,875,736
    	
 
    	
4/5/2005
    	
 
    	
Methods for Identifying   RNA Binding Compounds
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-101-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
09/679,451
    	
 
    	
10/4/2000
    	
 
    	
6,503,713
    	
 
    	
1/7/2003
    	
 
    	
Methods for Identifying   RNA Binding Compounds
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-124-666
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
11/406,714
    	
 
    	
4/19/2006
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Identifying   an Antiviral Agent
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    

 

20

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1000-124-698
    	
 
    	
Germany
    	
 
    	
Filed
    	
 
    	
854722
    	
 
    	
10/4/1996
    	
 
    	
69636675.4-08
    	
 
    	
 
    	
 
    	
Proteins Involved in Targeting   of Peptidyl Transfer Center, and Corresponding Therapeutics Agents an
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-124-777
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
09/625,790
    	
 
    	
7/26/2000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Proteins Involved in   Targeting of Peptidyl Transfer Center, and Corresponding Therapeutics Agents   an
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-124-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
08/724,992
    	
 
    	
10/4/1996
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Proteins Involved in   Targeting of Peptidyl Transfer Center, and Corresponding Therapeutics Agents   an
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-125-999
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
08/888,865
    	
 
    	
7/7/1997
    	
 
    	
5,843,995
    	
 
    	
12/1/1998
    	
 
    	
Inhibition of HIV-1   Replication Using Ollgocarbamate Derivatives
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2,329,267
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-007
    	
 
    	
Australia
    	
 
    	
Filed
    	
 
    	
43180/99
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-009
    	
 
    	
Mexico
    	
 
    	
Filed
    	
 
    	
11760
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2000-550985
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-227
    	
 
    	
European Patent   Convention
    	
 
    	
Granted
    	
 
    	
999533573
    	
 
    	
5/27/1999
    	
 
    	
7702838
    	
 
    	
7/5/2006
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-461
    	
 
    	
Korea South
    	
 
    	
Filed
    	
 
    	
10-2000-7013415
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-698
    	
 
    	
Germany
    	
 
    	
Filed
    	
 
    	
1102838
    	
 
    	
5/27/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-777
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
09/639,987
    	
 
    	
8/16/2000
    	
 
    	
6,486,305
    	
 
    	
11/26/2002
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively Bcensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-129-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
09/086,260
    	
 
    	
5/28/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Method of Modulating   the Efficiency of Translation Termination and Degradation of Aberrant mRNA In
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-130-666
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
10/652,334
    	
 
    	
8/28/2003
    	
 
    	
6,989,256
    	
 
    	
1/24/2006
    	
 
    	
Subfamily of RNA   Helicases Which are Modulators of the Fidelity of Translation Termination and   Uses
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-130-777
    	
 
    	
United States
    	
 
    	
Granted
    	
 
    	
09/359,268
    	
 
    	
7/22/1999
    	
 
    	
6,630,294
    	
 
    	
10/7/2003
    	
 
    	
A Subfamily of RNA   Helicases Which are Modulators of the Fidelity of Translation Termination and   Use
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-130-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
09/120,435
    	
 
    	
7/22/1999
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Subfamily of RNA   Helicases Which are Modulators of the Fidelity of Translation Termination and   Use
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-179-001
    	
 
    	
Canada
    	
 
    	
Filed
    	
 
    	
2,632,456
    	
 
    	
12/5/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Novel HIV-1 Latency   Model for High Throughput Screening
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-179-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
6844574.1
    	
 
    	
12/5/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Novel HIV-1 Latency   Model for High Throughput Screening
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    

 

21

 

	
Docket
   Number
    	
 
    	
Country
    	
 
    	
Status
    	
 
    	
Application
   Number
    	
 
    	
Application
   Date
    	
 
    	
Patent
   Number
    	
 
    	
Grant Date
    	
 
    	
Title
   (first 100
   characters)
    	
 
    	
Ownership,
   Licensure
   and Disclosures
    	
 
    	
Additional
   Information
    
	
1000-179-228
    	
 
    	
Patent Cooperation   Treaty
    	
 
    	
Filed
    	
 
    	
PCT/USG6/045483
    	
 
    	
12/5/2005
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Novel HIV-1 Latency   Model for High Throughput Screening
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-179-999
    	
 
    	
United States
    	
 
    	
Filed
    	
 
    	
12/096,245
    	
 
    	
6/5/2008
    	
 
    	
 
    	
 
    	
 
    	
 
    	
A Novel HIV-1 Latency   Model for High Throughput Screening
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-212-012
    	
 
    	
Japan
    	
 
    	
Filed
    	
 
    	
2009-089316
    	
 
    	
4/1/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Proteins involved in   Targeting of Peptidyl Transfer Center, and Corresponding Therapeutics Agents   an
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    
	
1000-212-227
    	
 
    	
European Patent   Convention
    	
 
    	
Filed
    	
 
    	
9004759.8
    	
 
    	
3/31/2009
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Methods for Identifying   RNA Binding Compounds
    	
 
    	
Exclusively licensed to   PTC pursuant to the UMDNJ Agreement.
    	
 
    	
 
    

 

22

 

 

EXHIBIT A

 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, raw materials, parts, supplies, packing and shipping materials, work in process, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) Borrower’s Equipment constituting collateral for the Oxford Equipment Financing and the proceeds thereof (provided that upon payment in full of Borrower’s Indebtedness under the Oxford Equipment Financing, such Equipment and the proceeds thereof shall automatically constitute, without further action required by any Person, Collateral), or (ii) any of the following, whether now owned or hereafter acquired except to the extent that it is necessary under applicable law to have a security interest in any of the following in order to have a perfected lien and security interest in and to the “IP Proceeds” defined below: any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished; any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same; trademarks, trade names, service marks, mask works, rights of use of any name or domain names and, to the extent permitted under applicable law, any applications therefor, whether registered or not; and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights, clinical and non-clinical data, rights to unpatented inventions; or (iii) exclusive and non-exclusive license agreements solely for the use of the intellectual property of a third party in which Borrower is licensee; provided, however, the Collateral shall include all Accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the property described in subparts (i), (ii), and (iii) preceding (other than sales proceeds of the Equipment securing the Oxford Equipment Financing until payment in full of Borrower’s Indebtedness under the Oxford Equipment Financing) and any claims for damage by way of any past, present, or future infringement of any of the property described in subparts (ii) and (iii) preceding (collectively, the “IP Proceeds”).

 

 

EXHIBIT B

 

Loan Payment/Advance Request Form

 

 

EXHIBIT C

COMPLIANCE CERTIFICATE

 

	
TO:
    	
Oxford Finance Corporation, as Collateral Agent
    	
Date:
    	
 
    
	
FROM:
    	
PTC Therapeutics, Inc.
    	
 
    	
 
    

 

The undersigned authorized officer of PTC Therapeutics, Inc. (“Borrower”) certifies, in the capacity as an officer of the Borrower, that under the terms and conditions of the Loan and Security Agreement between Borrower, Collateral Agent and the Lenders (the “Agreement”), (1) Borrower is in complete compliance for the period ending                with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.8 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Collateral Agent. Attached are the required documents supporting the certification. The undersigned certifies, in the capacity as an officer of the Borrower, that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges, in the capacity as an officer of Borrower, that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

 

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
Reporting Covenant
    	
 
    	
Required
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Quarterly   Financial Statements
    	
 
    	
Quarterly   within 30 days
    	
 
    	
Yes o No o
    
	
Monthly   Cash Certificate
    	
 
    	
Monthly   within 5 Business Days
    	
 
    	
Yes o No o
    
	
Bank   Statements
    	
 
    	
Monthly   within 30 days
    	
 
    	
Yes o No o
    
	
Audited   Financial Statements
    	
 
    	
Annually   within 120 days after FYE
    	
 
    	
Yes o No o
    
	
Board   Approved Operating and Capital Budgets
    	
 
    	
As   approved by Board of Directors
    	
 
    	
Yes o No o
    
	
Compliance   Certificate
    	
 
    	
Monthly   within 30 days
    	
 
    	
Yes o No o
    

 

 

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

 

 

 

 

	
 
    	
 
    	
COLLATERAL AGENT USE ONLY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Received by:
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
AUTHORIZED SIGNER  
    
	
Name:
    	
 
    	
 
    	
Date:
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Verified:
    	
 
    
	
 
    	
 
    	
 
    	
AUTHORIZED SIGNER  
    
	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Compliance Status:
    	
Yes o No o
    
						

 

 

EXHIBIT D

 

SECURED PROMISSORY NOTE

 

	
$
    	
 
    	
Dated: September   ,   2009
    

 

FOR VALUE RECEIVED, the undersigned, PTC THERAPEUTICS, INC., a Delaware corporation (“Borrower”) HEREBY PROMISES TO PAY to the order of [OXFORD/LENDER] (“Lender”) the principal amount of               Dollars ($               ) or such lesser amount as shall equal the outstanding principal balance of the Term Loan made to Borrower by Lender, plus interest on the aggregate unpaid principal amount of the Term Loan, at the rates and in accordance with the terms of the Loan and Security Agreement by and between Borrower and Oxford Finance Corporation, as Collateral Agent, and the Lenders (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). If not sooner paid, the entire principal amount and all accrued interest hereunder and under the Loan Agreement shall be due and payable on Maturity Date as set forth in the Loan Agreement.

 

Borrower agrees to pay any initial partial month interest payment from the date of this Secured Promissory Note (this “Note”) to the first Payment Date (“Interim Interest”) on the first Payment Date.

 

Principal, interest and all other amounts due with respect to the Term Loan, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement and this Note. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

 

The Loan Agreement, among other things, (a) provides for the making of a secured Term Loan to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.

 

This Note may not be prepaid except as set forth in Section 2.2(c) and Section 2.2(d) of the Loan Agreement.

 

This Note and the obligation of Borrower to repay the unpaid principal amount of the Term Loan, interest on the Term Loan and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement.

 

Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived.

 

Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

 

Note Register; Ownership of Note. The ownership of an interest in this Note shall be registered on a record of ownership maintained by Lender or its agent. Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Borrower shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or entity.

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.

 

 

	
 
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PTC THERAPEUTICS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

 

FIRST LOAN MODIFICATION AGREEMENT

 

This First Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of March 26, 2010, by and among (i) OXFORD FINANCE CORPORATION,  a Delaware corporation with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”),  as collateral agent (“Collateral Agent”),  the Lenders listed on Schedule 1.1 of the Loan Agreement and otherwise party hereto from time to time (each a “Lender” and collectively, the “Lenders”), and PTC THERAPEUTICS, INC., a Delaware corporation (“Borrower”).

 

DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to the Lenders, Borrower is indebted to the Lenders pursuant to a loan arrangement dated as of September 21, 2009, evidenced by, among other documents (including without limitation, that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to Oxford in the original principal amount of $10,000,000, as amended, and that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to MidCap Financial, LLC in the original principal amount of $2,500,000, as amended), a certain Loan and Security Agreement dated as of September 21, 2009, among Borrower, Agent and the Lenders (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

 

DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other document pursuant to which collateral security granted to Agent for the ratable benefit of the Lenders, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

 

1.                                      DESCRIPTION OF CHANGE IN TERMS.

 

Modifications to Loan Agreement.

 

1.                                      The Loan Agreement shall be amended by adding the following to the definition of Permitted Liens appearing in Section 14.1 thereof:

 

“                                               (1)                                 Liens granted to American Express encumbering only a certificate of deposit in the amount of Two Hundred Thousand Dollars ($200,000.00) securing reimbursement obligations in connection with the Borrower’s corporate credit cards.”

 

2.                                      The Loan Agreement shall be amended by adding the following to the definition of Permitted Investments appearing in Section 14.1 thereof:

 

“                                               (f)                                   Investments in connection with a certificate of deposit in the amount of Two Hundred Thousand Dollars ($200,000.00) pledged to American Express securing reimbursement obligations in connection with the Borrower’s corporate credit cards.”

 

3.                                      The Loan Agreement shall be amended by inserting the following definitions appearing alphabetically in Section 14.1 thereof:

 

“                                               First Loan Modification Date” is March 26, 2010.”

 

2.                                      EXPENSES. Borrower shall reimburse Agent and the Lenders for all reasonable legal fees and out-of pocket expenses incurred in connection with this Loan Modification Agreement.

 

 

3.                                      RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Agent for the ratable benefit of the Lenders, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 

4.                                      NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Agent and/or the Lenders with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Agent and/or the Lenders, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Agent and/or the Lenders from any liability thereunder.

 

5.                                      REPRESENTATIONS AND WARRANTIES. To induce Agent and Lenders to enter into this Loan Modification Agreement Borrower does hereby warrant, represent and covenant to Agent and Lenders that after giving effect to this Loan Modification Agreement (i) each representation or warranty of Borrower set forth in the Loan Agreement is hereby restated and reaffirmed as true and correct in all material respects on and as of the First Loan Modification Date as if such representation or warranty were made on and as of the First Loan Modification Date (except to the extent that any such representation or warranty expressly relates to a prior specific date or period), (ii) no Default or Event of Default has occurred and is continuing as of the date hereof and (iii) Borrower has the power and is duly authorized to enter into, deliver and perform this Loan Modification Agreement and this Loan Modification Agreement is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms.

 

6.                                      CONTINUING VALIDITY. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. The Lenders’ agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Agent or the Lenders to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Agent, the Lenders and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by the Lenders in writing. No maker will be released by virtue of this Loan Modification Agreement.

 

7.                                      CONDITION PRECEDENT TO EFFECTIVENESS OF THIS LOAN MODIFICATION AGREEMENT. This Loan Modification Agreement shall become effective as of the First Loan Modification Date upon the receipt by Agent, in form and substance satisfactory to Agent and Lenders, of one or more counterparts of this Loan Modification Agreement duly executed and delivered by the Borrower, Agent and Lenders.

 

8.                                      COUNTERPARTS. This Loan Modification Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument.

 

9.                                      GOVERNING LAW. THIS LOAN MODIFICATION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

 

10.                               ENTIRE AGREEMENT. The Existing Loan Documents as and when amended through this Loan Modification Agreement embody the entire agreement between the parties hereto relating to the subject matter thereof and supersede all prior agreements, representations and understandings, if any, relating to the subject matter thereof.

 

[Remainder of Page Intentionally Left Blank –

Signature Page(s) to Follow.]

 

2

 

IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
PTC THERAPEUTICS, INC.
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ William Baird II
    	
 
    
	
Name:
    	
William Baird
    	
 
    
	
Title:
    	
CFO
    	
 
    
	
 
    	
 
    	
 
    
	
LENDERS:
    	
 
    
	
 
    	
 
    
	
OXFORD FINANCE CORPORATION, as Agent and as a Lender
    
	
 
    	
 
    
	
By
    	
/s/ John G. Henderson
    	
 
    
	
Name:
    	
John G. Henderson
    	
 
    
	
Title:
    	
Vice President & General Counsel
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MIDCAP FUNDING III, LLC, as a Lender
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Luis Viera
    	
 
    
	
Name:
    	
Luis Viera
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

 

EXECUTION COPY

 

SECOND LOAN MODIFICATION AGREEMENT

 

This Second Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of December 22, 2010, by and among (i) OXFORD FINANCE CORPORATION,  a Delaware corporation with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”),  as collateral agent (“Collateral Agent”),  the Lenders identified on the signature pages hereto (each a “Lender”  and collectively, the “Lenders”), and PTC THERAPEUTICS, INC.,  a Delaware corporation (“Borrower”).

 

DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to the Lenders, Borrower is indebted to the Lenders pursuant to a loan arrangement dated as of September 21, 2009, evidenced by, among other documents (including without limitation, that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to Oxford in the original principal amount of $10,000,000, as amended, and that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to MidCap Financial, LLC in the original principal amount of $2,500,000, as amended), and a certain Loan and Security Agreement dated as of September 21, 2009, among Borrower, Collateral Agent and the Lenders, as amended by a First Loan Modification Agreement dated as of March 26, 2010 among Borrower, Collateral Agent and the Lenders (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meanings as in the Loan Agreement.

 

DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other document pursuant to which collateral security is granted to Collateral Agent for the ratable benefit of the Lenders, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

 

1.                                      DESCRIPTION OF CHANGE IN TERMS.

 

Modifications to Loan Agreement.

 

1.                                      The Loan Agreement shall be amended by deleting the following text appearing as Section 2.2(a) thereof:

 

“(a) Availability. Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, (i) during the First Draw Period, to make term loans to Borrower in an aggregate amount up to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) according to each Lender’s Term A Loan Commitment Percentage as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term A Loan”, and collectively as the “Term A Loans”)  and (ii) during the Second Draw Period, to make additional term loans to Borrower in an aggregate amount up to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) according to each Lender’s Term B Loan Commitment Percentage as set forth on Schedule 1.1 hereto (subject to adjustment as provided on Schedule 1.1) (such term loans are hereinafter referred to singly as a “Term B Loan”, and collectively as the “Term B Loans”;  each of the Term A Loans and the Term B Loans is referred to singly herein as a “Term Loan”, and the Term A Loans and the Term B Loans are referred to collectively herein as the “Term Loans”). After repayment, no Term Loan may be re-borrowed.”

 

and inserting in lieu thereof the following:

 

 

“(a) Availability. Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, (i) during the First Draw Period, to make term loans to Borrower in an aggregate amount up to Twelve Million Five Hundred Thousand Dollars ($12,500,000.00) according to each Lender’s Term A Loan Commitment Percentage as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term A Loan”, and collectively as the “Term A Loans”) and (ii) during the Second Draw Period, to make additional term loans to Borrower in an aggregate amount up to Ten Million Dollars ($10,000,000.00) according to each Lender’s Term B Loan Commitment Percentage as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term B Loan”, and collectively as the “Term B Loans”; each of the Term A Loans and the Term B Loans is referred to singly herein as a “Term Loan”,  and the Term A Loans and the Term B Loans are referred to collectively herein as the “Term Loans”). After repayment, no Term Loan may be re-borrowed.”

 

2.                                      The Loan Agreement shall be amended by deleting the following text appearing as Section 2.5 (a) thereof:

 

“(a) Facility Fee. A fully earned, non-refundable facility fee of Three Hundred Twelve Thousand Five Hundred Dollars ($312,500) to be shared between the Lenders pursuant to their respective Commitment Percentages. The facility fee shall be due and payable in two installments as follows: (i) $234,375 of the facility fee shall be due and payable on the Effective Date, and (ii) the remaining $78,125 of the facility fee shall be due and payable on the date on which Borrower achieves positive Phase IIb results for Borrower’s Ataluren program (PTC124) for the Duchenne indication, which shall be evidenced by a final written determination to proceed, without further testing or trials, with the filing of a new drug application with the US Food and Drug Administration for Ataluren for the Duchenne indication, which such determination has been made by the joint development committee for Ataluren (which includes Genzyme, Inc. and Borrower) acting unanimously and supported by the findings of the independent safety monitoring board for the Phase IIb Ataluren clinical trial (“Positive Pivotal Ataluren Data”),  whether or not Borrower draws down the Term B Loans. In the event Borrower does not achieve Positive Pivotal Ataluren Data on or prior to April 30, 2010, the second installment of the facility fee of $78,125 shall not be due and payable.”

 

and inserting in lieu thereof the following:

 

“(a) Facility Fee. A fully earned, non refundable facility fee of Two Hundred Eighty-One Thousand Two Hundred Fifty Dollars ($281,250), each installment of which is to be shared between the Lenders pursuant to their respective applicable Commitment Percentages. The facility fee shall be due and payable in two installments as follows: (i) $234,375 of the facility fee shall be due and payable on the Effective Date, and shall be shared between the Lenders based on their respective Term A Loan Commitment Percentages, and (ii) the remaining $46,875 of the facility fee shall be due and payable on the Second Loan Modification Date, whether or not Borrower draws

 

2

 

down the Term B Loans, and shall be shared between the Lenders based on their respective Term B Loan Commitment Percentages;”

 

3.                                      The Loan Agreement shall be amended by deleting the date “December 31, 2010” appearing in Section 6.11 thereof, and replacing it with the date “March 31, 2011”.

 

4.                                      The Loan Agreement shall be amended by deleting the following definition appearing in Section 14.1 thereof:

 

““Second Draw Period” is the period commencing on the date on which Borrower achieves Positive Pivotal Ataluren Data and ending on April 30, 2010.”

 

and inserting in lieu thereof the following:

 

““Second Draw Period”  is the period commencing on the Second Loan Modification Date and ending on December 31, 2010.”

 

5.                                      The Loan Agreement shall be amended by inserting the following definition appearing alphabetically in Section 14.1 thereof:

 

“                                          “Second Loan Modification Date”  is December 22, 2010.”

 

6.                                      The Loan Agreement shall be amended by deleting Schedule 1.1 thereto in its entirety and replacing it with Schedule 1.1 attached to this Loan Modification as Exhibit A.

 

2.                                      EXPENSES. Borrower shall reimburse Collateral Agent and the Lenders for all reasonable legal fees and out-of pocket expenses incurred in connection with this Loan Modification Agreement.

 

3.                                      RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Collateral Agent for the ratable benefit of the Lenders, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 

4.                                      PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in Borrower’s Perfection Certificate dated as of September 21, 2009, as updated by Borrower’s Perfection Certificate dated as of December 21, 2010, and acknowledges, confirms and agrees the disclosures and information Borrower provided to Collateral Agent and the Lenders in such Perfection Certificate, as updated, have not changed, as of the date hereof.

 

5.                                      NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Collateral Agent and/or the Lenders with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Collateral Agent and/or the Lenders, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Collateral Agent and/or the Lenders from any liability thereunder.

 

6.                                      REPRESENTATIONS AND WARRANTIES. To induce Collateral Agent and Lenders to enter into this Loan Modification Agreement Borrower does hereby warrant, represent and covenant to Collateral Agent and Lenders that after giving effect to this Loan Modification Agreement (i) each representation or warranty of Borrower set forth in the Loan Agreement is hereby restated and reaffirmed as true and correct in all material respects on and as of the Second Loan Modification Date as if such representation or warranty were made on and as of the Second Loan Modification Date (except to the extent that any such representation or warranty expressly relates to a prior specific date or period), (ii) no Default or Event of Default has occurred and is continuing as of the date hereof and (iii) Borrower has the power and is duly authorized to enter into, deliver and perform this Loan

 

3

 

Modification Agreement and this Loan Modification Agreement is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms.

 

7.                                      CONTINUING VALIDITY. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. The Lenders’ agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Collateral Agent or the Lenders to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Collateral Agent, the Lenders and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by the Lenders in writing. No maker will be released by virtue of this Loan Modification Agreement.

 

8.                                      CONDITION PRECEDENT TO EFFECTIVENESS OF THIS LOAN MODIFICATION AGREEMENT. This Loan Modification Agreement shall become effective as of the Second Loan Modification Date upon the receipt by Collateral Agent, in form and substance satisfactory to Collateral Agent and Lenders, of one or more counterparts of this Loan Modification Agreement duly executed and delivered by the Borrower, Collateral Agent and Lenders.

 

9.                                      COUNTERPARTS. This Loan Modification Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument.

 

10.                               GOVERNING LAW. THIS LOAN MODIFICATION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

 

11.                               ENTIRE AGREEMENT. The Existing Loan Documents as and when amended through this Loan Modification Agreement embody the entire agreement between the parties hereto relating to the subject matter thereof and supersede all prior agreements, representations and understandings, if any, relating to the subject matter thereof.

 

[Remainder of Page Intentionally Left Blank –
 Signature Page(s) to Follow.]

 

4

 

IN WETNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
PTC THERAPEUTICS, INC.
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Stuart Peltz
    	
 
    
	
Name:
    	
Stuart Peltz
    	
 
    
	
Title:
    	
President and Chief Executive Officer
    	
 
    
	
 
    	
 
    	
 
    
	
LENDERS:
    	
 
    
	
 
    	
 
    
	
OXFORD FINANCE CORPORATION, as Collateral Agent and as a Lender
    
	
 
    	
 
    
	
By
    	
/s/ Hans Houser
    	
 
    
	
Name:
    	
Hans Houser
    	
 
    
	
Title:
    	
Chief Credit Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
MIDCAP FUNDING III, LLC (as assignee of MidCap Financial, LLC), as a   Lender
    
	
 
    	
 
    
	
By
    	
/s/ Luis Viera
    	
 
    
	
Name:
    	
Luis Viera
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

 

EXHIBIT A

 

SCHEDULE 1.1

 

LENDERS AND COMMITMENTS

 

	
Lender
    	
 
    	
Term A Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
10,000,000
    	
 
    	
80
    	
%
    
	
Midcap Funding III, LLC
    	
 
    	
$
    	
2,500,000
    	
 
    	
20
    	
%
    
	
TOTAL
    	
 
    	
$
    	
12,500,000
    	
 
    	
100.00
    	
%
    

 

	
Lender
    	
 
    	
Term B Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
5,000,000
    	
 
    	
50
    	
%
    
	
Midcap Funding III, LLC
    	
 
    	
$
    	
5,000,000
    	
 
    	
50
    	
%
    
	
TOTAL
    	
 
    	
$
    	
10,000,000
    	
 
    	
100.00
    	
%
    

 

	
Lender
    	
 
    	
Aggregate Commitments
    	
 
    	
Commitment Percentage
    	
 
    
	
Oxford Finance Corporation
    	
 
    	
$
    	
15,000,000
    	
 
    	
66.67
    	
%
    
	
Midcap Funding III, LLC
    	
 
    	
$
    	
7,500,000
    	
 
    	
33.33
    	
%
    
	
TOTAL
    	
 
    	
$
    	
22,500,000
    	
 
    	
100.00
    	
%
    

 

6

 

EXECUTION VERSION

 

THIRD LOAN MODIFICATION AGREEMENT

 

This Third Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of February 13, 2013, by and among OXFORD FINANCE LLC, a Delaware limited liability company (successor in interest to Oxford Finance Corporation, a Delaware corporation) with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”),  as collateral agent (“Collateral Agent”), the Lenders from time to time party to the Loan Agreement (each a “Lender”  and collectively, the “Lenders”),  and PTC THERAPEUTICS, INC., a Delaware corporation (“Borrower”).

 

1.                                      DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to the Lenders, Borrower is indebted to the Lenders pursuant a certain a loan arrangement dated as of September 21, 2009, evidenced by, among other documents (including without limitation, that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to Oxford in the original principal amount of $10,000,000, as amended, that certain Secured Promissory Note dated September 21, 2009 by Borrower payable to MidCap Financial, LLC in the original principal amount of $2,500,000, as amended, that certain Secured Promissory Note dated December 22, 2010 by Borrower payable to Oxford in the original principal amount of $5,000,000, as amended, and that certain Secured Promissory Note dated December 22, 2010 by Borrower payable to MidCap Funding III, LLC in the original principal amount of $5,000,000), a certain Loan and Security Agreement dated as of September 21, 2009, among Borrower, Collateral Agent and the Lenders, as amended by a First Loan Modification Agreement dated as of March 26, 2010 among Borrower, Collateral Agent and the Lenders, and as further amended by a Second Loan Modification Agreement dated as of December 22, 2010 among Borrower, Collateral Agent and the Lenders (as may be amended, restated, or otherwise modified from time to time, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meanings as in the Loan Agreement.

 

2.                                      DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other document pursuant to which collateral security is granted to Collateral Agent for the ratable benefit of the Lenders, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

 

3.                                      DESCRIPTION OF CHANGE IN TERMS.

 

Modifications to Loan Agreement.

 

i.                                          The Loan Agreement shall be amended by adding the following text at the end of Section 7.7 thereof:

 

“; provided, however, that, notwithstanding any provision in this Section 7.7 or elsewhere in Section 7, Borrower may establish, and make Investments from time to time in PTC THERAPEUTICS LIMITED, a wholly-owned subsidiary registered under the laws of England and Wales with registration number 07965055 and whose registered office is at 12 York Gate, London, United Kingdom, NW1, 4QS (the “UK

 

 

Subsidiary”)  provided that (i) the UK Subsidiary shall execute and deliver to Collateral Agent a guaranty of the Obligations in form and substance satisfactory to the Lenders substantially the form attached as Exhibit E  hereto and take all such action as may be reasonably required by Collateral Agent (as security trustee for the Finance Parties (as defined in the floating charge hereafter described)) to grant a continuing floating charge and security interest in and to the all of the assets of such Subsidiary (with such exclusions as shall be set forth in the definition of “Charged Assets” in such floating charge) under the laws of the United Kingdom England and Wales, and (B) Borrower shall execute and deliver to Collateral Agent (as security trustee for the Finance Parties (as defined in the Charge over Shares hereafter described)) a Charge over Shares in form and substance reasonably satisfactory to the Lenders and take all such action as may be reasonably required by Collateral Agent to grant a continuing fixed charge and security interest in and to the all of the stock, units or other evidence of ownership of the UK Subsidiary, (ii) at no time shall Borrower make any Investment in the UK Subsidiary other than cash reasonably necessary to (A) finance the creation of the UK Subsidiary and the payment of any franchise fees, taxes, fees of professional advisors (including but not limited to attorneys and accountants) and other costs incurred or reasonably expected to be incurred in the ordinary course of business to maintain the existence of the UK Subsidiary, and (B) finance any filing fees payable by the UK Subsidiary in connection with the filing by the UK Subsidiary of a Marketing Authorization Application and related filings in the European Union for Borrower’s Ataluren program (the “MAA”), together with fees of professional advisors (including but not limited to attorneys and patent agents) and other costs incurred or reasonably expected to be incurred in the ordinary course of business to obtain and maintain marketing authorizations and related governmental approvals for Borrower’s Ataluren program and to file, prosecute, maintain, defend and enforce intellectual property rights owned or controlled by the UK Subsidiary, (iii) at no time shall the UK Subsidiary incur indebtedness in excess of Twenty Five Thousand Dollars ($25,000) (or the equivalent amount in British £Pounds Sterling) in the aggregate or own any material assets other than its rights in respect of the MAA, any related rights to intellectual property licensed on a non-exclusive basis from Borrower, and any rights in intercompany agreements between the UK Subsidiary and Borrower (provided that any such non-exclusive licenses of rights in intellectual property, and any such intercompany agreements, shall be subject to the approval of the Lenders in their reasonable discretion and shall not transfer ownership of any intellectual property to the UK Subsidiary), (iv) notwithstanding the foregoing, in no event shall Borrower’s aggregate Investments in the UK Subsidiary in any fiscal year exceed One Hundred Thousand Dollars ($100,000) (or the

 

2

 

equivalent amount in British £Pounds Sterling) or such greater amount as may approved in writing by the Required Lenders and (v) Borrower shall not transfer any Equipment to the UK Subsidiary, including, without limitation, the Equipment financed with the Oxford Equipment Financing .”

 

ii.                                       The Loan Agreement shall be amended by inserting the following definitions appearing alphabetically in Section 14.1 thereof:

 

“Third Loan Modification Date”  is February 13, 2013.

 

“UK Subsidiary”  is defined in Section 7.7.”

 

iii.                                    The Loan Agreement shall be amended by amending and restating the definition of “Permitted Investments” in Section 14.1 thereof to read as follows:

 

“Permitted Investments”  are:

 

(a)                                 Investments shown on the Perfection Certificate and existing on the Effective Date; and

 

(b)                                 Cash Equivalents;

 

(c)                                  Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;

 

(d)                                 unsecured Investments to trade creditors incurred in the ordinary course of Borrower’s business (e.g., up front payments under a vendor agreement);

 

(e)                                  Investments in the UK Subsidiary provided such Investments are made in compliance with the proviso to Section 7.7; and

 

(f)                                   Investments made pursuant to Borrower’s Investment Policy Guidelines dated March 8, 2007, as in effect as of the Effective Date or as thereafter amended with the consent of the Required Lenders, which consent shall not be unreasonably withheld.”

 

4.                                      EXPENSES. Borrower shall reimburse Collateral Agent and the Lenders for all reasonable legal fees and out-of pocket expenses incurred in connection with this Loan Modification Agreement.

 

5.                                      RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Collateral Agent for the ratable benefit of the Lenders, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

 

3

 

6.                                      PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in Borrower’s Perfection Certificate dated as of September 21, 2009, as updated by Borrower’s Perfection Certificate dated as of December 21, 2010, and as further updated by Borrower’s Perfection Certificate dated as of February 13, 2013, and acknowledges, confirms and agrees the disclosures and information Borrower provided to Collateral Agent and the Lenders in such Perfection Certificate, as updated, have not changed, as of the date hereof.

 

7.                                      NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Collateral Agent and/or the Lenders with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Collateral Agent and/or the Lenders, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Collateral Agent and/or the Lenders from any liability thereunder.

 

8.                                      REPRESENTATIONS AND WARRANTIES. To induce Collateral Agent and Lenders to enter into this Loan Modification Agreement Borrower does hereby warrant, represent and covenant to Collateral Agent and Lenders that after giving effect to this Loan Modification Agreement (i) each representation or warranty of Borrower set forth in the Loan Agreement is hereby restated and reaffirmed as true and correct in all material respects on and as of the Second Loan Modification Date as if such representation or warranty were made on and as of the Second Loan Modification Date (except to the extent that any such representation or warranty expressly relates to a prior specific date or period), (ii) no Default or Event of Default has occurred and is continuing as of the date hereof and (iii) Borrower has the power and is duly authorized to enter into, deliver and perform this Loan Modification Agreement and this Loan Modification Agreement is the legal, valid and binding obligation of Borrower enforceable against Borrower in accordance with its terms.

 

9.                                      CONTINUING VALIDITY. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. The Lenders’ agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Collateral Agent or the Lenders to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Collateral Agent, the Lenders and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by the Lenders in writing. No maker will be released by virtue of this Loan Modification Agreement.

 

10.                               CONDITION PRECEDENT TO EFFECTIVENESS OF THIS LOAN MODIFICATION AGREEMENT. This Loan Modification Agreement shall become effective as of the Third Loan Modification Date upon the receipt by Collateral Agent, in form and substance satisfactory to Collateral Agent and Lenders, of one or more counterparts of this Loan Modification Agreement duly executed and delivered by the Borrower, Collateral Agent and Lenders.

 

11.                               COUNTERPARTS. This Loan Modification Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument.

 

12.                               GOVERNING LAW. THIS LOAN MODIFICATION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

 

4

 

13.                               ENTIRE AGREEMENT. The Existing Loan Documents as and when amended through this Loan Modification Agreement embody the entire agreement between the parties hereto relating to the subject matter thereof and supersede all prior agreements, representations and understandings, if any, relating to the subject matter thereof.

 

[Remainder of page intentionally left blank –
 signature page follows]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
PTC THERAPEUTICS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Mark E. Boulding
    	
 
    
	
Name:
    	
Mark E. Boulding
    	
 
    
	
Title:
    	
Executive Vice President
    	
 
    
	
 
    	
Chief Legal Officer
    	
 
    

 

 

[Signatures continue on following page]

 

 

[Signature page to Third Loan Modification Agreement – PTC Therapeutics, Inc.]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

	
COLLATERAL AGENT:
    	
 
    
	
 
    	
 
    
	
OXFORD FINANCE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Mark Davis
    	
 
    
	
Name:
    	
Mark Davis
    	
 
    
	
Title:
    	
Vice President - Finance, Secretary & Treasurer
    	
 
    

 

 

[Signatures continue on following page]

 

 

[Signature page to Third Loan Modification Agreement – PTC Therapeutics, Inc.]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

	
LENDER:
    	
 
    
	
 
    	
 
    
	
OXFORD FINANCE FUNDING TRUST 2012-01
    	
 
    
	
 
    	
 
    
	
By:
    	
OXFORD FINANCE LLC, as servicer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark Davis
    	
 
    
	
 
    	
Name:
    	
Mark Davis
    	
 
    
	
 
    	
Title:
    	
Vice President - Finance, Secretary & Treasurer
    	
 
    

 

 

[Signatures continue on following page]

 

 

[Signature page to Third Loan Modification Agreement – PTC Therapeutics, Inc.]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.

 

	
LENDER:
    	
 
    
	
 
    	
 
    
	
MIDCAP FUNDING III, LLC (as assignee of MidCap Financial, LLC)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Luis Viera
    	
 
    
	
Name:
    	
Luis Viera
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

 

[Signature page to Third Loan Modification Agreement – PTC Therapeutics, Inc.]eh1300734_ex1001.htm

EXHIBIT 10.1

 

Published CUSIP Number:  950589AC5

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

Dated as of May 16, 2013

 

among

 

Wendy’s International, Inc.,

 

as the Borrower,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

as Syndication Agent

FIFTH THIRD BANK,

THE HUNTINGTON NATIONAL BANK,

and

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH,

as Co-Documentation Agents

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender and

L/C Issuer,

 

and

The Other Lenders Party Hereto

BANK OF AMERICA, N.A.

WELLS FARGO SECURITIES, LLC

As Joint Lead Arrangers and Joint Book Managers

 

 

 

 

 

  

  

  

TABLE OF CONTENTS

 

	
Section

	  	
Page

	
ARTICLE I

	
DEFINITIONS AND ACCOUNTING TERMS

	  	  	  
	
1.01.

	
Defined Terms

	
1

	
1.02.

	
Other Interpretive Provisions

	
43

	
1.03.

	
Accounting Terms

	
44

	
1.04.

	
Rounding

	
45

	
1.05.

	
Times of Day

	
45

	
1.06.

	
Letter of Credit Amounts

	
45

	
1.07.

	
Currency Equivalents Generally

	
45

	
1.08.

	
Certifications

	
45

	  	  	  
	
ARTICLE II

	
THE COMMITMENTS AND CREDIT EXTENSIONS

	  	  	  
	
2.01.

	
The Loans

	
46

	
2.02.

	
Borrowings, Conversions and Continuations of Loans

	
47

	
2.03.

	
Letters of Credit

	
48

	
2.04.

	
Swing Line Loans

	
56

	
2.05.

	
Prepayments

	
59

	
2.06.

	
Termination or Reduction of Commitments

	
64

	
2.07.

	
Repayment of Loans

	
65

	
2.08.

	
Interest

	
65

	
2.09.

	
Fees

	
66

	
2.10.

	
Computation of Interest and Fees

	
67

	
2.11.

	
Evidence of Debt

	
67

	
2.12.

	
Payments Generally; Administrative Agent’s Clawback

	
67

	
2.13.

	
Sharing of Payments by Lenders

	
69

	
2.14.

	
Increase in Commitments

	
70

	
2.15.

	
Cash Collateral

	
72

	
2.16.

	
Defaulting Lenders

	
73

	
2.17.

	
Extension of Maturity Date in respect of Revolving Credit Facility and Term Loan Facility.

	
74

	  	  	  
	
ARTICLE III

	
TAXES, YIELD PROTECTION AND ILLEGALITY

	  	  	  
	
3.01.

	
Taxes

	
75

	
3.02.

	
Illegality

	
78

	
3.03.

	
Inability to Determine Rates

	
79

	
3.04.

	
Increased Costs; Reserves on Eurodollar Rate Loans

	
79

	
3.05.

	
Compensation for Losses

	
81

	
3.06.

	
Mitigation Obligations; Replacement of Lenders

	
81

	
3.07.

	
Survival

	
82

	  	  	  

 

 

 

-i-

 

 

 

	
ARTICLE IV

	
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

	  	  	  
	
4.01.

	
Conditions of Initial Credit Extension

	
82

	
4.02.

	
Conditions to All Credit Extensions

	
84

	  	  	  
	
ARTICLE V

	
REPRESENTATIONS AND WARRANTIES

	  	  	  
	
5.01.

	
Existence, Qualification and Power

	
85

	
5.02.

	
Authorization; No Contravention

	
85

	
5.03.

	
Governmental Authorization; Other Consents

	
86

	
5.04.

	
Binding Effect

	
86

	
5.05.

	
Financial Statements; No Material Adverse Effect

	
86

	
5.06.

	
Litigation

	
87

	
5.07.

	
No Default

	
87

	
5.08.

	
Ownership of Property; Liens; Investments

	
87

	
5.09.

	
Environmental Matters

	
87

	
5.10.

	
Insurance

	
88

	
5.11.

	
Taxes

	
88

	
5.12.

	
ERISA Compliance

	
88

	
5.13.

	
Subsidiaries; Equity Interests; Loan Parties

	
89

	
5.14.

	
Margin Regulations; Investment Company Act

	
89

	
5.15.

	
Disclosure

	
90

	
5.16.

	
Compliance with Laws

	
90

	
5.17.

	
Intellectual Property; Licenses, Etc

	
90

	
5.18.

	
Solvency

	
90

	
5.19.

	
[Reserved]

	
90

	
5.20.

	
Labor Matters

	
90

	
5.21.

	
Collateral Documents

	
90

	  	  	  
	
ARTICLE VI

	
AFFIRMATIVE COVENANTS

	  	  	  
	
6.01.

	
Financial Statements

	
91

	
6.02.

	
Certificates; Other Information

	
92

	
6.03.

	
Notices

	
94

	
6.04.

	
Payment of Obligations

	
95

	
6.05.

	
Preservation of Existence, Etc

	
95

	
6.06.

	
Maintenance of Properties

	
95

	
6.07.

	
Maintenance of Insurance

	
95

	
6.08.

	
Compliance with Laws

	
95

	
6.09.

	
Books and Records

	
95

	
6.10.

	
Inspection Rights

	
96

	
6.11.

	
Use of Proceeds

	
96

	
6.12.

	
Additional Collateral; Additional Guarantors

	
96

	
6.13.

	
Compliance with Environmental Laws

	
97

	
6.14.

	
[Reserved]

	
97

	
6.15.

	
Further Assurances

	
97

	
6.16.

	
[Reserved]

	
98

 

 

 

 

-ii-

 

 

	
6.17.

	
[Reserved]

	
98

	
6.18.

	
Information Regarding Collateral and Loan Documents

	
98

	
6.19.

	
[Reserved]

	
98

	
6.20.

	
Designation of Subsidiaries

	
98

	
6.21.

	
Maintenance of Debt Ratings

	
99

	
6.22.

	
[Reserved]

	
99

	
6.23.

	
[Reserved]

	
99

	  	  	  
	
ARTICLE VII

	
NEGATIVE COVENANTS

	  	  	  
	
7.01.

	
Liens

	
99

	
7.02.

	
Indebtedness

	
103

	
7.03.

	
Investments

	
105

	
7.04.

	
Fundamental Changes

	
108

	
7.05.

	
Dispositions

	
108

	
7.06.

	
Restricted Payments

	
111

	
7.07.

	
Change in Nature of Business

	
113

	
7.08.

	
Transactions with Affiliates

	
113

	
7.09.

	
Burdensome Agreements

	
115

	
7.10.

	
Use of Proceeds

	
115

	
7.11.

	
Financial Covenants

	
115

	
7.12.

	
Amendments of Organization Documents

	
116

	
7.13.

	
Accounting Changes

	
116

	
7.14.

	
Prepayments, Etc. of Indebtedness

	
116

	
7.15.

	
No Further Negative Pledge

	
116

	
7.16.

	
Maintenance of Corporate Separation

	
117

	
7.17.

	
Pledge of WNAP Interests

	
117

	  	  	  
	
ARTICLE VIII

	
EVENTS OF DEFAULT AND REMEDIES

	  	  	  
	
8.01.

	
Events of Default

	
118

	
8.02.

	
Remedies upon Event of Default

	
120

	
8.03.

	
Application of Funds

	
121

	
8.04.

	
Borrower’s Right to Cure.

	
122

	  	  	  
	
ARTICLE IX

	
ADMINISTRATIVE AGENT

	  	  	  
	
9.01.

	
Appointment and Authority

	
122

	
9.02.

	
Rights as a Lender

	
123

	
9.03.

	
Exculpatory Provisions

	
123

	
9.04.

	
Reliance by Administrative Agent

	
124

	
9.05.

	
Withholding Tax

	
124

	
9.06.

	
Delegation of Duties

	
125

	
9.07.

	
Resignation of Administrative Agent

	
125

	
9.08.

	
Non-Reliance on Administrative Agent and Other Lenders

	
126

	
9.09.

	
No Other Duties, Etc.

	
126

	
9.10.

	
Administrative Agent May File Proofs of Claim

	
126

	
9.11.

	
Collateral and Guaranty Matters.

	
127

 

 

 

-iii-

 

 

 

	
9.12.

	
Secured Cash Management Agreements and Secured Hedge Agreements

	
128

	  	  	  
	
ARTICLE X

	
MISCELLANEOUS

	  	  	  
	
10.01.

	
Amendments, Etc.

	
128

	
10.02.

	
Notices; Effectiveness; Electronic Communications

	
130

	
10.03.

	
No Waiver; Cumulative Remedies; Enforcement

	
132

	
10.04.

	
Expenses; Indemnity; Damage Waiver

	
133

	
10.05.

	
Payments Set Aside

	
134

	
10.06.

	
Successors and Assigns

	
135

	
10.07.

	
Treatment of Certain Information; Confidentiality

	
140

	
10.08.

	
Right of Setoff

	
141

	
10.09.

	
Interest Rate Limitation

	
141

	
10.10.

	
Counterparts; Integration; Effectiveness

	
141

	
10.11.

	
Survival of Representations and Warranties

	
142

	
10.12.

	
Severability

	
142

	
10.13.

	
Replacement of Lenders

	
142

	
10.14.

	
Governing Law; Jurisdiction; Etc.

	
143

	
10.15.

	
WAIVER OF JURY TRIAL

	
144

	
10.16.

	
No Advisory or Fiduciary Responsibility

	
144

	
10.17.

	
Electronic Execution of Assignments and Certain Other Documents

	
144

	
10.18.

	
USA PATRIOT Act

	
144

	
10.19.

	
Time of the Essence

	
145

	
10.20.

	
ENTIRE AGREEMENT

	
145

	
10.21.

	
Purchasing Borrower Parties

	
145

 

 

  

-iv-

  

 

 

	
SCHEDULES

	  
	 	 
	
2.01

	
Commitments and Applicable Percentages

	  	  
	
EXHIBITS

	  
	 	 
	
Form of

	  
	 	 
	
C-3

	
Term A Note

	
D

	
Compliance Certificate

 

 

 

  

-v-

  

 

  

CREDIT AGREEMENT

 

This AMENDED AND RESTATED CREDIT AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, this “Agreement”) is entered into as of May 16, 2013, among Wendy’s International, Inc., an Ohio corporation (the “Borrower”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Wells Fargo Bank, National Association, as Syndication Agent, and Fifth Third Bank, The Huntington National Bank, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as Co-Documentation Agents.

 

PRELIMINARY STATEMENTS:

 

 

The Borrower, certain lenders and Bank of America, N.A., as administrative agent for such lenders, are party to the Credit Agreement dated as of May 15, 2012 (as amended on October 22, 2012, the “Existing Credit Agreement”).

 

Pursuant to the Amendment No. 2 to Credit Agreement, dated as of April 16, 2013, by and among the Borrower, the other Loan Parties party thereto, the Lenders party thereto, and the Administrative Agent (“Amendment No. 2”), the parties hereto have agreed to amend and restate in its entirety the Existing Credit Agreement and to replace it in its entirety with this Agreement.  This Agreement is the Restated Credit Agreement contemplated by the Amendment No. 2.

 

In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

1.01.        Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:

 

“2014 Indenture” means that certain Indenture, dated as of November 13, 2001, entered into by Wendy’s International, Inc. in connection with the issuance of the 2014 Notes, together with all instruments and other agreements entered into by Wendy’s International, Inc. in connection therewith.

 

“2014 Notes” means the 6.20% Senior Notes due 2014, issued under the 2014 Indenture.

 

“2016 Indenture” means that certain Indenture, dated as of June 23, 2009, entered into by Holdings in connection with the issuance of the 2016 Notes, together with all instruments and other agreements entered into by Holdings in connection therewith.

 

“2016 Notes” means the 10.00% Senior Notes due 2016, issued under the 2016 Indenture.

 

“2016 Notes Tender Offer” means the offer to purchase and consent solicitation in respect of the 2016 Notes.

 

“2025 Debentures” means the 7.00% Debentures due 2025, issued under the 2025 Indenture.

 

 

  

  

  

 

“2025 Indenture” means that certain Indenture, dated as of December 14, 1995, entered into by Wendy’s International, Inc. in connection with the issuance of the 2025 Debentures, together with all instruments and other agreements entered into by Wendy’s International, Inc. in connection therewith.

 

“Acceptable Price” has the meaning specified in Section 2.05(c)(iii).

 

“Acceptance Date” has the meaning specified in Section 2.05(c)(ii).

 

“Accounts Receivable”  means (1) accounts receivable, (2) franchise fee payments and other revenues related to franchise agreements, (3) royalty and other similar payments made related to the use of trade names and other Intellectual Property, business support, training and other services, (4) revenues related to distribution and merchandising of the products of the Borrower and its Restricted Subsidiaries and (5) rents, real estate taxes and other non-royalty amounts due from franchisees or other lessees.

 

“Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001).

 

“Acquired Indebtedness” means Indebtedness of the Borrower, any Guarantor or any Restricted Subsidiary (provided that any such Restricted Subsidiary that is not a Guarantor will be merged with or into, or be the direct or indirect parent of, the acquired person) incurred to finance an acquisition or other business combination or Indebtedness of a Person existing at the time the Person merges with or into or becomes a Restricted Subsidiary, whether or not incurred in connection with, or in contemplation of, the Person merging with or into or becoming a Restricted Subsidiary.

 

“Additional Commitments Effective Date” has the meaning specified in Section 2.14(b).

 

“Additional Lender” has the meaning specified in Section 2.14(b).

 

“Additional Revolving Credit Commitments” means the commitments of the Additional Revolving Credit Lenders to make Additional Revolving Credit Loans pursuant to Section 2.14.

 

“Additional Revolving Credit Lenders” means the lenders providing the Additional Revolving Credit Commitments.

 

“Additional Revolving Credit Loans” means any loans made in respect of any Additional Revolving Credit Commitments that shall have been added pursuant to Section 2.14.

 

“Additional Term Commitments” means the commitments of the Additional Term Lenders to make Additional Term Loans pursuant to Section 2.14.

 

“Additional Term Lenders” means the lenders providing the Additional Term Loans.

 

“Additional Term Loans” means any loans made in respect of any Additional Term Commitments that shall have been added pursuant to Section 2.14.

 

“Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

 

“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02 to the Existing Credit Agreement, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.

 

 

  

-2-

  

 

“Administrative Questionnaire” means an Administrative Questionnaire in substantially the form of Exhibit E-2 to the Existing Credit Agreement or any other form approved by the Administrative Agent.

 

“Affiliate” means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.

 

“Agent Fee Letter” means the letter agreement dated May 15, 2012, among the Borrower, the Administrative Agent and the Arrangers.

 

“Agent Parties” has the meaning specified in Section 10.02(c).

 

“Aggregate Commitments” means the Commitments of all the Lenders.

 

“Agreement” has the meaning specified in the introductory paragraph hereto.

 

“Amended and Restated Guaranty” means that certain Guaranty Agreement, dated as of May 15, 2012, and amended and restated as of May 16, 2013, by and among the Guarantors and Bank of America, N.A., as administrative agent for the Secured Parties.

 

“Amendment No. 2” has the meaning assigned to such term in the recitals hereto.

 

“Applicable Discount” has the meaning specified in Section 2.05(c)(iii).

 

“Applicable Fee Rate” means 0.50% per annum.

 

“Applicable Percentage” means (a) in respect of the Term Facility, (i) with respect to any Term A Lender at any time, the percentage (carried out to the ninth decimal place) of the aggregate principal amount of Term A Loans represented by the principal amount of such Term A Lender’s Term A Loans at such time, (ii) with respect to any Term B Lender at any time, the percentage (carried out to the ninth decimal place) of the aggregate principal amount of Term B Loans represented by the principal amount of such Term B Lender’s Term B Loans at such time and (b) in respect of the Revolving Credit Facility, with respect to any Revolving Credit Lender at any time, the percentage (carried out to the ninth decimal place) of the Revolving Credit Facility represented by such Revolving Credit Lender’s Revolving Credit Commitment at such time, subject to adjustment as provided in Section 2.16.  If the commitment of each Revolving Credit Lender to make Revolving Credit Loans and the obligation of an L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, or if the Revolving Credit Commitments have expired, then the Applicable Percentage of each Revolving Credit Lender in respect of the Revolving Credit Facility shall be determined based on the Applicable Percentage of such Revolving Credit Lender in respect of the Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rate” means (a) in respect of the Revolving Credit Facility, 2.50% per annum for Base Rate Loans and 3.50% per annum for Eurodollar Rate Loans and Letter of Credit Fees, (b) in respect of the Term Facility, (i) with respect to Term A Loans, 1.25% per annum for Base Rate Loans and 2.25% per annum for Eurodollar Rate Loans, and (ii) with respect to Term B Loans, 1.50% per annum for Base Rate Loans and 2.50% per annum for Eurodollar Rate Loans.

 

 

  

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“Applicable Revolving Credit Percentage” means with respect to any Revolving Credit Lender at any time, such Revolving Credit Lender’s Applicable Percentage in respect of the Revolving Credit Facility at such time.

 

“Appropriate Lender” means, at any time, (a) with respect to any Term Facility or the Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility or holds a Term A Loan, Term B Loan or a Revolving Credit Loan, respectively, at such time, (b) with respect to the Letter of Credit Sublimit, (i) the L/C Issuers and (ii) if any Letters of Credit have been issued pursuant to Section 2.03(a), the Revolving Credit Lenders and (c) with respect to the Swing Line Sublimit, (i) the Swing Line Lender and (ii) if any Swing Line Loans are outstanding pursuant to Section 2.04(a), the Revolving Credit Lenders.

 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arrangers” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC, in their capacity as joint lead arrangers and joint book managers.

 

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

 

“Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit E-1 to the Existing Credit Agreement (or Exhibit E-3 to the Existing Credit Agreement with respect to a Purchasing Borrower Party) or any other form reasonably approved by the Administrative Agent.

 

“Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease or similar payments under the relevant lease or other applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease or other agreement or instrument were accounted for as a Capitalized Lease.

 

“Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended January 1, 2012, and the related consolidated statements of income or operations, shareholder’s equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

 

“Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(iii).

 

“Auto-Reinstatement Letter of Credit” has the meaning specified in Section 2.03(b)(iv).

 

“Availability Period” means in respect of the Revolving Credit Facility, the period from and including the Original Closing Date to the earliest of (i) the Maturity Date for the Revolving Credit Facility, (ii) the date of termination of the Revolving Credit Commitments pursuant to Section 2.06, and (iii) the date of termination of the commitment of each Revolving Credit Lender to make Revolving Credit Loans and of the obligation of each L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

 

“Bank of America” means Bank of America, N.A. and its successors.

 

 

  

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“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by the Administrative Agent as its “prime rate,” and (c) the one-month Eurodollar Rate plus 1.00%; provided, that the Base Rate with respect to a Term B Loan that bears interest based on the Base Rate will be deemed not to be less than 1.75% per annum.  The “prime rate” is a rate set by the Administrative Agent based upon various factors including the Administrative Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such prime rate announced by the Administrative Agent shall take effect at the opening of business on the day specified in the public announcement of such change.

 

“Base Rate Loan” means a Revolving Credit Loan, a Term A Loan or a Term B Loan that bears interest based on the Base Rate.

 

“Board of Directors” means, with respect to any Person, (i) in the case of any corporation, the board of directors of such Person, (ii) in the case of any limited liability company, the board of managers or managing member of such Person, (iii) in the case of any partnership, the Board of Directors of the general partner of such Person and (iv) in any other case, the functional equivalent of the foregoing.

 

“Borrower” has the meaning specified in the introductory paragraph hereto.

 

“Borrower Materials” has the meaning specified in Section 6.02.

 

“Borrowing” means a Revolving Credit Borrowing, a Swing Line Borrowing, a Term A Borrowing or a Term B Borrowing, as the context may require.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day that is also a London Banking Day.

 

“Capital Expenditures” means, with respect to any Person for any period, the aggregate of amounts that would be reflected as additions to property, plant or equipment on a consolidated balance sheet of such Person and its Subsidiaries (other than Unrestricted Subsidiaries).

 

“Capitalized Leases” means all leases that, in accordance with GAAP, have been recorded as capitalized leases on a balance sheet of the lessee (including, without limitation, financing obligations that are capitalized) and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent, the applicable L/C Issuer(s) or Swing Line Lender (as applicable) and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans, or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash or deposit account balances or, if the applicable L/C Issuer(s) or Swing Line Lender benefiting from such collateral shall agree in its sole discretion, other credit support, in each case in an amount equal to 102% of such Obligations and pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and (b) the L/C Issuer(s) or the Swing Line Lender (as applicable).  “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

 

 

  

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“Cash Equivalents” means any of the following types of Investments, to the extent owned by the Borrower or any of its Restricted Subsidiaries free and clear of all Liens (other than Liens created under the Collateral Documents and other Liens permitted hereunder):

 

(a)           United States dollars, or money in other currencies received in the ordinary course of business,

 

(b)           U.S. Government Obligations or certificates representing an ownership interest in U.S. Government Obligations with maturities not exceeding one year from the date of acquisition,

 

(c)           (i) demand deposits, (ii) time deposits and certificates of deposit with maturities of one year or less from the date of acquisition, (iii) bankers’ acceptances with maturities not exceeding one year from the date of acquisition, and (iv) overnight bank deposits, in each case with any bank or trust company organized or licensed under the laws of the United States or any state thereof or the District of Columbia whose short-term debt is rated “A-2” or higher by S&P or “P-2” or higher by Moody’s,

 

(d)           repurchase obligations with a term of not more than seven days for underlying securities of the type described in clauses (b) and (c) above entered into with any financial institution meeting the qualifications specified in clause (c) above,

 

(e)           commercial paper rated at least “P-1” by Moody’s or “A-1” by S&P and maturing within six months after the date of acquisition,

 

(f)            money market funds at least 95% of the assets of which consist of investments of the type described in clauses (a) through (e) above and

 

(g)           in case of a Foreign Subsidiary, substantially similar investments, of comparable credit quality, denominated in the currency of any jurisdiction in which such Person conducts business.

 

“Cash Management Agreement” means any agreement to provide cash management services, including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements.

 

“Cash Management Bank” means any Person that, at the time it enters into a Cash Management Agreement (or, on the Original Closing Date, with respect to a Cash Management Agreement in effect prior to the Original Closing Date and continuing in effect thereafter), is a Lender or an Affiliate of a Lender, in its capacity as a party to such Cash Management Agreement.

 

“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980.

 

“CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency.

 

“CFC” means a Person that is a controlled foreign corporation under Section 957(a) of the Code.

 

“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental 

 

 

  

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Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.

 

“Change of Control” means an event or series of events by which:

 

(a)           at any time prior to the creation of a Public Market, Holdings, Parent (or a Wholly Owned Subsidiary of Parent), and Permitted Holders, collectively, shall cease to own and control, in the aggregate, legally and beneficially, either directly or indirectly, equity securities in the Borrower representing (i) more than 50% of the combined voting power of all of equity securities entitled to vote for members of the Board of Directors of the Borrower on a fully-diluted basis or (ii) at least a percentage of the combined voting power of all equity securities entitled to vote necessary to elect at any time a majority of the Board of Directors of the Borrower, in each case taking into account all such securities that Holdings and Permitted Holders have the right to acquire, whether such right is exercisable immediately or only after the passage of time; or

 

(b)           individuals who on the Original Closing Date constituted the Board of Directors of the Borrower, together with any new directors whose election by the Board of Directors or whose nomination for election by the equity holders of the Borrower was approved by a majority of the directors then still in office who were either directors or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board of Directors of the Borrower then in office; or

 

(c)           [Reserved]; or

 

(d)           any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934), other than Permitted Holders, is or becomes the “beneficial owner” (as such term is used in Rules 13d−3 under the Securities Exchange Act of 1934), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Borrower, provided that such event shall not be deemed a Change of Control so long as one or more of the Permitted Holders have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of the Borrower.

 

Notwithstanding the foregoing, a merger between Parent (or a Wholly Owned Subsidiary of Parent) and Holdings or dissolution of Holdings into Parent (or a Wholly Owned Subsidiary of Parent) shall not constitute a Change of Control so long as (1) the Borrower continues to be a Wholly Owned Subsidiary of Parent and (2) the Permitted Holders’ direct or indirect ownership of the Borrower shall not change by reason of the merger or dissolution.

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral” means all of the “Collateral” referred to in the Collateral Documents and all of the other property that is or is intended under the terms of the Collateral Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the Secured Parties.

 

 

  

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“Collateral Documents” means, collectively, the Security Agreement, the Intellectual Property Security Agreement, any intercreditor agreement entered into in connection with the incurrence of any Permitted Additional First Lien Debt or any Junior Liens, each of the collateral assignments, security agreement supplements, intellectual property security agreement supplements, security agreements, pledge agreements or other similar agreements delivered to the Administrative Agent pursuant to Section 6.12, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

 

“Commitment” means a Term A Commitment, a Term B Commitment or a Revolving Credit Commitment, as the context may require.

 

“Committed Loan Notice” means a notice of (a) a Term Borrowing, (b) a Revolving Credit Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit A to the Existing Credit Agreement.

 

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

 

“Compliance Certificate” means a certificate substantially in the form of Exhibit D to this Agreement.

 

“Consolidated Cash Interest Charges” means, for any Measurement Period, the consolidated cash interest expense (net of cash interest income) of the Borrower and its Restricted Subsidiaries, plus, to the extent not included in such consolidated cash interest expense, and to the extent incurred, accrued or payable by the Borrower or its Restricted Subsidiaries, without duplication, (i) the interest component of Capitalized Leases determined in accordance with GAAP, (ii) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, (iii) net costs associated with Swap Contracts (including the amortization of fees but excluding unrealized gains or losses with respect thereto), (iv) any premiums, fees, discounts, expenses and losses on the sale of accounts receivable (and any amortization thereof) payable by the Borrower or any Restricted Subsidiary in connection with a Permitted Receivables Financing and (v) dividends to Parent pursuant to Section 7.06(h)(a)(v) to pay interest, as determined on a consolidated basis and in accordance with GAAP and excluding amortization of deferred financing fees and debt issuance costs.  Notwithstanding the foregoing, Consolidated Cash Interest Charges shall not include (i) any upfront fees and other cash payments made during such period by the Borrower as a condition to the execution of any Swap Contract to other parties to such Swap Contract as consideration required by such other parties to enter into such Swap Contract, as well as one-time costs associated with the termination or settlement of any Swap Contract, (ii) any fees paid during such period by or on behalf of the Borrower to the Administrative Agent or Arrangers pursuant to any fee letter, (iii) any consolidated net cash gain or loss of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) under Swap Contracts for such period, (iv) any fees (including underwriting fees) and expenses paid by such Person or its Subsidiaries (other than Unrestricted Subsidiaries) during such period in connection with the consummation of any Permitted Acquisition or Disposition and (v) any fees (including underwriting fees) and expenses paid by such Person or its Restricted Subsidiaries during such period in connection with the issuance of the 2016 Notes, the 2014 Notes, the 2025 Debentures or any repayment, redemption or Permitted Refinancing Indebtedness thereof, including the 2016 Notes Tender Offer.  For the avoidance of doubt, Consolidated Cash Interest Charges shall not include any amount of debt discount or debt issuance costs amortized, charges and interest expense relating to write-ups or write-downs in the book or carrying value of Financial Covenant Debt, interest payable in evidences of Indebtedness or by addition to the principal of the related Indebtedness or other non-cash interest expense.

 

 

  

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“Consolidated Current Assets” means, with respect to any Person at any date, the total consolidated current assets (other than cash and Cash Equivalents) of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) at such date.

 

“Consolidated Current Liabilities” means, with respect to any Person at any date, all liabilities of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) at such date that should be classified as current liabilities on a consolidated balance sheet of such Person and its Subsidiaries (other than Unrestricted Subsidiaries), other than the current portion of any Indebtedness.

 

“Consolidated EBITDA” means, at any date of determination, an amount equal to Consolidated Net Income of the Borrower and its Restricted Subsidiaries on a consolidated basis for the most recently completed Measurement Period plus without duplication (i) Fixed Charges (for the avoidance of doubt net of interest income), to the extent deducted in calculating Consolidated Net Income including the amount of loss on sale of Accounts Receivables and related assets to a Securitization Subsidiary in connection with a Permitted Receivables Financing; plus (ii) to the extent deducted in calculating Consolidated Net Income and as determined on a consolidated basis for the Borrower and its Restricted Subsidiaries in conformity with GAAP: (A) income taxes and any dividend or distribution to any direct or indirect parent of the Borrower pursuant to Section 7.06(h)(a)(i) and (B) depreciation, amortization and all other non-cash items reducing Consolidated Net Income (not including non-cash charges in a period which reflect cash expenses paid or to be paid in another period), less all non-cash items increasing Consolidated Net Income; provided that, with respect to any Restricted Subsidiary, such items will be added only to the extent and in the same proportion that the relevant Restricted Subsidiary’s net income was included in calculating Consolidated Net Income, plus (iii) without duplication and to the extent deducted in calculating Consolidated Net Income, any fees, expenses or charges related to any issuance of Equity Interests, any acquisition or Disposition of divisions or lines of business, any Permitted Acquisition, any recapitalization or the incurrence or repayment of Indebtedness permitted by this Agreement (whether or not successful), including, without limitation, the 2016 Notes Tender Offer, plus (iv) any costs or expense incurred pursuant to any management equity plan or stock option plan or any other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, to the extent that such cost or expenses are funded with cash proceeds contributed to the capital of the Borrower or a Guarantor or net cash proceeds of an issuance of Equity Interests of the Borrower (other than Disqualified Equity Interests) solely to the extent that such net cash proceeds are excluded from the calculation of the Permitted Amount and are not an Excluded Contribution, plus (v) any portion of payments to the Parent or its Affiliates in respect of fees pursuant to Section 7.08(b), paid by or on behalf of, or accrued by, the Borrower or any of its Restricted Subsidiaries during such period, plus (vi) the amount of “run-rate” cost savings projected by the Borrower in good faith and certified by the chief financial officer of the Borrower in writing to the Administrative Agent to result from actions either taken or initiated prior to or during such period (which cost savings shall be calculated on a pro forma basis as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits realized or expected to be realized from such actions; provided, that (A) the chief financial officer of the Borrower shall have certified to the Administrative Agent that (x) such cost savings are reasonably identifiable, reasonably attributable to the actions specified and reasonably anticipated to result from such actions and (y) such actions have been taken or initiated and the benefits resulting therefrom are anticipated by the Borrower to be realized within 12 months, (B) no cost savings shall be added pursuant to this clause (vi) to the extent duplicative of any expenses or charges relating to such cost savings that are included in the calculation of any of the ratios pursuant to the terms of this Agreement with respect to such period and (C) the aggregate amount of cost savings added pursuant to this clause (vi) shall not exceed 10% of Consolidated EBITDA for any period of four consecutive fiscal quarters.  For purposes of calculating Consolidated EBITDA, the net income of any Person and its Restricted Subsidiaries shall be calculated without deducting the income attributable to, or adding the losses attributable to, the minority equity interests of third parties in any non-Wholly Owned Restricted Subsidiary except to the extent of dividends declared or paid in respect of such 

 

 

  

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period or any prior period on the shares of Equity Interests of such Restricted Subsidiary held by such third parties.

 

“Consolidated Interest Charges” means, for any Measurement Period, the consolidated interest expense of the Borrower and its Restricted Subsidiaries, plus, to the extent not included in such consolidated interest expense, and to the extent incurred, accrued or payable by the Borrower or its Restricted Subsidiaries, without duplication, (i) the interest component of Capitalized Leases determined in accordance with GAAP, (ii) amortization of debt discount, (iii) capitalized interest, (iv) non-cash interest expense, (v) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, (vi) net costs associated with Swap Contracts (including the amortization of fees but excluding unrealized gains or losses with respect thereto), (vii) any premiums, fees, discounts, expenses and losses on the sale of accounts receivable (and any amortization thereof) payable by the Borrower or any Restricted Subsidiary in connection with a Permitted Receivables Financing and (viii) dividends to Parent pursuant to Section 7.06(h)(a)(v) to pay interest, as determined on a consolidated basis and in accordance with GAAP and excluding amortization of deferred financing fees and debt issuance costs.  Notwithstanding the foregoing, expenses (including, without limitation, original issue discount) with respect to Indebtedness or obligations outstanding on the Original Closing Date (including this Agreement) shall only be included in Consolidated Interest Charges to the extent paid in cash.  Notwithstanding the foregoing, Consolidated Interest Charges shall not include (i) any upfront fees and other cash payments made during such period by the Borrower as a condition to the execution of any Swap Contract to other parties to such Swap Contract as consideration required by such other parties to enter into such Swap Contract, as well as one-time costs associated with the termination or settlement of any Swap Contract, (ii) any fees paid during such period by or on behalf of the Borrower to the Administrative Agent or the Arrangers pursuant to any fee letter, (iii) any consolidated net cash gain or loss of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) under Swap Contracts for such period, (iv) any consolidated interest income of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) for such period, (v) any fees (including underwriting fees) and expenses paid by such Person or its Subsidiaries (other than Unrestricted Subsidiaries) during such period in connection with the consummation of any Permitted Acquisition or Disposition and (vi) any fees (including underwriting fees) and expenses paid by such Person or its Restricted Subsidiaries during such period in connection with the issuance of the 2016 Notes, the 2014 Notes, the 2025 Debentures or any repayment, redemption or Permitted Refinancing Indebtedness thereof, including the 2016 Notes Tender Offer.

 

“Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDA to (b) Consolidated Cash Interest Charges, in each case, of the Borrower and its Restricted Subsidiaries on a consolidated basis for the most recently completed Measurement Period.

 

In making the foregoing calculation, in each case to the extent applicable, (1) pro forma effect will be given to any Indebtedness incurred during or after the reference period to the extent the Indebtedness is outstanding or is to be incurred on the date of determination as if the Indebtedness had been incurred on the first day of the reference period; provided that, for purposes of this clause (1), pro forma effect shall not be given to Indebtedness in respect of Capitalized Leases to the extent incurred after the reference period; (2) pro forma calculations of interest on Indebtedness bearing a floating interest rate will be made as if the rate in effect on the date of determination (taking into account any Swap Contract applicable to the Indebtedness if the Swap Contract has a remaining term of at least 12 months) had been the applicable rate for the entire reference period; (3) items related to any Indebtedness or Disqualified Equity Interests no longer outstanding or to be repaid, redeemed or defeased on the date of determination (including, without limitation, for purposes of this calculation, interest, fees, debt discounts, charges and other items) will be excluded and such Indebtedness or Disqualified Equity Interests shall be deemed to have been repaid, redeemed or defeased as of the first day of the applicable period; and (4) pro forma effect will be given to (A) the creation, designation or redesignation of Restricted and Unrestricted Subsidi-

 

  

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aries, (B) any acquisition or disposition of companies, divisions, lines of businesses, operations or any other material acquisition or Disposition by the Borrower and its Restricted Subsidiaries, including any acquisition or Disposition of a company, division, line of business, operation or any other material acquisition or Disposition since the beginning of the Measurement Period by a Person that became a Restricted Subsidiary after the beginning of the Measurement Period, and (C) the discontinuation of any discontinued operations as if such events had occurred, and, in the case of any Disposition, the proceeds thereof applied, on the first day of the reference period.  To the extent that pro forma effect is to be given to an acquisition, disposition or discontinuation of a company, division, line of business or operation or any other material acquisition or Disposition, the pro forma calculation will be based upon the most recently completed Measurement Period.  For purposes of this definition, whenever pro forma effect is to be given to any event, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower. Any such pro forma calculation may include adjustments appropriate, in the reasonable good faith determination of the Borrower, to reflect operating expense reductions and other operating improvements or synergies reasonably expected to result from the applicable event within 24 months after the applicable event so long as certified to the Administrative Agent by the Borrower if in excess of $25,000,000; provided that actions to realize such operating expense reductions and other operating improvements or synergies are taken within 18 months after the applicable event.

 

To the extent applicable, for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

For purposes of this definition, any amount in a currency other than U.S. dollars will be converted to U.S. dollars in accordance with GAAP, in a manner consistent with that used in preparing the Borrower’s financial statements.

 

“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) the aggregate principal amount of, without duplication, Financial Covenant Debt of the Borrower and its Restricted Subsidiaries as of such date minus the aggregate amount of cash and Cash Equivalents (in each case, free and clear of all Liens, other than (i) Liens securing the Secured Obligations and Junior Liens, (ii) customary Liens of the depository bank, broker or securities intermediary with respect to such cash or Cash Equivalents and (iii) other nonconsensual Liens permitted by Section 7.01 to the extent they apply to all or substantially all the assets of the Borrower and its Restricted Subsidiaries) included in the consolidated balance sheet of the Borrower and its Restricted Subsidiaries as of such date not to exceed $125,000,000 to (b) the aggregate amount of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries on a consolidated basis for the most recently completed Measurement Period.

 

In making the foregoing calculation, in each case to the extent applicable, (1) pro forma effect will be given to any Financial Covenant Debt incurred during or after the reference period to the extent the Financial Covenant Debt is outstanding or is to be incurred on the date of determination as if the Financial Covenant Debt had been incurred on the first day of the reference period; provided that, for purposes of this clause (1), pro forma effect shall not be given to Financial Covenant Debt in respect of Capitalized Leases to the extent incurred after the reference period; (2) pro forma calculations of interest on Financial Covenant Debt bearing a floating interest rate will be made as if the rate in effect on the date of determination (taking into account any Swap Contract applicable to the Financial Covenant Debt if the Swap Contract has a remaining term of at least 12 months) had been the applicable rate for the entire reference period; (3) items related to any Financial Covenant Debt or Disqualified Equity Interests no longer outstanding or to be repaid, redeemed or defeased on the date of determination (including, without limita-

 

 

  

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tion, for purposes of this calculation, interest, fees, debt discounts, charges and other items) will be excluded and such Financial Covenant Debt or Disqualified Equity Interests shall be deemed to have been repaid, redeemed or defeased as of the first day of the applicable period; and (4) pro forma effect will be given to (A) the creation, designation or redesignation of Restricted and Unrestricted Subsidiaries, (B) any acquisition or disposition of companies, divisions, lines of businesses, operations or any other material acquisition or Disposition by the Borrower and its Restricted Subsidiaries, including any acquisition or Disposition of a company, division, line of business, operation or any other material acquisition or Disposition since the beginning of the Measurement Period by a Person that became a Restricted Subsidiary after the beginning of the Measurement Period, and (C) the discontinuation of any discontinued operations as if such events had occurred, and, in the case of any Disposition, the proceeds thereof applied, on the first day of the reference period.  To the extent that pro forma effect is to be given to an acquisition, disposition or discontinuation of a company, division, line of business or operation or any other material acquisition or Disposition, the pro forma calculation will be based upon the most recently completed Measurement Period.  For purposes of this definition, whenever pro forma effect is to be given to any event, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower. Any such pro forma calculation may include adjustments appropriate, in the reasonable good faith determination of the Borrower, to reflect operating expense reductions and other operating improvements or synergies reasonably expected to result from the applicable event within 24 months after the applicable event so long as certified to the Administrative Agent by the Borrower if in excess of $25,000,000; provided that actions to realize such operating expense reductions and other operating improvements or synergies are taken within 18 months after the applicable event.

 

To the extent applicable, for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

For purposes of this definition, any amount in a currency other than U.S. dollars will be converted to U.S. dollars in accordance with GAAP, in a manner consistent with that used in preparing the Borrower’s financial statements.

 

“Consolidated Net Income” means, for any Measurement Period, the aggregate net income (or loss) of the Borrower and its Restricted Subsidiaries for such Measurement Period determined on a consolidated basis in conformity with GAAP, provided that the following (without duplication) will be excluded in computing Consolidated Net Income: (1) the net income (but for purposes of calculating the Permitted Amount only, not loss) of any Person that is not a Restricted Subsidiary, except to the extent of the dividends or other distributions actually paid in cash (or to the extent converted into cash) to the Borrower or any of its Restricted Subsidiaries (subject to clause (3) below) by such Person during such period; (2) any net income (or loss) of any Person acquired in a pooling of interests transaction for any period prior to the date of such acquisition; (3) for purposes of calculating the Permitted Amount, the net income (but not loss) of any Restricted Subsidiary (other than any Guarantor) to the extent that the declaration or payment of dividends or similar distributions by such Restricted Subsidiary of such net income would not have been permitted for the relevant period by charter or by any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Restricted Subsidiary (unless such restriction with respect to the payment of dividends or similar distributions has been legally waived); (4) any net after-tax gains or losses (less all fees and expenses or charges relating thereto) attributable to Dispositions, disposed, abandoned or discontinued operations or to the early extinguishment of Indebtedness or any net after-tax gains or losses associated with Swap Contracts or other derivative instruments; (5) any net after-tax extraordinary or non-recurring gains or losses (less all fees and expenses or charges re-

 

 

  

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lating, thereto), any non-cash amortization or impairment expenses and any restructuring expenses, including any severance expenses, relocation expenses, curtailments or modifications to pension and post-retirement employee benefit plans, any expenses related to any reconstruction, decommissioning, recommissioning or reconfiguration of fixed assets for alternate uses and fees, expenses or charges relating to facilities closing costs, acquisition integration costs, facilities opening costs, business optimization costs, signing, retention or completion bonuses; (6) the cumulative effect of a change in accounting principles and changes as a result of the adoption or modification of accounting policies during such period; (7) any non-cash expense realized or resulting from stock option plans, employee benefit plans or post-employment benefit plans, or grants or sales of stock, stock appreciation or similar rights, stock options, restricted stock, Preferred Stock or other rights; (8) (a)(i) the non-cash portion of “straight-line” rent expense less (ii) the cash portion of “straight-line” rent expense which exceeds the amount expensed in respect of such rent expense and (b) non-cash gains, losses, income and expenses resulting from fair value accounting required by the applicable standard under GAAP and related interpretations; (9) any currency translation gains and losses related to currency remeasurements of Indebtedness, and any net loss or gain resulting from hedging transactions for currency exchange risk, until such gains or losses are actually realized (at which time they should be included); (10) to the extent covered by insurance and actually reimbursed, or, so long as such Person has made a determination that there exists reasonable evidence that such amount will in fact be reimbursed by the insurer and only to the extent that such amount is (a) not denied by the applicable carrier in writing within 180 days and (b) in fact reimbursed within 365 days of the date of such evidence (with a deduction for any amount so added back to the extent not so reimbursed within 365 days), expenses with respect to liability or casualty events or business interruption; (11) so long as the Borrower and its Restricted Subsidiaries file a consolidated tax return, or are part of a consolidated group for tax purposes, with Parent or any other holding company, the excess (or deficit) of (a) the consolidated income tax expense for such period over (b) all tax payments in respect of such period paid or payable by the Borrower and its Restricted Subsidiaries to Parent or such other holding company under a tax sharing agreement or arrangement; (12) any expenses or charges related to the Transactions, any issuance of Equity Interests, Investment, acquisition, Disposition, recapitalization or issuance, repayment, refinancing, amendment or modification of Indebtedness (including amortization or write offs of debt issuance or deferred financing costs, premiums and prepayment penalties), including the 2016 Notes Tender Offer, in each case, whether or not successful; (13) any expenses or reserves for liabilities to the extent that the Borrower or any Restricted Subsidiary is entitled to indemnification therefor under binding agreements; provided that any liabilities for which the Borrower or such Restricted Subsidiary is not actually indemnified shall reduce Consolidated Net Income in the period in which it is determined that the Borrower or such Restricted Subsidiary will not be indemnified; (14) effects of adjustments (including the effects of such adjustments pushed down to the Borrower and its Restricted Subsidiaries) in the inventory, property and equipment, software, goodwill, other intangible assets, in-process research and development, deferred revenue, debt and unfavorable or favorable lease line items in such Person’s consolidated financial statements pursuant to GAAP resulting from the application of purchase accounting in relation to any acquisition consummated prior to the Original Closing Date and any Permitted Acquisitions or the amortization or write-off of any amounts thereof, net of taxes; and (15) any impairment charge or asset write-off or write-down, including impairment charges or asset write-offs or write-downs related to intangible assets, long-lived assets, investments in debt and equity securities or as a result of a change in law or regulation, in each case, pursuant to GAAP, and the amortization of intangibles arising pursuant to GAAP.

 

In calculating the aggregate net income (or loss) of the Borrower and its Restricted Subsidiaries on a consolidated basis, Unrestricted Subsidiaries will be treated as if accounted for under the equity method of accounting.

 

“Consolidated Senior Secured Leverage Ratio” means, as of any date of determination, the ratio of (a) the aggregate principal amount of, without duplication, Financial Covenant Debt of the Borrower and its Restricted Subsidiaries as of such date that is secured by a Lien on any assets of the Borrower and 

 

 

  

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its Restricted Subsidiaries minus the aggregate amount of cash and Cash Equivalents (in each case, free and clear of all Liens, other than (i) Liens securing the Secured Obligations and Junior Liens, (ii) customary Liens of the depository bank, broker or securities intermediary with respect to such cash or Cash Equivalents and (iii) other nonconsensual Liens permitted by Section 7.01 to the extent they apply to all or substantially all the assets of the Borrower and its Restricted Subsidiaries) included in the consolidated balance sheet of the Borrower and its Restricted Subsidiaries as of such date not to exceed $125,000,000 to (b) the aggregate amount of Consolidated EBITDA of the Borrower and its Restricted Subsidiaries on a consolidated basis for the most recently completed Measurement Period.

 

In making the foregoing calculation, in each case to the extent applicable, (1) pro forma effect will be given to any Financial Covenant Debt incurred during or after the reference period to the extent the Financial Covenant Debt is outstanding or is to be incurred on the date of determination as if the Financial Covenant Debt had been incurred on the first day of the reference period; provided that, for purposes of this clause (1), pro forma effect shall not be given to Financial Covenant Debt in respect of Capitalized Leases to the extent incurred after the reference period; (2) pro forma calculations of interest on Financial Covenant Debt bearing a floating interest rate will be made as if the rate in effect on the date of determination (taking into account any Swap Contract applicable to the Financial Covenant Debt if the Swap Contract has a remaining term of at least 12 months) had been the applicable rate for the entire reference period; (3) items related to any Financial Covenant Debt or Disqualified Equity Interests no longer outstanding or to be repaid, redeemed or defeased on the date of determination (including, without limitation, for purposes of this calculation, interest, fees, debt discounts, charges and other items) will be excluded and such Financial Covenant Debt or Disqualified Equity Interests shall be deemed to have been repaid, redeemed or defeased as of the first day of the applicable period; and (4) pro forma effect will be given to (A) the creation, designation or redesignation of Restricted and Unrestricted Subsidiaries, (B) any acquisition or disposition of companies, divisions, lines of businesses, operations or any other material acquisition or Disposition by the Borrower and its Restricted Subsidiaries, including any acquisition or Disposition of a company, division, line of business, operation or any other material acquisition or Disposition since the beginning of the Measurement Period by a Person that became a Restricted Subsidiary after the beginning of the Measurement Period, and (C) the discontinuation of any discontinued operations as if such events had occurred, and, in the case of any Disposition, the proceeds thereof applied, on the first day of the reference period.  To the extent that pro forma effect is to be given to an acquisition, disposition or discontinuation of a company, division, line of business or operation or any other material acquisition or Disposition, the pro forma calculation will be based upon the most recently completed Measurement Period.  For purposes of this definition, whenever pro forma effect is to be given to any event, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower. Any such pro forma calculation may include adjustments appropriate, in the reasonable good faith determination of the Borrower, to reflect operating expense reductions and other operating improvements or synergies reasonably expected to result from the applicable event within 24 months after the applicable event so long as certified to the Administrative Agent by the Borrower if in excess of $25,000,000; provided that actions to realize such operating expense reductions and other operating improvements or synergies are taken within 18 months after the applicable event.

 

To the extent applicable, for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

 

  

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For purposes of this definition, any amount in a currency other than U.S. dollars will be converted to U.S. dollars in accordance with GAAP, in a manner consistent with that used in preparing the Borrower’s financial statements.

 

“Consolidated Total Assets” of any Person means, at any date, the total assets of such Person and its Subsidiaries as of the last day of the most recently ended Measurement Period for which financial statements were required to have been delivered pursuant to Section 6.01(a) or (b) determined on a consolidated basis in accordance with GAAP and on a Pro Forma Basis.

 

In making the foregoing calculation, in each case to the extent applicable, pro forma effect will be given to (1) the creation, designation or redesignation of Restricted and Unrestricted Subsidiaries, (2) any acquisition or disposition of companies, divisions, lines of businesses, operations or any other material acquisition or Disposition by the Borrower and its Restricted Subsidiaries, including any acquisition or Disposition of a company, division, line of business, operation or any other material acquisition or Disposition since the beginning of the Measurement Period by a Person that became a Restricted Subsidiary after the beginning of the Measurement Period, and (3) the discontinuation of any discontinued operations as if such events had occurred, and, in the case of any Disposition, the proceeds thereof applied, on the first day of the reference period.  To the extent that pro forma effect is to be given to an acquisition, disposition or discontinuation of a company, division, line of business or operation or any other material acquisition or Disposition, the pro forma calculation will be based upon the most recently completed Measurement Period.  For purposes of this definition, whenever pro forma effect is to be given to any event, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower.

 

For purposes of this definition, any amount in a currency other than U.S. dollars will be converted to U.S. dollars in accordance with GAAP, in a manner consistent with that used in preparing the Borrower’s financial statements.

 

“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Contribution Debt” means Indebtedness of the Borrower or any Guarantor in an aggregate principal amount or, in the case of Disqualified Equity Interests, liquidation preference, not greater than the aggregate amount of cash received from the issuance and sale of Qualified Equity Interests of the Borrower or a capital contribution to the common equity of the Borrower; provided that (i) such cash contributions shall not have been used to make a Restricted Payment or an Investment and shall not increase the Permitted Amount, Excluded Contributions or any other basket dependent on equity contributions or proceeds and (ii) such Contribution Debt shall be incurred within 180 days after the making of such cash contributions and shall be designated as Contribution Debt pursuant to a notice to the Administrative Agent by the Borrower on the date of the incurrence thereof.

 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings correlative thereto.

 

“Credit Extension” means each of the following:  (a) a Borrowing and (b) an L/C Credit Extension.

 

“Debt Fund Affiliate” means any fund or investment vehicle that is managed by, or under common management with, Trian Fund Management L.P., or an Affiliate thereof, whose investment strategy 

 

 

  

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is primarily credit based and whose main business is generally buying and holding loans or securities for investment purposes, including without limitation, Trian Credit Partners, L.P., Trian Credit Partners, Ltd. and Trian Credit Partners Master Fund, L.P.

 

“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.

 

“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

 

“Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate Term B Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

 

“Defaulting Lender” means, subject to Section 2.16(b), any Lender that (a) has failed to perform any of its funding obligations hereunder,  including in respect of its Loans or participations in respect of Letters of Credit or Swing Line Loans, within one Business Day of the date required to be funded by it hereunder, (b) has notified the Borrower, the Administrative Agent or any Lender that it does not intend to comply with its funding obligations or has made a public statement to that effect with respect to its funding obligations hereunder or under other agreements in which it commits to extend credit, (c) has failed, within one Business Day after request by the Administrative Agent, to confirm in a manner satisfactory to the Administrative Agent that it will comply with its funding obligations, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or a custodian appointed for it, or (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment; provided that for the avoidance of doubt, a Lender shall not be a Defaulting Lender solely by virtue of (I) the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority, or (II) in the case of a solvent Person, the precautionary appointment of an administrator, guardian, custodian or other similar official by a governmental authority under or based on the law of the country where such lender is subject to home jurisdiction supervision if applicable law requires that such appointment not be publicly disclosed provided however that in any such case, where such action does not result in or provide such Person with immunity from the jurisdiction of courts within the United States of America or from the enforcement of judgments or writs of attachment on its assets or permit such person (or such Governmental Authority) to reject, repudiate disavow or disaffirm any contracts or agreements made by such Person.

 

 “Designated Non-cash Consideration” means any non-cash consideration received by the Borrower or its Restricted Subsidiaries in connection with a Disposition that is designated as Designated Non-cash Consideration pursuant to a certificate of a Responsible Officer of the Borrower at the time of such Disposition. Any particular item of Designated Non-cash Consideration will cease to be considered to be outstanding once it has been sold for cash or Cash Equivalents (which shall be considered Net Cash Proceeds of a Disposition when received).

 

“Designation Date” has the meaning specified in Section 6.20.

 

 

  

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“Discount Range” has the meaning specified in Section 2.05(c)(ii).

 

“Discounted Prepayment Option Notice” has the meaning specified in Section 2.05(c)(ii).

 

“Discounted Voluntary Prepayment” has the meaning specified in Section 2.05(c)(i).

 

“Discounted Voluntary Prepayment Notice” has the meaning specified in Section 2.05(c)(v).

 

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

 

“Disqualified Equity Interests” means Equity Interests that by their terms or upon the happening of any event are (1) required to be redeemed or redeemable at the option of the holder prior to the Maturity Date with respect to the Term B Loans for consideration other than Equity Interests that are Qualified Equity Interests, or (2) convertible at the option of the holder into Disqualified Equity Interests or exchangeable for Indebtedness; provided that (i) only the portion of the Equity Interests which is so mandatorily redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof prior to the Maturity Date with respect to the Term B Loans shall be deemed to be Disqualified Equity Interests, (ii) if such Equity Interests are issued to any employee or to any plan for the benefit of employees of the Borrower or its Subsidiaries or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased by the Borrower in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability, (iii) any class of Equity Interests of such Person that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of Equity Interests that are Qualified Equity Interests shall not be deemed to be Disqualified Equity Interests, and (iv) Equity Interests will not constitute Disqualified Equity Interests solely because of provisions giving holders thereof the right to require repurchase or redemption upon an “asset sale” or “change of control” occurring prior to the Maturity Date with respect to the Term B Loans if those provisions specifically state that repurchase or redemption pursuant thereto will not be required prior to the Borrower’s  repayment of the Loans as required hereunder.

 

“Documentation Agents” means Fifth Third Bank, The Huntington National Bank, and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch in their capacities as co-documentation agents hereunder.

 

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

 

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the United States.

 

“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 10.06(b)(iii) and (v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)) and, in the case of a Purchasing Borrower Party, subject to Sections 10.06(h) and 10.21; provided, that Restricted Entities may not be Eligible Assignees unless a Restricted Entity or its Affiliate (other than a Fund) is already a Lender; provided, however, that the consent of the Borrower to any assignment of any Commitment or Loan hereunder shall be deemed definitive evidence that the assignee thereof was not, at the time of assignment, a Restricted Entity.

 

 

  

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 “Environment” means ambient air, indoor air, surface water and groundwater (including potable water and navigable water), the land surface or subsurface strata and natural resources.

 

“Environmental Laws” means the common law and any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, licenses, agreements or governmental restrictions relating to pollution and the protection of the Environment or human health (to the extent related to exposure to Hazardous Materials), including those relating to the Release or threat of Release, generation ,storage, treatment, handling or transportation of Hazardous Materials.

 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, any other Loan Party or any of their respective Restricted Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened Release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law.

 

“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with a Loan Party within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

 

“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal by a Loan Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA with respect to a Pension Plan; (c) the complete or partial withdrawal by a Loan Party or any ERISA Affiliate from a Multiemployer Plan, or the receipt by such entity of notification that a Multiemployer Plan is “insolvent” or in “reorganization” (within the meaning of Title IV of ERISA); (d) the filing of a notice of intent to terminate a Pension Plan by a Loan Party or any ERISA Affiliate or the treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate a Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk plan or a Multiemployer Plan is in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or 

 

 

  

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Sections 303, 304 and 305 of ERISA; (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon a Loan Party or any ERISA Affiliate; or (i) a failure to comply with the Pension Funding Rules with respect to a Pension Plan, whether or not waived, or the failure to make a required contribution to a Multiemployer Plan.

 

“Eurodollar Rate” means:

 

(a)           for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or, if Reuters is unavailable, such other commercially available source providing quotations of BBA LIBOR as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two London Banking Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or, (ii) if such rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by the Administrative Agent’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two London Banking Days prior to the commencement of such Interest Period; and

 

(b)           for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by the Administrative Agent’s London Branch to major banks in the London interbank Eurodollar market at their request at the date and time of determination;

 

provided, that the Eurodollar Rate with respect to a Term B Loan that bears interest at a rate based on clause (a) of the this definition will be deemed not to be less than 0.75% per annum.

 

“Eurodollar Rate Loan” means a Revolving Credit Loan, a Term A Loan or a Term B Loan that bears interest at a rate based on clause (a) of the Eurodollar Rate definition.

 

“Event of Default” has the meaning specified in Section 8.01.

 

“Excess Cash Flow” means, for any period of the Borrower, the excess (if any) of (a) (x) Consolidated EBITDA for such period plus (y) the decrease, if any, in Working Capital from the beginning of such period to the end of such period (for the avoidance of doubt, an increase in negative Working Capital is a decrease in Working Capital) plus (z) any cash refund of any payment or expense set forth in clause (b) below for which credit was given pursuant to such clause in prior periods over (in each case to the extent not already deducted in computing Consolidated EBITDA), (b) the sum (for such period and without duplication) of (i) Consolidated Interest Charges actually paid in cash by the Borrower and its Subsidiaries, (ii) scheduled principal repayments, to the extent actually made of any Financial Covenant Debt (other than Indebtedness hereunder or under any other Loan Document and the 2014 Notes and, to the extent related to revolving debt, so long as the related commitments are terminated), and cash payments 

 

 

  

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by the Borrower or any of its Restricted Subsidiaries during such period in respect of long-term liabilities of the Borrower and its Restricted Subsidiaries (other than Indebtedness), (iii) all taxes actually paid in cash by the Borrower and its Subsidiaries or payments made in accordance with a tax sharing agreement in accordance with this Agreement, (iv) Capital Expenditures actually made by the Borrower and its Subsidiaries in such period, (v) the amount of Internally Generated Cash used to finance Investments permitted (including, without limitation, Permitted Acquisitions) under the Loan Documents in such period, (vi) the increase, if any, in Working Capital from the beginning of such period to the end of such period (for the avoidance of doubt, a decrease in negative Working Capital is an increase in Working Capital), (vii) all cash items that are added back to Consolidated Net Income in determining Consolidated EBITDA, (viii) the aggregate amount of all costs, fees and expenses (including prepayment premiums) incurred in connection with the Transactions, any equity offering, Permitted Acquisition, Investment, permitted disposition, restructuring, recapitalization, financing or refinancing transaction by the Borrower or any of its Subsidiaries on or after the Original Closing Date, including such fees, expenses or charges related to the execution and delivery of the Existing Credit Agreement, this Agreement, the other Loan Documents (as defined in this Agreement and in the Existing Credit Agreement) and the transactions contemplated hereby and thereby (including, without limitation, the 2016 Notes Tender Offer), in each case whether or not successful, and any actual or proposed amendment, waiver or modification to the terms of any such transactions, in each case during such period to the extent paid in cash, (ix) purchase price adjustments paid in connection with any Investment permitted hereunder (including any Permitted Acquisition), (x) to the extent not deducted in the computation of net cash proceeds in respect of any asset disposition or condemnation giving rise thereto, the amount of any mandatory prepayment of Indebtedness (other than Indebtedness hereunder or under any other Loan Document), together with the aggregate amount of any premium or penalty actually paid in cash that is required to be made in connection with any prepayment of Indebtedness, (xi) cash payments (other than in respect of taxes, which are governed by clause (iii) above) made during such period for any liability which accrual in a prior period did not reduce EBITDA and therefore increased Excess Cash Flow in such prior period (provided there was no other deduction to EBITDA or Excess Cash Flow related to such payment), (xii) cash expenditures in respect of Secured Hedge Agreements during such period, (xiii) any income from the discharge of Indebtedness during such period and (xiv) without duplication of amounts deducted from Excess Cash Flow in prior periods, the aggregate consideration required to be paid in cash by the Borrower or any of its Restricted Subsidiaries pursuant to binding contracts (the “Contract Consideration”) entered into prior to or during such period relating to Permitted Acquisitions, Capital Expenditures or acquisitions of goodwill or other intangibles, including without limitation intellectual property, to be consummated or made during the period of four consecutive fiscal quarters of the Borrower following the end of such period except to the extent intended to be financed by incurring long-term Indebtedness, or by issuing Equity Interests; provided that to the extent the aggregate amount utilized to finance such Permitted Acquisitions, Capital Expenditures or acquisitions of goodwill or other intangibles, including without limitation intellectual property, during such period of four consecutive fiscal quarters is less than the Contract Consideration, the amount of such shortfall, less the amount financed by incurring long-term Indebtedness or by issuing Equity Interests, shall be added to the calculation of Excess Cash Flow at the end of such period of four consecutive fiscal quarters.

 

“Excluded CFC Holdco” means any Subsidiary of the Borrower that (i) is a disregarded entity or partnership for U.S. Federal income tax purposes and (ii) owns no material assets, either directly or indirectly through other entities that are disregarded entities or partnerships for U.S. federal income tax purposes, other than equity interests of one or more Foreign Subsidiaries that are controlled foreign corporations.

 

“Excluded Contributions” means the Cash Equivalents or other assets (valued at their fair market value as determined in good faith by senior management or the Board of Directors of the Borrower) received by the Borrower after the Original Closing Date from: (1) contributions to its common equity capi-

 

 

  

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tal, and (2) the sale (other than to a Subsidiary of the Borrower or to any Subsidiary management equity plan or stock option plan or any other management or employee benefit plan or agreement) of Equity Interests (other than Disqualified Equity Interests) of the Borrower, in each case designated as Excluded Contributions pursuant to a certificate of a Responsible Officer of the Borrower on or promptly after the date such capital contributions are made or the date such capital stock is sold, as the case may be.  Any Excluded Contribution shall not increase the Permitted Amount.

 

“Excluded Information” has the meaning specified in Section 2.05(c)(x).

 

“Excluded Swap Obligation” means, unless this definition is otherwise agreed between the Borrower and the Administrative Agent, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 27 of the Amended and Restated Guaranty and any other “keepwell, support or other agreement” for the benefit of such Guarantor and any and all guarantees of such Guarantor’s Swap Obligations by other Loan Parties) at the time the Guaranty of such Guarantor, or a grant by such Guarantor of a security interest, becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes excluded in accordance with the first sentence of this definition.

 

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of any Loan Party hereunder or under any other Loan Document, (a) taxes imposed on or measured by its net income (however denominated), franchise taxes (in lieu of net income taxes) and backup withholding tax, in each case imposed on it as a result of a present or former connection between such recipient and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (excluding any connection with such jurisdiction arising solely from such recipient having executed, delivered, enforced, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, and/or engaged in any other transaction pursuant to, any of the Loan Documents), (b) any tax in the nature of the branch profits tax under Section 884(a) of the Code that is imposed by any jurisdiction (or any political subdivision thereof) described in clause (a), (c) any taxes that are attributable to the recipient’s failure to comply with Section 3.01(e), (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 10.13), any United States federal withholding tax imposed on amounts payable to such Foreign Lender pursuant to the Laws in force at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, immediately prior to the designation of a new Lending Office (or assignment), to receive additional amounts from a Loan Party with respect to such withholding tax pursuant to Section 3.01(a)(ii) or (c), and (e) in the case of a Foreign Lender, any United States federal withholding taxes imposed under FATCA.

 

“Existing Credit Agreement” has the meaning assigned to such term in the recitals hereto.

 

“Existing Letters of Credit” means those letters of credit listed on Schedule 1.01(a) to the Existing Credit Agreement.

 

“Extraordinary Receipt” means any cash received by or paid to or for the account of any Person, not in the ordinary course of business related to proceeds of insurance (other than proceeds of business 

 

 

  

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interruption insurance or similar insurance to the extent such proceeds constitute compensation for lost earnings) and condemnation awards (and payments in lieu thereof); provided, however, that an Extraordinary Receipt shall not include cash receipts from proceeds of insurance, casualty and condemnation awards (or payments in lieu thereof) to the extent that such proceeds, awards or payments (a) are applied (or in respect of which expenditures were previously incurred) to make a Permitted Reinvestment in accordance with the terms of Section 2.05(b)(iv) or (b) are received by any Person in respect of any third party claim against such Person and applied (or are required to be applied) to pay (or to reimburse such Person for its prior payment of) such claim and the costs and expenses of such Person with respect thereto.

 

“Facility” means the Term Facility or the Revolving Credit Facility, as the context may require.

 

“FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

 

“FATCA” means current Sections 1471 through 1474 of the Code (and any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future United States Treasury Regulations promulgated thereunder and published administrative guidance with respect thereto.

 

“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as reasonably determined by the Administrative Agent.

 

“Financial Covenant Debt” means, for any Person, Indebtedness of such Person and its Subsidiaries (other than Unrestricted Subsidiaries) of the type specified in clauses (a), (f)(x) and (g) of the definition of Indebtedness, in each case to the extent each such item would be classified as “indebtedness” on a consolidated balance sheet of such Person.

 

“Fixed Charge Coverage Ratio” means, on any date (the “transaction date”), the ratio of (x) the aggregate amount of Consolidated EBITDA for the most recently completed Measurement Period to (y) the aggregate Fixed Charges during such Measurement Period.

 

In making the foregoing calculation, in each case to the extent applicable, (1) pro forma effect will be given to any Indebtedness incurred during or after the reference period to the extent the Indebtedness is outstanding or is to be incurred on the date of determination as if the Indebtedness had been incurred on the first day of the reference period; provided that, for purposes of this clause (1), pro forma effect shall not be given to Indebtedness in respect of Capitalized Leases to the extent incurred after the reference period; (2) pro forma calculations of interest on Indebtedness bearing a floating interest rate will be made as if the rate in effect on the date of determination (taking into account any Swap Contract applicable to the Indebtedness if the Swap Contract has a remaining term of at least 12 months) had been the applicable rate for the entire reference period; (3) Fixed Charges related to any Indebtedness or Disqualified Equity Interests no longer outstanding or to be repaid, redeemed or defeased on the date of determination (including, without limitation, for purposes of this calculation, interest, fees, debt discounts, charges and other items) will be excluded and such Indebtedness or Disqualified Equity Interests shall be 

 

 

  

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deemed to have been repaid, redeemed or defeased as of the first day of the applicable period; and (4) pro forma effect will be given to (A) the creation, designation or redesignation of Restricted and Unrestricted Subsidiaries, (B) any acquisition or disposition of companies, divisions, lines of businesses, operations or any other material acquisition or Disposition by the Borrower and its Restricted Subsidiaries, including any acquisition or Disposition of a company, division, line of business, operation or any other material acquisition or Disposition since the beginning of the Measurement Period by a Person that became a Restricted Subsidiary after the beginning of the Measurement Period, and (C) the discontinuation of any discontinued operations as if such events had occurred, and, in the case of any Disposition, the proceeds thereof applied, on the first day of the reference period.  To the extent that pro forma effect is to be given to an acquisition, disposition or discontinuation of a company, division, line of business or operation or any other material acquisition or Disposition, the pro forma calculation will be based upon the most recently completed Measurement Period.  For purposes of this definition, whenever pro forma effect is to be given to any event, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Borrower. Any such pro forma calculation may include adjustments appropriate, in the reasonable good faith determination of the Borrower, to reflect operating expense reductions and other operating improvements or synergies reasonably expected to result from the applicable event within 24 months after the applicable event so long as certified to the Administrative Agent by the Borrower if in excess of $25,000,000; provided that actions to realize such operating expense reductions and other operating improvements or synergies are taken within 18 months after the applicable event.

 

To the extent applicable, for purposes of making the computation referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis shall be computed based upon the average daily balance of such Indebtedness during the applicable period.  Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rate, shall be deemed to have been based upon the rate actually chosen, or, if none, then based upon such optional rate chosen as the Borrower may designate.

 

For purposes of this definition, any amount in a currency other than U.S. dollars will be converted to U.S. dollars in accordance with GAAP, in a manner consistent with that used in preparing the Borrower’s financial statements.

 

“Fixed Charges” means, for any Measurement Period, the sum of (1) Consolidated Interest Charges for such Measurement Period; and (2) the product of (x) cash dividends paid on any Preferred Stock and cash and non-cash dividends paid, declared, accrued or accumulated on any Disqualified Equity Interests of the Borrower or a Restricted Subsidiary, except for dividends payable in the Borrower’s Qualified Equity Interests or paid to the Borrower or to a Restricted Subsidiary, and (y) a fraction, the numerator of which is one and the denominator of which is one minus the sum of the currently effective combined Federal, state, local and foreign tax rate applicable to the Borrower and its Restricted Subsidiaries.

 

 “Foreign Lender” means any Lender that is not a United States person within the meaning of Section 7701(a)(30) of the Code.

 

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

 

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

 

“FRB” means the Board of Governors of the Federal Reserve System of the United States.

 

 

  

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“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to an L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C Obligations of such L/C Issuer other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

 

“Fully Satisfied” or “Full Satisfaction” means, as of any date, with respect to the Obligations, that, on or before such date, (a) the principal of and interest accrued to the date on such Obligations (other than the Undrawn L/C Obligations) shall have been paid in full in cash, (b) all fees, expenses and other amounts then due and payable which constituted Obligations (other than the Undrawn L/C Obligations) shall have been paid in full in cash, (c) the Commitment shall have expired or irrevocably been terminated and (d) the Undrawn L/C Obligations shall have been Cash Collateralized.

 

“Fund” means any Person (other than a natural person) that is primarily engaged in making, purchasing, holding or otherwise investing in commercial loans or securities for investment purposes in the ordinary course of its activities.

 

“GAAP” means generally accepted accounting principles in the United States set forth in the Financial Accounting Standards Board Accounting Standards Codification, consistently applied.

 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

 

“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness of another Person (the “primary obligor”) (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness of any other Person, whether or not such Indebtedness is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided, however, that the term “Guarantee” shall not include endorsements of instruments for deposit or collection in the ordinary course of business or any product warranties given in the ordinary course of business.  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantors” means, collectively, (a) the Subsidiaries of the Borrower listed on Schedule 6.12(a) to the Existing Credit Agreement and each other Subsidiary of the Borrower that shall be required to execute and deliver a guaranty or guaranty supplement pursuant to Section 6.12 and (b) with respect to (i) Obligations owing by any Loan Party or any Subsidiary of a Loan Party (other than the Borrower) under any Secured Hedge Agreement or any Secured Cash Management Agreement and (ii) the payment and 

 

 

  

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performance by each Specified Loan Party of its obligations under its Guaranty with respect to all Swap Obligations, the Borrower.

 

“Guaranty” means, collectively, the Amended and Restated Guaranty, the Guaranty made by the Guarantors in favor of the Secured Parties, substantially in the form of Exhibit F to the Existing Credit Agreement, and each other guaranty and guaranty supplement delivered pursuant to Section 6.12.

 

“Hazardous Materials” means all chemicals, materials, substances, wastes, pollutants, contaminants, compounds, in any form, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas or mold, regulated or which can give rise to liability pursuant to any Environmental Law.

 

“Hedge Bank” means any Person that, at the time it enters into an interest rate Swap Contract permitted under Article VI or VII, is a Lender or an Affiliate of a Lender, in its capacity as a party to such Swap Contract.

 

“Holdings” means Wendy’s Restaurants, LLC, a Delaware limited liability company, and its successors.

 

“Honor Date” has the meaning specified in Section 2.03(c)(i).

 

“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

 

(a)           all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)           the maximum amount of all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)           for purposes of Sections 7.02 and 8.01(e) only, net obligations of such Person under any Swap Contract;

 

(d)           all non-contingent obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business and not past due for more than 90 days after the date on which such trade account was created);

 

(e)           indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; provided that the amount of Indebtedness of any Person for purposes of this clause (e) shall be deemed to be equal to the lesser of (x) the aggregate unpaid amount of such Indebtedness and (y) the fair market value of the property encumbered thereby as determined by such Person in good faith;

 

(f)            all (x) Attributable Indebtedness in respect of Capitalized Leases and (y) Synthetic Lease Obligations of such Person;

 

(g)           all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Disqualified Equity Interest in such Person or any other Per-

 

 

  

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son or any warrant, right or option to acquire such Disqualified Equity Interest, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and

 

(h)           all Guarantees of such Person in respect of any of the foregoing.

 

For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company or limited liability partnership, or foreign law equivalent) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.

 

“Indemnified Taxes” means all Taxes other than Excluded Taxes.

 

“Indemnitees” has the meaning specified in Section 10.04(b).

 

“Information” has the meaning specified in Section 10.07.

 

“Intellectual Property” means the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses and any applications for patents, trademarks and copyrights, technology, know-how and processes, trade secrets, recipes, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

 

“Intellectual Property Security Agreement” has the meaning specified in Section 4.01(a)(v).

 

“Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of each Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan was made; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates, (b) as to any Base Rate Loan or Swing Line Loan, the last Business Day of each March, June, September and December, (c) with respect to Revolving Credit Loans or Swing Line Loans, the Maturity Date of the Revolving Credit Facility (with Swing Line Loans being deemed made under the Revolving Credit Facility for purposes of this definition), (d) as to any Term B Loan, the Maturity Date of the Term B Loans and (e) as to any Term A Loan, the Maturity Date of the Term A Loans.

 

“Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its Committed Loan Notice or nine or twelve months if requested by the Borrower and consented to by all the Appropriate Lenders; provided that:

 

(a)           any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b)           any Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of 

 

 

  

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such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period;

 

(c)           no Interest Period with respect to Revolving Credit Loans or Term A Loans shall extend beyond the Maturity Date of the Revolving Credit Facility and Term A Loans, respectively; and

 

(d)           no Interest Period with respect to Term B Loans shall extend beyond the Maturity Date of the Term B Loans.

 

“Internally Generated Cash” means any cash of the Borrower or any of its Restricted Subsidiaries that is not generated from a Disposition (other than Dispositions of inventory in the ordinary course of business), an Extraordinary Receipt, an incurrence of Indebtedness, or an issuance of Equity Interests to or a capital contribution by a non-Loan Party.

 

“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, by means of (a) the purchase or other acquisition of Equity Interests of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition for value of any other debt or interest in, another Person, or (c) the purchase or other acquisition (in one transaction or a series of related transactions) of assets of another Person that constitute a business unit or all or substantially all of the business of, such Person (excluding the purchase or acquisition of real property from a single purpose real estate company in the ordinary course of business), less any amount paid, repaid, returned, distributed or otherwise received in cash in respect of any Investment.  The amount of any Investment shall be the amount actually invested without adjustment for subsequent increases or decreases in value.

 

“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

 

“Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by any L/C Issuer and the Borrower (or any Subsidiary) or in favor of an L/C Issuer and relating to such Letter of Credit.

 

“Junior Liens” means Liens that are subordinated to the Liens granted under the Loan Documents on customary terms pursuant to an intercreditor agreement reasonably satisfactory to the Administrative Agent (it being understood that Junior Liens are not required to be pari passu with other Junior Liens, and that Indebtedness secured by Junior Liens may have Liens that are senior in priority to, or pari passu with, or junior in priority to, other Liens constituting Junior Liens).

 

“Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

 

“L/C Advance” means, with respect to each Revolving Credit Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable Revolving Credit Percentage.

 

 

  

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“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Revolving Credit Borrowing.

 

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.

 

“L/C Issuer” means Bank of America, Wells Fargo Bank, National Association or any other Lender from time to time designated by the Borrower as an L/C Issuer with the consent of such Lender, in its sole discretion, and the Administrative Agent (such consent not to be unreasonably withheld or delayed), in each case in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

 

“L/C Obligations” means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings.  For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

 

“Lender” has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the Swing Line Lender.

 

“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify in writing the Borrower and the Administrative Agent.

 

“Lender Participation Notice” has the meaning specified in Section 2.05(c)(iii).

 

“Letter of Credit” means any standby or commercial letter of credit issued hereunder and shall include the Existing Letters of Credit.

 

“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the applicable L/C Issuer.

 

“Letter of Credit Expiration Date” means the day that is five days prior to the Maturity Date then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next preceding Business Day).

 

“Letter of Credit Fee” has the meaning specified in Section 2.03(h).

 

“Letter of Credit Sublimit” means an amount equal to the lesser of (a) $70,000,000 and (b) the Revolving Credit Facility.  The Letter of Credit Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to 

 

 

  

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real property, and any financing lease having substantially the same economic effect as any of the foregoing).

 

“Loan” means an extension of credit by a Lender to the Borrower under Article II in the form of a Term Loan, a Revolving Credit Loan or a Swing Line Loan.

 

“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) any agreement creating or perfecting rights in cash collateral pursuant to the provisions of Section 2.15 of this Agreement or another Cash Collateralization, (d) the Guaranty, (e) the Collateral Documents, (f) the Agent Fee Letter, and (g) each Issuer Document.

 

“Loan Parties” means, collectively, the Borrower and each Guarantor.

 

“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market.

 

“Material Adverse Effect” (a) a material adverse effect on, the operations, business, assets, properties or financial condition of the Borrower and its Restricted Subsidiaries, taken as a whole; (b) a material impairment, on the ability of the Loan Parties (taken as a whole) to perform their payment obligations under any Loan Document to which they are a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against the Borrower or any Guarantor of any Loan Document to which it is a party.

 

“Maturity Date” means (a) with respect to the Revolving Credit Facility, May 15, 2018, (b) with respect to the Term A Loans, May 15, 2018 and (c) with respect to the Term B Loans, May 15, 2019; provided, however, that, in each case, if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

 

“Maximum Rate” has the meaning specified in Section 10.09.

 

“Measurement Period” means, at any date of determination, the most recently completed four fiscal quarters of the Borrower.

 

“MNPI” has the meaning specified in Section 2.05(c)(i).

 

 “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which a Loan Party or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.

 

“Net Cash Proceeds” means:

 

(a)           with respect to any Disposition by any Loan Party or any of its Restricted Subsidiaries, or any Extraordinary Receipt received or paid to the account of any Loan Party or any of its Restricted Subsidiaries, the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such transaction (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Indebtedness that is secured by the applicable asset and that is required to be repaid in connection with such transaction (other than Indebtedness under the Loan Documents), (B) the reasonable expenses 

 

 

 

  

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(including fees, commissions, costs and other expenses) incurred by such Loan Party or such Restricted Subsidiary in connection with such transaction or, in the case of an Extraordinary Receipt, in connection with the collection of such proceeds, (C) taxes reasonably estimated to be payable as a result of such transaction; provided that, if the amount of any estimated taxes pursuant to subclause (C) exceeds the amount of taxes actually required to be paid in cash in respect of such Disposition, the aggregate amount of such excess shall constitute Net Cash Proceeds at the time of determination of actual tax amount due and (D) in the case of a Disposition, appropriate amounts provided by such Loan Party or such Restricted Subsidiary as a reserve (but only to the extent such amounts remain set aside as a reserve; provided that in the event that cash or Cash Equivalents are used to satisfy any liabilities associated with any such reserve, the aggregate amount of such cash or Cash Equivalents shall not reduce the amount of such reserve for purposes of this subclause (D)), in accordance with GAAP, against all liabilities associated with the property disposed of in such Disposition and retained by such Loan Party or such Restricted Subsidiary after such Disposition, including pension and other post-employment benefit liabilities, liabilities relating to environmental matters and liabilities under indemnification provisions associated with such Disposition; provided that, if the amount of any reserve pursuant to this subclause (D) is not needed to satisfy liabilities associated with such reserve, the aggregate amount of such excess shall constitute Net Cash Proceeds at the time of determination that such reserves are not needed; and

 

(b)           with respect to the sale or issuance of any Equity Interest by any Loan Party or any of its Restricted Subsidiaries, or the incurrence or issuance of any Indebtedness by any Loan Party or any of its Restricted Subsidiaries, the excess of (i) the sum of the cash and Cash Equivalents received in connection with such transaction over (ii) taxes, fees, commissions, indemnities, discounts, placement fees, brokers’, consultants’, investment banking, legal, accounting and other advisors’ fees, expenses and other reasonable costs, incurred by such Loan Party or such Restricted Subsidiary in connection therewith.

 

“Net Tangible Assets” means, with respect to any Person, such Person’s total assets minus goodwill and other intangible assets, all as determined in accordance with GAAP on a consolidated basis.

 

“Nominal Shares” means (a) for any Subsidiary of the Borrower that is not a Domestic Subsidiary, nominal issuances of Equity Interests in an aggregate amount not to exceed 1% of the Equity Interests and equivalents thereto of such Subsidiary on a fully diluted basis and (b) in any case, directors’ qualifying shares, in each case to the extent such issuances are required by applicable law.

 

“Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii).

 

“Non-Reinstatement Deadline” has the meaning specified in Section 2.03(b)(iv).

 

“Not Otherwise Applied” shall mean, with reference to any amount of proceeds of any transaction or event, that such amount was not previously applied in determining the permissibility of a transaction under the Loan Documents where such permissibility was (or may have been) contingent on receipt of such amount or utilization of such amount for a specified purpose.  Borrower shall promptly notify the Administrative Agent of any application of such amount as contemplated above.

 

“Note” means a Term A Note, a Term B Note or a Revolving Credit Note, as the context may require.

 

“NPL” means the National Priorities List under CERCLA.

 

 

  

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“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding; provided that the Obligations shall exclude any Excluded Swap Obligations.

 

“Offered Loans” has the meaning specified in Section 2.05(c)(iii).

 

“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

 

“Original Closing Date” means May 15, 2012.

 

“Other Taxes” means all present or future stamp or documentary Taxes or any other excise or property Taxes arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.

 

“Outstanding Amount” means (a) with respect to Term Loans, Revolving Credit Loans and Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Term Loans, Revolving Credit Loans and Swing Line Loans, as the case may be, occurring on such date; and (b) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Borrower of Unreimbursed Amounts.

 

“Parent” means The Wendy’s Company and its successors, but only so long as the Borrower continues to be a Subsidiary of Parent.

 

“Participant” has the meaning specified in Section 10.06(d).

 

“Participant Register” has the meaning specified in Section 10.06(d).

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Pension Act” means the Pension Protection Act of 2006.

 

“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment payment thereof) to Pension Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 

 

 

  

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302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

 

“Pension Plan” means any employee pension benefit plan (other than a Multiemployer Plan) that is maintained or is contributed to by a Loan Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.

 

“Perfection Certificate” means a certificate substantially in the form of Exhibit J-1 to the Existing Credit Agreement or any other form reasonably approved by the Administrative Agent, as the same shall be supplemented from time to time by a Perfection Certificate Supplement or otherwise.

 

“Perfection Certificate Supplement” means a certificate supplement substantially in the form of Exhibit J-2 to the Existing Credit Agreement or any other form reasonably approved by the Administrative Agent.

 

“Permitted Acquisition” has the meaning specified in Section 7.03(g).

 

“Permitted Additional First Lien Debt” means Indebtedness of a Loan Party that (a) has been designated by the Borrower to the Administrative Agent as “Permitted Additional First Lien Debt” pursuant to a notice signed by a Responsible Officer certifying that such Indebtedness meets the requirements of this definition, (b) has a final maturity date not earlier than the latest Maturity Date in effect at the time of such designation (or with respect to Indebtedness meeting clause (e)(i) below has a final maturity date not earlier than the Maturity Date of the Term A Loans in effect at the time of designation), (c) has a weighted average life to maturity equal to or greater than the greatest weighted average life to maturity of any Term B Loans outstanding at the time of such designation (or with respect to Indebtedness meeting clause (e)(i) below has a weighted average life to maturity equal to or greater than the greatest weighted average life to maturity of any Term A Loans outstanding at the time of designation), (d) is subject to an intercreditor agreement reasonably satisfactory to the Administrative Agent and (e)(i) permanently reduces availability under the $275,000,000 basket under clause (i) of the second proviso of Section 2.14(a) or (ii) the proceeds of which are used solely to repay Term Loans in a corresponding aggregate principal amount.

 

“Permitted Amount” means

 

(A)           50% of the aggregate amount of the Consolidated Net Income (or, if the Consolidated Net Income is a loss, minus 100% of the amount of the loss) accrued on a cumulative basis during the period, taken as one accounting period, beginning on April 2, 2012 and ending on the last day of the Borrower’s most recently completed fiscal quarter for which financial statements have been provided (or if not timely provided, required to be provided) pursuant to this Agreement or the Existing Credit Agreement, plus

 

(B)            subject to the final sentence of this definition, the aggregate Net Cash Proceeds received by the Borrower (other than from a Subsidiary) after the Original Closing Date from (i) the issuance and sale of Qualified Equity Interests, including by way of issuance of Disqualified Equity Interests or Indebtedness to the extent such Disqualified Equity Interest or Indebtedness has been converted into Qualified Equity Interests of the Borrower or any direct or indirect parent of the Borrower (and contributed to the Borrower as a contribution to its common equity) and (ii) other contributions to the common equity capital of the Borrower, other than Excluded Contributions, plus

 

 

  

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(C)           an amount equal to the sum, for all Unrestricted Subsidiaries, of the following: (x) the cash return, and the fair market value of assets or property received, after the Original Closing Date, on Investments in an Unrestricted Subsidiary as a result of any sale, repayment, redemption, liquidating distribution or other realization (to the extent (i) not included in Consolidated Net Income and (ii) such amount does not cause a corresponding increase to any other basket contained in Section 7.03), plus (y) all distributions or dividends to the Borrower or a Restricted Subsidiary from Unrestricted Subsidiaries (provided that such distributions or dividends shall be excluded in calculating Consolidated Net Income for purposes of clause (A) above), plus (z) the portion (proportionate to the Borrower’s equity interest in such Subsidiary) of the fair market value of the assets less liabilities of an Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a Restricted Subsidiary, plus

 

(D)           without duplication with any amounts covered by clause (C) above, an amount equal to the sum of the following: (x) all distributions or dividends to the Borrower or a Restricted Subsidiary from any Investment, plus (y) the cash return, and the fair market value of property received, after the Original Closing Date, on any Investment as a result of any sale, repayment, redemption, liquidating distribution or other realization (to the extent in each case (x) and (y), (i) not included in Consolidated Net Income and (ii) such amount does not cause a corresponding increase to any other basket contained in Section 7.03), minus

 

(E)           the amount of Investments made pursuant to Section 7.03(q), minus

 

(F)           the amount of Restricted Payments made pursuant to Section 7.06(d).  The amount expended in any Restricted Payment, if other than in cash, will be deemed to be the fair market value of the relevant non−cash assets or property, as determined in good faith by the Board of Directors, whose determination will be conclusive and evidenced by a resolution of the Board of Directors of the Borrower.

 

Proceeds of the issuance of Equity Interests will be included as part of the “Permitted Amount” only to the extent they are not applied as described in Section 7.06(c) or (j).

 

“Permitted Holders” means any or all of the following:

 

(a)           Messrs. Nelson Peltz, Peter May and Edward P. Garden and Trian Fund Management L.P. and any fund, account or other investment vehicle managed by any of the foregoing persons or by an Affiliate thereof;

 

(b)           any Affiliate or Related Party of any Person specified in clause (a), other than another portfolio company thereof (which means a company whose shares are held by any fund, account or other investment vehicle managed by Trian Fund Management L.P. or an Affiliate thereof and which is actively engaged in providing goods and services to unaffiliated customers) or a company controlled by a “portfolio company;”

 

(c)           any Person both the Equity Interests and the Voting Stock of which (or in the case of a trust, the beneficial interests in which) are owned 50% or more by Persons specified in clauses (a) and (b); and

 

(d)           any Person that forms a group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934 or any successor provision) with any Permitted Holder referred to in clause (a); provided that the Permitted Holders referred to in clause (a), together with any Related Parties of such Permitted Holders, own at least 35% of the voting power 

 

 

 

  

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of the Borrower and no such other Person in the group owns more of the voting power of the Borrower than such Permitted Holders referred to in clauses (a), (b) and (c), together with any Related Parties of such Permitted Holders.

 

“Permitted Liens” has the meaning specified in Section 7.01.

 

“Permitted Receivables Financing” means any receivables financing facility or arrangement pursuant to which a Securitization Subsidiary purchases or otherwise acquires Accounts Receivable of the Borrower or any Restricted Subsidiaries and enters into a third party financing thereof on terms that the Board of Directors has concluded are customary and market terms fair to the Borrower and its Restricted Subsidiaries.

 

“Permitted Refinancing Indebtedness” means a replacement, renewal, refinancing, refunding or extension of any Indebtedness in whole or in part by the Person that originally incurred such Indebtedness (or, in the case of Indebtedness of a Loan Party existing on the Original Closing Date by any other or additional Loan Parties), provided that:

 

(i)           the principal amount of such refinancing Indebtedness (as determined as of the date of the incurrence of such Indebtedness in accordance with GAAP) does not exceed the principal amount of the Indebtedness refinanced thereby on such date plus the amount of accrued and unpaid interest and fees (including call and tender premiums), defeasance costs and expenses incurred in connection with such replacement, renewal, refinancing, refunding or extension;

 

(ii)           the final maturity date of such Indebtedness is not earlier than the final maturity date of the Indebtedness being refinanced and the weighted average life to maturity of such Indebtedness is not less than the weighted average life to maturity of the Indebtedness being refinanced;

 

(iii)           such refinancing Indebtedness is not guaranteed by any Loan Party or any Subsidiary of any Loan Party except to the extent such Person guaranteed such Indebtedness being replaced, renewed, refinanced or extended (or, in the case of Indebtedness of a Loan Party existing on the Original Closing Date by any other or additional Loan Parties) and is not secured by any assets other than those securing such Indebtedness being replaced, renewed, refinanced or extended (and (i) any improvements and accessions to such property and any replacements of or proceeds from any such property, (ii) assets of other obligors in accordance with the preceding parenthetical or (iii) with respect to refinancing Indebtedness in respect of Indebtedness for borrowed money existing on the Original Closing Date, Liens on assets incurred in compliance with the first sentence of Section 7.01 or 7.01(jj));

 

(iv)           the covenants and defaults applicable to such Indebtedness, taken as a whole, are, in the good faith judgment of the Borrower, no more restrictive in any material respect, taken as a whole, than the covenants and defaults of agreements governing comparable Indebtedness of similar companies at the time of such refinancing in light of then current market conditions, and the terms of such Indebtedness do not conflict with the provisions of this Agreement; provided, however, that, in the case of this clause (iv), a certificate of a Responsible Officer delivered to the Administrative Agent with reasonable prior notice before the incurrence of such refinancing Indebtedness, together with a reasonably detailed description of the material covenants and defaults of such Indebtedness or drafts of the documentation relating thereto, stating that the Borrower has determined in good faith that such covenants and defaults satisfy the requirement under this clause (iv) shall be conclusive evidence that such covenants and defaults satisfy such requirements absent manifest error or bad faith; and

 

 

 

  

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(v)           if the Indebtedness being refinanced is subordinated in right of payment to the Obligations, such Indebtedness is subordinated in right of payment to the Obligations on terms taken as a whole no less favorable to Lenders as those contained in the documentation governing the Indebtedness being refinanced.

 

“Permitted Reinvestment” means the making of a Permitted Acquisition or the acquisition of (or making of Capital Expenditures to finance the acquisition or improvement of), restoration, repair or replacement, to the extent otherwise permitted hereunder, assets useful in the business of the Borrower or its Restricted Subsidiaries.

 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

 

“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA that is subject to ERISA (including a Pension Plan), maintained for employees of a Loan Party or any ERISA Affiliate or any such Plan to which a Loan Party or any ERISA Affiliate is required to contribute on behalf of any of its employees.

 

“Platform” has the meaning specified in Section 6.02.

 

“Pledged Securities” has the meaning specified in the Security Agreement.

 

“Preferred Stock” means, with respect to any Person, any and all Equity Interests which are preferred as to the payment of dividends or distributions, upon liquidation or otherwise, over another class of Equity Interests of such Person.

 

“Pro Forma Basis” means on a basis in accordance with the application of GAAP and Article 11 of Regulation S-X promulgated under the Securities Act of 1933, as amended, or otherwise in express compliance with the definition of the financial metric being calculated.

 

“Products Agreement” means the Letter, dated as of May 16, 2003, between Parent and Sybra, Inc.

 

“Proposed Discounted Prepayment Amount” has the meaning specified in Section 2.05(c)(ii).

 

“Public Lender” has the meaning specified in Section 6.02.

 

“Public Market” shall exist if (a) a Public Offering has been consummated and (b) any Equity Interests of the Borrower have been distributed by means of an effective registration statement under the Securities Act of 1933.

 

“Public Offering” means a public offering of the Equity Interests of the Borrower pursuant to an effective registration statement under the Securities Act of 1933.

 

“Purchasing Borrower Party” means the Borrower, any Subsidiary of the Borrower or any of their Affiliates that (x) makes a Discounted Voluntary Prepayment pursuant to Section 2.05(c) or (y) becomes an Eligible Assignee pursuant to Section 10.06(h).

 

“Purchasing Borrower Party Assignment and Assumption” has the meaning specified in Section 10.06(h)(ii).

 

 

  

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“Qualified Equity Interests” means all Equity Interests of a Person other than Disqualified Equity Interests.

 

“Qualifying Lenders” has the meaning specified in Section 2.05(c)(iv).

 

“Qualifying Loans” has the meaning specified in Section 2.05(c)(iv).

 

“Real Property” means, collectively, all right, title and interest (including any leasehold, mineral or other estate) in and to any and all parcels of or interests in real property owned, leased or operated by any Person, whether by lease, license or other means, together with, in each case, all easements, hereditaments and appurtenances relating thereto, all improvements located thereon and appurtenant fixtures and equipment.

 

“Register” has the meaning specified in Section 10.06(c).

 

“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s Affiliates.

 

“Release” means any release, spill, emission, leaking, pumping, pouring, dumping, emptying, injection, deposit, disposal, discharge, leaching, dispersal or migration on, into or through the Environment, or into, through or out of any property, facility or equipment.

 

“Remaining International Restructuring Transactions” means the following transactions, as well as any ancillary steps reasonably required to accomplish such transactions and any change thereto or deviation therefrom that is reasonably required to accomplish the goals of such transactions to the extent such change or deviation is not material and is not adverse to the Lenders:

 

	
  

	
a)

	
Wendy’s Global Restaurants, LLC (“LLC”) and Wendy’s Global Holdings Partner, LLC will form a non-U.S. entity (“New Global Holdings”) with a de minimis capital contribution;

 

	
  

	
b)

	
The LLC will contribute the Equity Interests of Wendy’s Restaurants (Asia) Limited and Wendy’s Old Fashioned Hamburger Restaurants Pty. Ltd. to Wendy’s Singapore Pte. Ltd.;

 

	
  

	
c)

	
The LLC will contribute the Equity Interests of Wendy’s Singapore Pte. Ltd. to New Global Holdings;

 

	
  

	
d)

	
The LLC will contribute its Equity Interest in Wendy’s Global Financing LP (“Canada LP”) and Wendy’s Global Financing Partner, LLC to New Global Holdings in exchange for additional Equity Interests of New Global Holdings; and

 

	
  

	
e)

	
New Global Holdings will contribute the Equity Interests of Wendy’s Singapore Pte. Ltd. to Canada LP in exchange for additional Equity Interests of Canada LP.

 

 “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

 

“Repricing Transaction” means the refinancing or repricing by the Borrower of any of the Term B Loans under this Agreement (x) with the proceeds of any Indebtedness under a secured credit facility (including, without limitation, any new or additional term loans under this Agreement) other than in connection with a merger or acquisition (by means of a tender offer, stock purchase or otherwise) of more than 50% of the total voting power of Parent or the Borrower by any Person or an acquisition of all or substantially all of the assets of Parent or the Borrower by any Person or (y) in connection with any amendment to this Agreement, in either case, (i) having or resulting in an effective interest rate or weighted average yield (to be calculated by the Administrative Agent, after giving effect to margins, up-

 

 

  

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front or similar fees or original issue discount shared with all lenders or holders thereof, but excluding the effect of any arrangement, structuring, syndication or other fees payable in connection therewith that are not shared with all lenders or holders thereof) as of the date of such refinancing or repricing that is, or could be (due to leverage stepdowns or otherwise) by the express terms of such Indebtedness (and not by virtue of any fluctuation in Eurodollar Rate or Base Rate), less than the Applicable Rate for, or weighted average yield of (to be calculated by the Administrative Agent, on the same basis as above) such Term B Loans as of the date of such refinancing or repricing and (ii) in the case of a refinancing of the applicable Term B Loans, the proceeds of which are used to repay, in whole or in part, principal of such outstanding Term B Loans (it being understood that such refinancing shall only be a Repricing Transaction to the extent of the proceeds of a secured credit facility used to repay the Term B Loans and not to the extent of proceeds from other sources).

 

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation of Term Loans or Revolving Credit Loans, a Committed Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.

 

“Required Lenders” means, as of any date of determination, Lenders holding more than 50% of the sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Revolving Credit Lender for purposes of this definition), and (b) aggregate unused Revolving Credit Commitments; provided that the unused Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

 

“Required Revolving Lenders” means, as of any date of determination, Revolving Credit Lenders holding more than 50% of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk participation and funded participation in L/C Obligations and Swing Line Loans being deemed “held” by such Revolving Credit Lender for purposes of this definition) and (b) aggregate unused Revolving Credit Commitments; provided that the unused Revolving Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Revolving Lenders.

 

“Required Term A Lenders” means, as of any date of determination, Term A Lenders holding more than 50% of, without duplication, the Term A Loans and Term A Commitments on such date; provided that the portion of the Term A Loans and Term A Commitments held by or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Term A Lenders.

 

“Required Term B Lenders” means, as of any date of determination, Term B Lenders holding more than 50% of, without duplication, the Term B Loans and Term B Commitments on such date; provided that the portion of the Term B Loans and Term B Commitments held by or deemed held by any Defaulting Lender shall be excluded for purposes of making a determination of Required Term B Lenders.

 

 “Requirements of Law” means, collectively, any and all applicable requirements of any Governmental Authority including any and all laws, judgments, orders, executive orders, decrees, ordinances, rules, regulations, statutes, case law or treaties.

 

 

  

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“Responsible Officer” means the chief executive officer, president, executive vice president (or the equivalent thereof), chief financial officer, treasurer, assistant treasurer, chief accounting officer or secretary of a Loan Party and solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.

 

“Restatement Effective Date” means the date hereof.

 

“Restricted Entities” means any chain restaurant company with franchised and/or company-owned outlets, and Affiliates (other than Funds) of any such company.

 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) on account of any capital stock or other Equity Interest of any Person or any of its Restricted Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to any Person’s stockholders, partners or members (or the equivalent of any thereof), or any option, warrant or other right to acquire any such dividend or other distribution or payment.

 

“Restricted Subsidiary” means any Subsidiary of the Borrower other than an Unrestricted Subsidiary.

 

“Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Revolving Credit Lenders pursuant to Section 2.01(c).

 

“Revolving Credit Commitment” means, as to each Revolving Credit Lender, its obligation to (a) make Revolving Credit Loans to the Borrower pursuant to Section 2.01(c), (b) purchase participations in L/C Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 under the caption “Revolving Credit Commitment” or opposite such caption in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  The aggregate amount of the Revolving Credit Commitments of the Lenders as of the Restatement Effective Date is $200,000,000.

 

“Revolving Credit Facility” means, at any time, the aggregate amount of the Revolving Credit Lenders’ Revolving Credit Commitments at such time.

 

“Revolving Credit Lender” means, at any time, any Lender that has a Revolving Credit Commitment at such time.

 

“Revolving Credit Loan” has the meaning specified in Section 2.01(c).

 

“Revolving Credit Note” means a promissory note made by the Borrower in favor of a Revolving Credit Lender evidencing Revolving Credit Loans or Swing Line Loans, as the case may be, made by such Revolving Credit Lender, substantially in the form of Exhibit C-2 to the Existing Credit Agreement.

 

“S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

 

 

  

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“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.

 

“Secured Cash Management Agreement” means any Cash Management Agreement that is entered into by and between the Borrower or any of its Subsidiaries and any Cash Management Bank.

 

“Secured Hedge Agreement” means any interest rate Swap Contract permitted under Article VI or VII that is entered into by and between the Borrower or any of its Subsidiaries and any Hedge Bank.

 

“Secured Obligations” means (a) the Obligations, (b) the due and punctual payment and performance of all obligations of the Borrower or its Subsidiaries under each Secured Hedge Agreement (provided that such obligations shall exclude any Excluded Swap Obligations), and (c) the due and punctual payment and performance of all obligations of the Borrower or its Subsidiaries (including overdrafts and related liabilities) under each Secured Cash Management Agreement.

 

“Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C Issuers, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time pursuant to Section 9.06, and the other Persons the Secured Obligations owing to which are or are purported to be secured by the Collateral under the terms of the Collateral Documents.

 

“Securitization Subsidiary” means a Subsidiary of the Borrower (1) that is designated a “Securitization Subsidiary” by the Board of Directors, (2) that does not engage in, and whose charter prohibits it from engaging in, any activities other than Permitted Receivables Financings and any activity necessary, incidental or related thereto, (3) no portion of the Indebtedness or any other obligation, contingent or otherwise, of which (A) is Guaranteed by the Borrower or any Restricted Subsidiary of the Borrower, (B) is recourse to or obligates the Borrower or any Restricted Subsidiary of the Borrower in any way, or (C) subjects any property or asset of the Borrower or any Restricted Subsidiary of the Borrower, directly or indirectly, contingently or otherwise, to the satisfaction thereof, and (4) with respect to which neither the Borrower nor any Restricted Subsidiary of the Borrower has any obligation to maintain or preserve its financial condition or cause it to achieve certain levels of operating results, other than, in respect of clauses (3) and (4), pursuant to customary representations, warranties, covenants and indemnities entered into in connection with a Permitted Receivables Financing.

 

“Security Agreement” has the meaning specified in Section 4.01(a)(iii) of the Existing Credit Agreement.

 

“Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature, (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital, and (e) such Person is able to pay its debts and liabilities (including contingent liabilities) as they mature.  The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

 

  

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“Specified Equity Contribution” shall mean any contribution to the common equity of the Borrower and/or any purchase of an Equity Interest (other than a Disqualified Equity Interest) of the Borrower from the Borrower and/or an investment in the Borrower (other than a Disqualified Equity Interest).

 

“Specified Loan Party” means any Loan Party that is not an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 27 of the Amended and Restated Guaranty).

 

“Spot Rate” has the meaning specified in Section 1.07.

 

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.

 

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

 

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

 

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

 

“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

 

“Swing Line Loan” has the meaning specified in Section 2.04(a).

 

 

  

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“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B to the Existing Credit Agreement.

 

“Swing Line Sublimit” means an amount equal to the lesser of (a) $20,000,000 and (b) the Revolving Credit Facility.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Facility.

 

“Syndication Agent” means Wells Fargo Bank, National Association.

 

“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property, in each case, creating obligations that do not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).

 

“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Term A Borrowing” means a borrowing consisting of simultaneous Term A Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Term A Lenders pursuant to Section 2.01(a).

 

“Term A Commitment” means, as to each Term A Lender, its obligation to make Term A Loans to the Borrower pursuant to Section 2.01(a) in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Term A Lender’s name on Schedule 2.01 under the caption “Term A Commitment” or opposite such caption in the Assignment and Assumption pursuant to which such Term A Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. As of the Restatement Effective Date, the aggregate principal amount of the Term A Commitments is $350,000,000.

 

 “Term A Lender” means at any time, (a) on or prior to the Restatement Effective Date, any Lender that has a Term A Commitment at such time and (b) at any time after the Restatement Effective Date, any Lender that holds Term A Loans at such time.

 

“Term A Loan” means an advance made by any Term A Lender pursuant to Section 2.01(a).

 

“Term A Note” means a promissory note made by the Borrower in favor of a Term A Lender, evidencing Term A Loans made by such Term A Lender, substantially in the form of Exhibit C-3.

 

“Term B Borrowing” means a borrowing consisting of simultaneous Term B Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Term B Lenders pursuant to Section 2.01(b).

 

“Term B Commitment” means, as to each Term B Lender, its obligation to make Term B Loans to the Borrower pursuant to Section 2.01(b) or the Assignment and Assumption pursuant to which such Term B Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  As of the Restatement Effective Date, the aggregate principal amount of the Term B Commitments is $769,375,000, and $102,258,449.45 of such Term B Commitments are 

 

 

  

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held by Bank of America, N.A. and the remainder are held by Cashless Option Lenders (as defined in Amendment No. 2) determined by the Administrative Agent in accordance with Amendment No. 2.

 

 “Term B Lender” means at any time, (a) on or prior to the Restatement Effective Date, any Lender that has a Term B Commitment at such time and (b) at any time after the Restatement Effective Date, any Lender that holds Term B Loans at such time.

 

“Term B Loan” means an advance made by any Term B Lender pursuant to Section 2.01(b).

 

“Term B Note” means a promissory note made by the Borrower in favor of a Term B Lender, evidencing Term B Loans made by such Term B Lender, substantially in the form of Exhibit C-1 to the Existing Credit Agreement.

 

“Term Borrowing” means either a Term A Borrowing or Term B Borrowing.

 

“Term Commitment” means either a Term A Commitment or a Term B Commitment.

 

“Term Facility” means the facility providing for the Borrowing of Term Loans.

 

“Term Lender” means, at any time, a Term A Lender or a Term B Lender.

 

“Term Loan” means a Term A Loan or a Term B Loan.

 

“Threshold Amount” means $35,000,000.

 

“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations.

 

“Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all Revolving Credit Loans, Swing Line Loans and L/C Obligations.

 

“Transactions” means, collectively, (a) the entering into by the Loan Parties and their applicable Subsidiaries of the Loan Documents on the Original Closing Date and the Restatement Effective Date, (b) the prepayment or payment of all amounts owing under the Existing Credit Agreement (as defined in the Existing Credit Agreement) and the termination of all commitments with respect thereto and the prepayment or payment of amounts owing under the Existing Credit Agreement and (c) the payment of the fees and expenses incurred in connection with the consummation of the foregoing.

 

 “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.

 

“UCC” means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.

 

“Undrawn L/C Obligations” shall mean the portion, if any, of the Obligations constituting the contingent obligation of the Borrower to reimburse each L/C Issuer in respect of the then undrawn and unexpired portions of the Letters of Credit issued by such L/C Issuer pursuant to Section 2.03.

 

 

  

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“United States” and “U.S.” mean the United States of America.

 

“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

 

“Unrestricted Subsidiary” means (i) each Subsidiary of the Borrower listed on Schedule 1.01(c) to the Existing Credit Agreement, (ii) any Securitization Subsidiary, (iii) any Subsidiary of the Borrower designated by the Board of Directors of the Borrower as an Unrestricted Subsidiary pursuant to Section 6.20 subsequent to the Original Closing Date, (iv) any Subsidiary that at the time of such designation shall not have more than de minimis assets and (v) any Subsidiary of an Unrestricted Subsidiary.

 

“U.S. Government Obligations” means obligations issued or directly and fully guaranteed or insured by the United States of America or by any agency or instrumentality thereof, provided that the full faith and credit of the United States of America is pledged in support thereof.

 

“U.S. Loan Party” means any Loan Party that is a United States person within the meaning of Section 7701(a)(30) of the Code.

 

“Voting Stock” means Equity Interests of the class or classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of a corporation (irrespective of whether or not at the time Equity Interests of any other class or classes shall have or might have voting power by reason or the happening of any contingency).

 

“Wholly Owned Subsidiary” means, as to any Person, (a) any corporation 100% of whose capital stock (other than directors’ qualifying shares or similar nominal shares to the extent required under applicable legal requirements) is at the time owned by such Person and/or one or more Wholly Owned Subsidiaries of such Person and (b) any partnership, association, joint venture, limited liability company or other entity in which such Person and/or one or more Wholly Owned Subsidiaries of such Person have a 100% equity interest (other than directors’ qualifying shares or similar nominal shares to the extent required under applicable legal requirements) at such time.

 

“WNAP” means Wendy’s National Advertising Program, Inc., an Ohio corporation.

 

“Working Capital” means, for the Borrower and its Restricted Subsidiaries, at any date, the amount (which may be a negative number) of the Consolidated Current Assets of the Borrower and its Restricted Subsidiaries minus the Consolidated Current Liabilities of the Borrower and its Restricted Subsidiaries, at such date; provided, that, for purposes of calculating Excess Cash Flow, increases or decreases in Working Capital shall be calculated without regard to any changes in Consolidated Current Assets or Consolidated Current Liabilities as a result of the effects of purchase accounting.

 

1.02.        Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

 

(a)           The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, amended and restated, supplement-

 

 

  

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ed or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “hereto,” “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Preliminary Statements, Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

(b)           In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”

 

(c)           Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

 

(d)           For the avoidance of doubt, any Indebtedness, Lien, Investment or Restricted Payment incurred in compliance with a ratio (including the Permitted Amount) shall be permitted notwithstanding any changes to such ratio subsequent to such transaction.

 

(e)           Where pro forma compliance with Section 7.11 is required but no Measurement Period cited in Section 7.11 or in the defined terms used therein has passed, the covenants in Section 7.11 for the first Measurement Period cited in such Section shall need to be satisfied as of the last four quarters most recently ended.

 

1.03.        Accounting Terms.

 

(a)        Generally.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time except as otherwise specifically prescribed herein.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.  For the purposes of this Agreement, “consolidated” with respect to any Person shall mean, unless expressly stated to be otherwise, such Person consolidated with its Restricted Subsidiaries and shall not include any Unrestricted Subsidiary.

 

(b)        Changes in GAAP.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request, the Administrative Agent and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders and the Borrower); provided that, until so amended, (i) 

 

 

  

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such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.  If at any time any change in the interpretation of GAAP following an audit or review, as the case may be, of the financial statements of the Borrower by the Borrower’s accountants, would cause a re-characterization of operating leases of the Borrower and its Subsidiaries as Capitalized Leases, the Borrower shall have the right, exercised by providing written notice to the Administrative Agent, to elect to ignore such re-characterization for all purposes under this Agreement, including, without limitation, the calculation of any financial ratios and the definition of Indebtedness.  In addition, if at any time any change in GAAP would cause a re-characterization of operating leases of the Borrower and its Subsidiaries as Capitalized Leases, or cause such operating leases to be accounted for as Capitalized Leases, the Borrower shall have the right to elect, exercised by providing written notice to the Administrative Agent, to ignore such re-characterization or accounting change and to continue to treat such leases as operating leases for all purposes under this Agreement, including, without limitation, the calculation of any financial ratios and the definition of Indebtedness.

 

1.04.        Rounding.  Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 

1.05.        Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

 

1.06.        Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

 

1.07.        Currency Equivalents Generally.  Any amount specified in this Agreement (other than in Articles II and IX) or any of the other Loan Documents to be in Dollars shall also include the equivalent of such amount in any currency other than Dollars, such equivalent amount thereof in the applicable currency to be determined by the Administrative Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency with Dollars.  For purposes of this Section 1.07, the “Spot Rate” for a currency means the rate determined by the Administrative Agent to be the rate quoted by the Person acting in such capacity as the spot rate for the purchase by such Person of such currency with another currency through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two Business Days prior to the date of such determination; provided that the Administrative Agent may obtain such spot rate from another financial institution designated by the Administrative Agent if the Person acting in such capacity does not have as of the date of determination a spot buying rate for any such currency.

 

1.08.        Certifications.  All certificates and other statements required to be made by any officer, director or employee of a Loan Party pursuant to any Loan Document are and will be made on the behalf of such Loan Party and not in such officer’s, director or employee’s individual capacity.

 

 

  

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1.09.        Effect of Restatement. This Agreement shall amend and restate the Existing Credit Agreement in its entirety, with the parties hereby agreeing that there is no novation of the Existing Credit Agreement, and on the Restatement Effective Date, the rights and obligations of the parties under the Existing Credit Agreement shall be subsumed and governed by this Agreement. Following the Restatement Effective Date, the Loans and Commitments under the Existing Credit Agreement shall no longer be in effect and thereafter only Loans and Commitments under this Agreement shall be outstanding until otherwise terminated in accordance with the terms hereof.

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01.        The Loans.

 

(a)            The Term A Borrowing.  Subject to the terms and conditions set forth herein, each Term A Lender severally agrees to make a loan to the Borrower on the Restatement Effective Date in an aggregate amount equal to such Term A Lender’s Term A Commitment.  Each Term A Borrowing shall consist of Term A Loans made simultaneously by the Term A Lenders in accordance with their respective Applicable Percentage of the Term A Commitments.  Amounts borrowed under this Section 2.01(a) and repaid or prepaid may not be reborrowed.  Term A Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

 

(b)           The Term B Borrowing.

 

(i)       Subject to the terms and conditions set forth herein, each Term B Lender severally agrees to make a loan to the Borrower on the Restatement Effective Date in an aggregate amount equal to such Term B Lender’s Term B Commitment.  Each Term B Borrowing shall consist of Term B Loans made simultaneously by the Term B Lenders in accordance with their respective Applicable Percentage of the Term B Commitments.  Amounts borrowed under this Section 2.01(b) and repaid or prepaid may not be reborrowed.  Term B Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

 

(ii)       Notwithstanding the foregoing, any Cashless Option Lender (as defined in and in accordance with  Amendment No. 2) shall not have to make a loan on the Restatement Effective Date but shall be deemed to have rolled over its Term Loan (as defined in the Existing Credit Agreement) under the Existing Credit Agreement in accordance with Amendment No. 2 upon the Restatement Effective Date, and such Term Loans (as defined in the Existing Credit Agreement) under the Existing Credit Agreement shall be replaced by Term B Loans hereunder.

 

(iii)       No costs shall be payable under Section 3.05 in connection with the refinancing of the Term Loans under the Existing Credit Agreement with Term B Borrowings made under this Section 2.01(b).

 

(c)        The Revolving Credit Borrowings.  Subject to the terms and conditions set forth herein, each Revolving Credit Lender severally agrees to make loans (each such loan, a “Revolving Credit Loan”) to the Borrower from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Revolving Credit Commitment; provided, however, that after giving effect to any Revolving Credit Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility, and (ii) the aggregate Outstanding Amount of the Revolving Credit Loans of any Lender, plus such Revolving Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations, plus such Revolving Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all Swing 

 

 

  

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Line Loans shall not exceed such Revolving Credit Lender’s Revolving Credit Commitment.  Within the limits of each Revolving Credit Lender’s Revolving Credit Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01(c), prepay under Section 2.05, and reborrow under this Section 2.01(c).  Revolving Credit Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

 

2.02.        Borrowings, Conversions and Continuations of Loans.

 

(a)           Each Term Borrowing, each Revolving Credit Borrowing, each conversion of Term Loans or Revolving Credit Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by telephone; provided that the Borrower may rescind or postpone any notice in connection with the Borrowing on the Restatement Effective Date to the extent that the refinancing of the Existing Credit Agreement shall not be consummated or otherwise shall be delayed.  Each such notice must be received by the Administrative Agent not later than 1:00 p.m. (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate Loans; provided, however, that if the Borrower wishes to request Eurodollar Rate Loans having an Interest Period other than one, two, three or six months in duration as provided in the definition of “Interest Period,” the applicable notice must be received by the Administrative Agent not later than 1:00 p.m. four Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the Appropriate Lenders of such request and determine whether the requested Interest Period is acceptable to all of them; provided, however, that the Administrative Agent may agree to shorter time periods with respect to the notice to be delivered in connection with the Borrowing on the Restatement Effective Date.  Not later than 1:00 p.m., three Business Days before the requested date of such Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders.  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof.  Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice  (whether telephonic or written) shall specify (i) whether the Borrower is requesting a Term Borrowing, a Revolving Credit Borrowing, a conversion of Term Loans or Revolving Credit Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Term Loans or Revolving Credit Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Term Loans or Revolving Credit Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.  Notwithstanding anything to the contrary herein, a Swing Line Loan may not be converted to a Eurodollar Rate Loan.

 

(b)           Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its Applicable Percentage under the applicable Facility of the appli-

 

 

 

  

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cable Term Loans or Revolving Credit Loans, and if no timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans described in Section 2.02(a).  In the case of a Term Borrowing or a Revolving Credit Borrowing, each Appropriate Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable Committed Loan Notice (or 3:00 p.m. in the case of Borrowing of Base Rate Loans where the notice has been provided to the Administrative Agent on the Business Day of the Borrowing). Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the Borrowing of the Term Loans on the Restatement Effective Date, in Section 2 of Amendment No. 2), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the books of the Administrative Agent with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to the Administrative Agent by the Borrower; provided, however, that if, on the date a Committed Loan Notice with respect to a Revolving Credit Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Revolving Credit Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and second, shall be made available to the Borrower as provided above.

 

(c)           Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan, unless the Borrower pays the amount due (if any) under Section 3.05 in connection therewith.  During the existence of an Event of Default, no Loans may be requested as or converted to Eurodollar Rate Loans without the consent of the Administrative Agent.

 

(d)           The Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change.

 

(e)           After giving effect to all Term Borrowings, all conversions of Term Loans from one Type to the other, and all continuations of Term Loans as the same Type, there shall not be more than 10 Interest Periods in effect in respect of the Term Facility.  After giving effect to all Revolving Credit Borrowings, all conversions of Revolving Credit Loans from one Type to the other, and all continuations of Revolving Credit Loans as the same Type, there shall not be more than 10 Interest Periods in effect in respect of the Revolving Credit Facility.

 

2.03.        Letters of Credit.

 

(a)           The Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of the Revolving Credit Lenders set forth in this Section 2.03, (1) from time to time on any Business Day during the period from the Original Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of the Borrower or its Subsidiaries, and to amend or extend Letters of Credit previously issued by it, in accordance with Section 2.03(b), and (2) to honor drawings under the Letters of Credit; and (B) the Revolving Credit Lenders severally agree to participate in Letters of Credit issued for the account of the Borrower or its Subsidiaries and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility, (y) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender, plus such Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s

 

 

  

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Applicable Revolving Credit Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Revolving Credit Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.  All Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and from and after the Original Closing Date shall be subject to and governed by the terms and conditions hereof.

 

(ii)            None of the L/C Issuers shall issue any Letter of Credit if:

 

(A)           subject to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, unless the Required Revolving Lenders have approved such expiry date; or

 

(B)           the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Revolving Credit Lenders have approved such expiry date.

 

(iii)           None of the L/C Issuers shall be under any obligation to issue any Letter of Credit if:

 

(A)           any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such L/C Issuer from issuing the Letter of Credit, or any Law applicable to such L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such L/C Issuer shall prohibit, or request that such L/C Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon such L/C Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which such L/C Issuer is not otherwise compensated hereunder) not in effect on the Original Closing Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Original Closing Date and which such L/C Issuer in good faith deems material to it;

 

(B)           the issuance of such Letter of Credit would violate one or more policies of such L/C Issuer applicable to letters of credit generally, as certified in writing by the applicable L/C Issuer;

 

(C)           except as otherwise agreed by the Administrative Agent and the applicable L/C Issuer, such Letter of Credit is in an initial stated amount less than $5,000;

 

(D)           such Letter of Credit is to be denominated in a currency other than Dollars;

 

(E)           any Revolving Lender is at that time a Defaulting Lender, unless the applicable L/C Issuer has entered into arrangements, including the delivery of Cash Collateral, satisfactory to such L/C Issuer (in its reasonable discretion) with the Borrower or such Lender to eliminate such L/C Issuer’s actual or potential Fronting Exposure (after giving effect to Section 2.16(a)(iv)) with respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other L/C Obligations as to which the L/C Issuer has actual or potential Fronting Exposure, as it may elect in its reasonable discretion; or

 

 

  

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(F)           the Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder.

 

(iv)           None of the L/C Issuers shall amend any Letter of Credit if such L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.

 

(v)           None of the L/C Issuers shall be under an obligation to amend any Letter of Credit if (A) such L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.

 

(vi)           Each L/C Issuer shall act on behalf of the Revolving Credit Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and each L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by the L/C Issuers in connection with Letters of Credit issued by them or proposed to be issued by them and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included each L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuers.

 

(vii)         If an L/C Issuer shall make any payment or disbursement pursuant to a drawing under a Letter of Credit, then, (x) the unpaid amount thereof shall bear interest, for each day from and including the date such payment or disbursement is made to but excluding the Honor Date, at the Applicable Rate for Revolving Credit Loans that are Base Rate Loans, and (y) unless the Borrower shall reimburse such payment or disbursement in full on the Honor Date, the unpaid amount thereof shall bear interest payable on demand, for each day from and including the Honor Date to but excluding the date that the Borrower reimburse such payment or disbursement, at the rate per annum determined pursuant to Section 2.08(b).  Interest accrued pursuant to this paragraph shall be for the account of the applicable L/C Issuer, except that interest accrued on and after the date of payment by any Revolving Credit Lender pursuant to this Section 2.03(a) to reimburse such L/C Issuer shall be for the account of such Lender to the extent of such payment.

 

(viii)        In addition, and notwithstanding anything to the contrary set forth herein, no L/C Issuer shall be required to issue any Letter of Credit if, as a result of issuing such Letter of Credit, the face amount of all outstanding Letters of Credit issued by such L/C Issuer would exceed, in the aggregate, $30,000,000, regardless of the amount of such L/C Issuer’s Revolving Credit Commitment.

 

(b)           Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.

 

(i)             Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the applicable L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower.  Such Letter of Credit Application must be received by the applicable L/C Issuer and the Administrative Agent not later than 1:00 p.m. at least two Business Days (or such later date and time as the Administrative Agent and the applicable L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer:  (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such 

 

 

  

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beneficiary in case of any drawing thereunder; and (G) the purpose and nature of the requested Letter of Credit.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the applicable L/C Issuer (1) the Letter of Credit to be amended; (2) the proposed date of amendment thereof (which shall be a Business Day); and (3) the nature of the proposed amendment.  Additionally, the Borrower shall furnish to the applicable L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as such L/C Issuer may reasonably require.

 

(ii)           Promptly after receipt of any Letter of Credit Application, the applicable L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, such L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the applicable L/C Issuer has received written notice from any Revolving Credit Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, such L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower (or the applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with such L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from such L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Revolving Credit Lender’s Applicable Revolving Credit Percentage times the amount of such Letter of Credit.

 

(iii)           If the Borrower so requests in any applicable Letter of Credit Application, the applicable L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit such L/C Issuer to prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by such L/C Issuer, the Borrower shall not be required to make a specific request to such L/C Issuer for any such extension.  Once an Auto-Extension Letter of Credit has been issued, the Revolving Credit Lenders shall be deemed to have authorized (but may not require) such L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided, however, that such L/C Issuer shall not permit any such extension if (A) such L/C Issuer has determined that it would not be permitted, or would have no obligation at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Revolving Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Revolving Credit Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in each such case directing such L/C Issuer not to permit such extension.

 

(iv)           If the Borrower so requests in any applicable Letter of Credit Application, an L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that permits the automatic reinstatement of all or a portion of the stated amount thereof after any drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”).  Unless otherwise directed by such L/C Issuer, the Borrower shall not be required to make a specific request to such L/C Issuer to permit such reinstatement.  Once an Auto-Reinstatement Letter of Credit has been issued, except as provided in the following sentence, the Revolving Credit Lenders shall 

 

 

  

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be deemed to have authorized (but may not require) such L/C Issuer to reinstate all or a portion of the stated amount thereof in accordance with the provisions of such Letter of Credit.  Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits such L/C Issuer to decline to reinstate all or any portion of the stated amount thereof after a drawing thereunder by giving notice of such non-reinstatement within a specified number of days after such drawing (the “Non-Reinstatement Deadline”), such L/C Issuer shall not permit such reinstatement if it has received a notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Reinstatement Deadline (A) from the Administrative Agent that the Required Revolving Lenders have elected not to permit such reinstatement or (B) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied (treating such reinstatement as an L/C Credit Extension for purposes of this clause) and, in each case, directing such L/C Issuer not to permit such reinstatement.

 

(v)           Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, such L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

 

(vi)           Each L/C Issuer shall no later than the third Business Day following the last day of each month, provide to Administrative Agent a schedule of the Letters of Credit issued by it, in form and substance reasonably satisfactory to Administrative Agent, showing the date of issuance of each Letter of Credit, the account party, the original face amount (if any), the expiration date, and the reference number of any Letter of Credit outstanding at any time during each month, and showing the aggregate amount (if any) payable by Borrower to such L/C Issuer during such month.  Promptly after the receipt of such schedule from each L/C Issuer, Administrative Agent shall provide to Lenders a summary of such schedule.

 

(c)            Drawings and Reimbursements; Funding of Participations.

 

(i)             Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the applicable L/C Issuer shall notify the Borrower and the Administrative Agent thereof.  Not later than 1:00 p.m. on the date of any payment by the applicable L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse the applicable L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing.  If the Borrower fails to so reimburse the applicable L/C Issuer by such time, the Administrative Agent shall promptly notify each Revolving Credit Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Revolving Credit Lender’s Applicable Revolving Credit Percentage thereof.  In such event, the Borrower shall be deemed to have requested a Revolving Credit Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Revolving Credit Commitments for each Revolving Credit Lender and the conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).  Any notice given by such L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

 

(ii)            Each Revolving Credit Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds available (and the Administrative Agent may apply Cash Collateral provided for this purpose) for the account of the applicable L/C Issuer at the Administrative Agent’s Office in an amount equal to its Applicable Revolving Credit Percentage of the Unreimbursed Amount not later than 3:00 p.m. on the 

 

 

  

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Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the funds so received to the applicable L/C Issuer.

 

(iii)           With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving Credit Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the applicable L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest).  In such event, each Revolving Credit Lender’s payment to the Administrative Agent for the account of the applicable L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.03.

 

(iv)           Until each Revolving Credit Lender funds its Revolving Credit Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the applicable L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Revolving Credit Percentage of such amount shall be solely for the account of the applicable L/C Issuer.

 

(v)           Each Revolving Credit Lender’s obligation to make Revolving Credit Loans or L/C Advances to reimburse the applicable L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the applicable L/C Issuer, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Revolving Credit Lender’s obligation to make Revolving Credit Loans pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the applicable L/C Issuer for the amount of any payment made by the applicable L/C Issuer under any Letter of Credit, together with interest as provided herein.

 

(vi)           If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the applicable L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), then, without limiting the other provisions of this Agreement, the applicable L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to such L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by such L/C Issuer in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by such L/C Issuer in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be.  A certificate of such L/C Issuer submitted to any Revolving Credit Lender (through the Administrative Agent) with respect to any amounts owing under this Section 2.03(c)(vi) shall be conclusive absent manifest error.

 

 

  

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(d)           Repayment of Participations.

 

(i)             At any time after the applicable L/C Issuer has made a payment under any Letter of Credit and has received from any Revolving Credit Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the account of such L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Revolving Credit Percentage thereof in the same funds as those received by the Administrative Agent.

 

(ii)            If any payment received by the Administrative Agent for the account of such L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by such L/C Issuer in its discretion), each Revolving Credit Lender shall pay to the Administrative Agent for the account of such L/C Issuer its Applicable Revolving Credit Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

(e)            Obligations Absolute.  The obligation of the Borrower to reimburse the applicable L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

 

(i)         any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document;

 

(ii)       the existence of any claim, counterclaim, setoff, defense or other right that the Borrower or any Restricted Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), such L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

 

(iii)      any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

 

(iv)      any payment by such L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by such L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or

 

(v)       any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Borrower or any of its Subsidiaries;

 

 

  

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provided that the foregoing shall not excuse such L/C Issuer from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are waived by the Borrower to the extent permitted by applicable Law) suffered by the Borrower that are caused by such L/C Issuer’s bad faith, gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof.

 

The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s instructions or other irregularity, the Borrower will immediately notify the applicable L/C Issuer.  The Borrower shall be conclusively deemed to have waived any such claim against the applicable L/C Issuer and its correspondents unless such notice is given as aforesaid.

 

(f)            Role of L/C Issuers.  Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit, the applicable L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the L/C Issuers, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuers shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Revolving Credit Lenders or the Required Revolving Lenders, as applicable; (ii) any action taken or omitted in the absence of its gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.  The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuers, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuers shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrower may have a claim against an L/C Issuer, and an L/C Issuer may be liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrower which the Borrower proves were caused by such L/C Issuer’s bad faith, willful misconduct or gross negligence or such L/C Issuer’s bad faith, willful or grossly negligent failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing, each L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, and such L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

 

(g)           Applicability of ISP and UCP.  Unless otherwise expressly agreed by the applicable L/C Issuer and the Borrower when a Letter of Credit is issued (including any such agreement applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby Letter of Credit and (ii) the rules of the Uniform Customs and Practice for Documentary Credits, as most recently published by the International Chamber of Commerce at the time of issuance shall apply to each commercial Letter of Credit.

 

(h)           Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Applicable Revolving Credit Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate for 

 

 

 

  

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Loans that are Eurodollar Rate Loans times the daily amount available to be drawn under such Letter of Credit; provided, however, any Letter of Credit Fees otherwise payable for the account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the L/C Issuers pursuant to this Section 2.03 shall be payable, to the maximum extent permitted by applicable Law, to the other Lenders in accordance with the upward adjustments in their respective Applicable Percentages allocable to such Letter of Credit pursuant to Section 2.16(a)(iv), with the balance of such fee, if any, payable to the applicable L/C Issuer for its own account.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i) due and payable on the first Business Day after the end of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears.  If there is any change in the Applicable Rate for Loans that are Eurodollar Rate Loans during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate for Loans that are Eurodollar Rate Loans separately for each period during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein, upon the request of the Required Revolving Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

 

(i)            Fronting Fee and Documentary and Processing Charges Payable to L/C Issuers.  The Borrower shall pay directly to the applicable L/C Issuer for its own account a fronting fee with respect to each Letter of Credit, at a rate per annum of 0.125% or such lesser amount as otherwise agreed to with the applicable L/C Issuer, computed on the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears.  Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly to the applicable L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of such L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and charges are due and payable within five Business Days of demand and are nonrefundable.

 

(j)             Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

 

(k)            Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrower shall be obligated to reimburse the applicable L/C Issuer hereunder for any and all drawings under such Letter of Credit.  The Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

 

2.04.        Swing Line Loans.

 

(a)           The Swing Line.  Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.04, may, in its sole discretion, make loans (each such loan, a “Swing Line Loan”) to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, 

 

 

  

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when aggregated with the Applicable Revolving Credit Percentage of the Outstanding Amount of Revolving Credit Loans and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Revolving Credit Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Revolving Credit Outstandings shall not exceed the Revolving Credit Facility at such time, and (ii) the aggregate Outstanding Amount of the Revolving Credit Loans of any Revolving Credit Lender at such time, plus such Revolving Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all L/C Obligations at such time, plus such Revolving Credit Lender’s Applicable Revolving Credit Percentage of the Outstanding Amount of all Swing Line Loans at such time shall not exceed such Lender’s Revolving Credit Commitment, and provided further that the Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04.  Each Swing Line Loan shall bear interest only at a rate based on the Base Rate.  Immediately upon the making of a Swing Line Loan, each Revolving Credit Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Revolving Credit Lender’s Applicable Revolving Credit Percentage times the principal amount of such Swing Line Loan.

 

(b)           Borrowing Procedures.  Each Swing Line Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone.  Each such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the requested borrowing date, which shall be a Business Day.  Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Revolving Credit Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower at its office by crediting the account of the Borrower on the books of the Swing Line Lender in immediately available funds.

 

(c)           Refinancing of Swing Line Loans.

 

(i)            The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Revolving Credit Lender make a Base Rate Loan in an amount equal to such Lender’s Applicable Revolving Credit Percentage of the amount of Swing Line Loans then outstanding.  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Base Rate Loans, but subject to the unutilized portion of the Revolving Credit Facility for each Revolving Credit Lender and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the Borrower with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent.  Each Revolving 

 

 

 

  

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Credit Lender shall make an amount equal to its Applicable Revolving Credit Percentage of the amount specified in such Committed Loan Notice available to the Administrative Agent in immediately available funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Line Loan) for the account of the Swing Line Lender at the Administrative Agent’s Office not later than 2:00 p.m. on the day specified in such Committed Loan Notice, whereupon, subject to Section 2.04(c)(ii), each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall remit the funds so received to the Swing Line Lender.

 

(ii)           If for any reason any Swing Line Loan cannot be refinanced by such a Revolving Credit  Borrowing in accordance with Section 2.04(c)(i), the request for Base Rate Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Revolving Credit Lenders fund its risk participation in the relevant Swing Line Loan and each Revolving Credit Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation.

 

(iii)           If any Revolving Credit Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Revolving Credit Loan included in the relevant Revolving Credit Borrowing or funded participation in the relevant Swing Line Loan, as the case may be.  A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

 

(iv)           Each Revolving Credit Lender’s obligation to make Revolving Credit Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Revolving Credit Lender’s obligation to make Revolving Credit Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with interest as provided herein.

 

(d)           Repayment of Participations.  At any time after any Revolving Credit Lender has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Revolving Credit Lender its Applicable Revolving Credit Percentage thereof in the same funds as those received by the Swing Line Lender.

 

(i)             If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lender under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the Swing Line Lender in 

 

 

  

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its discretion), each Revolving Credit Lender shall pay to the Swing Line Lender its Applicable Revolving Credit Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal Funds Rate.  The Administrative Agent will make such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

 

(e)            Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Revolving Credit Lender funds its Base Rate Loan or risk participation pursuant to this Section 2.04 to refinance such Revolving Credit Lender’s Applicable Revolving Credit Percentage of any Swing Line Loan, interest in respect of such Applicable Revolving Credit Percentage shall be solely for the account of the Swing Line Lender.

 

(f)            Payments Directly to Swing Line Lender.  The Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

2.05.        Prepayments.

 

(a)            Optional.

 

(i)             The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Term Loans and Revolving Credit Loans in whole or in part and, subject to Section 2.05(d), without premium or penalty; provided that (A) such notice must be received by the Administrative Agent not later than 1:00 p.m. (1) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (2) on the date of prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof; and (C) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice shall specify the date and amount of such prepayment and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s ratable portion of such prepayment (based on such Lender’s Applicable Percentage in respect of the relevant Facility).  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 3.05.  Each prepayment of the outstanding Term Loans pursuant to this Section 2.05(a) shall be applied between the Term A Loans and the Term B Loans as directed by the Borrower, and subject to Section 2.16, each such prepayment shall be paid to the Lenders in accordance with their respective Applicable Percentages in respect of each of the relevant Facilities.

 

(ii)           The Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (A) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the date of the prepayment, and (B) any such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

 

 

  

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(iii)           Notwithstanding anything to the contrary contained in this Agreement, the Borrower may rescind any notice of prepayment under Section 2.05(a)(i) or Section 2.05(a)(ii) if such prepayment would have resulted from a refinancing (or payment in full) of the Facilities, which refinancing (or other payment) shall not be consummated or otherwise shall be delayed.

 

(b)            Mandatory.

 

(i)            Within five Business Days after financial statements have been delivered pursuant to Section 6.01(a) (without giving effect to the proviso in such section) and the related Compliance Certificate has been delivered pursuant to Section 6.02(b), the Borrower shall prepay an aggregate principal amount of Loans equal to the excess (if any):

 

(A)          50% of Excess Cash Flow for the fiscal year covered by such financial statements (commencing with the fiscal year ending December 29, 2013) over

 

(B)           the sum of (I) the aggregate principal amount of Term Loans and Revolving Credit Loans prepaid pursuant to Sections 2.05 and of prepayments or redemption, defeasance, repurchase or other discharge of the 2014 Notes and (II) scheduled principal repayments, to the extent actually made, of Term Loans pursuant to Sections 2.07(a) or 2.07(b) (and, in each such case, to the extent related to revolving debt, so long as the related commitments are terminated), during the applicable fiscal year or during the period after such fiscal year but before the Excess Cash Flow payment is due and made so long as not deducted in the following fiscal year,

 

(such prepayments to be applied as set forth in clauses (v) and (viii) below); provided that the percentage of Excess Cash Flow required to be applied as a prepayment will be subject to the following stepdowns:  (i) 25% if the Borrower’s Consolidated Senior Secured Leverage Ratio as of the end of the fiscal year or period covered by such financial statements is less than 2.50:1.00 and greater than or equal to 2.00:1.00 as of the end of such fiscal year or period and (ii) 0% if the Borrower’s Consolidated Senior Secured Leverage Ratio as of the end of the fiscal year or period covered by such financial statements is less than 2.00:1.00 as of the end of such fiscal year or period.

 

(ii)           Subject to clause (vii) below, if the Borrower or any of its Restricted Subsidiaries Disposes of any property pursuant to Section 7.05(g), (o) or (q) which results in the realization by such Person of Net Cash Proceeds, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds within ten (10) Business Days following upon receipt thereof by such Person (such prepayments to be applied as set forth in clauses (v) and (viii) below); provided, however, that, with respect to any Net Cash Proceeds realized under a Disposition described in this Section 2.05(b)(ii), at the election of the Borrower (as notified by the Borrower to the Administrative Agent within 10 Business Days of such Disposition), and so long as no Event of Default shall have occurred and be continuing, the Borrower or such Restricted Subsidiary may (A) reinvest all or any portion of such Net Cash Proceeds in Permitted Reinvestments so long as within 360 days after the receipt of such Net Cash Proceeds (or 540 days if within 360 days of the receipt of such Net Cash Proceeds, the Borrower or such Restricted Subsidiary enters into a binding agreement to reinvest such Net Cash Proceeds), such reinvestment shall have been consummated or (B) elect to have any or all of such Net Cash Proceeds applied to a reinvestment in Permitted Reinvestments that occurred not more than 270 days prior to the date of receipt of such Net Cash Proceeds (as certified by the Borrower in writing to the Administrative Agent); provided, further, that any Net Cash Proceeds not subject to such definitive agreement or so reinvested or which the Borrower or such Restricted Subsidiary decides not to so reinvest shall be applied within five (5) Business Days to the prepayment of the Loans as set forth in this Section 2.05(b)(ii).

 

 

 

  

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(iii)           Upon the incurrence or issuance by the Borrower or any of its Restricted Subsidiaries of any Indebtedness (other than Indebtedness permitted to be incurred or issued pursuant to Section 7.02), the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom immediately upon receipt thereof by the Borrower or such Restricted Subsidiary (such prepayments to be applied as set forth in clauses (v) and (viii) below).

 

(iv)           Subject to clause (vii) below, upon any Extraordinary Receipt received by or paid to or for the account of the Borrower or any of its Restricted Subsidiaries, and not otherwise included in clause (ii) or (iii) of this Section 2.05(b), the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom within ten (10) Business Days after receipt thereof by the Borrower or such Restricted Subsidiary (such prepayments to be applied as set forth in clauses (v) and (viii) below); provided, however, that with respect to any Extraordinary Receipt, at the election of the Borrower (as notified by the Borrower to the Administrative Agent within 10 Business Days of the receipt of proceeds (provided that no notice shall be required to be delivered to the Administrative Agent unless such proceeds exceed $5,000,000)), and so long as no Event of Default shall have occurred and be continuing, the Borrower or such Restricted Subsidiary may (A) apply such cash proceeds within 360 days after the receipt thereof (or 540 days if within 360 days of the receipt of such Net Cash Proceeds, the Borrower or such Restricted Subsidiary enters into a binding agreement to reinvest such Net Cash Proceeds) to make a Permitted Reinvestment or (B) or elect to have any or all of such Net Cash Proceeds applied to a reinvestment in Permitted Reinvestments that occurred not more than 270 days prior to the date of receipt of such Net Cash Proceeds; and provided, further, that any Net Cash Proceeds not subject to such definitive agreement or so reinvested or which the Borrower or such Restricted Subsidiary decides not to so reinvest shall be applied within five (5) Business Days to the prepayment of the Loans as set forth in this Section 2.05(b)(iv).

 

(v)           Each prepayment of Loans pursuant to the foregoing provisions of this Section 2.05(b) shall be applied, first, to the Term A Loans and the Term B Loans to the principal repayment installments thereof on a pro rata basis and, second, to the Revolving Credit Facility in the manner set forth in clause (viii) of this Section 2.05(b), without reduction in the Revolving Credit Commitments with respect thereto.

 

(vi)           If for any reason the Total Revolving Credit Outstandings at any time exceed the Revolving Credit Facility at such time, the Borrower shall within one Business Day prepay Revolving Credit Loans, Swing Line Loans and L/C Borrowings and/or Cash Collateralize the L/C Obligations (other than the L/C Borrowings) in an aggregate amount equal to such excess.

 

(vii)          Notwithstanding any of the other provisions of clause (ii) or (iv) of this Section 2.05(b) no prepayment which would otherwise be required to be made pursuant to clause (ii) or (iv) of this Section 2.05(b) shall be required to the extent that the sum of such Net Cash Proceeds and all other Net Cash Proceeds received by the Borrower or any of its Restricted Subsidiaries in connection with any event described in clauses (ii) or (iv) of this Section 2.05(b) does not exceed $25,000,000 in the fiscal year of the Borrower in which such event occurs (it being understood that a prepayment shall only be required to the extent of the excess over $25,000,000 in such fiscal year).

 

(viii)         Prepayments of the Revolving Credit Facility made pursuant to this Section 2.05(b), first, shall be applied ratably to the L/C Borrowings and the Swing Line Loans, second, shall be applied ratably to the outstanding Revolving Credit Loans, and, third, shall be used to Cash Collateralize the remaining L/C Obligations; and, in the case of prepayments of the Revolving Credit Facility required pursuant to clause (i), (ii), (iii) or (iv) of this Section 2.05(b), the amount remaining, if any, after the prepayment in full of all L/C Borrowings, Swing Line Loans and Revolving Credit Loans outstanding at such time and the Cash Collateralization of the remaining L/C Obligations in full may be retained by the Borrower for 

 

 

  

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use in the ordinary course of its business.  Upon the drawing of any Letter of Credit that has been Cash Collateralized, the funds held as Cash Collateral shall be applied (without any further action by or notice to or from the Borrower or any other Loan Party) to reimburse the L/C Issuers or the Revolving Credit Lenders, as applicable.

 

(c)           Discounted Prepayments.

 

(i)             Notwithstanding anything to the contrary in Section 2.05(a), 2.12(a) or 2.13 (which provisions shall not be applicable to this Section 2.05(c)) or any other provision of this Agreement, any Purchasing Borrower Party shall have the right at any time and from time to time to prepay either Term A Loans or Term B Loans to the Lenders at a discount to the par value of such Loans and on a non pro rata basis (each, a “Discounted Voluntary Prepayment”) pursuant to the procedures described in this Section 2.05(c); provided that (A) no more than $50 million shall be outstanding in Revolving Loans, (B) any Discounted Voluntary Prepayment shall be offered to all Lenders with Term Loans on a pro rata basis and (C) such Purchasing Borrower Party shall deliver to the Administrative Agent a certificate stating that (1) no Event of Default has occurred and is continuing or would result from the Discounted Voluntary Prepayment (after giving effect to any related waivers or amendments obtained in connection with such Discounted Voluntary Prepayment) and (2) each of the conditions to such Discounted Voluntary Prepayment contained in this Section 2.05(c) has been satisfied and (3) except as previously disclosed in writing to the Administrative Agent and the Term Lenders, if such Purchasing Borrower Party is the Borrower or a Subsidiary thereof, such Purchasing Borrower Party does not have, as of the date of each Discounted Prepayment Option Notice and each Discounted Voluntary Prepayment Notice, any material non-public information (“MNPI”) with respect to the Borrower or any of its Subsidiaries that has not been disclosed to the Lenders (other than Lenders that do not wish to receive MNPI with respect to the Borrower, any of its Subsidiaries or Affiliates) prior to such time that could reasonably be expected to have a material effect upon, or otherwise be material to, a Term Lender’s decision to offer Term Loans to the Purchasing Borrower Party to be repaid.

 

(ii)           To the extent a Purchasing Borrower Party seeks to make a Discounted Voluntary Prepayment, such Purchasing Borrower Party will provide written notice to the Administrative Agent substantially in the form of Exhibit K to the Existing Credit Agreement (each, a “Discounted Prepayment Option Notice”) that such Purchasing Borrower Party desires to prepay Term Loans in an aggregate principal amount specified therein by the Purchasing Borrower Party (each, a “Proposed Discounted Prepayment Amount”), in each case at a discount to the par value of such Term Loans as specified below.  The Proposed Discounted Prepayment Amount of Term Loans shall not be less than $5,000,000.  The Discounted Prepayment Option Notice shall further specify with respect to the proposed Discounted Voluntary Prepayment:  (A) the Proposed Discounted Prepayment Amount of Term Loans, (B) a discount range (which may be a single percentage) selected by the Purchasing Borrower Party with respect to such proposed Discounted Voluntary Prepayment (representing the percentage of par of the principal amount of Term Loans to be prepaid) (the “Discount Range”), and (C) the date by which Lenders are required to indicate their election to participate in such proposed Discounted Voluntary Prepayment which shall be at least five Business Days following the date of the Discounted Prepayment Option Notice (the “Acceptance Date”).

 

(iii)           Upon receipt of a Discounted Prepayment Option Notice in accordance with Section 2.05(c)(ii), the Administrative Agent shall promptly notify each Term Lender thereof.  On or prior to the Acceptance Date, each such Lender may specify by written notice substantially in the form of Exhibit L to the Existing Credit Agreement (each, a “Lender Participation Notice”) to the Administrative Agent (A) a minimum price (the “Acceptable Price”) within the Discount Range (for example, 80% of the par value of the Loans to be prepaid) and (B) a maximum principal amount (subject to rounding requirements specified by the Administrative Agent) of Term Loans with respect to which such Lender is willing to permit a 

 

 

  

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Discounted Voluntary Prepayment at the Acceptable Price (“Offered Loans”).  Based on the Acceptable Prices and principal amounts of Term Loans specified by the Lenders in the applicable Lender Participation Notice, the Administrative Agent, in consultation with the Purchasing Borrower Party, shall determine the applicable discount for Term Loans (the “Applicable Discount”), which Applicable Discount shall be (A) the percentage specified by the Purchasing Borrower Party if the Purchasing Borrower Party has selected a single percentage pursuant to Section 2.05(c)(ii) for the Discounted Voluntary Prepayment or (B) otherwise, the lowest Acceptable Price at which the Purchasing Borrower Party can pay the Proposed Discounted Prepayment Amount in full (determined by adding the principal amounts of Offered Loans commencing with the Offered Loans with the lowest Acceptable Price); provided, however, that in the event that such Proposed Discounted Prepayment Amount cannot be repaid in full at any Acceptable Price, the Applicable Discount shall be the highest Acceptable Price specified by the Lenders that is within the Discount Range.  The Applicable Discount shall be applicable for all Lenders who have offered to participate in the Voluntary Discounted Prepayment and have Qualifying Loans (as defined below).  Any Lender with outstanding Term Loans whose Lender Participation Notice is not received by the Administrative Agent by the Acceptance Date shall be deemed to have declined to accept a Discounted Voluntary Prepayment of any of its Term Loans at any discount to their par value within the Applicable Discount.  For the avoidance of doubt, any Term Loans redeemed by the Borrower pursuant to a Discounted Voluntary Prepayment shall immediately cease to be outstanding.

 

(iv)           The Purchasing Borrower Party shall make a Discounted Voluntary Prepayment by prepaying those Term Loans (or the respective portions thereof) offered by the Lenders (“Qualifying Lenders”) that specify an Acceptable Price that is equal to or lower than the Applicable Discount (“Qualifying Loans”) at the Applicable Discount; provided that if the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would exceed the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Purchasing Borrower Party shall prepay such Qualifying Loans ratably among the Qualifying Lenders based on their respective principal amounts of such Qualifying Loans (subject to rounding requirements specified by the Administrative Agent).  If the aggregate proceeds required to prepay all Qualifying Loans (disregarding any interest payable at such time) would be less than the amount of aggregate proceeds required to prepay the Proposed Discounted Prepayment Amount, such amounts in each case calculated by applying the Applicable Discount, the Purchasing Borrower Party shall prepay all Qualifying Loans.

 

(v)           Each Discounted Voluntary Prepayment shall be made within four Business Days of the Acceptance Date (or such other date as the Administrative Agent shall reasonably agree, given the time required to calculate the Applicable Discount and determine the amount and holders of Qualifying Loans), without premium or penalty (but subject to Section 3.05), upon irrevocable notice substantially in the form of Exhibit M to the Existing Credit Agreement (each a “Discounted Voluntary Prepayment Notice”), delivered to the Administrative Agent no later than 1:00 p.m. (New York City time), three Business Days prior to the date of such Discounted Voluntary Prepayment, which notice shall specify the date and amount of the Discounted Voluntary Prepayment and the Applicable Discount determined by the Administrative Agent.  Upon receipt of any Discounted Voluntary Prepayment Notice the Administrative Agent shall promptly notify each relevant Lender thereof.  If any Discounted Voluntary Prepayment Notice is given, the amount specified in such notice shall be due and payable to the applicable Lenders, subject to the Applicable Discount on the applicable Loans, on the date specified therein together with accrued interest (on the par principal amount) to but not including such date on the amount prepaid.

 

(vi)           To the extent not expressly provided for herein, each Discounted Voluntary Prepayment shall be consummated pursuant to reasonable procedures (including as to timing, rounding and calculation of Applicable Discount in accordance with Section 2.05(c)(iii) above) established by the Administrative Agent in consultation with the Borrower.

 

 

  

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(vii)          Prior to the delivery of a Discounted Voluntary Prepayment Notice, upon written notice to the Administrative Agent, the Purchasing Borrower Party may withdraw its offer to make a Discounted Voluntary Prepayment pursuant to any Discounted Prepayment Option Notice.

 

(viii)         The aggregate principal amount of the Term Loans outstanding shall be deemed reduced by the full par value of the aggregate principal amount of the Term Loans prepaid on the date of any such Discounted Voluntary Prepayment.

 

(ix)           Each prepayment of the outstanding Term Loans pursuant to this Section 2.05(c) shall be applied at par to the remaining principal repayment installments of the Term Loans as directed by the Borrower.

 

(x)            In connection with any Discounted Voluntary Prepayment with a Purchasing Borrower Party other than the Borrower or a Subsidiary thereof, each of the Qualifying Lenders, on the one hand, and the Purchasing Borrower Party, on the other hand, shall acknowledge and agree that, (A) the other party currently may have, and later may come into possession of, information regarding the Loan Documents or the Loan Parties that is not known to it and that may be material to a decision to participate in any Discounted Voluntary Prepayment or enter into any of the transactions contemplated thereby (the “Excluded Information”), (B) it has independently and without reliance on the other party made its own analysis and determined to participate in the Discounted Voluntary Prepayment and to consummate the transactions contemplated thereby notwithstanding its lack of knowledge of the Excluded Information and (C) the other party shall have no liability to it, and it hereby (to the extent permitted by law) waives and releases any claims it may have against the other party (under applicable laws or otherwise) with respect to the nondisclosure of the Excluded Information.

 

(d)           Prepayment Premium.  Notwithstanding anything herein to the contrary, in the event that, on or prior to the date that is six months after the Restatement Effective Date, (x) the Borrower makes any prepayment of Term B Loans in connection with any Repricing Transaction, or (y) effects any amendment of this Agreement resulting in a Repricing Transaction, the Borrower shall pay to the Administrative Agent, for the ratable account of each of the applicable Term  B Lenders, (I) in the case of clause (x), 1% of the principal amount of the Term B Loans so prepaid and (II) in the case of clause (y), a payment equal to 1% of the aggregate amount of the Term B Loans being so refinanced or repriced.

 

2.06.        Termination or Reduction of Commitments.

 

(a)            Optional.  The Borrower may, upon notice to the Administrative Agent, terminate the Revolving Credit Facility, the Letter of Credit Sublimit or the Swing Line Sublimit, or from time to time permanently reduce the Revolving Credit Facility, the Letter of Credit Sublimit or the Swing Line Sublimit; provided that (i) any such notice shall be received by the Administrative Agent not later than 1:00 p.m. three Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $1,000,000 or any whole multiple of $500,000 in excess thereof and (iii) the Borrower shall not terminate or reduce (A) the Revolving Credit Facility if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit Outstandings would exceed the Revolving Credit Facility, (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit, or (C) the Swing Line Sublimit if, after giving effect thereto and to any concurrent prepayments hereunder, the Outstanding Amount of Swing Line Loans would exceed the Swing Line Sublimit.  Notwithstanding the foregoing, the Borrower may rescind or postpone any notice of termination of the Commitments if such termination would have resulted from a refinancing (or payment in full) of the Facilities, which refinancing (or other payment) shall not be consummated or otherwise shall be delayed.

 

 

  

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(b)           Mandatory.  The aggregate Term Commitments shall be automatically and permanently reduced to zero at 5:00 p.m. on the earlier of (i) the Restatement Effective Date and (ii) June 30, 2013.

 

(c)           If after giving effect to any reduction or termination of Revolving Credit Commitments under this Section 2.06, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the Revolving Credit Facility at such time, the Letter of Credit Sublimit or the Swing Line Sublimit, as the case may be, shall be automatically reduced by the amount of such excess.

 

(d)           Application of Commitment Reductions; Payment of Fees.  The Administrative Agent will promptly notify the Lenders of any termination or reduction of the Letter of Credit Sublimit, the Swing Line Sublimit or the Revolving Credit Commitment under this Section 2.06.  Upon any reduction of the Revolving Credit Commitments, the Revolving Credit Commitment of each Revolving Credit Lender shall be reduced by such Lender’s Applicable Revolving Credit Percentage of such reduction amount.  All fees in respect of the Revolving Credit Facility accrued until the effective date of any termination of the Revolving Credit Facility shall be paid on the effective date of such termination.

 

2.07.        Repayment of Loans.

 

(a)            Term A Loans.  The Borrower shall repay to the Administrative Agent for the ratable account of the Term A Lenders  (x) on the last Business Day of each March, June, September and December, commencing with the first full quarter after the Restatement Effective Date, an aggregate amount equal to (i) 1.25% of the original aggregate principal amount of the Term A Loans for the first eight such dates after the Restatement Effective Date, (ii), 1.875% of the original aggregate principal amount of the Term A Loans for the next four such dates, (iii) 2.5% of the original aggregate principal amount of the Term A Loans for the next eight such dates (in each case (i) through (iii) which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05) and (y) on the Maturity Date for the Term A Loans, the aggregate principal amount of all Term A Loans outstanding on such date.

 

(b)           Term B Loans.  The Borrower shall repay to the Administrative Agent for the ratable account of the Term B Lenders (i) on the last Business Day of each March, June, September and December, commencing with the first full quarter after the Restatement Effective Date, an aggregate amount equal to 0.25% of the aggregate principal amount of all Term B Loans outstanding Restatement Effective Date (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.05) and (ii) on the Maturity Date for the Term B Loans, the aggregate principal amount of all Term B Loans outstanding on such date.

 

(c)            Revolving Credit Loans.  The Borrower shall repay to the Revolving Credit Lenders on the Maturity Date for the Revolving Credit Facility the aggregate principal amount of all Revolving Credit Loans outstanding on such date.

 

(d)            Swing Line Loans.  The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) the date ten Business Days after such Loan is made, (ii) the demand of the Swing Line Lender and (iii) the Maturity Date for the Revolving Credit Facility.

 

2.08.        Interest.

 

(a)           Subject to the provisions of Section 2.08(b), (i) each Eurodollar Rate Loan under a Facility shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate for such Facility; (ii) each Base Rate Loan under a Facility shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for such Facility; and (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from 

 

 

  

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the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for the Revolving Credit Facility.

 

(b)           If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(i)       If any amount (other than principal of any Loan) payable by the Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

 

(ii)       Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.

 

(c)           Interest on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.

 

2.09.        Fees.  In addition to certain fees described in Sections 2.03(h) and (i):

 

(a)            Commitment Fee.  The Borrower shall pay to the Administrative Agent for the account of each Revolving Credit Lender in accordance with its Applicable Revolving Credit Percentage, a commitment fee equal to the Applicable Fee Rate times the actual daily amount by which the Revolving Credit Facility exceeds the sum of (i) the Outstanding Amount of Revolving Credit Loans and (ii) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.16.  The commitment fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Original Closing Date, and on the last day of the Availability Period for the Revolving Credit Facility.  The commitment fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Fee Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Fee Rate separately for each period during such quarter that such Applicable Fee Rate was in effect.  For the avoidance of doubt, Swing Line Loans shall not be considered outstanding for purposes of determining the Outstanding Amount of Revolving Credit Loans.

 

(b)           [Reserved].

 

(c)            Other Fees.

 

(i)            The Borrower shall pay to the Arrangers and the Administrative Agent for their own respective accounts fees in the amounts and at the times specified in the Agent Fee Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

 

  

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(ii)           The Borrower shall pay to the Lenders such fees as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.

 

2.10.        Computation of Interest and Fees.  All computations of interest for Base Rate Loans including Base Rate Loans (determined by reference to the Eurodollar Rate) shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.12(a), bear interest for one day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

 

2.11.        Evidence of Debt.

 

(a)           The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

 

(b)           In addition to the accounts and records referred to in Section 2.11(a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

 

2.12.        Payments Generally; Administrative Agent’s Clawback.

 

(a)            General.  All payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its Applicable Percentage in respect of the relevant Facility (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by the Borrower shall come due on a day other 

 

 

 

  

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than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected on computing interest or fees, as the case may be.

 

(b)            Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior to 2:00 p.m. on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with Section 2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share available in accordance with and at the time required by Section 2.02) and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.  If the Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the Borrower for such period.  If such Lender pays its share of the applicable Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

 

(c)            Payments by Borrower; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Borrower prior to the time at which any payment is due to the Administrative Agent for the account of the Lenders or any L/C Issuer hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Appropriate Lenders or the relevant L/C Issuer, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Appropriate Lenders or the relevant L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the relevant L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.

 

A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.

 

(d)           Failure to Satisfy Conditions Precedent.  If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this Article II, and such funds are not made available to the Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in like funds as received from such Lender) to such Lender, without interest.

 

 

  

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(e)            Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Term Loans and Revolving Credit Loans, to fund participations in Letters of Credit and Swing Line Loans and to make payments pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any Loan, to fund any such participation or to make any payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Loan, to purchase its participation or to make its payment under Section 10.04(c).

 

(f)            Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.

 

(g)            Insufficient Funds.  If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, L/C Borrowings, interest and fees then due hereunder, such funds shall be applied (i) first, toward payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, toward payment of principal and L/C Borrowings then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and L/C Borrowings then due to such parties.

 

2.13.        Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations in respect of any of the Facilities due and payable to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations in respect of such Facility due and payable to all Lenders hereunder and under the other Loan Documents at such time) of payments on account of the Obligations in respect of such Facility due and payable to all Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at such time or (b) Obligations in respect of such Facility owing (but not due and payable) to such Lender hereunder and under the other Loan Documents at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing (but not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations in respect of such Facility owing (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time) of payment on account of the Obligations in respect of such Facility owing (but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by all of the Lenders at such time then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and subparticipations in L/C Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of Obligations in respect of such Facility then due and payable to the Lenders or owing (but not due and payable) to the Lenders, as the case may be, provided that:

 

(i)       if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest;

 

(ii)       the provisions of this Section shall not be construed to apply to (w) any payment made to Lenders (as defined in the Existing Credit Agreement) under the Existing Credit Agreement by or on behalf of the Borrower in connection with the Transactions, (x) any payment made by or on behalf of the Borrower pursuant to and in accordance with the terms of this Agreement (including, without limitation, as provided in Section 2.05 and the application of funds arising 

 

 

  

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from the existence of a Defaulting Lender), (y) the application of Cash Collateral provided for in Section 2.15, or (z) any payment obtained by a Lender as consideration for the assignment of, or sale of a participation in, any of its Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee or participant; and

 

(iii)       the provisions of this Section shall not be construed to apply to any Cash Collateralization or similar security provided solely for the benefit of the L/C Issuers or Swing Line Lender in accordance with Section 2.03(a)(iii)(F) or 2.04(a).

 

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation.

 

2.14.        Increase in Commitments.

 

(a)           So long as no Default or Event of Default has occurred and is continuing or would result therefrom, upon notice to the Administrative Agent, at any time after the Original Closing Date, the Borrower may request one or more Additional Term Commitments or one or more Additional Revolving Credit Commitments (it being understood and agreed that (i) at the election of the Borrower, such additional commitments in respect of any term loans may be implemented through the addition of additional new tranches of such loans instead of being implemented as increases in the applicable Commitments and (ii) if the Borrower makes such election, the provisions of this Section shall be read in a manner that permits such election to be implemented; provided that (x) the final maturity date of any such new tranche of term loans shall be no earlier than the Maturity Date for the Term B Loans or with respect to no more than $275,000,000 of Additional Term Commitments and Permitted Additional First Lien Debt shall be no earlier than the Maturity Date of the Term A Loans and (y) the weighted average life to maturity of any such new tranche of term loans shall be no shorter than the remaining weighted average life to maturity of the Term B Loans or with respect to no more than $275,000,000 of Additional Term Commitments and Permitted Additional First Lien Debt shall be no shorter than the remaining weighted average life to maturity of the Term A Loans); provided that (i) after giving effect to any such additional commitments, the aggregate amount of Additional Term Commitments and Additional Revolving Credit Commitments that have been added pursuant to this Section 2.14 shall not exceed $275,000,000 (minus the aggregate principal amount of any Permitted Additional First Lien Debt the proceeds of which are not used solely to repay Term Loans) unless, after giving effect to any such additional commitments, the Consolidated Senior Secured Leverage Ratio, computed on a Pro Forma Basis as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements have been delivered, would be no greater than 3.00 to 1.0; (ii) any such addition shall be in an aggregate amount of $10,000,000 or any whole multiple of $500,000 in excess thereof (provided that such amount may be less than $10,000,000 if such amount represents all remaining availability under the aggregate limit in respect of Additional Term Commitments and Additional Revolving Credit Commitments set forth in clause (i) to this proviso), (iii) the final maturity date of any Additional Term Loans shall be (x) no earlier than the Maturity Date for the Term B Loans or (y) with respect to no more than $275,000,000 of Additional Term Loans and Permitted Additional First Lien Debt no earlier than the Maturity Date of the Term A Loans, (iv) the weighted average life to maturity of the Additional Term Loans shall be (x) no shorter than the remaining weighted average life to maturity of the Term B Loans or (y) with respect to no more than $275,000,000 of Additional Term Loans and Permitted Additional First Lien Debt shall be no shorter than the remaining weighted average life to maturity of the Term A Loans, (v) no Lender shall be required to participate in the Additional Term Commitments or the Additional Revolving Credit Commitments, (vi) the interest rate and amortization schedule applicable to the Additional Term Commitments shall be determined by the Borrower and the lenders thereof; provided that if such Additional Term Commitments 

 

 

 

  

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(other than those in an amount not exceeding $275,000,000 that are made using clauses (iii)(y) and (iv)(y) above) are incurred within 18 months of the Original Closing Date then and only then in the event that the interest margins applicable to such Additional Term Commitments is greater than the interest margins for the Term B Loans by more than 50 basis points, then the interest margins for the Term B Loans shall be increased to the extent necessary so that the interest margins for such Additional Term Commitments are no more than 50 basis points greater than the interest margins for the Term B Loans; provided, further, that in determining the interest margins applicable to the Term B Loans and the Additional Term Commitments, (x) original issue discount (“OID”) or upfront fees (which shall be deemed to constitute like amounts of OID) payable by the Borrower to the Lenders of the Term B Loans or the Additional Term Commitments in the primary syndication thereof shall be included (with OID being equated to interest based on an assumed four-year life to maturity) and (y) customary arrangement or commitment fees payable to the Arrangers (or their affiliates) in connection with the Term B Loans or to one or more arrangers (or their affiliates) of the Additional Term Commitments shall be excluded and (vii) the Additional Term Loans shall rank pari passu in right of payment and of security with the Revolving Credit Loans and the Term Loans.  Any Additional Revolving Credit Commitments shall be on the same terms and pursuant to the same documentation applicable to the Revolving Credit Facility (it being understood that customary arrangement or commitment fees payable to one or more arrangers (or their affiliates) of the Additional Revolving Credit Commitments may be different than those paid with respect to the Revolving Credit Facility).

 

(b)           If any Additional Term Commitments or Additional Revolving Credit Commitments are added in accordance with this Section 2.14, the Administrative Agent and the Borrower shall determine the effective date (the “Additional Commitments Effective Date”) of such addition.  Additional Term Loans may be made, and Additional Revolving Credit Commitments may be provided, by any existing Lender or by any other bank or other financial institution (any such other bank or other financial institution being called an “Additional Lender”), provided that the Administrative Agent shall have consented (such consent not to be unreasonably withheld) to such Lender’s or Additional Lender’s providing such Additional Revolving Credit Commitments if such consent would be required under Section 10.06(b) for an assignment of Revolving Credit Commitments to such Lender or Additional Lender.  As a condition precedent to such addition, the Borrower shall deliver to the Administrative Agent a certificate dated as of the Additional Commitments Effective Date signed by a Responsible Officer of the Borrower certifying that, before and after giving effect to such increase, (i) the representations and warranties contained in Article V and the other Loan Documents are true and correct in all material respects on and as of the Additional Commitments Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date, and except that for purposes of this Section 2.14(b), the representations and warranties contained in Section 5.05(a) and Section 5.05(b) shall be deemed to refer to the most recent financial statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, (ii) no Default or Event of Default exists immediately before or immediately after giving effect to such addition, and (iii) the Borrower shall be in compliance, on a Pro Forma Basis, with the financial covenants set forth in Section 7.11 after giving effect to the making of Additional Term Loans or Additional Revolving Credit Loans, as applicable.  On each Additional Commitments Effective Date, each applicable Lender or other Person which is providing an Additional Term Commitment or an Additional Revolving Credit Commitment (i) in the case of any Additional Revolving Credit Commitment, shall become a “Revolving Credit Lender” for all purposes of this Agreement and the other Loan Documents and (ii) in the case of any Additional Term Commitment, shall make an Additional Term Loan to the Borrower in a principal amount equal to such Lender’s or Person’s Additional Term Commitment.  Any Additional Revolving Credit Loan shall be a “Revolving Credit Loan” for all purposes of this Agreement and the other Loan Documents and any Additional Term Loan shall be a “Term Loan” for all purposes of this Agreement and the other Loan Documents.  The Borrower shall prepay any Revolving Credit Loans outstanding on the Additional Commitments Effective Date with respect to any Additional Revolving Credit Commitment (and 

 

 

  

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pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Revolving Credit Loans ratable with any revised Applicable Revolving Credit Percentages arising from any nonratable increase in the Revolving Credit Commitments.

 

(c)           Any other terms of and documentation entered into in respect of any Additional Term Loans made or any Additional Revolving Credit Commitments provided, in each case pursuant to this Section 2.14, shall be consistent with the Term Loans or the Revolving Credit Commitments, as the case may be (including with respect to voluntary and mandatory prepayments), other than as contemplated by Section 2.14(a) above; provided that such other terms and documentation in respect of any Additional Term Loans may be materially different from those of the Term Loans, to the extent such difference shall be reasonably satisfactory to the Administrative Agent or be consistent with terms and documentation in respect of comparable Indebtedness of similar companies at the time of such Additional Term Loans in light of the market.  Any Additional Term Loans or Additional Revolving Credit Commitments, as applicable, made or provided pursuant to this Section 2.14 shall be evidenced by one or more entries in the accounts or records maintained by the Administrative Agent in accordance with the provisions set forth in Section 2.11.

 

(d)           This Section 2.14 shall supersede any provisions in Section 2.13 or Section 10.01 to the contrary.  Notwithstanding any other provision of any Loan Document, the Loan Documents may be amended by the Administrative Agent and the Loan Parties to provide for terms applicable to each Additional Term Commitment and/or Additional Revolving Credit Commitment, as the case may be.

 

2.15.        Cash Collateral.

 

(a)            Certain Credit Support Events.  Upon the request of the Administrative Agent or the applicable L/C Issuer (i) if the applicable L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Borrower shall, in each case, within three (3) Business Days Cash Collateralize the then Outstanding Amount of all L/C Obligations.  At any time that there shall exist a Defaulting Lender, immediately upon the request of the Administrative Agent, any L/C Issuer or the Swing Line Lender, the Borrower shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure (after giving effect to Section 2.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender).

 

(b)           Grant of Security Interest.  All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit accounts at the Administrative Agent.  The Borrower, and to the extent provided by any Lender, such Lender, hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the Administrative Agent, each L/C Issuer and the Lenders (including the Swing Line Lender), and agrees to maintain, a first priority security interest in all such cash, deposit accounts and all balances therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be applied pursuant to Section 2.15(c).  If at any time the Administrative Agent determines that Cash Collateral is subject to any Lien of any Person other than in favor of the Administrative Agent as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations secured thereby, the Borrower or the relevant Defaulting Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

 

(c)            Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this Section 2.15 or Sections 2.04, 2.05, 2.06, 2.16 or 8.02 in respect of Letters of Credit or Swing Line Loans shall be held and applied to the satisfaction of the specific 

 

 

  

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L/C Obligations, Swing Line Loans, obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to any other application of such property as may be provided for herein.

 

(d)            Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following compliance with Section 10.06(b)(vi))) or (ii) the Administrative Agent’s good faith determination that there exists excess Cash Collateral; provided, however, that Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the continuance of a Default or an Event of Default (and following application as provided in this Section 2.15 may be otherwise applied in accordance with Section 8.03).

 

2.16.        Defaulting Lenders.

 

(a)            Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

 

(i)        Waivers and Amendments.  That Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 10.01.

 

(ii)       Reallocation of Payments.  Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to Section 10.08), shall be applied at such time or times as may be reasonably determined by the Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to any L/C Issuer or Swing Line Lender hereunder; third, if so determined by the Administrative Agent or requested by the applicable L/C Issuer or Swing Line Lender, to be held as Cash Collateral for future funding obligations of that Defaulting Lender of any participation in any Swing Line Loan or Letter of Credit; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Loans under this Agreement; sixth, to the payment of any amounts owing to the Lenders, any L/C Issuer or Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, any L/C Issuer or Swing Line Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or L/C Borrowings in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Loans or L/C Borrowings were made at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely 

 

  

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to pay the Loans of, and L/C Borrowings owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Borrowings owed to, that Defaulting Lender.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.16(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

 

(iii)       Certain Fees.  That Defaulting Lender (x) shall not be entitled to receive any commitment fee pursuant to Section 2.09 for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender) and (y) shall be limited in its right to receive Letter of Credit Fees as provided in Section 2.03(h).

 

(iv)       Reallocation of Applicable Percentages to Reduce Fronting Exposure.  During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit or Swing Line Loans pursuant to Sections 2.03 and 2.04, the “Applicable Percentage” of each non-Defaulting Lender shall be computed without giving effect to the Commitment of that Defaulting Lender; provided, that, (i) each such reallocation shall be given effect only if, at the date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default exists; and (ii) the aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1) the Commitment of that non-Defaulting Lender minus (2) the aggregate Outstanding Amount of the Committed Loans of that Lender.

 

(b)           Defaulting Lender Cure. If the Borrower, the Administrative Agent, Swing Line Lender and the L/C Issuers agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Revolving Credit Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without giving effect to Section 2.16(a)(iv)), whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

 

2.17.        Extension of Maturity Date in respect of Revolving Credit Facility and Term Loan Facility.

 

(a)            Requests for Extension.  The Borrower may, by notice to the Administrative Agent (who shall promptly notify the applicable Lenders) not earlier than 45 days after the date hereof and not later than 35 days prior to the Maturity Date then in effect hereunder in respect of the Revolving Credit Facility, the Term A Loans or Term B Loans, as applicable  (the “Existing Maturity Date”), request that each Revolving Credit Lender and/or respective Term Lender extend such Lender’s Maturity Date in respect of the Revolving Credit Facility, the Term A Loans or the Term B Loans, as applicable, for an additional period of time from the respective Existing Maturity Date.

 

 

  

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(b)           Lender Elections to Extend.  Each Revolving Credit Lender and/or Term Lender, acting in its sole and individual discretion, shall, by procedures reasonably determined by the Administrative Agent and the Borrower that give Lenders at least five Business Days to respond advise the Administrative Agent whether or not such Revolving Credit Lender and/or Term Lender agrees to such extension and each Revolving Credit Lender and/or Term Lender that determines not to so extend its Maturity Date (a “Non-Extending Lender”) shall notify the Administrative Agent of such fact promptly after such determination and any Revolving Credit Lender and/or Term Lender that does not so advise the Administrative Agent on or before any necessary date shall be deemed to be a Non-Extending Lender.  The election of any Revolving Credit Lender and/or Term Lender to agree to such extension shall not obligate any other Revolving Credit Lender or any other Term Lender to so agree.

 

(c)            Notification by Administrative Agent.  The Administrative Agent shall notify the Borrower of each Revolving Credit Lender’s and/or Term Lender’s determination under this Section promptly after the deadline for responses.

 

(d)            Conditions to Effectiveness of Extensions.  As a condition precedent to such extension, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such extension and (ii) in the case of the Borrower, certifying that, before and after giving effect to such extension, (A) the representations and warranties contained in Article V and the other Loan Documents are true and correct in all material respects on and as of the applicable extension date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and except that for purposes of this Section 2.17, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01, and (B) no Default exists.

 

(e)            Conflicting Provisions.  This Section shall supersede any provisions in Section 2.13 or 10.01 to the contrary.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01.        Taxes.

 

(a)            Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.

 

(i)            Any and all payments by or on account of any obligation of any Loan Party hereunder or under any other Loan Document shall to the extent permitted by applicable Laws (as determined by the Borrower, the Administrative Agent or other applicable withholding agent) be made free and clear of and without reduction or withholding for any Taxes.  If, however, applicable Laws require the Borrower, the Administrative Agent or other applicable withholding agent to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance with such Laws as determined by the Borrower or the Administrative Agent, as the case may be.

 

(ii)           If the Borrower, the Administrative Agent or other applicable withholding agent shall be required by any applicable Laws to withhold or deduct any Taxes from any payment, then (A) the Borrower, the Administrative Agent or other applicable withholding agent shall withhold or make such deductions as are determined by the Borrower, the Administrative Agent or other applicable withholding agent to be required, (B) the Borrower, the Administrative Agent or other applicable withholding agent shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accord-

 

 

  

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ance with the applicable Laws, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that after any such required withholding or deductions (including withholding or deductions on account of Indemnified Taxes or Other Taxes that are applicable to additional sums payable under this Section 3.01) have been made, the Administrative Agent or applicable Lender, as the case may be, receives an amount equal to the sum it would have received had no such withholding or deductions been made, provided that in the case of any such withholding or deductions made by an applicable withholding agent other than the Borrower, any Guarantor or the Administrative Agent, such withholding agent shall have provided the Borrower with a copy of the written advice of tax counsel, in form and substance reasonably acceptable to the Borrower, to the effect that it was reasonable for such withholding agent to conclude that such withholding or deductions were required by applicable Laws.

 

(b)           Payment of Other Taxes by the Borrower.  Without limiting the provisions of subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable Laws.

 

(c)            Tax Indemnifications.  Without limiting the provisions of subsection (a) or (b) above, the Borrower shall, and does hereby, indemnify the Administrative Agent and each Lender, and shall make payment in respect thereof within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 3.01) payable by the Administrative Agent or such Lender, as the case may be, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of any such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

 

(d)           Evidence of Payments.  Upon request by the Administrative Agent, after any payment of Taxes by a Loan Party to a Governmental Authority as provided in this Section 3.01, the Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of any return required by applicable Laws to report such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.

 

(e)            Status of Lenders; Tax Documentation.

 

(i)             Each Lender shall deliver to the Borrower and to the Administrative Agent, at the time or times when reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable Laws or by the taxing authorities of any jurisdiction and such other reasonably requested information as will permit the Borrower or the Administrative Agent, as the case may be, to determine (A) whether or not payments made hereunder or under any other Loan Document are subject to Taxes, (B) if applicable, the required rate of withholding or deduction, and (C) such Lender’s entitlement to any available exemption from, or reduction of, applicable Taxes in respect of all payments to be made to such Lender by the Borrower pursuant to this Agreement or otherwise to establish such Lender’s status for withholding tax purposes in the applicable jurisdiction.

 

(ii)           Without limiting the generality of the foregoing,

 

(A)           any Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Code shall deliver to the Borrower and the Administrative Agent executed originals of Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable Laws or reasonably requested by the Borrower or the Administrative Agent 

 

 

  

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as will enable the Borrower or the Administrative Agent, as the case may be, to determine whether or not such Lender is subject to backup withholding or information reporting requirements; and

 

(B)           each Foreign Lender that is entitled under the Code, other applicable Law or any applicable treaty to an exemption from or reduction of U.S. federal withholding tax with respect to any payments hereunder or under any other Loan Document shall deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

 

(I)            executed originals of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United States is a party,

 

(II)           executed originals of Internal Revenue Service Form W-8ECI,

 

(III)          in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) (or section 871(h), if applicable) of the Code, (x) a certificate substantially in the form of Exhibit N-1 to the Existing Credit Agreement to the effect that no interest payments in connection with any Loan Document are effectively connected with the Foreign Lender’s conduct of a U.S. trade or business and such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section 881(c)(3)(B) (or section 871(h)(3)(B), if applicable) of the Code or (C) a “controlled foreign corporation” related to the Borrower as described in section 881(c)(3)(C) of the Code and (y) executed originals of  Internal Revenue Service Form W-8BEN,

 

(IV)          to the extent a Foreign Lender is not the beneficial owner (for example, where the Foreign Lender is a partnership or participating Lender transferring some or all of its beneficial ownership to a participant), executed originals of Internal Revenue Service Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, a certificate in substantially the form of Exhibit N-2, N-3 or N-4 to the Existing Credit Agreement (as applicable), Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that, if the Foreign Lender is a partnership (and not a participating Lender) and one or more partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a certificate, in substantially the form of Exhibit N-2 to the Existing Credit Agreement, on behalf of such beneficial owner(s) (in lieu of causing each partner to provide such certificate), or

 

(V)           executed originals of any other form prescribed by applicable Laws as a basis for claiming exemption from or a reduction in United States federal withholding tax together with such supplementary documentation as may be prescribed by applicable Laws to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.

 

(iii)           Each Lender shall, from time to time after the initial delivery by such Lender of the forms described above, whenever a lapse in time or change in such Lender’s circumstances renders such forms, certificates or other evidence so delivered obsolete, expired or inaccurate, promptly (1) deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) renewals, amendments or additional or successor forms, properly completed and duly executed by such Lender, together with any other certificate or statement of exemption required in order to confirm or es-

 

 

  

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tablish such Lender’s status or that such Lender is entitled to an exemption from or reduction in applicable tax or (2) notify Administrative Agent and Borrower in writing of its inability to deliver any such forms, certificates or other evidence.

 

(iv)           If a payment made to a Foreign Lender would be subject to United States federal withholding tax imposed by FATCA if such Foreign Lender fails to comply with the applicable reporting requirements of FATCA, such Foreign Lender shall deliver to the Borrower and the Administrative Agent, at the time or times prescribed by the applicable law and at such times or times reasonably requested by the Borrower or the Administrative Agent, any documentation required by applicable law and such additional documentation reasonably requested by the Borrower or the Administrative Agent sufficient for the Borrower or the Administrative Agent to comply with its obligations under FATCA, to determine whether such Foreign Lender has complied with such applicable reporting requirements and/or to determine whether any withholding is required under FATCA.

 

(f)        Treatment of Certain Refunds.  Unless required by applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender.  If the Administrative Agent, any Lender determines, in its good faith sole discretion, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it has been indemnified by a Loan Party or with respect to which the Loan Party has paid additional amounts pursuant to this Section 3.01, it shall within 10 days from the date of such receipt, pay to the Loan Party an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Loan Party under this Section with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including any Taxes) incurred by the Administrative Agent or such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Loan Party, upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over to the Loan Party (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Borrower or any other Person.

 

(g)           For purposes of this Section 3.01, each reference to the term “Lender” shall include the L/C Issuers and Swing Line Lender.

 

3.02.        Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to the Eurodollar Rate, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, (i) any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended, and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Borrower may, within five Business Days following demand from such Lender (with a copy to the Administrative Agent), prepay or, if appli-

 

 

  

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cable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate), either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Eurodollar Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal  for such Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03.        Inability to Determine Rates.  If the Required Lenders determine that for any reason in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan or (b) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed Base Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended, and (y) in the event of a determination described in the preceding sentence with respect to the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein.

 

3.04.        Increased Costs; Reserves on Eurodollar Rate Loans.

 

(a)           Increased Costs Generally.  If any Change in Law shall:

 

(i)        impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement reflected in the Eurodollar Rate  or contemplated by Section 3.04(e)) or any L/C Issuer;

 

(ii)       subject any Lender or any L/C Issuer to any Tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Loan made by it (except for Indemnified Taxes or Other Taxes covered by Section 3.01 and any Excluded Taxes payable by such Lender or such L/C Issuer); or

 

(iii)       impose on any Lender or any L/C Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of Credit or participation therein;

 

and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan the interest on which is determined by reference to the Eurodollar Rate (or, in the case of paragraph (ii) above, any Loan), or of maintaining its obligation to make any such Loan), or to increase 

 

 

 

  

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the cost to such Lender or such L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or such L/C Issuer in writing, the Borrower will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.

 

(b)           Capital Requirements.  If any Lender or any L/C Issuer determines that any Change in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender or such Lender’s or such L/C Issuer’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or such L/C Issuer’s capital or on the capital of such Lender’s or such L/C Issuer’s holding company, if any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a level below that which such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or such L/C Issuer’s policies and the policies of such Lender’s or such L/C Issuer’s holding company with respect to capital adequacy or liquidity requirements), then from time to time the Borrower will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding company for any such reduction suffered.

 

(c)            Certificates for Reimbursement.  A certificate of a Lender or an L/C Issuer setting forth in reasonable detail  the amount or amounts necessary to compensate such Lender or such L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or such L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 Business Days after receipt thereof.

 

(d)           Delay in Requests.  Failure or delay on the part of any Lender or any L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or such L/C Issuer’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender or an L/C Issuer pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender or such L/C Issuer, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or such L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).

 

(e)            Reserves on Eurodollar Rate Loans.  The Borrower shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error), which shall be due and payable on each date on which interest is payable on such Loan, provided the Borrower shall have received at least 30 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 10 Business Days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 Business Days from receipt of such notice.

 

 

 

  

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3.05.        Compensation for Losses.  Upon written request of any Lender (with a copy to the Administrative Agent and the Borrower) from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

 

(a)           any continuation, conversion, payment or prepayment of any Loan other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

 

(b)           any failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in the amount notified by the Borrower; or

 

(c)           any assignment of a Eurodollar Rate Loan on a day other than the last day of the Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13;

 

including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such funds were obtained.  The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing in an amount not to exceed $500 per Lender.  For the avoidance of doubt, the Borrower shall not compensate any Lender for any loss of anticipated profits under this Section 3.05.

 

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

 

3.06.        Mitigation Obligations; Replacement of Lenders.

 

(a)            Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or the Borrower is required to pay any additional amount to any Lender, any L/C Issuer, or any Governmental Authority for the account of any Lender or any L/C Issuer pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender or such L/C Issuer shall, as applicable, use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender or such L/C Issuer, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender or such L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or such L/C Issuer, as the case may be.  The Borrower hereby agrees to pay all reasonable and documented out-of-pocket costs and expenses incurred by any Lender or any L/C Issuer in connection with any such designation or assignment.

 

(b)           Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, or if a Lender becomes a Defaulting Lender, the Borrower may replace such Lender in accordance with Section 10.13.

 

 

 

  

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3.07.        Survival.  All of the Borrower’s obligations under this Article III shall survive termination of the Aggregate Commitments, repayment of all other Secured Obligations hereunder, resignation of the Administrative Agent or any assignment by a Lender.

 

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01.        Conditions of Initial Credit Extension.  The obligation of each L/C Issuer and each Lender to make its initial Credit Extension hereunder on the Original Closing Date is subject to satisfaction of the following conditions precedent (capitalized terms used in this Section 4.01 and not defined herein shall have the meaning assigned thereto in the Existing Credit Agreement) (for the avoidance of doubt, all conditions precedent in this Section 4.01 were satisfied on the Original Closing Date):

 

(a)           The Administrative Agent’s receipt of the following, each of which shall be originals or facsimile (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance reasonably satisfactory to the Administrative Agent:

 

(i)            executed counterparts of this Agreement, the completed Perfection Certificate and the Guaranty, sufficient in number for distribution to the Administrative Agent and the Borrower;

 

(ii)           a Note executed by the Borrower in favor of each Lender requesting a Note;

 

(iii)          a security agreement, in substantially the form of Exhibit G to the Existing Credit Agreement (together with each other security agreement and security agreement supplement delivered pursuant to Section 6.12, in each case as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), duly executed by each Loan Party, together with:

 

(A)           certificates representing the Pledged Securities referred to therein accompanied by undated stock powers executed in blank in the case of equity and instruments indorsed in blank in the case of debt,

 

(B)            proper financing statements in form appropriate for filing under the Uniform Commercial Code of all jurisdictions that the Administrative Agent may deem necessary or desirable in order to perfect the Liens created under the Security Agreement, covering the Collateral described in the Security Agreement,

 

(C)            certified copies of UCC, United States Patent and Trademark Office and United States Copyright Office, tax and judgment lien searches or equivalent reports or searches, each of a recent date listing all effective financing statements, lien notices or comparable documents that name any Loan Party as debtor and that are filed in those state and county jurisdictions in which any Loan Party is organized or maintains its principal place of business and such other searches that are required by the Perfection Certificate or that the Administrative Agent deems necessary or appropriate,

 

 

  

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(D)            evidence of the completion of all other actions, recordings and filings of or with respect to the Security Agreement that the Administrative Agent may deem necessary in order to perfect the Liens created thereby,

 

(E)            the Control Agreements (as defined in the Security Agreement), in each case to the extent required in the Security Agreement and duly executed by the appropriate parties,

 

(F)            evidence that all other action that the Administrative Agent may deem necessary in order to perfect the Liens created under the Security Agreement has been taken (including receipt of duly executed payoff letters, mortgage releases and UCC-3 termination statements);

 

(iv)           [Reserved];

 

(v)           an intellectual property security agreement or agreements for each of copyrights, patents and trademarks, in substantially the form attached to the Security Agreement (as amended, the “Intellectual Property Security Agreement”), duly executed by each applicable Loan Party, together with evidence that all action that the Administrative Agent may deem necessary in order to perfect the Liens created under the Intellectual Property Security Agreement has been taken;

 

(vi)          such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party;

 

(vii)         such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

(viii)        an opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, in form and substance reasonably satisfactory to the Administrative Agent (which shall cover New York law and the General Corporation Law, Limited Liability Company Act and Revised Uniform Limited Partnership Act of Delaware);

 

(ix)           an opinion of local counsel to the Loan Parties in each of Colorado, Florida and Ohio, addressed to the Administrative Agent and the Secured Parties;

 

(x)           a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and approvals required in connection with the consummation by such Loan Party of the Transaction and the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in 

 

 

  

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full force and effect, or (B) stating that no such consents, licenses or approvals are so required;

 

(xi)           a certificate signed by a Responsible Officer of the Borrower certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, and (B) that there has been no event or circumstance since the date of the Audited Financial Statements that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect;

 

(xii)          a certificate attesting to the Solvency of the Borrower and its Restricted Subsidiaries on a consolidated basis before and after giving effect to the Transaction and the incurrence of Indebtedness related thereto, from the Borrower’s chief financial officer in form and substance reasonably satisfactory to the Arrangers;

 

(xiii)        evidence that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect, together with the certificates of insurance, naming the Administrative Agent, on behalf of the Secured Parties, as an additional insured under all insurance policies maintained with respect to the assets and properties, as applicable, of the Loan Parties that constitutes Collateral;

 

(xiv)        evidence that the Existing Credit Agreement has been, or concurrently with the Closing Date is being, terminated and all Liens securing obligations under the Existing Credit Agreement have been, or concurrently with the Closing Date are being, released; and

 

(xv)         such other assurances, certificates or documents as the Administrative Agent reasonably may require.

 

(b)           (i)  All fees and expenses required to be paid to the Administrative Agent and the Arrangers on or before the Closing Date shall have been paid and (ii) all fees required to be paid to the Lenders on or before the Closing Date shall have been paid, in each case, to the extent invoiced.

 

(c)           Unless waived by the Administrative Agent, the Borrower shall have paid all reasonable and documented fees, out-of-pocket charges and disbursements of one outside counsel and one local counsel in each relevant jurisdiction to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus such additional amounts of such reasonable and documented fees, out-of-pocket charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings.

 

Without limiting the generality of the provisions of Section 9.03(e), for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the Original Closing Date specifying its objection thereto.

 

4.02.        Conditions to All Credit Extensions.  The obligation of each Lender to honor any Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent:

 

 

  

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(a)           The representations and warranties of the Borrower and each other Loan Party contained in Article V or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (except that any representation and warranty that is qualified as to “materiality” or “Material Adverse Effect” shall be true and correct in all respects) as of such earlier date, and except that for purposes of this Section 4.02, the representations and warranties contained in Sections 5.05(a) and (b) shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b), respectively.

 

(b)           No Default shall exist or would result from such proposed Credit Extension or from the application of the proceeds thereof.

 

(c)           The Administrative Agent and, if applicable, each L/C Issuer or the Swing Line Lender shall have received a Request for Credit Extension in accordance with the requirements hereof.

 

Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrower shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

The Borrower represents and warrants to the Administrative Agent and the Lenders that:

 

5.01.        Existence, Qualification and Power.  Except as permitted by Section 7.04 or as disclosed in Schedule 5.01 to the Existing Credit Agreement, each Loan Party and each of its Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization (to the extent such concept applies to such entity), (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party and consummate the Transactions, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license; except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

5.02.        Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of each Loan Document to which such Person is a party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law, except in the case of clauses (b) 

 

 

  

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and (c), where such contravention, conflict, breach, Lien, payment or violations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

5.03.        Governmental Authorization; Other Consents.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with (a) the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, or for the consummation of the Transactions, (b) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (c) the perfection or maintenance of the Liens created under the Collateral Documents (including the first priority (except as otherwise permitted under the Loan Documents) nature thereof) or (d) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, or that have been or will be, on or prior to the Original Closing Date, obtained or made, and with respect to the Collateral, filings required to perfect the Liens created by the Collateral Documents.

 

5.04.        Binding Effect.  This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.  This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

5.05.        Financial Statements; No Material Adverse Effect.

 

(a)           The Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein and (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations for the periods covered thereby in accordance with GAAP consistently applied throughout the periods covered thereby, except as otherwise expressly noted therein.

 

(b)           The unaudited condensed consolidated balance sheet of the Borrower and its Subsidiaries and the related condensed consolidated statements of income or operations and cash flows for the most recent fiscal quarter delivered pursuant to Section 6.01(b) (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.

 

(c)           Since the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

 

(d)           The consolidated forecasted balance sheets, statements of income and cash flows of the Borrower and its Subsidiaries delivered pursuant to Section 4.01 or Section 6.01(c) were prepared in good faith on the basis of the assumptions stated therein, which assumptions were based on the current conditions and facts known to the Borrower at the time of delivery of such forecasts and reflect the Borrower’s good faith estimate of its future financial condition and performance.  Notwithstanding the foregoing, it is understood that such forecasted balance sheets are subject to significant uncertainties and contingencies, 

 

 

  

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many of which are beyond the control of the Borrower and its Subsidiaries and that no assurance can be given that such forecasts will be realized.

 

5.06.        Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or any of its Subsidiaries or against any of their properties or revenues that (a) purport to enjoin this Agreement, any other Loan Document or the consummation of the Transactions, or (b) either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.07.        No Default.  Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to, or a party to, any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

 

5.08.        Ownership of Property; Liens; Investments.

 

(a)            Each Loan Party and each of its Subsidiaries has record and marketable title in fee simple to, or valid leasehold interests in, all Real Property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  No such Real Property is subject to any Lien, other than Liens created or permitted by the Loan Documents.

 

(b)           [Reserved]

 

(c)           [Reserved]

 

(d)           Schedule 5.08(d) to the Existing Credit Agreement sets forth a complete and accurate list of all Investments as of the Original Closing Date held by any Loan Party or any Restricted Subsidiary of a Loan Party on the Original Closing Date, showing as of such date the amount, obligor or issuer and maturity, if any, thereof.

 

5.09.        Environmental Matters.

 

(a)           The Loan Parties and their respective Subsidiaries conduct in the ordinary course of business a review of the effect of existing Environmental Laws and claims alleging potential liability or responsibility for violation of any Environmental Law on their respective businesses, operations and properties, and as a result thereof the Borrower has reasonably concluded that such Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(b)           Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, none of the properties currently or formerly owned or operated by any Loan Party or any of its Subsidiaries is listed or, to the knowledge of the Borrower, proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list.

 

(c)           Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (i) there are no underground or above-ground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by any Loan Party or any of its 

 

 

 

  

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Subsidiaries or, to the best of the knowledge of the Loan Parties, on any property formerly owned or operated by any Loan Party or any of its Subsidiaries; (ii) there is no asbestos or asbestos-containing material on any property currently owned or operated by any Loan Party or any of its Subsidiaries; and (iii) there has been no Release or threat of Release of Hazardous Materials on, at, under or emanating from any property currently or, to the knowledge of the Borrower, formerly owned or operated by any Loan Party or any of its Subsidiaries.

 

(d)           Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, (i) each Loan Party and each of their respective Subsidiaries and their respective properties, businesses and operations are in compliance with applicable Environmental Laws; (ii) each of them has obtained all Environmental Permits required in connection with the operation of its business or the ownership, operation and use of its properties, all of which are in full force and effect, and (iii) no Loan Party or any of their Subsidiaries is subject or a party to any order, agreement or judgment which imposes any obligation or liability under any Environmental Law.

 

(e)           Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, neither any Loan Party nor any of its Subsidiaries is undertaking, and has not completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any Release or threatened Release of Hazardous Materials at, on, under or emanating from any site, location or operation, either voluntarily or pursuant to the order of any Governmental Authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or, to the knowledge of the Borrower, formerly owned or operated by any Loan Party or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to any Loan Party or any of its Subsidiaries.

 

5.10.        Insurance.  The properties of the Borrower and its Subsidiaries are insured with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are, in the reasonable business judgment of the Borrower, appropriate for a business of the size and character of the Borrower and its Subsidiaries.

 

5.11.        Taxes.  Except for any failure that could not be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect: each of the Borrower and its Subsidiaries has (a) timely filed all Tax returns required to be filed, (b) satisfied all of its Tax withholding obligations and (c) duly and timely paid or caused to be duly and timely paid all Taxes (whether or not shown on any Tax return) due and payable by it and all Tax assessments received by it, other than Taxes that are being contested in good faith by appropriate proceedings and for which adequate reserves have been provided in accordance with GAAP, if such contest shall have the effect of suspending enforcement or collection of such Taxes. Each of the Borrower and its Subsidiaries has made adequate provision in accordance with GAAP for all material Taxes not yet due and payable. There are no current or, to the knowledge of the Borrower or any of its Subsidiaries, pending or proposed Tax assessments, deficiencies or audits that could be reasonably expected to, individually or in the aggregate, result in a Material Adverse Effect.

 

5.12.        ERISA Compliance.

 

(a)           Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state laws except for non-compliances that, in the aggregate, would not have a Material Adverse Effect.  Except as set forth on Schedule 5.12(a) to the Existing Credit Agreement, as of the Original Closing Date each Pension Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter from the Internal Revenue Service to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust 

 

 

  

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related thereto has been determined by the Internal Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the Internal Revenue Service.  To the knowledge of the Loan Parties, nothing has occurred that would prevent or cause the loss of such tax-qualified status.

 

(b)           There are no pending or, to the knowledge of the Loan Parties, threatened claims, actions or  lawsuits, or action by any Governmental Authority, with respect to any Plan that  could reasonably be expected to have a Material Adverse Effect.  There has been no “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan other than any  “prohibited transaction” for which statutory or administrative exemption is available that has resulted or could reasonably be expected to result in a Material Adverse Effect.

 

(c)           Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (i) no ERISA Event has occurred, and neither any Loan Party nor any ERISA Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event, (ii) no Loan Party or any ERISA Affiliate has failed to meet the minimum funding standard within the meaning of the Pension Funding Rules in respect of any Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules has been requested or obtained, (iii) as of the most recent valuation date for any Pension Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) for the Pension Plan is 60% or higher, (iv) neither any Loan Party nor any ERISA Affiliate has incurred any liability to the PBGC other than the payment of premiums, and there are no premium payments which have become due that are unpaid, and (v) no Pension Plan or Multiemployer Plan has been terminated by the plan administrator thereof nor by the PBGC, and, to the knowledge of any Loan Party, no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings under Title IV of ERISA to terminate any Pension Plan or Multiemployer Plan.

 

5.13.        Subsidiaries; Equity Interests; Loan Parties.  As of the Original Closing Date, no Loan Party has any Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13 to the Existing Credit Agreement, and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by a Loan Party or a Subsidiary of a Loan Party in the amounts specified on Part (a) of Schedule 5.13 to the Existing Credit Agreement, and all Equity Interests owned by a Loan Party are free and clear of all Liens except those created under the Collateral Documents and Permitted Liens.  No Loan Party has any equity investments in any other corporation or entity as of the Original Closing Date other than those specifically disclosed in Part (b) of Schedule 5.13 to the Existing Credit Agreement.  All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable and as of the Original Closing Date are owned by Holdings in the amounts specified on Part (c) of Schedule 5.13 to the Existing Credit Agreement.  Set forth on Part (d) of Schedule 5.13 to the Existing Credit Agreement is a complete and accurate list of all Loan Parties, showing as of the Original Closing Date (as to each Loan Party) the jurisdiction of its incorporation, the address of its principal place of business and its U.S. taxpayer identification number or, in the case of any non-U.S. Loan Party that does not have a U.S. taxpayer identification number, its unique identification number issued to it by the jurisdiction of its incorporation.  The copy of the charter of each Loan Party and each amendment thereto provided pursuant to Section 4.01(a)(v) is a true and correct copy of each such document, each of which is valid and in full force and effect.

 

5.14.        Margin Regulations; Investment Company Act.

 

(a)           The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.

 

 

  

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(b)           None of the Borrower or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.

 

5.15.        Disclosure.  No written report, financial statement, certificate or other information furnished (other than projections, budgets, other estimates and general market data) by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the Transactions and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein not materially misleading in each case when taken as a whole and in light of the circumstances under which they were made.

 

5.16.        Compliance with Laws.  Each Loan Party and each Subsidiary thereof is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

 

5.17.        Intellectual Property; Licenses, Etc.  Each Loan Party and each of its Subsidiaries own, or possess the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other Intellectual Property rights that are reasonably necessary for the operation of their respective businesses and, as of the Original Closing Date, Schedule 5.17 to the Existing Credit Agreement sets forth a complete and accurate list of (i) all trademarks, service marks, copyrights and patents owned by each Loan Party and each of its Subsidiaries that are registered or for which an application for registration is pending and (ii) all material Intellectual Property licenses to which each Loan Party and each Subsidiary is a licensee of Intellectual Property.  To the best knowledge of the Borrower, no slogan or other advertising device, product, process, method, substance, part or other material now employed by any Loan Party or any of its Subsidiaries infringes upon any rights held by any other Person in any material respect.  No claim or litigation regarding any of the foregoing is pending or, to the best knowledge of the Borrower, threatened, which, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

5.18.        Solvency.  The Borrower and the Restricted Subsidiaries on a consolidated basis are Solvent.

 

5.19.        [Reserved].

 

5.20.        Labor Matters.  Except as set forth on Schedule 5.20 to the Existing Credit Agreement, there are no collective bargaining agreements or Multiemployer Plans covering the employees of the Borrower or any of its Subsidiaries as of the Original Closing Date and, except as could not reasonably be expected individually or in the aggregate to result in a Material Adverse Effect, neither the Borrower nor any Subsidiary has suffered any strikes, walkouts, work stoppages or other material labor difficulty within the last five years.

 

5.21.        Collateral Documents.  The provisions of the Collateral Documents are effective to create in favor of the Administrative Agent for the benefit of the Secured Parties a legal, valid and enforceable Lien on all right, title and interest of the respective Loan Parties in the Collateral described therein and (i) when financing statements and the other filings in appropriate form with respect to the Loan Parties were filed in the appropriate offices as set forth with respect to such filings on the Original Closing Date in Schedule 7 to the Perfection Certificate and (ii) upon the taking of possession or control by the Administrative Agent of the Collateral with respect to which a security interest may be perfected only by posses-

 

 

  

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sion or control (which possession or control shall be given to the Administrative Agent to the extent possession or control by the Administrative Agent is required by the Collateral Documents), the Liens created by the Collateral Documents shall constitute fully perfected Liens on, and security interests in, all right, title and interest of the Loan Parties in the Collateral (other than such Collateral in which a security interest cannot be perfected under the UCC as in effect at the relevant time in the relevant jurisdiction or by possession or control), in each case subject to no Liens other than Liens permitted by Section 7.01.

 

ARTICLE VI

AFFIRMATIVE COVENANTS

 

Until the Obligations have been Fully Satisfied, the Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.11) cause each Restricted Subsidiary to:

 

6.01.        Financial Statements.  Deliver to the Administrative Agent, for further distribution to each Lender:

 

(a)           within 90 days after the end of each fiscal year of the Borrower (or, if earlier, 15 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)) (commencing with the fiscal year ended December 30, 2012), a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, changes in shareholder’s equity, and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, such consolidated statements to be audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit (other than due solely to a projected failure to comply with financial covenants set forth in Section 7.11 or to the Loans reaching their maturity within the next fiscal year following the date of such report); provided that, the requirements of this clause (a) shall be deemed satisfied by the filing with the SEC by the Borrower, Holdings or Parent of an Annual Report on Form 10-K containing the financial information required by this clause (a) on or prior to the date such Annual Report on Form 10-K is required to be filed with the SEC;

 

(b)           within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (or, if earlier, 10 days after the date required to be filed with the SEC (without giving effect to any extension permitted by the SEC)) (commencing with the fiscal quarter ended July 1, 2012), (i) a condensed consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, (ii) the related condensed consolidated statements of income or operations for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, and (iii) a statement of cash flows for the portion of the Borrower’s fiscal year then ended, setting forth in comparative form the figures for the corresponding portion of the previous fiscal year, such condensed consolidated statements to be certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations, and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes; provided that, the requirements of this clause (b) shall be deemed satisfied by the filing with the SEC by the Borrower, Holdings or Parent of a Quarterly Report on Form 10-Q containing the financial information required by this 

 

 

  

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clause (b) on or prior to the date such Quarterly Report on Form 10-Q is required to be filed with the SEC;

 

(c)           not later than 90 days after the end of each fiscal year, (i) the annual business plan of the Borrower and its Restricted Subsidiaries for the fiscal year next succeeding such fiscal year and (ii) forecasts prepared by management of the Borrower for each of the two fiscal years next succeeding such fiscal year (but in any event not beyond the fiscal year in which the Maturity Date with respect to the Term B Loans is scheduled to occur), including, in each instance described in clauses (i) and (ii) above, (x) a projected year-end consolidated balance sheet and income statement and statement of cash flows and (y) a statement of all of the material assumptions on which such forecasts are based.

 

(d)           within the time frames for delivery of each set of consolidated financial statements referred to in Section 6.01(a) and Section 6.01(b) (and without giving effect to the provisos in such sections), a separate schedule displaying a consolidating balance sheet and statements of income and cash flows separating out each Unrestricted Subsidiary (which shall be required only if Borrower has, or during the relevant period, had any Unrestricted Subsidiaries and such Unrestricted Subsidiaries had revenues or total assets for such period in an aggregate amount that is greater than 5% of Consolidated Total Assets of the Borrower and its Restricted Subsidiaries for such period disregarding any intercompany indebtedness (but not any related cash or hard assets) in such calculation) certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the information set forth therein in a manner consistent with the Borrower’s internal consolidating schedules that support the consolidated financial statements of Borrower and its Restricted Subsidiaries referred to above.

 

6.02.        Certificates; Other Information.  Deliver to the Administrative Agent, for further distribution to each Lender:

 

(a)           [Reserved];

 

(b)           within the time frames for delivery of the financial statements referred to in Section 6.01(a) and Section 6.01(b) (and without giving effect to the provisos in such sections), (i) a duly completed Compliance Certificate signed by the chief executive officer, chief financial officer, treasurer or chief accounting officer of the Borrower (which delivery may, unless the Administrative Agent, or a Lender requests executed originals, be by electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes); (ii) a copy of management’s discussion and analysis with respect to such financial statements (which shall be deemed provided by the filing with the SEC by the Borrower, Holdings or Parent of a Form 10-Q or Form 10-K containing the MD&A required by applicable SEC rules); and (iii) if applicable, notice of any proposed Specified Equity Contribution;

 

(c)           [Reserved];

 

(d)           [Reserved];

 

(e)           [Reserved];

 

(f)           as soon as available, but in any event within 90 days after the end of each fiscal year of the Borrower, a report summarizing the material insurance coverage (specifying type, amount and carrier) in effect for each Loan Party and its Restricted Subsidiaries in form and detail reasonably satisfactory to the Administrative Agent;

 

 

  

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(g)           promptly, and in any event within five Business Days after receipt thereof by any Loan Party, copies of each notice or other written correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any material investigation or other material inquiry by such agency regarding financial or other operational results of any Loan Party (and, for avoidance of doubt, excluding routine investigations, audits or inquiries);

 

(h)           subject to confidentiality requirements, not later than five Business Days after receipt thereof by any Loan Party or any Restricted Subsidiary thereof, copies of all notices, requests and other documents (including amendments, waivers and other modifications) so received under or pursuant to any instrument, indenture, loan or credit or similar agreement regarding or related to any breach or default by any party thereto or any other event that, in each case in this clause (h), could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(i)           promptly after the assertion or occurrence thereof, notice of any action or proceeding against or of any noncompliance by any Loan Party or any of its Restricted Subsidiaries with any Environmental Law or Environmental Permit that could reasonably be expected to have a Material Adverse Effect;

 

(j)           within the time frames for delivery of financial statements pursuant to Section 6.01(a) (without giving effect to the proviso in such section), deliver to the Administrative Agent a Perfection Certificate Supplement (or a certificate confirming that there has been no change in information since the date of the Perfection Certificate or latest Perfection Certificate Supplement), signed by a Responsible Officer of the Borrower and to be in a form reasonably satisfactory to the Administrative Agent;

 

(k)           not later than 30 days after each fiscal quarter, copies of each amendment to any Organization Document of any Loan Party that was approved during such fiscal quarter; and

 

(l)           promptly, such additional information regarding the business, financial, legal or corporate affairs of any Loan Party or any Restricted Subsidiary thereof, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender (through the Administrative Agent) may from time to time reasonably request in form and detail reasonably satisfactory to the Administrative Agent.

 

Documents required to be delivered pursuant to Section 6.01(a) or (b) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s website on the Internet at the website address listed on Schedule 10.02 to the Existing Credit Agreement; or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that:  (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or any Lender upon its request to the Borrower to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender, (ii) the Borrower shall notify the Administrative Agent and each Lender (by facsimile or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents and (iii) the Borrower may deliver such documents to the Administrative Agent (for further distribution to each Lender) in accordance with Section 10.02 and such documents shall be deemed to have been given in accordance with such Section.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the 

 

 

  

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Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

 

The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and the L/C Issuers materials and/or information provided by or on behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuers and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information.”

 

6.03.        Notices.  Promptly after a Responsible Officer of any Loan Party has actual knowledge of the existence thereof, notify the Administrative Agent:

 

(a)           of the occurrence of any Default;

 

(b)           (i) any breach or non-performance of, or any default under, a Contractual Obligation of the Borrower or any Restricted Subsidiary; (ii) any dispute, litigation, investigation, proceeding or suspension between the Borrower or any Restricted Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or proceeding affecting the Borrower or any Restricted Subsidiary, including pursuant to any applicable Environmental Laws, in each case that has resulted or could reasonably be expected to result in a Material Adverse Effect and to the extent not disclosed in a publicly available filing with the SEC;

 

(c)           of the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred after the Original Closing Date, could reasonably be expected to result in liabilities of the Borrower in an amount exceeding $10,000,000;

 

(d)           [Reserved]; and

 

(e)           of the (i) occurrence of any Disposition of property or assets for which the Borrower is required to make a mandatory prepayment pursuant to Section 2.05(b)(ii), (ii) incurrence or issuance of any Indebtedness for which the Borrower is required to make a mandatory prepayment pursuant to Section 2.05(b)(iii), and (iii) receipt of any Extraordinary Receipt for which the Borrower is required to make a mandatory prepayment pursuant to Section 2.05(b)(iv).

 

 

 

  

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Each notice pursuant to Section 6.03 (other than Section 6.03(e)) shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower has taken and proposes to take with respect thereto.  Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.

 

6.04.        Payment of Obligations.  Pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (a) all of its Tax liabilities, unless the same are being contested in good faith by appropriate proceedings, adequate reserves in accordance with GAAP are being maintained by the Borrower or such Restricted Subsidiary and such contest shall have the effect of suspending enforcement or collection of such Taxes; (b) all lawful claims which, if unpaid, would by law become a Lien upon its property (other than in the case of Permitted Liens); and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness, except, in each case in this Section 6.04, to the extent the failure to pay or discharge the same could not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.

 

6.05.        Preservation of Existence, Etc.  (a)  Preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.04 or 7.05 or except, in the case of entities other than the Borrower only, to the extent that the failure to do so could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect; provided, however, that the Borrower and its Restricted Subsidiaries may consummate any merger or consolidation permitted under Section 7.04; (b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.

 

6.06.        Maintenance of Properties.  (a) Maintain, preserve and protect all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted, except where the failure to do so could not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect; and (b) make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.07.        Maintenance of Insurance.  Maintain with financially sound and reputable insurance companies, insurance with respect to its properties and business against loss or damage (and with deductibles) of such types and in such amounts as are, in the reasonable business judgment of the Borrower, appropriate for a business of the size and character of the Borrower and its Subsidiaries.  All such insurance shall name the Administrative Agent as additional insured, to the extent applicable.

 

6.08.        Compliance with Laws.  Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

 

6.09.        Books and Records.  (a) Maintain proper books of record and account, in which full, true and correct entries in material conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Borrower or such Restricted Subsidiary, 

 

 

 

  

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as the case may be; and (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over the Borrower or such Restricted Subsidiary, as the case may be.

 

6.10.        Inspection Rights.  Permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided that, excluding any such visits and inspections during the continuation of an Event of Default, only the Administrative Agent on behalf of the Lenders may exercise (together with one or more Lenders) rights under this Section 6.10 on behalf of the Lenders and the Administrative Agent shall not exercise such rights more often than two (2) times during any calendar year absent the existence of an Event of Default, and only one (1) such time shall be at the Borrower’s expense; provided further, however, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and upon reasonable advance notice.  The Administrative Agent and the Lenders shall give the Borrower the opportunity to participate in any discussions with the Borrower’s accountants.

 

6.11.        Use of Proceeds.  Use the proceeds of the Credit Extensions (i) for general corporate purposes including without limitation to finance the Transactions and (ii) in the case of any Additional Term Commitments or Additional Revolving Credit Commitments, any purpose not prohibited hereunder.

 

6.12.        Additional Collateral; Additional Guarantors.

 

(a)           With respect to any property acquired after the Original Closing Date by any Loan Party that is intended to be subject to the Lien created by any of the Collateral Documents but is not so subject, promptly (and in any event within 90 days after the acquisition thereof) (i) execute and deliver to the Administrative Agent such amendments or supplements to the relevant Collateral Documents or such other documents as the Administrative Agent shall deem necessary to grant to the Administrative Agent, for its benefit and for the benefit of the other Secured Parties, a Lien on such property subject to no Liens other than Permitted Liens and (ii) take all actions necessary to cause such Lien to be duly perfected to the extent required by such Collateral Document in accordance with all applicable Requirements of Law, including the filing of financing statements in such jurisdictions as may be reasonably requested by the Administrative Agent.  The Borrower shall otherwise take such actions and execute and/or deliver to the Administrative Agent such documents as the Administrative Agent shall require to confirm the validity, perfection and priority of the Lien of the Collateral Documents on such after-acquired properties.

 

(b)           With respect to any Person that is or becomes a Subsidiary after the Original Closing Date, (i) in the case of any direct Subsidiary of a Loan Party, deliver to the Administrative Agent the certificates, if any, representing all of the Equity Interests of such Subsidiary held by a Loan Party, together with undated stock powers or other appropriate instruments of transfer executed and delivered in blank by a duly authorized officer of such Loan Party, and all intercompany notes owing from such Subsidiary to any Loan Party together with instruments of transfer executed and delivered in blank by a duly authorized officer of such Loan Party and (ii) cause such new Subsidiary (in the case of a Restricted Subsidiary only), promptly (and in any event within 90 days after such Person becomes a Restricted Subsidiary) (A) to execute a Joinder Agreement or such comparable documentation to become a Guarantor and a joinder agreement to the Security Agreement and any other applicable Collateral Document, substantially in the form annexed thereto and (B) to take all actions necessary in the reasonable opinion of the Administrative Agent to cause the Lien created by the Security Agreement and each other applicable Collateral Docu-

 

 

  

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ment to be duly perfected to the extent required by such agreement in accordance with all applicable Requirements of Law, including the filing of financing statements in such jurisdictions as may be reasonably requested by the Administrative Agent.  Notwithstanding the foregoing, (1) the Equity Interests required to be delivered to the Administrative Agent pursuant to clause (i) of this Section 6.12(b) shall not include any Equity Interests of an Excluded CFC Holdco, a CFC or any Subsidiary of a CFC and (2) no Excluded CFC Holdco, CFC or any Subsidiary of a CFC shall be required to take the actions specified in clause (ii) of this Section 6.12(b); provided that the exception set forth in clause (1) above shall not apply to (A) Voting Stock of any direct Subsidiary of a Loan Party which is a CFC or Excluded CFC Holdco representing 65% of the total voting power of all outstanding Voting Stock of such Subsidiary and (B) 100% of the Equity Interests not constituting Voting Stock of any such direct Subsidiary of a Loan Party.  Any such Equity Interests constituting “stock entitled to vote” within the meaning of Treasury Regulation Section 1.956-2(c)(2) shall be treated as Voting Stock for purposes of this Section 6.12(b).

 

(c)            For the avoidance of doubt and notwithstanding anything to the contrary in any of the Loan Documents, in no event shall any Unrestricted Subsidiary or, so long as such entity is not wholly owned for legitimate business purposes, any non-Wholly Owned Subsidiary or joint venture be required to become a Guarantor or become or remain party to the Security Agreement.  Equity Interests in the entities set forth in Schedule 6.12(c) to the Existing Credit Agreement (in excess of any percentage that such Schedule indicates will be pledged) are not required to be subject to the Lien created by the Security Agreement.

 

(d)           Notwithstanding any other provisions set forth in this Section 6.12 or any other provision contained in this Agreement or any other Loan Document, the obligations of the Borrower and the Domestic Subsidiaries under this Section 6.12 are subject to, and expressly limited by, the last paragraph of Section 2.1 of the Security Agreement and the definition of “Excluded Property” therein.

 

6.13.        Compliance with Environmental Laws.  Comply, and cause all lessees and other Persons operating or occupying properties owned or leased by it to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and properties; and conduct any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to address Hazardous Materials at, on, under or emanating from any properties owned or leased by it as required and in accordance in all material respects with the requirements of all Environmental Laws; provided, however, that neither the Borrower nor any of its Restricted Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances in accordance with GAAP.

 

6.14.        [Reserved].

 

6.15.        Further Assurances.  Promptly, upon the reasonable request of the Administrative Agent, at the Borrower’s expense, execute, acknowledge and deliver, or cause the execution, acknowledgment and delivery of, and thereafter register, file or record, or cause to be registered, filed or recorded, in an appropriate governmental office, any document or instrument supplemental to or confirmatory of the Collateral Documents or otherwise deemed by the Administrative Agent reasonably necessary for the continued validity, perfection and priority of the Liens on the Collateral covered thereby subject to no other Liens except as permitted by this Agreement or the applicable Collateral  Document, or obtain any consents or waivers as may be reasonably necessary or appropriate in connection therewith.  Deliver or cause to be delivered to the Administrative Agent from time to time such other documentation, consents, authorizations, approvals and orders in form and substance reasonably satisfactory to the Administrative Agent as the Administrative Agent shall reasonably deem necessary to perfect or maintain the Liens on 

 

 

  

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the Collateral pursuant to the Collateral Documents.  Upon the exercise by the Administrative Agent or any Lender of any power, right, privilege or remedy pursuant to any Loan Document which requires any consent, approval, registration, qualification or authorization of any Governmental Authority execute and deliver all applications, certifications, instruments and other documents and papers that the Administrative Agent or such Lender may reasonably require.  If the Administrative Agent or the Required Lenders determine that they are required by a Requirement of Law to have appraisals prepared in respect of the Real Property of any Loan Party constituting Collateral, the Borrower shall provide to the Administrative Agent appraisals that satisfy the applicable requirements of the Real Estate Appraisal Reform Amendments of FIRREA and are otherwise in form and substance reasonably satisfactory to the Administrative Agent.

 

Notwithstanding any other provision set forth in this Section 6.15 or any other provision contained in this Agreement or any other Loan Document, the obligations of the Borrower and its Domestic Subsidiaries under this Section 6.15 are subject to, and expressly limited by, the last paragraph of Section 2.1 of the Security Agreement and the definition of “Excluded Property” therein.

 

6.16.        [Reserved].

 

6.17.        [Reserved].

 

6.18.        Information Regarding Collateral and Loan Documents.  Not effect any change in (i) any Loan Party’s legal name, (ii) the location of any Loan Party’s chief executive office, (iii) any Loan Party’s identity or organizational structure, (iv) any Loan Party’s Federal Taxpayer Identification Number or organizational identification number, if any, or (v) any Loan Party’s jurisdiction of organization (in each case, including by merging with or into any other entity, reorganizing, dissolving, liquidating, reorganizing or organizing in any other jurisdiction), until (A) it shall have given the Administrative Agent not less than 10 days’ prior written notice (in the form of a certificate by a Responsible Officer), or such lesser notice period agreed to by the Administrative Agent, of its intention so to do, clearly describing such change and providing such other information in connection therewith as the Administrative Agent may reasonably request and (B) it shall have taken all action reasonably satisfactory to the Administrative Agent to maintain the perfection and priority of the security interest of the Administrative Agent for the benefit of the Secured Parties in the Collateral, if applicable.  Each Loan Party agrees to promptly provide the Administrative Agent with certified Organization Documents reflecting any of the changes described in the preceding sentence.  Each Loan Party also agrees to promptly notify the Administrative Agent of any change in the location of any office in which it maintains books or records relating to Collateral owned by it or any office or facility at which Collateral with a value in excess of $5,000,000 is located (including the establishment of any such new office or facility).

 

6.19.        [Reserved].

 

6.20.        Designation of Subsidiaries.  The Borrower may at any time after the Original Closing Date designate any Subsidiary as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Default shall have occurred and be continuing, (ii) immediately after giving effect to such designation, the Borrower shall be in compliance with the covenants set forth in Section 7.11, determined on a Pro Forma Basis as of the last day of the most recently ended Measurement Period (or, if no Measurement Period cited in Section 7.11 or in the defined terms used therein has passed, the covenants in Section 7.11 for the first Measurement Period cited in such Section shall be satisfied as of the last four quarters ended), in each case, as if such designation had occurred on the last day of such fiscal quarter of the Borrower and, as a condition precedent to the effectiveness of any such designation, the Borrower shall deliver to the Administrative Agent a certificate setting forth in reasonable detail the calculations demonstrating such compliance), (iii) no Sub-

 

 

  

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sidiary (other than a Securitization Subsidiary) may be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary” for the purpose of any other Indebtedness that has an “Unrestricted Subsidiary” concept, (iv) no Restricted Subsidiary may be designated an Unrestricted Subsidiary if it was previously designated an Unrestricted Subsidiary and (v) if a Restricted Subsidiary is being designated as an Unrestricted Subsidiary hereunder, the sum of (A) the fair market value of assets of such Subsidiary as of such date of designation (the “Designation Date”), plus (B) the aggregate fair market value of assets of all Unrestricted Subsidiaries designated as Unrestricted Subsidiaries pursuant to this Section 6.20 prior to the Designation Date (in each case measured as of the date of each such Unrestricted Subsidiary’s designation as an Unrestricted Subsidiary) shall not exceed the greater of $150.0 million and 5.0% of Consolidated Total Assets (disregarding any intercompany indebtedness (but not any related cash or hard assets) in such calculation) of the Borrower as of such Designation Date pro forma for such designation.  The designation of any Subsidiary as an Unrestricted Subsidiary after the Original Closing Date shall constitute an Investment by the Borrower therein at the date of designation in an amount equal to the fair market value of the Borrower’s investment therein.  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute (i) the incurrence at the time of designation of any Investment, Indebtedness or Liens of such Subsidiary existing at such time and (ii) a return on any Investment by the Borrower in Unrestricted Subsidiaries pursuant to the preceding sentence in an amount equal to the fair market value at the date of such designation of the Borrower’s Investment in such Subsidiary.

 

6.21.        Maintenance of Debt Ratings.  The Borrower shall use commercially reasonable efforts to maintain a public corporate rating from S&P and a public corporate family rating from Moody’s, in each case in respect of the Borrower, Holdings or Parent, and a public rating of the Facilities by each of S&P and Moody’s.

 

6.22.        [Reserved]

 

6.23.        [Reserved]

 

ARTICLE VII

NEGATIVE COVENANTS

 

Until the Obligations have been Fully Satisfied, the Borrower shall not, nor shall it permit any Restricted Subsidiary to:

 

7.01.        Liens.  Create, incur, assume or suffer to exist any Liens upon any of its property, assets or revenues, whether now owned or hereafter acquired; provided that the Borrower or any Restricted Subsidiary may create, incur, assume or suffer to exist any Liens (including, without limitation, Junior Liens) securing Indebtedness (and Liens on the same assets securing obligations in respect of such Indebtedness) if, after giving effect to the incurrence of any Indebtedness secured by such Lien on a Pro Forma Basis, the Consolidated Senior Secured Leverage Ratio would be no greater than 3.0 to 1.0.  Notwithstanding the foregoing, the Borrower and its Restricted Subsidiaries may create, incur, assume or suffer to exist the following Liens upon any of its property, assets or revenues, whether now owned or hereafter acquired (together with Liens permitted to be created, incurred, assumed or to exist pursuant to the preceding sentence, “Permitted Liens”):

 

(a)           (i) Liens pursuant to any Loan Document (including Liens related to Cash Collateralizations) and (ii) Liens pursuant to any documentation governing any Permitted Additional First Lien Debt;

 

(b)           Liens existing on the Original Closing Date and listed on Schedule 7.01 to the Existing Credit Agreement and any renewals or extensions thereof, provided that (i) the property

 

 

 

  

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covered by the security granting clause is not changed, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.02(e), (iii) the direct or any contingent obligor with respect thereto is not changed, and (iv) any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.02(e);

 

(c)           Liens for Taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;

 

(d)           carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than 90 days or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP and Liens of landlords arising by statute and other Liens incurred in the ordinary course of business that are imposed by Law;

 

(e)           pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation, or other similar obligations other than any Lien imposed by ERISA;

 

(f)           Liens, pledges and deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(g)           easements, rights-of-way, restrictions, covenants, survey exceptions, encroachments, irregularities defects and other similar encumbrances affecting Real Property which, in the aggregate, are not substantial in amount and which do not (i) secure Indebtedness or (ii) individually or in the aggregate materially interfere with the ordinary conduct of the business of the applicable Person at any location;

 

(h)           Liens securing judgments for the payment of money, appeal bonds or letters of credit issued in support of or in lieu of appeal bonds in each case not constituting an Event of Default under Section 8.01(h);

 

(i)           Liens securing Indebtedness permitted under Section 7.02(g); provided that such Liens do not at any time encumber any property other than the property financed by such Indebtedness and the proceeds thereof (including insurance proceeds) and the attachments thereto;

 

(j)           any interest or title of a licensor, lessor or sublessor under any license, lease or sublease entered into by the Borrower or any Restricted Subsidiary in the ordinary course of its business covering only the assets so leased and licenses and sublicenses of Intellectual Property in the ordinary course of business;

 

(k)           any interest of a lessor under a Capitalized Lease;

 

(l)            in the case of leased Real Property, Liens to which the fee interest (or any superior interest) in such Real Property is subject;

 

(m)          municipal and zoning ordinances, which are not violated in any material respect by the existing improvements and present use thereof;

 

 

 

  

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(n)           rights of setoff, banker’s liens and similar rights in favor of a financial institution that encumber deposits and are within the general parameters customary in the banking industry and customary Liens in favor of trustees and escrow agents;

 

(o)           Liens that might be deemed to exist on the assets subject to a repurchase agreement constituting a Cash Equivalent permitted hereunder, if such Liens are deemed to exist solely because of the existence of such repurchase agreement;

 

(p)           Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business in accordance with the past practices;

 

(q)           the filing of UCC financing statements solely as a precautionary measure in connection with operating leases or consignment of goods;

 

(r)            Liens on cash and Cash Equivalents (i) in an amount not to exceed $30 million arising in the ordinary course of business under Cash Management Agreements and any reserves which are required to be imposed on the Borrower or any of its Restricted Subsidiaries in the ordinary course of business by any credit card processors and any rights of such credit card processors to impose such reserves; provided that the taking of such reserves and the amount of such reserves are, in each case, in accordance with the terms of the applicable credit card payment processing agreement entered into in the ordinary course of business and (ii) in an amount not to exceed $5 million securing Swap Contracts to hedge or mitigate risks as a result of currency fluctuations;

 

(s)           Liens securing Indebtedness permitted under Section 7.02(h) and Indebtedness permitted under the first sentence of Section 7.02; provided that such Liens are limited to Liens on assets of Foreign Restricted Subsidiaries that are obligors on such Indebtedness;

 

(t)            Liens on assets pursuant to merger agreements, stock or asset purchase agreements, stockholders agreements and similar agreements in respect of the disposition of such assets;

 

(u)           options, put and call arrangements, rights of first refusal and similar rights relating to Investments in joint ventures, partnerships and the like;

 

(v)           Liens incurred in the ordinary course of business not securing Indebtedness and not in the aggregate materially detracting from the value of the properties or their use in the operation of the business of the Borrower and its Restricted Subsidiaries;

 

(w)          Liens on property or Equity Interests of a Person at the time such Person becomes a Restricted Subsidiary of the Borrower, provided such Liens were not created in contemplation thereof and do not extend to any other property of the Borrower or any Restricted Subsidiary;

 

(x)           Liens on property at the time the Borrower or any of its Restricted Subsidiaries acquires such property, including any acquisition by means of a merger or consolidation with or into the Borrower or a Restricted Subsidiary, provided such Liens were not created in contemplation thereof and do not extend to any other property of the Borrower or any Restricted Subsidiary;

 

 

  

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(y)           Liens on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 

(z)           deposits made in the ordinary course of business to secure liability to insurance carriers;

 

(aa)         Liens arising under any Permitted Receivables Financing;

 

(bb)        Liens on equipment of the Borrower or any Restricted Subsidiary granted in the ordinary course of business to the Borrower’s or such Restricted Subsidiary’s client at which such equipment is located;

 

(cc)         Liens in favor of lessors, sublessors, lessees or sublessees securing operating leases or, to the extent such transactions create a Lien hereunder, sale and leaseback transactions, to the extent such sale and leaseback transactions are permitted hereunder;

 

(dd)        Liens for the benefit of the seller deemed to attach solely because of the existence of cash deposits and attaching solely to cash deposits made in connection with any letter of intent or acquisition agreement with respect to a Permitted Acquisition or other Investments;

 

(ee)         in the case of Subsidiaries of the Borrower organized as business trusts, Liens on the assets of such Subsidiary in favor of the trustee of such Subsidiary in order to secure such trustee’s fees and expenses;

 

(ff)          Liens securing Indebtedness or other obligations of the Borrower or a Restricted Subsidiary owed to the Borrower or a Restricted Subsidiary that is a Guarantor;

 

(gg)        extensions, renewals or replacements of any Liens referred to in clauses (w) or (x) in connection with the refinancing of the obligations secured thereby, provided that such Lien does not extend to any other property and the amount secured by such Lien is not increased;

 

(hh)        Liens on cash deposits, securities or other property in deposit or securities accounts in connection with the redemption, defeasance, repurchase or other discharge of the 2014 Notes, the 2016 Notes, the 2025 Debentures or any Permitted Refinancing Indebtedness in respect thereof in accordance with Section 7.03(p);

 

(ii)           extensions, renewals or replacements of Liens securing Indebtedness secured by Liens pursuant to the first sentence of this Section 7.01 in connection with Permitted Refinancing Indebtedness of such Indebtedness, provided that such Liens do not extend to any other property and the amount secured by such Liens is not increased (unless otherwise permitted by the definition of Permitted Refinancing Indebtedness);

 

(jj)           Junior Liens with respect to property or assets of the Borrower or any of its Restricted Subsidiaries, provided that (i) after giving effect to any such Lien and the incurrence of Indebtedness, if any, secured by such Lien, the Borrower shall be in compliance on a Pro Forma Basis with all of the covenants set forth in Section 7.11, (ii) at the time of the incurrence of such Lien and after giving effect thereto, no Event of Default shall have occurred and be continuing or would result therefrom and (iii) the Indebtedness secured by such Lien is otherwise permitted by this Agreement;

 

 

  

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(kk)         Liens on up to $40,000,000 of cash collateral in favor of the issuer of letters of credit not issued hereunder; and

 

(ll)           Liens (including Junior Liens) securing Indebtedness or other obligations outstanding in an aggregate principal amount not to exceed $25,000,000.

 

Notwithstanding anything herein to the contrary, no consensual Liens shall be permitted to exist, directly or indirectly, on any Pledged Securities other than Liens granted pursuant to the Collateral Documents, Junior Liens and Liens permitted hereunder securing Permitted Additional First Lien Debt.

 

7.02.        Indebtedness.  Create, incur or assume any Indebtedness; provided that the Borrower or any Restricted Subsidiary may create, incur or assume any Indebtedness if, after giving effect to the incurrence thereof on a Pro Forma Basis (including the receipt and the application of the proceeds thereof), (x) the Fixed Charge Coverage Ratio would be not less than 2.00 to 1.0 or (y) the Consolidated Leverage Ratio would not be greater than 4.0 to 1.0; provided further that the maximum aggregate principal amount of Indebtedness that Restricted Subsidiaries that are not Guarantors may incur under this sentence is $200.0 million outstanding at any time.  Notwithstanding the foregoing, the Borrower and any Restricted Subsidiary may create, incur or assume the following Indebtedness:

 

(a)           obligations (contingent or otherwise) existing or arising under any Swap Contract, provided that such obligations are (or were) entered into by such Person in the ordinary course of business for the purpose of directly mitigating risks associated with fluctuations in interest rates, foreign exchange rates or commodities prices;

 

(b)           (i) Indebtedness representing deferred compensation or equity based compensation to current or former officers, directors, consultants, franchisees, advisors or employees of a Loan Party or its Affiliates incurred in the ordinary course of business and (ii) Indebtedness consisting of obligations of the Borrower or its Restricted Subsidiaries under deferred purchase price or compensation, indemnification, adjustment of purchase price, earn-out or other obligations incurred in connection with any Investments or Dispositions permitted hereunder;

 

(c)           Indebtedness of either the Borrower or a Restricted Subsidiary of the Borrower owed to the Borrower or a Restricted Subsidiary of the Borrower, which Indebtedness shall (i) in the case of Indebtedness owed to a Loan Party, constitute “Pledged Collateral” under the Security Agreement, (ii) if such Indebtedness is owed by a Loan Party to a non-Loan Party, be on terms (including subordination terms) reasonably acceptable to the Administrative Agent and (iii) be otherwise permitted under the provisions of Section 7.03;

 

(d)           (i) Indebtedness under the Loan Documents (including, without limitation, any Indebtedness incurred pursuant to Section 2.14) and any Permitted Refinancing Indebtedness in respect thereof (including, without limitation, Permitted Additional First Lien Debt) and (ii) Permitted Additional First Lien Debt the proceeds of which are not used solely to repay Term Loans in an aggregate principal amount at any one time outstanding not to exceed $275,000,000 less the sum of the usage of such related basket under Section 2.14 and the amount of loans previously incurred under this clause (ii);

 

(e)           Indebtedness outstanding on the Original Closing Date and listed on Schedule 7.02 to the Existing Credit Agreement and any Permitted Refinancing Indebtedness in respect thereof;

 

 

 

  

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(f)            Guarantees of the Borrower or any Guarantor in respect of Indebtedness otherwise permitted hereunder of the Borrower or any other Guarantor;

 

(g)           Indebtedness in respect of Capitalized Leases, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets incurred on or after the Original Closing Date no later than 365 days after the date of purchase or completion of construction, improvement, repair or replacement of property (real or personal) or equipment (whether through the direct purchase of assets or the Equity Interests of any Person owning such assets) for the purpose of financing all or any part of the purchase price or cost  thereof and any related taxes or transaction costs; provided, however, that the aggregate amount of all such Indebtedness at any one time outstanding shall not exceed the greater of (x) $150,000,000 and (y) 4.0% of the Consolidated Total Assets of the Borrower and its Restricted Subsidiaries (measured at the time of incurrence of any such Indebtedness);

 

(h)           Indebtedness of Foreign Restricted Subsidiaries (a) in an aggregate principal amount not to exceed the greater of (x) $70.0 million  and (y) 5.0% of Consolidated Total Assets of the Foreign Subsidiaries (measured at the time of incurrence of such Indebtedness) at any one time outstanding or (b) if after giving effect to the incurrence thereof on a Pro Forma Basis (including the receipt and the application of the proceeds thereof) the Fixed Charge Coverage Ratio would be not less than 3.00 to 1.0; provided that the aggregate principal amount of Indebtedness incurred pursuant to this clause (b) may not exceed $250.0 million outstanding at any one time;

 

(i)            Guarantees of Indebtedness of (A) suppliers, licensees, franchisees or customers in the ordinary course of business or (B) joint ventures, in an aggregate amount at any time outstanding under this clause (i) not to exceed the greater of $250 million and 6.0% of Consolidated Total Assets of the Borrower and its Restricted Subsidiaries (measured at the time of incurrence of any such Guarantees);

 

(j)            Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business; provided that such Indebtedness is extinguished within five Business Days of incurrence;

 

(k)           Indebtedness of the Borrower or any Restricted Subsidiary consisting of (A) the financing of insurance premiums or (B) take-or-pay obligations contained in supply arrangements, in each case, in the ordinary course of business;

 

(l)            any Permitted Receivables Financing; provided that, after giving effect thereto and after including all such Indebtedness incurred in respect of Permitted Receivables Financing in the calculation of Consolidated Senior Secured Leverage Ratio, such ratio shall not exceed 3.5 to 1.0;

 

(m)           Indebtedness arising under any performance or surety bond entered into in the ordinary course;

 

(n)           Acquired Indebtedness and any Permitted Refinancing Indebtedness incurred in respect thereof; provided that, after giving effect to the incurrence thereof, (i) the Fixed Charge Coverage Ratio would be not less than 2.0 to 1.0 or (ii) the Consolidated Leverage Ratio, after giving effect to such Indebtedness, is less than or equal to 4.0:1.0;

 

(o)           Contribution Debt;

 

 

  

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(p)           contingent indemnification obligations of the Borrower and any Restricted Subsidiary to financial institutions, in each case to the extent in the ordinary course of business and on terms and conditions which are within the general parameters customary in the banking industry, entered into to obtain cash management services or deposit account overdraft protection services (in amount similar to those offered for comparable services in the financial industry) or other services in connection with the management or opening of deposit accounts or incurred as a result of endorsement of negotiable instruments for deposit or collection purposes and other customary, contingent loss indemnification obligations of the Borrower and its Subsidiaries incurred in the ordinary course of business;

 

(q)           the 2016 Notes and the Guarantees related thereto;

 

(r)           Indebtedness issued by the Borrower or a Restricted Subsidiary to current or former officers, directors, consultants, franchisees, advisors or employees thereof or any direct or indirect parent thereof (or their spouses or former spouses, family members, trusts or estates or beneficiaries under their estates) to finance the purchase or redemption or other acquisition or retirement for value of Equity Interests of any direct or indirect parent of the Borrower in lieu of dividends that would be permitted pursuant to Section 7.06(h)(a)(iii) so long as the amount of such Indebtedness reduces the amount of dividends payable pursuant to Section 7.06(h)(a)(iii);

 

(s)           Indebtedness of the Borrower or any Restricted Subsidiary incurred on or after the Original Closing Date in an aggregate principal amount at any time outstanding not to exceed the greater of $250.0 million and 6.0% of the Consolidated Total Assets of the Borrower and its Restricted Subsidiaries, measured at the time of incurrence of any such Indebtedness;

 

(t)           Indebtedness incurred pursuant to the Remaining International Restructuring Transactions and which is de minimis in amount; and

 

(u)           Indebtedness under letters of credit not issued hereunder in an aggregate face amount not to exceed $40,000,000.

 

7.03.        Investments.  Make any Investments, except:

 

(a)           Investments held by the Borrower and its Restricted Subsidiaries in the form of cash (including cash held in bank deposit or demand deposit accounts) and Cash Equivalents;

 

(b)           (i)  Loans or advances to any existing or former director, officer, consultant, advisor or employee of the Borrower or any of its Affiliates in the ordinary course of business other than any loans or advances that would be in violation of Section 402 of the Sarbanes-Oxley Act; provided, however, that the aggregate principal amount of all loans and advances permitted pursuant to this subclause (b)(i) shall not exceed $5,000,000 at any time outstanding and (ii) Loans and advances to any existing director, officer or employee of the Borrower or any Restricted Subsidiary (other than any loans or advances that would be in violation of Section 402 of the Sarbanes-Oxley Act) the proceeds of which shall be used for the sole purpose of acquisition by such director, officer or employee of any of the Equity Interests of the Borrower; provided, however, that the aggregate principal amount of all loans and advances permitted pursuant to this subclause (b)(ii) shall not exceed $5,000,000 at any time outstanding;

 

(c)           (i) Investments by the Borrower and its Restricted Subsidiaries in the Borrower and their respective Restricted Subsidiaries outstanding on the Original Closing Date, (ii) additional Investments by the Borrower and its Restricted Subsidiaries in Loan Parties and (iii) addi-

 

 

  

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tional Investments by Restricted Subsidiaries of the Borrower that are not Loan Parties in other Restricted Subsidiaries that are not Loan Parties;

 

(d)           Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;

 

(e)           Investments consisting of (i) Liens, (ii) Indebtedness, (iii) Dispositions, (iv) fundamental changes and (v) Restricted Payments permitted under Section 7.01, Section 7.02, Section 7.04, Section 7.05 and Section 7.06, respectively;

 

(f)           Investments existing on the Original Closing Date (other than those referred to in Section 7.03(c)(i)) and set forth on Schedule 7.03(f) to the Existing Credit Agreement and any replacement or modification thereof; provided that any replacement or modification involving an increase in the aggregate amount of any such Investment as of the Original Closing Date shall be deemed an Investment not permitted by this clause (f) to the extent (but only to the extent) of such increase;

 

(g)           the purchase or other acquisition by the Borrower or a Guarantor of (i) a majority of the Equity Interests in, (ii) all or a substantial part of the property of, any Person that, in the case of clause (i), upon the consummation thereof, will become a Restricted Subsidiary (including as a result of a merger or consolidation) or (iii) assets of another Person that constitute a business unit (and, for the avoidance of doubt, a restaurant shall be deemed a business unit for purposes of this basket); provided that, with respect to each purchase or other acquisition made pursuant to this Section 7.03(g) (each a “Permitted Acquisition”):

 

(i)            in the case of clause (g)(i) above, any such newly-created or acquired Restricted Subsidiary shall comply with the applicable requirements of Section 6.12 and the Equity Interests thereof shall be pledged to the extent required by the Security Agreement;

 

(ii)           the lines of business of the Person to be (or the property of which is to be) so purchased or otherwise acquired shall be substantially the same lines of business as one or more of the principal businesses of the Borrower and its Restricted Subsidiaries or any other business that is reasonably related, complementary or ancillary thereto (or a reasonable extension or expansion thereof) or otherwise part of the quick service restaurant business;

 

(iii)            (A) immediately before and immediately after giving pro forma effect to any such purchase or other acquisition, no Default or Event of Default shall have occurred and be continuing and (B) immediately after giving effect to such purchase or other acquisition, the Borrower and its Restricted Subsidiaries shall be in compliance on a Pro Forma Basis with all of the covenants set forth in Section 7.11, such compliance to be determined on the basis of the financial information most recently delivered to the Administrative Agent and the Lenders pursuant to Section 6.01(a) or (b) as though such purchase or other acquisition had been consummated as of the first day of the fiscal period covered thereby; and

 

(iv)           the Borrower shall have delivered to the Administrative Agent and each Lender, at least five Business Days prior to the date on which any such purchase or other 

 

 

  

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acquisition is to be consummated, a certificate of a Responsible Officer, in form and substance reasonably satisfactory to the Administrative Agent and the Required Lenders, certifying that all of the requirements set forth in this clause (g) have been satisfied or will be satisfied on or prior to the consummation of such purchase or other acquisition;

 

provided, that in respect of Permitted Acquisitions that are for consideration not in excess of $25,000,000 individually, clause (iv) above shall not apply.

 

(h)           Investments at any time outstanding not exceeding the greater of $250.0 million and 6.0% of Consolidated Total Assets of the Borrower and its Restricted Subsidiaries (measured at the time of incurrence or making of any such Investment);

 

(i)           Investments received as non-cash consideration in a Disposition made pursuant to and in compliance with Section 7.05;

 

(j)           any Investment acquired solely in exchange for Equity Interests (other than Disqualified Equity Interests) of the Borrower or any direct or indirect parent of the Borrower;

 

(k)           any Investment acquired by the Borrower or any of its Restricted Subsidiaries as a result of a foreclosure by the Borrower or any of its Restricted Subsidiaries with respect to any secured Investment or other transfer of title with respect to any secured Investment in default;

 

(l)           Investments consisting of the licensing or contribution of intellectual property pursuant to joint marketing arrangements with other Persons;

 

(m)           Investments for the purpose of (i) making loans to or (ii) purchasing loan obligations of, or Equity Interests in, suppliers, licensees, franchisees or customers; provided that the sum of the aggregate amount of the Guarantees outstanding under Section 7.02(i) and the aggregate Investments outstanding under this clause (m) shall not, in the aggregate, exceed the amounts permitted under Section 7.02(i) at the time of determination thereof;

 

(n)           Investments arising as a result of any Permitted Receivables Financing;

 

(o)           Investments by the Borrower or any Restricted Subsidiary in payment intangibles, chattel paper (each as defined in the UCC) and accounts, notes receivable, prepaid accounts and similar items in an aggregate principal amount outstanding not to exceed $60,000,000;

 

(p)           Investments consisting of (i) purchases, redemptions or other acquisitions of the 2014 Notes, the 2016 Notes, the 2025 Debentures or any Permitted Refinancing Indebtedness in respect thereof, or (ii) cash, securities or other property in deposit or securities accounts created in connection with the defeasance or satisfaction of the 2014 Notes, the 2016 Notes, the 2025 Debentures or any Permitted Refinancing Indebtedness in respect thereof, in each case, in accordance with the terms hereof;

 

(q)           so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom and so long as the Borrower is in compliance with Section 7.11 on a Pro Forma Basis (measured at the time of incurrence or making of any such Investment), Investments made pursuant to this clause (q) not to exceed the Permitted Amount;

 

(r)           any Investment made with an Excluded Contribution;

 

 

  

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(s)           any Investment made by a Purchasing Borrower Party pursuant to Section 10.06(h); and

 

(t)           any Investment made pursuant to the Remaining International Restructuring Transactions.

 

7.04.        Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that:

 

(a)           Any Restricted Subsidiary may merge or consolidate with or liquidate or dissolve into (i) the Borrower, provided that the Borrower shall be the continuing or surviving Person, or (ii) any one or more other Restricted Subsidiaries, provided that when any Loan Party is merging with another Restricted Subsidiary, such Loan Party shall be the continuing or surviving Person;

 

(b)           any Loan Party may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Loan Party;

 

(c)           any Restricted Subsidiary that is not a Loan Party may dispose of all or substantially all its assets (including any Disposition that is in the nature of a liquidation) to (i) another Restricted Subsidiary that is not a Loan Party or (ii) to a Loan Party;

 

(d)           in connection with any acquisition permitted under Section 7.03, any Restricted Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; provided that (i) the Person surviving such merger shall be a Wholly Owned Restricted Subsidiary of the Borrower and (ii) in the case of any such merger to which any Loan Party (other than the Borrower) is a party, such Loan Party is the surviving Person; and

 

(e)           so long as no Default or Event of Default has occurred and is continuing or would result therefrom, the Borrower or any Restricted Subsidiary of the Borrower may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; provided, however, that in each case, immediately after giving effect thereto (i) in the case of any such merger to which the Borrower is a party, the Borrower is the surviving corporation and (ii) in the case of any such merger to which any Loan Party (other than the Borrower) is a party, such Loan Party is the surviving corporation;

 

provided, however, that nothing in this Section 7.04 shall prohibit Investments that are permitted under Section 7.03 or Dispositions or agreements to make Dispositions permitted by Section 7.05.

 

7.05.        Dispositions.  Make any Disposition, except:

 

(a)           Dispositions of surplus, obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business or property no longer used or useful in the business;

 

(b)           Dispositions of cash, Cash Equivalents and inventory in the ordinary course of business;

 

(c)           Dispositions of equipment or Real Property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property or (ii) the pro-

 

 

  

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ceeds of such Disposition are applied within 180 days to the purchase price of such replacement property and such replacement property is made subject to the Lien of the Collateral Documents in accordance with the provisions of this Agreement;

 

(d)           (i) Dispositions of property by the Borrower or any Restricted Subsidiary to the Borrower or to a Wholly Owned Restricted Subsidiary; provided that if the transferor of such property is a Guarantor, the transferee thereof must either be the Borrower or a Guarantor, (ii) any Dispositions by a Restricted Subsidiary that is not a Guarantor to another Restricted Subsidiary that is not a Guarantor, (iii) any Disposition by any Restricted Subsidiary that is not a Guarantor to a Loan Party (including through a liquidation, dissolution or winding up) as long as the consideration given by such Loan Party to such non-Guarantor Restricted Subsidiary does not exceed the fair market value of the assets transferred to such Loan Party and (iv) Dispositions to Restricted Subsidiaries that are not Guarantors or Wholly Owned Restricted Subsidiaries to the extent that, after giving effect to such Disposition (and any other Dispositions to such Persons pursuant to this clause (iv) on or prior to the date of such Disposition), the aggregate fair market value of the assets Disposed of pursuant to this clause (iv) does not exceed $15,000,000;

 

(e)           Dispositions permitted by Section 7.04 or Section 7.01(aa);

 

(f)           (i) licenses or sublicenses of intellectual property (A) in the ordinary course of business or (B) to the Borrower or any Restricted Subsidiary, and licenses, sublicenses or contributions of non-U.S. goodwill and non-U.S. going-concern value to the Borrower or any Restricted Subsidiary, and/or (ii) any abandonment, failure to maintain, non-renewal or other disposition of any intellectual property in the ordinary course of business.

 

(g)           as long as no Event of Default is continuing or would result therefrom, any Disposition; provided, however, that with respect to any such Disposition pursuant to this clause (g), (i) not less than 75% of the aggregate consideration received in respect of such Disposition and all other Dispositions previously consummated in the same fiscal year pursuant to this clause (g) shall be cash; provided, that for purposes of clause (i), (a) the amount of any liabilities (as shown on the Borrower’s or its Restricted Subsidiary’s most recent balance sheet) of the Borrower or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Obligations) that are assumed by the transferee of any such assets shall be deemed to be cash, (b) any notes or other obligations or other securities or assets received by the Borrower or such Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into cash within 180 days of the receipt thereof (to the extent of the cash received), shall, in each case, be deemed to be cash and (c) any Designated Non-cash Consideration received by any Loan Party in such Disposition having an aggregate fair market value, taken together with all other Designated Non-cash Consideration received pursuant to this clause (c) that is at that time outstanding, not to exceed the greater of $150.0 million and 3.0% of Consolidated Total Assets of the Borrower and its Restricted Subsidiaries at the time of the receipt of such Designated Non-cash Consideration (with the fair market value of each item of Designated Non-cash Consideration being measured at the time received and without giving effect to subsequent changes in value) shall be deemed to be cash and (ii) an amount equal to all Net Cash Proceeds of such Disposition is applied to the payment of the Obligations as set forth in, and to the extent required by, Section 2.05(b);

 

(h)           so long as no Event of Default shall occur and be continuing, the grant of any option or other right to purchase any asset in a transaction that would be permitted under the provisions of Section 7.05(g);

 

 

  

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(i)            the discount or write-off of accounts receivable overdue by more than 90 days or the sale of any such accounts receivable for the purpose of collection to any collection agency, in each case in the ordinary course of business;

 

(j)            the cancellation of any Indebtedness permitted to be cancelled under this Agreement;

 

(k)           the issuance of Nominal Shares;

 

(l)            a true lease or sublease of any property not constituting Indebtedness and not constituting a sale and leaseback transaction;

 

(m)          as long as no Event of Default is continuing or would result therefrom, any Disposition the primary purpose of which is to exchange or swap assets and for which 90% or more of the consideration consists of assets other than cash or Cash Equivalents; provided, however, that with respect to any such Disposition pursuant to this clause (m), (i) the fair market value of the assets transferred by such Dispositions and all other Dispositions in the same fiscal year pursuant to this clause (m) shall not, in the aggregate, exceed $15,000,000, (ii) the fair market value of the consideration received shall be not less than the fair market value of the assets sold or transferred, and compliance with the foregoing requirement shall be evidenced by (x) in the case of a Disposition or related series of Dispositions involving aggregate consideration (other than cash and Cash Equivalents) with a fair market value in excess of $1 million, a certification by the chief financial officer of the Borrower and (y) in the case of a Disposition or related series of Dispositions involving aggregate consideration (other than cash and Cash Equivalents) with a fair market value in excess of $5 million, a resolution of the Board of Directors of the Borrower, in each case delivered to the Administrative Agent not less than five Business Days prior to the consummation of such Dispositions, and (iii) an amount equal to all Net Cash Proceeds of such Disposition is applied to the payment of the Obligations as set forth in, and to the extent required by, Section 2.05(b);

 

(n)           subject to Section 7.18, the Borrower and Restricted Subsidiaries may sell or otherwise transfer equipment or Real Property in connection with sale and leaseback transactions; provided that the aggregate value of the equipment sold or transferred under this subsection shall not exceed $15,000,000 in any fiscal year;

 

(o)           sales of loans purchased pursuant to Section 7.03(m);

 

(p)           sales of Accounts Receivable, or participations therein in connection with any Permitted Receivables Financing;

 

(q)           as long as no Event of Default is continuing or would result therefrom, any other Disposition at fair market value (including Dispositions of restaurants and related assets to franchisees, including through the sale of Equity Interests of Persons owning such assets); provided that (i) the fair market value of all assets sold, transferred or otherwise disposed of pursuant to this clause (q) shall not exceed $50,000,000 per fiscal year and (ii) an amount equal to all Net Cash Proceeds of such Disposition is applied to the payment of the Obligations as set forth in, and to the extent required by, Section 2.05(b);

 

(r)            any Restricted Payment made in compliance with Section 7.06;

 

 

 

  

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(s)           any Disposition of the assets set forth in Schedule 7.05 to the Existing Credit Agreement; and

 

(t)            any Disposition made pursuant to the Remaining International Restructuring Transactions.

 

provided, however, that any Disposition pursuant to Section 7.05(g) or (m) or (q) shall be for fair market value as determined in good faith by the Borrower.

 

7.06.        Restricted Payments.  Declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except:

 

(a)           each Restricted Subsidiary may make Restricted Payments to the Borrower, any Restricted Subsidiaries of the Borrower that are Guarantors and any other Person that owns a direct Equity Interest in such Restricted Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made;

 

(b)           the Borrower and each Restricted Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other common Equity Interests of such Person;

 

(c)           the Borrower and each Restricted Subsidiary may purchase, redeem or otherwise acquire its common Equity Interests with the proceeds received from the substantially concurrent issue of new common Equity Interests;

 

(d)           so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom and so long as the Borrower is in compliance with Section 7.11 on a Pro Forma Basis, Restricted Payments made pursuant to this clause (d) not to exceed the Permitted Amount;

 

(e)           so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom, Restricted Payments to Holdings, and, in turn, to Parent to fund or refund (x) the payment of dividends on the common stock of Parent of up to $0.10 per fiscal year per share of common stock that is outstanding on the Original Closing Date (the aggregate number of shares of common stock outstanding on May 1, 2012 being 390,296,589), appropriately adjusted to give effect to any stock splits, reverse stock splits or similar transactions and each additional share of common stock of Parent that is outstanding after the Original Closing Date in accordance with the proviso to this clause (e) (with unused amounts carried over and available for use (in whole or in part) in each of the following fiscal years of the Borrower) or (y) in lieu of all or a portion of dividends permitted by sub-clause (x), repurchases of the Parent’s common stock for aggregate consideration that, when taken together with dividends permitted under sub-clause (x) above does not exceed the amount contemplated by sub-clause (x) above; provided that the payment of dividends on common stock of Parent issued after the date hereof shall only be allowed pursuant to this clause (e) to the extent that such common stock is issued in a transaction that directly benefits the Borrower and its Restricted Subsidiaries;

 

(f)           repurchases of Equity Interests deemed to occur upon the exercise of stock options or similar equity compensation awards if the Equity Interests represent all or a portion of the exercise price thereof (or related withholding taxes), and Restricted Payments by the Borrower to allow the payment of cash in lieu of the issuance of fractional shares upon the exercise of options or warrants or upon the conversion or exchange of Equity Interests of the Borrower;

 

 

  

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(g)           so long as, on a  Pro Forma Basis, the Consolidated Leverage Ratio is no greater than 4.5 to 1.0, Restricted Payments in an aggregate amount not to exceed $150,000,000;

 

(h)           (a) payments to any direct or indirect parent of the Borrower of (i) with respect to any taxable period for which the Borrower is treated as (for applicable income or franchise tax purposes) a member of a consolidated, combined or similar tax group of which a direct or indirect parent of the Borrower is the common parent (a “tax group”) or a disregarded entity owned by a member of a tax group, amounts relating to consolidated, combined or similar taxes of such tax group (including any interest, penalties, additions or reasonable expenses related thereto and regardless of whether or not such amounts are payable as taxes by the direct or indirect parent of the Borrower), in an amount not to exceed the amount of such taxes the Borrower and its Subsidiaries would have been required to pay on a stand-alone basis or as a stand-alone group consisting of the Borrower and/or its Subsidiaries (as the case may be), in each case as determined in the Borrower’s reasonable discretion, less any such taxes directly paid to any taxing authority by the Borrower or any of its Subsidiaries, provided that any such amounts attributable to taxes of any Unrestricted Subsidiary of the Borrower shall be limited to the amount of cash payments made for such purpose by such Unrestricted Subsidiary to the Borrower or any of its Restricted Subsidiaries for such taxable period; provided further, that the Borrower and/or its Subsidiaries, at the sole discretion of the Borrower, may enter into any tax sharing agreement consistent with (and subject to the limitations of) the provisions of this Section 7.06(h) with any Person with which the Borrower or its Subsidiaries are required or permitted to file a consolidated, combined or similar tax return or with which the Borrower or its Subsidiaries are part of a tax group, plus (ii) amounts necessary to pay expenses required to maintain the corporate existence of such entity, customary salary, bonus and other benefits payable to, or indemnities provided on behalf of, such entity’s current or former officers, directors, consultants, advisors or employees and corporate overhead expenses, plus (iii) amounts for the purchase, redemption or other acquisition or retirement for value of Equity Interests in an amount not to exceed $5.0 million in any fiscal year (with unused amounts being available to be used in subsequent fiscal years) of any direct or indirect parent of the Borrower from current or former officers, directors, consultants, franchisees, advisors or employees of the Borrower or any Restricted Subsidiary or any such parent (or their estates, trusts, family members or former spouses) upon the death, disability, retirement or termination of the applicable individual or pursuant to any equity subscription agreement, stock option or equity award agreement, shareholders’ or members’ agreement or similar agreement, plan or arrangement, plus (iv) so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom, amounts necessary to make interest and principal payments on Indebtedness of the Parent outstanding on the Original Closing Date as in effect on the Original Closing Date and any Permitted Refinancing Indebtedness in respect thereof, plus (v) amounts necessary to make interest and principal payments on Indebtedness of any direct or indirect parent of the Borrower the proceeds of which have been contributed to the Borrower or any Restricted Subsidiary and that has been Guaranteed by, or is otherwise considered Indebtedness of, the Borrower incurred in accordance with Section 7.02, plus (vi) so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom, amounts necessary to pay customary and reasonable costs and expenses of financings, acquisitions or offerings of securities of any direct or indirect parent of the Borrower that are not consummated or (b) any “deemed dividend” resulting from, or in connection with, the filing of a consolidated or combined tax return by such direct or indirect parent of the Borrower (and not involving any cash distribution from the Borrower except as permitted by clause (a)(i) above);

 

(i)           [Reserved];

 

 

  

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(j)           the purchase, redemption or other acquisition or retirement for value of Equity Interests of the Borrower, any direct or indirect parent of the Borrower or any Restricted Subsidiary in exchange for, or out of the proceeds of (i) an offering (occurring within 60 days of such purchase, redemption or other acquisition or retirement for value) of Qualified Equity Interests of the Borrower or of Qualified Equity Interests of any direct or indirect parent of Borrower to the extent contributed to the common equity of the Borrower or (ii) a contribution to the common equity capital of the Borrower;

 

(k)           Restricted Payments that are made with Excluded Contributions; and

 

(l)           the declaration and payment of dividends to holders of any class or series of Disqualified Equity Interests of the Borrower or any Restricted Subsidiary issued in accordance with Section 7.02 to the extent such dividends are included in the definition of Fixed Charges and payment of any redemption price or liquidation value of any such Disqualified Equity Interests when due in accordance with its terms.

 

7.07.        Change in Nature of Business.  Engage in any material line of business materially different from those lines of business conducted by the Borrower and its Restricted Subsidiaries on the date hereof or any business related, complementary, ancillary or incidental thereto, or otherwise part of the quick service restaurant business.

 

7.08.        Transactions with Affiliates.  Directly or indirectly, enter into any transaction involving aggregate payment or consideration in excess of $15,000,000 of any kind with any Affiliate of the Borrower, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Restricted Subsidiary as would be obtainable by the Borrower or such Restricted Subsidiary at the time in a comparable arm’s length transaction with a Person other than an Affiliate; provided that the foregoing restriction shall not apply to the following transactions:

 

(a)           transactions between or among the Loan Parties or transactions between or among Restricted Subsidiaries that are not Loan Parties;

 

(b)           so long as no Default or Event of Default shall have occurred and be continuing at the time thereof or would result therefrom, payments to the Parent or its Affiliates for corporate services provided by Parent or such Affiliate or in respect of management fees, in an aggregate amount not to exceed $7,500,000 in any fiscal year; provided, that if the Borrower would have been able to make any payment pursuant to this clause (b) in the absence of any Default or Event of Default, the Borrower shall be permitted to make such payment as soon as no Default or Event of Default shall be continuing; provided, further, that the Borrower may carry over and pay in any subsequent fiscal year, in addition to the amounts permitted for such fiscal year, any portion of the amounts otherwise permitted for prior fiscal years to be paid pursuant to this clause (b) that were not in fact paid;

 

(c)           Restricted Payments permitted by Section 7.06, Investments permitted by Section 7.03(c), (e), (j) or (n) and Dispositions permitted by Section 7.05(d);

 

(d)           expense reimbursement, indemnities, salaries and other compensation to current and former officers, directors, consultants, advisors and employees of the Loan Parties consistent with prior practice or approved by the applicable Loan Party’s board of directors or a committee thereof;

 

 

  

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(e)           entering into (and payments under) employment, benefit plans, service and severance arrangements between the Loan Parties and their respective current and former officers, directors, consultants, advisors and employees, including, without limitation, grants of securities, stock options, and similar rights, as determined in good faith by the board of directors or senior management of the relevant Loan Party;

 

(f)            transactions listed on Schedule 7.08 to the Existing Credit Agreement;

 

(g)           the entering into of a customary agreement providing registration rights to the direct or indirect shareholders of the Borrower and the performance of such agreements;

 

(h)           transactions with customers, clients, suppliers or purchases or sellers of goods or services, or transactions otherwise relating to the purchase or sale of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of this Agreement;

 

(i)            sales of Accounts Receivable, or participations therein, or any related transaction, in connection with any Permitted Receivables Financing;

 

(j)            transactions between the Borrower or any of its Restricted Subsidiaries and any Person that is an Affiliate solely because one or more of its directors is also a director of the Borrower or any direct or indirect parent of the Borrower; provided that such director abstains from voting as a director of the Borrower or such direct or indirect parent, as the case may be, on any matter involving such other Person;

 

(k)           the formation and maintenance of any consolidated group or subgroup for tax, accounting or cash pooling or management purposes in the ordinary course of business; provided that the Board of Directors determines in good faith that the formation and maintenance of such group or subgroup is in the best interests of the Borrower and will not materially adversely affect the Borrower’s ability to perform its obligations under this Agreement;

 

(l)            payments by Parent when due and payable pursuant to, and otherwise in accordance with, the terms of the Products Agreement;

 

(m)          transactions with joint ventures, in each case in the ordinary course of business and otherwise not prohibited by the Loan Documents;

 

(n)           any transactions in which the Borrower shall have received a favorable opinion as to the financial fairness of such transaction (or series of transactions) from an independent accounting or appraisal firm or investment bank of national reputation, and shall have delivered a copy of such opinion to the Administrative Agent not less than five Business Days prior to the consummation of any such transaction or transactions;

 

(o)           the entering into of any tax sharing agreement or arrangement that is consistent with Section 7.06(h);

 

(p)           payments or loans (or cancellation of loans) to officers, directors, employees or consultants which are approved by a majority of the Borrower’s Board of Directors in good faith;

 

(q)           the issuance of Equity Interests (other than Disqualified Equity Interests) of the Borrower to any Person; and

 

 

  

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(r)            the Remaining International Restructuring Transactions.

 

7.09.        Burdensome Agreements.  Except for any agreement in effect (A) on the Original Closing Date or (B) at the time any Restricted Subsidiary becomes a Restricted Subsidiary of the Borrower, so long as such agreement was not entered into solely in contemplation of such Person becoming a Restricted Subsidiary of the Borrower, enter into or permit to exist any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability (i) of any Restricted Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to otherwise transfer property to or invest in the Borrower or any Guarantor or (ii) of any Restricted Subsidiary to Guarantee the Indebtedness of the Borrower; provided, that the foregoing shall not apply to Contractual Obligations which (a) are contained in joint venture agreements and other similar agreements applicable solely to joint ventures entered into in the ordinary course of business, (b) arise pursuant to applicable Requirements of Law, (c) arise in connection with any Disposition permitted by Section 7.05 and is applicable solely to the property subject to such Disposition, (d) are negative pledges and restrictions on Liens in favor of any holder of Indebtedness permitted under Section 7.02 but solely to the extent any negative pledge relates to the property financed by such Indebtedness or that expressly permits Liens for the benefit of the Secured Parties with respect to the Facilities and the Secured Obligations under the Loan Documents on a senior basis without the requirement that such holders of such Indebtedness be secured by such Liens on an equal and ratable, or junior, basis, (e) are customary restrictions on leases, subleases, licenses or asset sale or stock sale agreements otherwise permitted hereby so long as such restrictions only relate to the assets subject thereto, (f) comprise restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to Section 7.02(g) (or the first sentence of Section 7.02 of the type permitted under Section 7.02(g)) to the extent that such restrictions apply only to the property or assets securing such Indebtedness, (g) are customary provisions restricting subletting or assignment of any lease governing a leasehold interest, (h) are customary provisions of an agreement restricting assignment or transfer of such agreement entered into in the ordinary course of business, (i) consist of customary restrictions pursuant to any Permitted Receivables Financing, (j) are contained in indebtedness of non-Guarantors so long as such restrictions only relate to the non-Guarantors that incur such indebtedness and their Subsidiaries, (k) are imposed by any amendments or refinancings of Indebtedness that are otherwise permitted by the Loan Documents; provided that such amendments and refinancings are no more materially restrictive with respect to such prohibitions and limitations than those in effect prior to such amendment or refinancing (as determined by the Borrower in good faith), (l) restrictions or conditions set forth in any agreement in effect at any time any Person becomes a Restricted Subsidiary (but not any modification or amendment expanding the scope of any such restriction or condition), provided that such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary and the restriction or condition set forth in such agreement does not apply to the Borrower or any other Restricted Subsidiary, (m) restrictions on cash or other deposits or net worth imposed by agreements entered into in the ordinary course of business and (n) customary restrictions set forth in any agreement relating to (i) Indebtedness permitted to be incurred pursuant to the first sentence of Section 7.02 and clauses (d) and (s) of Section 7.02 (including Permitted Additional First Lien Debt) and (ii) the 2014 Notes, the 2025 Debentures or any Permitted Refinancing Indebtedness in respect thereof, in each case that are not materially more restrictive than the terms hereof.

 

7.10.        Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.

 

7.11.        Financial Covenants.

 

(a)            Consolidated Interest Coverage Ratio.  Permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower ending (i) after the Original Closing Date and at or pri-

 

 

  

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or to the end of the third fiscal quarter of the 2014 fiscal year to be less than 3.00:1.00, (ii) after the third fiscal quarter of the 2014 fiscal year and at or prior to the end of the third fiscal quarter for the 2015 fiscal year to be less than 3.25:1.00 and (iii) thereafter to be less than 3.50:1.00.

 

(b)           Consolidated Senior Secured Leverage Ratio.  Permit the Consolidated Senior Secured Leverage Ratio as of the end of any fiscal quarter of the Borrower ending (i) after the Original Closing Date and at or prior to the end of the third fiscal quarter for the 2014 fiscal year to be greater than 4.00:1.00, (ii) after the third fiscal quarter for the 2014 fiscal year and at or prior to the end of the third fiscal quarter for the 2015 fiscal year to be greater than 3.75:1.00 and (iii) thereafter to be greater than 3.50:1.00.

 

7.12.        Amendments of Organization Documents.  Amend any of its Organization Documents in a manner materially adverse to any Lender.

 

7.13.        Accounting Changes.  Make any change in (a) accounting policies or reporting practices, except as required or permitted by GAAP or any applicable Requirements of Law or as contemplated by the last sentence of Section 1.03(b), or (b) fiscal year; provided that (i) the fiscal year of any Person that becomes a Restricted Subsidiary after the Original Closing Date may be changed to conform to that of the Borrower and (ii) the Borrower and all of its Subsidiaries may change their fiscal year to conform to a calendar year.

 

7.14.        Prepayments, Etc. of Indebtedness.

 

(a)           Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, any subordinated Indebtedness, except regularly scheduled or required repayments or redemptions of subordinated Indebtedness and refinancings and refundings of such subordinated Indebtedness in compliance with this Agreement; it being understood that the Borrower or any Restricted Subsidiary will have the right at any time and from time to time to prepay any Indebtedness payable to the Borrower or any Restricted Subsidiary.

 

(b)           Refinance, prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity therefor the 2014 Notes or the 2025 Debentures; provided that any such refinancing, prepayment, redemption, purchase, defeasance or other satisfaction with respect to the 2014 Notes and the 2025 Debentures shall be allowed hereunder conditioned upon (x) pro forma compliance with Section 7.11 upon giving effect to the repayment of such Indebtedness and any concurrent borrowings and (y) the absence of any Event of Default that has occurred and is continuing.

 

7.15.        No Further Negative Pledge.  Enter into any agreement, instrument, deed or lease which prohibits or limits the ability of any Loan Party to create, incur, assume or suffer to exist any Lien upon any of their respective properties or revenues, whether now owned or hereafter acquired, or which requires the grant of any security for an obligation if security is granted for another obligation, except the following:  (a) this Agreement and the other Loan Documents; (b) covenants in documents creating Liens permitted by Section 7.01 prohibiting further Liens on the properties encumbered thereby; (c) any other agreement that does not restrict in any manner (directly or indirectly) Liens created pursuant to the Loan Documents on any Collateral securing the Secured Obligations and does not require the direct or indirect granting of any Lien securing any Indebtedness or other obligation by virtue of the granting of Liens on or pledge of property of any Loan Party to secure the Secured Obligations; (d) covenants existing in the documents governing the 2014 Notes, the 2016 Notes, the 2025 Debentures or any Permitted Refinancing Indebtedness in respect thereof, (e) customary provisions contained in leases or licenses of intellectual property and other similar agreements entered into in the ordinary course of business; (f) customary re-

 

 

  

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strictions set forth in any agreement relating to Indebtedness permitted to be incurred pursuant to the first sentence of Section 7.02 and clauses (d) and (s) of Section 7.02 (including Permitted Additional First Lien Debt) that are not materially more restrictive than the terms hereof, (g) restrictions on cash and other deposits or net worth imposed by customers under contracts in the ordinary course of business, and (h) any prohibition or limitation that (i) exists pursuant to applicable Requirements of Law, (ii) consists of customary restrictions and conditions contained in any agreement relating to the sale of any property permitted under Section 7.05 pending the consummation of such sale, (iii) restricts subletting or assignment of leasehold interests contained in any lease governing a leasehold interest of the Borrower or a Restricted Subsidiary, (iv) exists in any agreement in effect at the time such Restricted Subsidiary becomes a Restricted Subsidiary of the Borrower, so long as such agreement was not entered into in contemplation of such Person becoming a Restricted Subsidiary, (v) any restriction relating to the transfer of Equity Interests set forth in any joint venture, stockholders agreement or similar arrangement, (vi) is in an agreement in effect on the Original Closing Date listed on Schedule 7.15 to the Existing Credit Agreement  or (vii) is imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the contracts, instruments or obligations referred to in clause (b), (c), (d), (h)(iv) or (h)(v); provided that such amendments and refinancings are no more materially restrictive with respect to such prohibitions and limitations than those prior to such amendment or refinancing (as determined by the Borrower in good faith).

 

7.16.        Maintenance of Corporate Separation.  The Loan Parties shall not permit any Unrestricted Subsidiary to (a) fail to satisfy customary corporate formalities, including (i) the holding of regular board of directors’ and shareholders’ meetings, (ii) the maintenance of separate corporate records and (iii) the maintenance of separate bank accounts in its own name; (b) fail to act solely in its own corporate name and through its authorized officers and agents; (c) commingle any of its money or other assets with any money or other assets of any Loan Party; or (d) take any action or conduct its affairs in a manner which is reasonably likely to result in the separate corporate existence of the Loan Parties from the Unrestricted Subsidiaries to be ignored or the assets and liabilities of any Unrestricted Subsidiary being substantively consolidated with those of any Loan Party in any bankruptcy, insolvency proceeding; or permit any Loan Party to make any payment to any creditor of any Unrestricted Subsidiary or provide any direct or indirect guarantee or other credit support for any Indebtedness or other obligations of any Unrestricted Subsidiary.

 

7.17.        Pledge of WNAP Interests.  The Loan Parties shall not, and shall not permit any Restricted Subsidiary to, pledge or create any Lien on its Equity Interests of WNAP to any Person, other than to the Administrative Agent for the benefit of the Secured Parties pursuant to the Security Agreement.

 

7.18.        No Liens in Reliance on Indenture Threshold Amount.  The Loan Parties shall not, and shall not permit any Restricted Subsidiary to, grant or create any Lien or enter into any Sale and Lease-Back Transaction (as defined in each of the 2014 Indenture and the 2025 Indenture) that is permitted by reliance on the Indenture Threshold Amount (as defined in the Security Agreement) or that reduces the Indenture Threshold Amount except for Liens in favor of the Administrative Agent for the benefit of the Secured Parties; provided, that the foregoing covenant shall cease to apply on the date on which  Sections 1008 and 1009 in each of the 2014 Indenture and the 2025 Indenture shall cease to be in effect with respect to any Indebtedness thereunder in accordance with the terms of the 2014 Indenture and the 2025 Indenture, including as a result of covenant defeasance.  The Loan Parties shall not, and shall not permit any Restricted Subsidiary to, (i) take any action that would require the Loan Parties or any Restricted Subsidiary to grant or create any Lien securing any Indebtedness under the 2014 Indenture or the 2025 Indenture (which for the avoidance of doubt shall not include Indebtedness under other indentures refinancing any such Indebtedness) or (ii) voluntarily grant or create any such Lien, other than in each case Liens pursuant to Section 7.01(hh).

 

 

  

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ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

 

8.01.        Events of Default.  Any of the following shall constitute an Event of Default:

 

(a)        Non-Payment.  The Borrower or any other Loan Party fails to (i) pay when and as required to be paid herein, any amount of principal of any Loan or any L/C Obligation or deposit any funds as Cash Collateral in respect of L/C Obligations or (ii) pay within five Business Days after the same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder or any other amount payable hereunder or under any other Loan Document; or

 

(b)        Specific Covenants.  (i) The Borrower fails to perform or observe any term, covenant or agreement contained in any of Section 6.01, 6.02, 6.03(a), 6.05(a) (solely with respect to the Borrower), 6.11 and 6.22 or Article VII; provided that the covenants in Sections 7.11(a) and (b) are subject to cure as set forth in Section 8.04; or

 

(c)        Other Defaults.  Any Loan Party fails to perform or observe any other covenant or agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after the earlier of (i) the giving of written notice thereof by the Administrative Agent to the Borrower or (ii) the date on which a Responsible Officer of any Loan Party has actual knowledge of such failure; or

 

(d)        Representations and Warranties.  Any representation, warranty or certification of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or

 

(e)        Cross-Default.  (i) Any Loan Party or any Restricted Subsidiary thereof (A) fails to make any payment when due beyond the applicable grace period with respect thereto (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including amounts owing to all creditors under any combined or syndicated credit arrangement) together with the principal amount of all other Indebtedness and Guarantees (other than the Indebtedness hereunder and under Swap Contracts) as to which such failure has occurred, exceeding the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or cash collateral in respect thereof to be demanded, which principal amount of Indebtedness or Guarantee, when taken together with the unpaid principal amounts of all other Indebtedness and Guarantees (other than Indebtedness hereunder and under Swap Contracts) as to which any such failure or event has occurred, exceeds the Threshold Amount; provided that this clause (e)(i)(B) shall not apply to Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness and such Indebtedness is paid with the proceeds of such transfer and thereafter the unpaid principal amounts do not exceed 

 

 

  

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the Threshold Amount; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which a Loan Party or any Restricted Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which a Loan Party or any Restricted Subsidiary thereof is an Affected Party (as so defined) and, in either event, when taken together with all other Swap Contracts as to which events of default or events referred to in the immediately preceding clauses (A) and (B) are applicable the Swap Termination Value owed by such Loan Party or such Restricted Subsidiary as a result thereof is greater than the Threshold Amount; provided that the Swap Termination Value owed by such Loan Party or Restricted Subsidiary solely as a result of any Termination Event under a Swap Contract shall only count towards the Threshold Amount to the extent not paid when due (after giving effect to any netting arrangements); or

 

(f)        Insolvency Proceedings, Etc.  Any Loan Party or any Restricted Subsidiary thereof institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or

 

(g)        Inability to Pay Debts; Attachment.  (i) Any Loan Party or any Restricted Subsidiary thereof becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 60 days after its issue or levy; or

 

(h)        Judgments.  There is entered against any Loan Party or any Restricted Subsidiary thereof (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent (A) not covered by independent third-party insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been notified of the potential claim and does not dispute coverage) or (B) for which, with respect to monetary final judgments, adequate cash reserves have not been provided in accordance with GAAP), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) the judgment is unpaid and enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 60 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

 

(i)        ERISA.  (i)  any Loan Party shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan other than any “prohibited transaction” for which statutory or administrative exemption is available, (ii) any failure to meet the minimum funding standard under the Pension Funding Rules, whether or not waived, shall exist with respect to any Pension Plan or any Lien in favor of the PBGC (under Section 430(k) of the Code or Section 303(k) of ERISA or successor provisions thereof) shall arise on the assets of any Loan Party or any ERISA Affiliate, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be ap-

 

 

  

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pointed, to administer or to terminate, any Pension Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is reasonably likely to result in the termination of such Pension Plan for purposes of Title IV of ERISA in a distress termination under Section 4041(c) of ERISA or a termination instituted by the PBGC under Section 4042 of ERISA, (iv) any Pension Plan shall terminate for purposes of Title IV of ERISA, (v) any Loan Party or any ERISA Affiliate shall incur any liability in connection with a withdrawal from, or the “insolvency” or “reorganization” (within the meaning of Section 432 of the Code or Section 305 and Title IV of ERISA) of, a Multiemployer Plan or (vi) any other event or condition shall occur or exist with respect to a Pension Plan which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events or conditions, if any, could reasonably be expected to have a Material Adverse Effect; or

 

(j)        Invalidity of Loan Documents.  Any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or the satisfaction in full of all the Secured Obligations, ceases to be in full force and effect; or any Loan Party contests the validity or enforceability of any provision of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any provision of any Loan Document, or purports to revoke, terminate or rescind any provision of any Loan Document; or

 

(k)        Change of Control.  There occurs any Change of Control; or

 

(l)        Collateral Documents.  Any Collateral Document after delivery thereof pursuant to Section 4.01 or 6.12 shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority Lien (subject to Permitted Liens) on the Collateral purported to be covered thereby, except to the extent that any such loss of perfection or priority results from the failure of the Administrative Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Agreement or to file Uniform Commercial Code continuation statements; provided that it shall not be an Event of Default under this clause (l) if the Administrative Agent shall not have, or shall cease to have, a valid and perfected first priority Lien on Collateral purported to be covered thereby that has a fair market value, individually or in the aggregate, of less than $5,000,000.

 

8.02.        Remedies upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions:

 

(a)           declare the commitment of each Lender to make Loans and any obligation of any L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated;

 

(b)           declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower;

 

(c)           require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and

 

 

 

  

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(d)           exercise on behalf of itself, the Lenders and the L/C Issuers all rights and remedies available to it, the Lenders and the L/C Issuers under the Loan Documents;

 

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of any L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

 

8.03.        Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the Secured Obligations shall, subject to the provisions of Sections 2.15 and 2.16, be applied by the Administrative Agent in the following order:

 

First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including reasonable and documented fees, out-of-pocket charges and disbursements of one outside counsel and one local counsel in any relevant jurisdiction to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;

 

Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest; commitment fees and Letter of Credit Fees) payable to the Secured Parties and the L/C Issuers (including reasonable and documented fees, out-of-pocket charges and disbursements of one outside counsel and one local counsel in any relevant jurisdiction to the respective Lenders and the respective L/C Issuer) arising under the Loan Documents and amounts payable under Article III, ratably among them in proportion to the respective amounts described in this clause Second payable to them;

 

Third, to payment of that portion of the Obligations constituting accrued and unpaid commitment fees and Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations arising under the Loan Documents, ratably among the Lenders and the L/C Issuers in proportion to the respective amounts described in this clause Third payable to them;

 

Fourth, to payment of that portion of the Secured Obligations constituting unpaid principal of the Loans, L/C Borrowings and Secured Obligations then owing under Secured Hedge Agreements and Secured Cash Management Agreements and to Administrative Agent for the benefit of the L/C Issuers to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections 2.04 and 2.15, ratably among the Secured Parties, the L/C Issuers, the Hedge Banks and the Cash Management Banks in proportion to the respective amounts described in this clause Fourth held by them; and

 

Last, the balance, if any, after all of the Secured Obligations (other than unmatured contingent obligations) have been paid in full, to the Borrower or as otherwise required by Law.

 

Subject to Sections 2.03(c) and 2.15, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters 

 

 

  

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of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Secured Obligations, if any, in the order set forth above.

 

Notwithstanding the foregoing, Secured Obligations arising under Secured Cash Management Agreements and Secured Hedge Agreements shall be excluded from the application described above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.  Each Cash Management Bank or Hedge Bank not a party to the Credit Agreement that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article IX hereof for itself and its Affiliates as if a “Lender” party hereto.  Notwithstanding the foregoing, no amount received from any Guarantor, or from the liquidation of Collateral pledged by such Guarantor, shall be applied to any Excluded Swap Obligations.

 

8.04.        Borrower’s Right to Cure.

 

(a)           Notwithstanding anything to the contrary contained in Section 8.01 or 8.02, for purposes of determining whether an Event of Default or potential Event of Default has occurred under any financial covenant set forth in Section 7.11(a) or (b) and at any time until the expiration of the tenth (10th) Business Day after the date on which financial statements are required to be delivered with respect to the applicable fiscal quarter hereunder, Holdings may make a Specified Equity Contribution to the Borrower, and the Borrower may apply the amount of the cash proceeds thereof to increase Consolidated EBITDA (solely for purposes of Sections 7.11(a) and (b)) with respect to such applicable quarter (including for purposes of any four-quarter period that contains such quarter); provided that such cash proceeds (i) are actually received by the Borrower (including through capital contribution of such cash proceeds to the Borrower) no later than ten (10) Business Days after the date on which financial statements are required to be delivered with respect to such fiscal quarter hereunder and (ii) Not Otherwise Applied.  The parties hereby acknowledge that this Section 8.04(a) may not be relied on for purposes of calculating any financial ratios other than as applicable to Section 7.11 and shall not result in any adjustment to any amounts other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence.  If, after such adjustment and the recalculations pursuant to this paragraph, the Borrower shall then be in compliance with the requirements of the covenant set forth in Section 7.11(a) or (b) for such period, the Borrower shall be deemed to have satisfied the requirements of the covenants set forth in Section 7.11(a) and (b) as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date and the applicable breach or default of such covenants that had occurred shall be cured for all purposes of this Agreement.

 

(b)           (i) In each period of four consecutive fiscal quarters, there shall be at least two fiscal quarters in which no Specified Equity Contribution is made, (ii) no more than five Specified Equity Contributions will be made in the aggregate during the term of this Agreement, (iii) the amount of any Specified Equity Contribution included in Consolidated EBITDA shall be no more than the amount required to cause the Borrower to be in compliance with Section 7.11(a) or (b) for any applicable quarter and (iv) there shall be no pro forma reduction in Indebtedness with the proceeds of any Specified Equity Contribution for determining compliance with Section 7.11(a) or (b) for the fiscal quarter immediately prior to the fiscal quarter in which such Specified Equity Contribution was made.

 

ARTICLE IX

ADMINISTRATIVE AGENT

 

9.01.        Appointment and Authority.

 

 

  

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(a)           Each of the Lenders and each of the L/C Issuers hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuers, and neither the Borrower nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

 

(b)           The Administrative Agent shall also act as the “collateral agent” under the Loan Documents, and each of the Lenders (including in its capacities as a potential Hedge Bank and a potential Cash Management Bank) and each of the L/C Issuers hereby irrevocably appoints and authorizes the Administrative Agent to act as the agent of such Lender and such L/C Issuer for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Secured Obligations, together with such powers and discretion as are reasonably incidental thereto (including, for the avoidance of doubt, exercising any discretion under Section 6.12 or otherwise).  In this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to Section 9.06 for purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all provisions of this Article IX and Article X (including Section 10.04(c), as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set forth in full herein with respect thereto.

 

9.02.        Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

9.03.        Exculpatory Provisions.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents.  Without limiting the generality of the foregoing, the Administrative Agent:

 

(a)           shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)           shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law;

 

(c)           shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relat-

 

 

  

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ing to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity;

 

(d)           shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of its own gross negligence or willful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower, a Lender or an L/C Issuer and once the Administrative Agent receives such a notice it shall make available such notice to Lenders by posting the notice on the Platform; provided that the Administrative Agent shall not be required to post such notice if it believes in good faith that such notice has already been provided to Lenders by the Borrower; and

 

(e)           shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the value or the sufficiency of any Collateral, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

9.04.        Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) reasonably believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and reasonably believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or such L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or such L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

9.05.        Withholding Tax.  To the extent required by any applicable law, the Administrative Agent may withhold from any payment to any Lender an amount equivalent to any applicable withholding tax.  Without limiting or expanding the provisions of Section 3.01, each Lender (which shall include each L/C Issuer and Swing Line Lender for purposes of this Section 9.05) shall, and does hereby, indemnify the Administrative Agent against, and shall make payable in respect thereof within thirty (30) days after demand therefor, any and all Taxes and any and all related losses, claims, liabilities and expenses (including fees, charges and disbursements of any counsel for the Administrative Agent) incurred by or asserted against the Administrative Agent by the Internal Revenue Service or any other Governmental Authority as a result of the failure of the Administrative Agent to properly withhold tax from amounts paid to or for the account of any Lender for any reason (including, without limitation, because the appro-

 

 

  

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priate form was not delivered or not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstance that rendered the exemption from, or reduction of, withholding tax ineffective).  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under this Agreement or any other Loan Document against any amount due the Administrative Agent under this Section 9.05.  The agreements in this Section 9.05 shall survive the resignation and/or replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.

 

9.06.        Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 

9.07.        Resignation of Administrative Agent.  The Administrative Agent may at any time give written notice of its resignation to the Lenders, the L/C Issuers and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required Lenders (or no successor so appointed shall have accepted such appointment) within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the L/C Issuers, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the L/C Issuers under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (b) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section).  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

 

Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer and Swing Line Lender.  Upon the acceptance of a successor’s ap-

 

 

 

  

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pointment as Administrative Agent hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender, (ii) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents, and (iii) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit.

 

9.08.        Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and each L/C Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and each L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

 

9.09.        No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the Bookrunners, Arrangers, Syndication Agents or Documentation Agents listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an L/C Issuer hereunder.

 

9.10.        Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

 

(a)           to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Secured Obligations that are owing and unpaid and to file such other documents as may be necessary in order to have the claims of the Lenders, the L/C Issuers and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuers and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuers and the Administrative Agent under Sections 2.03(h) and (i), 2.09 and 10.04) allowed in such judicial proceeding; and

 

(b)           to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and each L/C Issuer to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuers, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.09 and 10.04.

 

 

  

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Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or any L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Secured Obligations or the rights of any Lender or any L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or any L/C Issuer or in any such proceeding.

 

9.11.        Collateral and Guaranty Matters.  Each of the Lenders (including in its capacities as a potential Cash Management Bank and a potential Hedge Bank) and each of the L/C Issuers irrevocably authorize the Administrative Agent, at its option and in its discretion,

 

(a)           to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all Secured Obligations (other than (A) contingent indemnification obligations and (B) obligations and liabilities under Secured Cash Management Agreements and Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank of Hedge Bank shall have been made) and the expiration or termination of all Letters of Credit (other than Letters of Credit as to which other arrangements satisfactory to the Administrative Agent and the applicable L/C Issuer shall have been made), (ii) that is sold or Disposed of or to be sold or Disposed of as part of or in connection with any sale or Disposition permitted hereunder or under any other Loan Document (other than such sale to another Loan Party), (iii) that constitutes Excluded Property under and as defined in the Security Agreement or (iv)  if approved, authorized or ratified in writing in accordance with Section 10.01;

 

(b)           to release any Guarantor from its obligations under the Guaranty and the Collateral Documents if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder or becomes an Unrestricted Subsidiary;

 

(c)           to subordinate or release any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.01(i) or the proviso in the first sentence of Section 7.01 (to the extent such Lien permitted by such proviso secures Indebtedness of the type described in Section 7.02(g)) (it being understood that the incurrence of Junior Liens is not a subordination or release of any other Lien); and

 

(d)           in connection with (A) the incurrence of Junior Liens pursuant to the proviso in the first sentence of Section 7.01, Section 7.01(jj) or Section 7.01(kk) or (B) the incurrence of Permitted Additional First Lien Debt pursuant to Section 7.02(d), if the Borrower requests that the Administrative Agent on behalf of the Secured Parties enter into an intercreditor agreement on terms that the Administrative Agent deems appropriate in its sole discretion, to enter into such intercreditor agreement and if such intercreditor agreement is posted to the Lenders three Business Days before being executed and the Required Lenders shall not have objected to such intercreditor agreement within such three Business Day-period, the Required Lenders shall be deemed to have consented to such intercreditor agreement and the Administrative Agent’s execution thereof.

 

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 9.11.  In each case as specified in this Section 9.11, the Administrative Agent will, at the Borrower’s expense and upon receipt of any certifications reasonably requested by the Administrative Agent in connection therewith, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment and security 

 

 

  

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interest granted under the Collateral Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations under the Guaranty, in each case in accordance with the terms of the Loan Documents and this Section 9.11.

 

9.12.        Secured Cash Management Agreements and Secured Hedge Agreements.  No Cash Management Bank or Hedge Bank that obtains the benefits of Section 8.03, the Guaranty or any Collateral by virtue of the provisions hereof or of the Guaranty or any Collateral Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.  Notwithstanding any other provision of this Article IX to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Secured Obligations arising under Secured Cash Management Agreements and Secured Hedge Agreements unless the Administrative Agent has received written notice of such Secured Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Cash Management Bank or Hedge Bank, as the case may be.

 

ARTICLE X

MISCELLANEOUS

 

10.01.      Amendments, Etc.  No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:

 

(a)           waive any condition set forth in Section 4.01 (other than Section 4.01(b)(i) or (c)), or, in the case of the initial Credit Extension only, Section 4.02, without the written consent of each Lender;

 

(b)           without limiting the generality of clause (a) above, expressly waive or change any condition set forth in Section 4.02 as to any Credit Extension without the written consent of the Required Revolving Lenders;

 

(c)           extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender;

 

(d)           postpone any date fixed by this Agreement or any other Loan Document for (i) any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to any Lender hereunder or under such other Loan Document without the written consent of such Lender or (ii) any scheduled reduction of any Facility hereunder or under any other Loan Document without the written consent of each Appropriate Lender affected thereby;

 

(e)           reduce the principal of, or the rate of interest (other than default interest) specified herein on, any Loan or L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document to any Lender without the written consent of such Lender; provided, however, that only the consent of the Required Lenders shall be necessary (i) to amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the 

 

  

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effect of such amendment would be to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

 

(f)           change (i) Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender or (ii) the order of application of any reduction in the Commitments or any prepayment of Loans among the Facilities from the application thereof set forth in the applicable provisions of Section 2.05(b) or 2.06(d), respectively, in any manner that materially and adversely affects the Lenders under a Facility without the written consent of (i) if such Facility is a Term Facility, the Required Term A Lenders or the Required Term B Lenders, as applicable and (ii) if such Facility is the Revolving Credit Facility, the Required Revolving Lenders;

 

(g)           change (i) any provision of this Section 10.01 or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder (other than the definitions specified in clause (ii) of this Section 10.01(g)), without the written consent of each Lender or (ii) the definition of “Required Revolving Lenders,” “Required Term A Lenders,” or “Required Term B Lenders, “without the written consent of each applicable Lender;

 

(h)           release all or substantially all of the Collateral in any transaction or series of related transactions (it being understood that neither a transaction permitted by Section 7.05 nor the incurrence of Junior Liens or any Permitted Additional First Lien Debt as contemplated hereunder shall constitute in either case the release of all or substantially all of the Collateral), without the written consent of each Lender;

 

(i)           release all or substantially all of the value of the Guaranty, without the written consent of each Lender, except to the extent the release of any Subsidiary from the Guaranty is permitted pursuant to Section 9.11 (in which case such release may be made by the Administrative Agent acting alone);

 

(j)           except as contemplated by Section 9.11, subordinate the Obligations or the Liens securing them; or

 

(k)           impose any greater restriction on the ability of any Lender under a Facility to assign any of its rights or obligations hereunder without the written consent of (i) if such Facility is a Term Facility, the Required Term A Lenders or the Required Term B Lenders, as applicable, and (ii) if such Facility is the Revolving Credit Facility, the Required Revolving Lenders;

 

and provided, further, that (i) no amendment, waiver or consent shall, unless in writing and signed by each relevant L/C Issuer in addition to the Lenders required above, affect the rights or duties of such L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Agent Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the 

 

 

  

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applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.

 

Notwithstanding any provision herein to the contrary, this Agreement may be amended with the written consent of the Required Lenders, the Administrative Agent and the Borrower (i) to add one or more additional revolving credit or term loan facilities to this Agreement , in each case subject to the limitations in Section 2.14, and to permit the extensions of credit and all related obligations and liabilities arising in connection therewith from time to time outstanding to share ratably (or on a basis subordinated to the existing facilities hereunder) in the benefits of this Agreement and the other Loan Documents with the obligations and liabilities from time to time outstanding in respect of the existing facilities hereunder, and (ii) in connection with the foregoing, to appropriately permit, the Lenders providing such additional credit facilities to participate in any required vote or action required to be approved by the Required Lenders or by any other number, percentage or class of Lenders hereunder.

 

If any Lender does not consent to a proposed amendment, waiver, consent or release with respect to any Loan Document that requires the consent of each Lender or each Lender directly affected thereby and that has been approved by the Required Lenders, the Borrower may replace such non-consenting Lender in accordance with Section 10.13; provided that such amendment, waiver, consent or release can be effected as a result of the assignment contemplated by such Section (together with all other such assignments required by the Borrower to be made pursuant to this paragraph).

 

Notwithstanding anything to the contrary, any Loan Document may be waived, amended, supplemented or modified pursuant to an agreement or agreements in writing entered into by the Borrower and the Administrative Agent (without the consent of any Lender) solely to cure a defect or error, or to grant a new Lien for the benefit of the Secured Parties or extend an existing Lien over additional property.

 

10.02.      Notices; Effectiveness; Electronic Communications.

 

(a)           Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

 

(i)         if to the Borrower, the Administrative Agent, any L/C Issuer or the Swing Line Lender, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02 to the Existing Credit Agreement; and

 

(ii)       if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Borrower).

 

Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not given during 

 

 

  

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normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below shall be effective as provided in such subsection (b).

 

(b)           Electronic Communications.  Notices and other communications to the Lenders and the L/C Issuers hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or any L/C Issuer pursuant to Article II if such Lender or such L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.

 

Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

 

(c)            The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender, any L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Borrower, any Lender, any L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

 

(d)           Change of Address, Etc.  Each of the Borrower, the Administrative Agent, the L/C Issuers and the Swing Line Lender may change its address, facsimile or telephone number for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, facsimile, email or telephone number for notices and other communications hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuers and the Swing Line Lender.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and elec-

 

 

 

  

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tronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrower or its securities for purposes of United States Federal or state securities laws.

 

(e)            Reliance by Administrative Agent, L/C Issuers and Lenders. The Administrative Agent, the L/C Issuers and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the Administrative Agent, the L/C Issuers, each Lender and the Related Parties of each of them from all losses, reasonable and documented costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

 

10.03.      No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender, any L/C Issuer or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

 

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and the L/C Issuers; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C Issuers or the Swing Line Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.13), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.13, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.

 

 

 

  

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10.04.      Expenses; Indemnity; Damage Waiver.

 

(a)            Costs and Expenses.  The Borrower shall pay (i) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, amendments and restatements, modifications or waivers (or any proposed amendments, amendments and restatements, modifications or waivers) of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable and documented out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the fees, reasonable charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with Loans made or Letters of Credit issued hereunder, including all such reasonable and documented out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit; provided that notwithstanding anything to the contrary herein, the Borrower shall not be liable for the fees of more than one counsel to the Administrative Agent, one counsel to the other Lenders (as a group), if applicable, one local counsel in each relevant jurisdiction to each of the Administrative Agent and the other Lenders (as a group) and one special counsel to each such person or group and, in the event of a potential conflict of interest, such additional counsels as are reasonably required.

 

(b)           Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable and documented fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on, at, under or from any property owned, operated or leased at any time by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party or any of the Borrower’s or such Loan Party’s directors, shareholders or creditors, and regardless of whether any Indemnitee is a party thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any other Loan Party against such Indemnitee for a material breach of 

 

 

  

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such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction; provided further that, notwithstanding anything to the contrary herein, the Borrower shall not be liable pursuant to this clause (b) for the fees of more than one counsel to the Administrative Agent, one counsel to the other Lenders (as a group), if applicable, one local counsel in each jurisdiction to each of the Administrative Agent and the other Lenders (as a group) and one special counsel to each such person or group and, in the event of a potential conflict of interest, such additional counsels as are reasonably required.

 

(c)            Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuers or any Related Party of any of the foregoing, each Lender (and for the avoidance of doubt, with respect to the L/C Issuers and their Related Parties, solely each Revolving Lender) severally agrees to pay to the Administrative Agent (or any such sub-agent), the L/C Issuers  or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuers in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or L/C Issuers in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.12(e).

 

(d)           Waiver of Consequential Damages, Etc.  To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed to such unintended recipients by such Indemnitee through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby other than for direct or actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable judgment of a court of competent jurisdiction.

 

(e)            Payments.  All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.

 

(f)            Survival.  The agreements in this Section shall survive the resignation of the Administrative Agent, any L/C Issuer and the Swing Line Lender, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Secured Obligations, and for the avoidance of doubt, the correlative provisions of the Existing Credit Agreement shall remain operative and in full force and effect in accordance with its terms.

 

10.05.      Payments Set Aside.  To the extent that any payment by or on behalf of the Borrower is made to the Administrative Agent, any L/C Issuer or any Lender, or the Administrative Agent, such L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, any L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any pro-

 

 

  

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ceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and each L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C Issuers under clause (b) of the preceding sentence shall survive the payment in full of the Secured Obligations and the termination of this Agreement.

 

10.06.      Successors and Assigns.

 

(a)           Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of Section 10.06(b), (ii) by way of participation in accordance with the provisions of Section 10.06(d), or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 10.06(f) (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuers and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)            Assignments by Lenders.  Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment(s) and the Loans (including for purposes of this Section 10.06(b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it); provided that any such assignment shall be subject to the following conditions:

 

(i)        Minimum Amounts.

 

(A)          in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment under any Facility and the Loans at the time owing to it under such Facility or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)           in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000, in the case of any assignment in respect of the Revolving Credit Facility, or $1,000,000, in the case of any assignment in respect of either Term Loans or Term Commitments, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and con-

 

 

  

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current assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

 

(ii)       Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not (A) apply to the Swing Line Lender’s rights and obligations in respect of Swing Line Loans or (B) prohibit any Lender from assigning all or a portion of its rights and obligations among separate Facilities or Commitments on a non-pro rata basis;

 

(iii)       Required Consents.  No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

 

(A)           the consent of the Borrower (such consent not to be unreasonably withheld) shall be required unless (1) an Event of Default under Sections 8.01(a), (f) or (g) has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after having received written notice thereof;

 

(B)           the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments in respect of (1) any Term Loan or Term Commitment if such assignment is to a Person that is not a Term Lender, an Affiliate of a Term Lender or an Approved Fund with respect to a Term Lender or (2) any Revolving Credit Commitment if such assignment is to a Person that is not a Lender with a Revolving Credit Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender;

 

(C)           the consent of each L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Revolving Credit Facility for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and

 

(D)           the consent of the Swing Line Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Revolving Credit Facility.

 

(iv)       Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500 (unless such fee is waived by the Administrative Agent in its sole discretion); provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.

 

(v)       No Assignment to Certain Persons.  No such assignment shall be made (A) to the Borrower or any of the Borrower’s Affiliates or Subsidiaries (other than a Purchasing Borrower 

 

 

  

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Party pursuant to Section 10.06(h)), or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), or (C) to a natural person.

 

(vi)       Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

 

Notwithstanding the foregoing or anything to the contrary set forth herein, any assignment of any Loans or Commitments to a Purchasing Borrower Party shall also be subject to the requirements set forth in Section 10.06(h).

 

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, 3.05 and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment.  Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 10.06(d).

 

(c)            Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower (and such agency being solely for tax purposes), shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal and interest amounts of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  In addition, the Administrative Agent shall maintain on the Registrar information regarding the designation, and revocation of designation, of any Lender as a Defaulting Lender.  The Register shall be available 

 

 

  

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for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(d)           Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural person, a Restricted Entity, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuers shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.01 that affects such Participant.  Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 (subject to the requirements and limitations thereof (including the requirement to provide documentation under Section 3.01(e)) and Section 3.06 and Section 10.13) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 10.06(b).  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.13 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and interest amounts) of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”).  The entries in the Participant Register shall be conclusive and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. No Lender shall have any obligation to disclose all or any portion of a Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans or other Obligations under any Loan Document) except to the extent that such disclosure is necessary in connection with a Tax audit or other Tax proceeding to establish that such Commitment, Loan or Other Obligation is in registered form for U.S. federal income tax purposes.

 

(e)            Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent or except to the extent the right to a greater payment arises from any change in any Requirements of Law after such Participant became a Participant.

 

(f)            Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or its foreign equivalent; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)           Resignation as L/C Issuer or Swing Line Lender after Assignment.  Notwithstanding anything to the contrary contained herein, if at any time Bank of America or any other L/C Issuer assigns all of its Revolving Credit Commitment and Revolving Credit Loans pursuant to Section 10.06(b), such Per-

 

 

  

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son may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the Borrower, resign as Swing Line Lender.  In the event of any such resignation as L/C Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of Bank of America or such other L/C Issuer as L/C Issuer or Swing Line Lender, as the case may be.  If Bank of America or another L/C Issuer resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of an L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to Bank of America or such other resigning L/C Issuer to effectively assume the obligations of Bank of America or such Person with respect to such Letters of Credit.

 

(h)           Notwithstanding anything else to the contrary contained in this Agreement, any Lender may assign all or a portion of its Term Loans to any Purchasing Borrower Party in accordance with Section 10.06(b); provided that:

 

(i)        no Default or Event of Default has occurred or is continuing or would result therefrom;

 

(ii)       the assigning Lender and Purchasing Borrower Party purchasing such Lender’s Term Loans, as applicable, shall execute and deliver to the Administrative Agent an assignment agreement substantially in the form of Exhibit E-3 to the Existing Credit Agreement (a “Purchasing Borrower Party Assignment and Assumption”) in lieu of an Assignment and Assumption;

 

(iii)       for the avoidance of doubt, Lenders shall not be permitted to assign Revolving Credit Commitments or Revolving Credit Loans to any Purchasing Borrower Party;

 

(iv)       any Term Loans assigned to Borrower or its Subsidiaries shall be automatically and permanently cancelled for upon the effectiveness of such assignment and will thereafter no longer be outstanding for any purpose hereunder;

 

(v)       no Purchasing Borrower Party may use the proceeds from Revolving Credit Loans or Swing Line Loans to purchase any Term Loans;

 

(vi)      except as previously disclosed in writing to the Administrative Agent and the Term Lenders, the Purchasing Borrower Party must represent that as of the date of such assignment (x) it has no knowledge of the existence of any event or circumstance, individually or in the aggregate, that will or would reasonably be expected to give rise to a mandatory prepayment of the Loans pursuant to Section 2.05 (other than 2.05(b)(i)) within 30 days of such assignment and (y) if the Borrower or a Subsidiary only, it does not have any MNPI with respect to the Borrower or any of its Subsidiaries that has not been disclosed to the assigning Lender (other than because such assigning Lender does not wish to receive MNPI with respect to the Borrower, any of its 

 

 

  

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Subsidiaries or Affiliates) that could reasonably be expected to have a material effect upon, or otherwise be material, to a Term Lender’s decision to assign Term Loans to such Purchasing Borrower Party; provided that the Purchasing Borrower Party is not the Borrower or a Subsidiary thereof, each of the assigning Lender, on the one hand, and the Purchasing Borrower Party, on the other hand, shall acknowledge and agree that, (A) the other party currently may have, and later may come into possession of, Excluded Information, (B) it has independently and without reliance on the other party made its own analysis and determined to enter into the Purchasing Borrower Party Assignment and Assumption notwithstanding its lack of knowledge of the Excluded Information and (C) the other party shall have no liability to it, and it hereby (to the extent permitted by law) waives and releases any claims it may have against the other party (under applicable laws or otherwise) with respect to the nondisclosure of the Excluded Information; and

 

(vii)     no Term Loan may be assigned to a Purchasing Borrower Party pursuant to this Section 10.06 if, after giving effect to such assignment (and any related cancellation), Purchasing Borrower Parties in the aggregate would own more than 20% of the aggregate principal amount outstanding of Term Loans.

 

Purchasing Borrower Parties (other than Debt Fund Affiliates) will be subject to the restrictions set forth in Section 10.21.

 

(i)            The Administrative Agent shall not have any responsibility for ensuring that an assignee of, or a participant in, a Loan or Commitment is not a Restricted Entity, and shall not have any liability in the event that Loans or Commitments, or a participation therein, are transferred to any Restricted Entity.

 

10.07.      Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders and the L/C Issuers agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) after notice thereof to the Borrower, if practicable and allowed under the circumstances and unless if in connection with routine audits or reviews by any regulatory or self-regulatory authority, to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) after notice thereof to the Borrower, if practicable and allowed under the circumstances, to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto or in connection with any pledge or assignment permitted under Section 10.06(f), (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible Assignee invited to be a Lender pursuant to Section 2.14 or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, any Lender, any L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower.

 

For purposes of this Section, “Information” means all information received from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or any L/C Issuer on a 

 

 

  

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nonconfidential basis prior to disclosure by the Borrower or any Subsidiary, provided that, in the case of information received from the Borrower or any Subsidiary after the Original Closing Date, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

 

Each of the Administrative Agent, the Lenders and the L/C Issuers acknowledges that (a) the Information may include material non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including United States Federal and state securities Laws.

 

10.08.      Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender, each L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, such L/C Issuer or any such Affiliate to or for the credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or such L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender or such L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness; provided, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.16 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each Lender, each L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have.  Each Lender and each L/C Issuer agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

 

10.09.      Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

 

10.10.      Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, 

 

 

  

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but all of which when taken together shall constitute a single contract.  This Agreement, and the other Loan Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

10.11.      Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

 

10.12.      Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions of this Section 10.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, the L/C Issuers or the Swing Line Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.

 

10.13.      Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, if any Lender is a Defaulting Lender or if any other circumstance exists hereunder that gives the Borrower the right to replace a Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

 

(a)           the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b) (unless such fee is waived by the Administrative Agent in its sole discretion);

 

(b)          such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

 

 

  

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(c)           in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter; and

 

(d)           such assignment does not conflict with applicable Laws.

 

Each Lender agrees that, if the Borrower elects to replace such Lender in accordance with this Section, it shall promptly execute and deliver to the Administrative Agreement an Assignment and Assumption to evidence such sale and purchase and shall deliver to the Administrative Agent any Note (if Notes have been issued in respect of such Lender’s Loans) subject to such Assignment and Assumption; provided, that the failure of any such non-consenting Lender to execute an Assignment and Assumption shall not render such sale and purchase (and the corresponding assignment) invalid and such assignment shall be recorded in the Register.  A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

 

10.14.      Governing Law; Jurisdiction; Etc.

 

(a)           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           SUBMISSION TO JURISDICTION.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, 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 NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

 

(c)            WAIVER OF VENUE.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

 

(d)           SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

 

  

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10.15.      WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

10.16.      No Advisory or Fiduciary Responsibility.  In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower and the Loan Parties acknowledge and agree, and acknowledge their respective Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent and the Arrangers are arm’s-length commercial transactions between the Loan Parties and their respective Affiliates, on the one hand, and the Administrative Agent and the Arrangers, on the other hand, (B) each of the Borrower and the Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of the Borrower and the Loan Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative Agent and each of the Arrangers and each of the Lenders is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower or Loan Party or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent nor any Arranger nor any Lender has any obligation to the Borrower or Loan Party or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent and the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the Loan Parties and their respective Affiliates, and neither the Administrative Agent nor any Arranger nor any Lender has any obligation to disclose any of such interests to the Borrower or any Loan Party or any of their respective Affiliates.  To the fullest extent permitted by law, the Borrower and the Loan Parties hereby waive and release any claims that any of them may have against the Administrative Agent and the Arrangers and the Lenders with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

10.17.      Electronic Execution of Assignments and Certain Other Documents.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption or in any amendment or other modification hereof (including waivers and consents) shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

10.18.      USA PATRIOT Act.  Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identi-

 

 

  

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fies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance with the Act.  The Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

 

10.19.      Time of the Essence.  Time is of the essence of the Loan Documents.

 

10.20.      ENTIRE AGREEMENT.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

 

10.21.      Purchasing Borrower Parties.

 

(a)            Subject to clause (b) below, each Purchasing Borrower Party, other than Debt Fund Affiliates, in connection with any (i) consent (or decision not to consent) to any amendment, modification, waiver, consent or other action with respect to any of the terms of any Loan Document, (ii) other action on any matter related to any Loan Document or (iii) direction to the Administrative Agent or any Lender to undertake any action (or refrain from taking any action) with respect to or under any Loan Document, agrees that, except with respect to any amendment, modification, waiver, consent or other action described in clause (c), (d) or (e) of the proviso of Section 10.01 or that adversely affects such Purchasing Borrower Party in any material respect differently than other Lenders, the Term Loans held by a Purchasing Borrower Party (other than by a Debt Fund Affiliate) shall be disregarded in both the numerator and denominator in the calculation of any Lender vote.  Subject to clause (b) below, the Borrower and each Purchasing Borrower Party (other than a Debt Fund Affiliate) hereby agrees that if a case under Title 11 of the United States Code is commenced against the Borrower, the Borrower, with respect to any plan of reorganization that does not adversely affect any Purchasing Borrower Party in any material respect as compared to other Lenders, shall seek (and each Purchasing Borrower Party (other than a Debt Fund Affiliate) shall consent) to designate the vote of any Purchasing Borrower Party (other than a Debt Fund Affiliate) and the vote of any Purchasing Borrower Party (other than a Debt Fund Affiliate) with respect to any such plan of reorganization of the Borrower shall not be counted.  Subject to clause (b)(iii) below, each Purchasing Borrower Party (other than a Debt Fund Affiliate) hereby irrevocably appoints the Administrative Agent (such appointment being coupled with an interest) as such Purchasing Borrower Party’s attorney-in-fact, with full authority in the place and stead of such Purchasing Borrower Party and in the name of such Purchasing Borrower Party, from time to time in the Administrative Agent’s discretion to take any action and to execute any instrument that the Administrative Agent may deem reasonably necessary to carry out the provisions of this clause (a).

 

(b)           Notwithstanding anything to the contrary in this Agreement, no Purchasing Borrower Party, other than Debt Fund Affiliates, shall have any right to (i) attend (including by telephone) any meeting or discussions (or portion thereof) among the Administrative Agent or any Lender to which representatives of the Borrower are not then present, (ii) receive any information or material prepared by Administrative Agent or any Lender or any communication by or among Administrative Agent and/or one or more Lenders, except to the extent such information or materials have been made available to the Borrower or its representatives, or (iii) make or bring (or participate in, other than as a passive participant in or recipient of its pro rata benefits of) any claim, in its capacity as a Lender, against Administrative Agent or any other Lender with respect to any duties or obligations or alleged duties or obligations of such Agent or any other such Lender under the Loan Documents.

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.

 

 

	
WENDY’S INTERNATIONAL, INC.,

	  
	
as the Borrower

	  
	  	  	  	  
	  	  	  	  
	
By:

	
/s/ Daniel T. Collins

	  
	  	
Name:

	
Daniel T. Collins

	  
	  	
Title:

	
SVP, Treasurer and Assistant Secretary

	  

 

 

  

S-1

  

 

 

 

	
BANK OF AMERICA, N.A.,

	  
	
as Administrative Agent

	  
	  	  	  	  
	  	  	  	  
	
By:

	
/s/ Kelly Weaver

	  
	  	
Name:

	
Kelly Weaver

	  
	  	
Title:

	
Assistant Vice President

	  

 

 

 

 

 

 

 

S-2

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